EXPOSING THE DRAINING FORCES OF THE NIGERIAN ECONOMY

The Nigerian Port Authority is one of the major red generation for. The Nigerian government, it’s a huge revenue generation outlet which is very important to the nation. But due to the huge and gigantic task involves in the operations, a logistics company is hired to mange most of the intricacies he brings in INTELS logistics.

Firstly, INTELS is to manage the collections of revenue and monitor it remittiances and redistributions. For this services, the NPA pays INTELS 28% of the total earnings which is too high compared to international standards.

The second phase of INTELS contract is the development of Ports Infrastructure at Onne Ports, in August 2013 the Federal Executive Council (FEC) engaged Deep Offshore Services Nig Limited, another agency of INTELS, to put in place Port infrastructure at Onne Ports Phase 4B for the sum of $2.7bn within a period of 6years. The project cost was agreed to run through the revenue of port charges and Service Boats Operations earnings that is, NPA will also remit 60% balance of the 72% left (100% – 28%) for this port development.

Meanwhile, the capacity of Phase 3 and 4A earlier constructed by INTELS is evaluated at less than 60% but at a cost 20% higher than initial contract sum because NPA pays cost of labor which is 6% more.

In retrospect, similar upgraded contract should have been signed internationally and the terms and conditions of the contract are so mean from each other. For example; the Maritime and Port Authority of Singapore and Dredging Asia Pacific signed similar contracts with Daelim Joint Venture for $1.8bn for a new port wharf terminal Phase 1. This entails the construction of a new port terminal with 20 deep-water berths having a total capacity of 20million twenty-foot equivalent units (TEUS) per annum.

In contrast to these two signed contracts, Deep Offshore Services are constructing only 8 deep-water berths for the Phase 4B at $2.7bn. This is almost a billion dollar extra for less number of deep-water berths.

This is a ridiculous idea and one couldn’t but wonder who and why a governemnt will agree on such contract at the deficiency of the country, this is not the end of a highly embarrassing and ludicrous contract. Even more to this, there is no clause in the contract instructing INTELS on how or when to remit stipulated percentage of the Service Boats Operations revenue collections to NPA. This established that it’s remittances are based on mutual understanding between both parties. Really?

So since 2013, INTELS remitted an average of $3m monthly which is about 18% of average revenue collected on behalf of the NPA. Only in 2014 did the remitance soar to an average of $5.6m per month. But in 2016 the remittance dropped to an average of $3.6m, more so, the last time a remitance is made to the NPA is over a year ago.

This called for a review by the former management which was followed through until recent approval to terminate the contract.

To think that, any government could signed a sham of a contract like this only leaves the country in a hopeless situation, how can, let’s  examine a scenario whereby the country is a business owned by one the leaders of the country who’s responsible for it will they ever sign such destructive contract that seeks to put more of their funds into the pocket of a particular business owner. But upon further research, the reason and facts behind the evil contract is because INTELS logistics is owned by the former Vice President Alh. Atiku Abutbakar.

More reason why the Nigerian youths needs to wake up from their slumber to take over the governing of this country and seek to dismantle the cabal that have subsequently hold the country by the jurgular.