After Paying INTELS over N1 trillion, FG Moves to Acquire 10 Per cent Equity

Concerns mount as INTELS’ shareholder takes over as MD of NPA, in clear impunity and conflict of interest

There is a growing concern among industry stakeholders over the recent moves by the federal government to acquire ten per cent equity of the Integrated Services Nigeria Limited (INTELS) in the dying days of the President Goodluck Jonathan's administration, which analysts believed will reinforce the monopoly of the private company in the critical maritime sector using the resources of the federal government of Nigeria.

The worry arises from the

revelations from a report, which shows that the Nigeria Ports Authority (NPA) had indeed paid INTELS the sum of $5.2 billion (about N1.04tr) over the years.

INTELS, which was hitherto known as Nicotes, which started business in the 80’s is the exclusive concessionaire of Onne, Warri and Calabar ports.

According to reports made available to THISDAY, it was discovered that the late Emir of Kano, Alhaji Ado Bayero, owns ten per cent equity of INTELS, while the original investors and the late Shehu Yar'Adua owned 50 and 20 per cent equity respectively.

Stakeholders therefore find it curious that the late emir’s son, Alhaji Sanusi Lamido AdoBayero was recently appointed the Managing Director of the NPA, in what many see as not only an act of gross impunity, but also a manifest case of conflict of interest. He resumed office April 30. It is even more worrisome that the Federal Government is making moves to acquire the shareholding of the late emir, while his son superintends over the affairs of the NPA.

It is even more curious that the former Managing Director, Mallam Habib Abdullahi was removed because he was opposed to the move by the federal government to buy the 10 per cent equity in INTELS.

In his letter to the federal government through the interministerial committee on the acquisition of the 10 per cent equity, the former Managing Director wrote that: "Venturing directly into the shareholding of a private partner may conpromise the neutrality of NPA as landlord and the federal government as umpire in the industry".

He further said that in the light of the prevailing controversy concerning INTELS' alleged monopolistic activities, buying into INTELS' shares will generate discomfort among players in Nigerian Port industry and make the NPA vulnerable giving that it (NPA) has ongoing participation with other development partners.

Following this memo, Abdullahi was removed as Managing Director and the son of a major shareholder, Alhaji Lamido AdoBayero was appointed.

Maritime operators who spoke to THISDAY last night are worried that the monopoly hitherto enjoyed by INTELS in the operations of the ports will only get worse with the major owner of INTELS now presiding as the managing director of the ports.

“This will surely stymied operations of the ports and I can assure you that this is not good for our economy”, as source said last night.

INTELS took over the running of the ports following the conclusion of the economic reforms in the nation’s seaports during the Chief Olusegun Obasanjo’s administration.

The exercise, which was midwifed by the Bureau for Public Enterprises (BPE) divested the management of the Nigerian Ports Authority (NPA), that is the day-to-day running of the ports from the government agency to private operators.

According to the report which was obtained by THISDAY at the weekend, INTELS has monopolised the services rendered by the authority in Onne Port Complex and the Oil and Gas Free Trade Zone to the detriment of other operators in the maritime industry and beyond.

The report also showed that in the areas of its operations, the company has edged out its competitors as it now provides services previously rendered by NPA and in the process raking in millions of naira as profit.

The report said it is pertinent for the federal government to review its relation with the company to ensure that its competitors are not made to continue to hold the short end of the stick.

According to the report, it is not proper for the federal government to buy into the shares of the company as it is proposed in certain quarters. Venturing into the share holding of a private company by the federal government will jeopardise the position of NPA as a government umpire that ought to be neutral in the port industry.

It hinged its position on the fact that INTELS is yet to be, publicly quoted company as it still largely a private entity with several interests at stake.

In a seeming defence of government's move a senior government official last night confirmed that Abdullahi's memo came to an inter-ministerial committee comprising the ministers of Justice, Transport and Commerce and Industry.

When ask why government wants to buy into the shares of a private company which collects revenue on behalf of federal government and has relationship with the Nigerian National Petroleum Corporation (NNPC), the official said government was considering the move as a way of raising revenue given that a free trade zone is not taxable.

He however assured that the government will take a second look at everything, "and we will come out will a win-win situation".