The withdrawal of the management of pilotage from Integrated Logistics Services Nigeria Limited has cost the Federal Government $161m, Nigerian Ports Authority has disclosed.

The NPA, in a statement on Sunday, said that the monies were lost due to the constraint of not having the requisite technology to monitor the operations.

After the expiration of the service boat management agreement, the authority took over the performance of the service through various departments and divisions. However, due to the constraint of not having the requisite technology to monitor the operations, the expected revenue dwindled and it resulted in the drastic reduction of revenue generation for the authority.

An analysis of its impact on the authoritys revenue showed a sharp decline from $216m and $209m in 2014 and 2015 respectively under Intels agency to $130m and $99m in 2020 and 2021 after taking over by NPA. The situation in 2023 is even worse as the collection up to June 2023 was only $55.3m, the statement read.

Recall that the former Vice President, Atiku Abubakar, recently said he had sold his interests in INTELS.

The agency also said that as part of efforts to resolve the disagreement between INTELS and the Federal Government on the service boat operations, the company waived over $193m debt.

NPA explained that the agreement reached with INTELS was done in the interest of the nation.

Recall that the NPA in a memo over the weekend titled ˜Reinstatement of INTELS Nigeria Limited as the authoritys service boat operations monitoring provider in the pilotage district signed by the Ports Manager of Lagos Port Complex, Charles Okaga, said that it had extended the service boat operation it entered with the firm.

Giving an update on the development, NPA assured Nigerians that the move would increase revenue generation.

NPA said that the agency was unhappy about the needless loss of revenue as a result of the issue.

It added that Nigeria would save $326.9m from the agreement it reached with INTELS on the contentious pilotage contract.

The Federal Government would earn over $500m taking into consideration the interest waiver of $193m, the reduction in the interest rate on the outstanding debt from six-month London Interbank Offer Rate + 6.5 per cent to six-month Secured Overnight Financing Rate+ 3 per cent, the spread of the repayment of the debt over 15 years, with the first two years interest-free and the reduction in commission from 28 per cent to 24.5 per cent.

It has become necessary to put the record straight for the benefit of the public and the generality of stakeholders in the port industry. This is also to avoid distortions and conjectures, which may arise because of wrong interpretation of the aforementioned letter, the agency further explained.

Giving a breakdown of the agreement, NPA said that it reached an agreement on a $100m waiver being part of the accrued interest as of July 31, 2023, on the indebtedness to Deep Offshore Services Limited under the Phase 4B agreement.

It noted, A further waiver of the interest accruing on the outstanding debt under the Phase 4B Agreement for two years commencing from 1st of July 2023 and ending on the 30th of July, 2023, which is estimated in the sum of $93m. (The PUNCH)