FG Ends Intels’ Dominance of Oil and Gas Port Logistics Services
May 8, 20171629242



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• Onne Free Zone designated multi-purpose cargo terminal

Bolaji Adebiyi in Abuja

Integrated Logistics Services Nigeria Limited’s (Intels) dominance of the nation’s oil and gas logistics business at the ports has ended with President Muhammadu Buhari’s approval of a policy review, which guarantees the right of importers to choose terminals or ports of their choice for the discharge of their cargo.



The president also approved the Onne Oil and Gas Free Zone Terminal in Rivers State as a multi-purpose cargo terminal, saying its non-designation as such previously did not in any way legally obstruct or compromise the operations of the free zone for all cargoes, including oil and gas.

The presidential approval was contained in a letter dated May 5, 2017, which was signed by the Managing Director, Nigerian Ports Authority (NPA), Ms. Hadiza Bala Usman, to the Managing Director of Josepdam Port Services Limited (JPSL), another port terminal operator.

The letter was obtained exclusively by THISDAY from sources in the presidency.
Intels, previously NICOTES, which among others, was granted a concession to operate terminals at the ports has dominated the business to the consternation of other operators who accused it of running a monopoly with the connivance of senior government officials, particularly at the NPA.

Its most evident stranglehold was in oil and gas logistics services, which it claimed to have an almost exclusive concession over, as most cargoes in that sector were directed to its terminals for discharge by government agencies saddled with the responsibility of regulating port operations.

Many other operators, including Josepdam that was formed in 2006, and in May that year got a concession from the federal government to handle bulk and general cargo, complained loudly about what they termed Intels’ monopoly of the business.
So loud was the agitation that shortly after she took over in September last year, Usman promised to institute a policy reform that would end the said monopoly.

She would seem to have delivered on her promise, setting up a policy reform committee whose recommendations were approved last month by the president.

Entitled, Conveyance of Presidential Approval – Re: Report on Concessioned Terminals in the Ports, the letter read: “Following a review of the Federal Government of Nigeria’s (FGN) policy directive over the years in respect of the concessions and applicable legal regime by the Office of the Honourable Attorney General of the Federation and Minister for Justice, touching upon reform initiatives and implementation as a veritable mechanism for the development of the maritime industry, investments made to date, general global practice in designation of terminals, right of importers to choose terminals or ports for discharge of their cargoes, streamlining of shipping and other fees, His Excellency, the President of the Federal Republic of Nigeria, has conveyed approval on 21st April, 2017 to the Honourable Minister of Transportation on the final position in the following terms:

“FGN remains guided by the general global practice in the designation of Terminal/Ports operations into three broad categorisation of bulk cargo, container cargo and multipurpose cargo. Accordingly, the FGN rejects the categorisation of oil and gas multi-purpose cargo terminal, as this is alien to the relevant concession agreements and inconsistent with global shipping practices.
“The non-designation of the Onne Oil and Gas Free Zone as an ‘Oil and Gas Multi-purpose Cargo Terminal’ does not in any way legally obstruct or compromise the operations of the Free Zone as an Oil and Gas Free Zone, but rather, it merely indicates that all cargo including oil and gas can be discharged at the terminal.
“FGN reaffirms past presidential directives that all importers are free to choose any terminal or port for the discharge of their cargoes, subject to the presence of all requisite regulatory agencies at such ports as required by extant regulations and in line with its policy of promoting competition and value for money. Consequently, any policy that designates certain ports by cargo type is cancelled.

“The Nigerian Ports Authority and the Bureau of Public Enterprises (BPE) are to streamline the payment of shipping and other fees at various terminals in a manner that ensures such fees are based on cargo type rather than on the basis of designation of terminals, to ensure that there is no loss of revenue due to FGN based on terminals that importers choose to bring cargoes into the country.”

Industry watchers said on Sunday that the policy shift would bring smiles to the faces of over 170 operators whose businesses had been forced to close shop owing to the diversion of oil and gas cargoes to Intels’ terminals on the grounds that they were designated as an oil and gas terminal.

Intels won the bid for the concession of operation of port terminals, including the Onne Oil and Gas Free Zone in Rivers State, following the implementation of the port reforms and concessions initiated by the federal government during the Olusegun Obasanjo administration.

The exercise, which was supervised by the BPE, divested the management of the NPA of the day-to-day running of the terminals as well as cargo handling.

Largely owned by an Italian, Mr. Gabriel Volpi, with former Vice-President Atiku Abubakar as another major stakeholder, Intels had used its presence of more than three decades in the industry and huge financial muscle to crowd out other players who were too weak to resist its dominance in the face of the preferential treatment it enjoyed from key government officials and regulatory agencies.

Atiku, THISDAY learnt, is believed to have sold down his interest in Intels to former Lagos governor, Bola Tinubu.

It was a matter of time before other stakeholders staged a revolt, which steadily came to fruition late last year when the new administration under the watch of Usman harkened to their cries and instituted a policy review that got the presidential nod last month.







https://www.thisdaylive.com/index.php/2017/05/08/fg-ends-intels-dominance-of-oil-and-gas-port-logistics-services/

God bless you madam bala

God bless all that worked for the actualization of this project

God bless Yemi Osinbajo

God bless Muhammadu Buhari

God bless federal republic of Nigeria

Atiku should forget 2019. Shikena

OBJ/Atiku most corrupt combination ever in Nigeria history.

Atiku and obj looted over 16 Trillion Naira for power.

Atiku should tell us what he forgot in Aso Rock.

There's no need trying to cripple an empire of a noble businessman, just because he has declared his intention to become the President of the Greatest country in Africa ;

No New federal Roads

Corruption is still the order of the day among top government functionaries under the " CHANGE " Government

ASUU and resident Doctors strike no solution for now.

Our economy is still in Shambles

Where are the supposed "3mIllion jobs" promised by PMB/Osinbajo?

A President with over 10 media aides and a professional photographer...

A President who prefers Employing 342 youths, sorry Alex resigned yesterday. A President who prefers Employing 341 youths at a monthly pay of 83k just to polish his image on all social media channels .

Some of these youthshave not taken an hour nap for over 2years now just to justify their 83k monthly pay.



God Bless Nigeria

Thats how he was sidelined.

If Atiku can make PMB president, why is he finding it so difficult to be the president, it was his over ambitiousness that contributed to the setback of today.

NOC1:
Thats how he was sidelined.

If Atiku can make PMB president, why is he finding it so difficult to be the president, it was his over ambitiousness contributed to the setback of today.

History will remember you for good

You are a patriot

Good decision by the MD of NPA

life2017:
Good decision by the MD of NPA

You are a patriot

God bless you by standing with the truth

sarrki:



He nominated One Minister, a President's spokesperson, AMCON CEO, yet he says "I'm not consulted". Traitor must say something!

Buhari should focus more on Governance .

2015 ; It was GEJ and his ministers stole from our treasury.

2016 : It was GEJ did not fix a single road

2017: Its GEJ was incompetent


Late 2017; it's now Atiku ;

Your President and Mentor should roll up his sleeves and do what he promised Nigerians before the polls in 2015. .

Atiku2019:


Buhari should focus more on Governance .

2015 ; It was GEJ and his ministers stole from our treasury.

2016 : It was GEJ did not fix a single road

2017: Its GEJ was incompetent


Late 2017; it's now Atiku ;

Your President and Mentor should roll up his sleeves and do what he promised Nigerians before the polls in 2015. .

Oga sef don open the book of lamentation

So, it took a PMB to end Intel's monopoly and guarantee the right of importers to choose terminals or ports of their choice for the discharge of their cargo. The president also approved the designation of Onne Oil and Gas Free Zone Terminal in Rivers State as a multi-purpose cargo terminal.

Importers with businesses in the south east and south south will benefit more from this decisions but you will not see our ipob friends here. They see no good and hear no good.

sarrki:



Oga sef don open the book of lamentation

How far with the promised 3million jobs? Any news?

How far with the promised Ogoni clean-up?

Atiku2019:



How far with the promised 3million jobs? Any news?

How far with the promised Ogoni clean-up?

See wetin your oga posted yesterday

Atiku2019:



How far with the promised 3million jobs? Any news?

How far with the promised Ogoni clean-up?

Una never ready now.. Just oil our machinery and see Atiku's profile soar highest.

I shocked them on twitter and for once, everybody reflected on Atiku..

dunkem21:


Una never ready now.. Just oil our machinery and see Atiku's profile soar highest.

I shocked them on twitter and for once, everybody reflected on Atiku..

Bro I didn't know you are a member of a jester group

seunmsg:
So, it took a PMB to end Intel's monopoly and guarantee the right of importers to choose terminals or ports of their choice for the discharge of their cargo. The president also approved the designation of Onne Oil and Gas Free Zone Terminal in Rivers State as a multi-purpose cargo terminal.

Importers with businesses in the south east and south south will benefit more from this decisions but you will not see our ipob friends here. They see no good and hear no good.

One of the best brain on Nairaland

sarrki:





Bro I didn't know you are a member of a jester group

dunkem21:

I don't like the way you keep off comments of recent

You hardly contributed

When I joined Nairaland fully

You are one of those that inspired and motivated me

Serious

Atiku, THISDAY learnt, is believed to have sold down his interest in Intels to former Lagos governor, Bola Tinubu.

Make una dey read news complete o! This here is the crux of the matter; Atiku has divested his interests in INTELS to Tinubu and Now This!
Some wings are definitely being politically clipped but are they really Atiku's?

Slow and steady we are going forward. The pace might not be as we expected but it's getting better

seunmsg:
So, it took a PMB to end Intel's monopoly and guarantee the right of importers to choose terminals or ports of their choice for the discharge of their cargo. The president also approved the designation of Onne Oil and Gas Free Zone Terminal in Rivers State as a multi-purpose cargo terminal.

Importers with businesses in the south east and south south will benefit more from this decisions but you will not see our ipob friends here. They see no good and hear no good.

Attempts to derail and turn this thread to a tribal slur is noted and ignored.

Atiku's businesses are being witch hunted because of his interest in 2019.

I wonder when Aliko's monopoly will be broken

kenny987:

By Thisday shay ?

Able women leader

We hail thee

sarrki:


I don't like the way you keep off comments of recent

You hardly contributed

When I joined Nairaland fully

You are one of those that inspired and motivated me

Serious

Ask Omenka.. He was harassing my family members.

Thanks for the kind words

dunkem21:


Attempts to derail and turn this thread to a tribal slur is noted and ignored.

Atiku's businesses are being witch hunted because of his interest in 2019.

I wonder when Aliko's monopoly will be broken

Let him venture into politics and you see his end

sarrki:


By Thisday shay ?

Able women leader

We hail thee

Once a perspective does not glorify ur godman Buhari the zombie master, u become jittery and practically pee in ur pants. Read n reason if you can...

dunkem21:


Ask Omenka.. He was harassing my family members.

We are all one great family here

All the for and against is all good for democracy

We may belong to different political parties, tribe or religious belief

The Paramount thing should be betterment of children yet unborn

kenny987:


Once a perspective does not glorify ur godman Buhari the zombie master, u become jittery and practically pee in ur pants. Read n reason if you can...

Wailers are frustrated this few days

sarrki:


Let him venture into politics and you see his end

Exactly why he doesn't want to join politics.

There's no fair play in politics.

dunkem21:


Exactly why he doesn't want to join politics.

There's no fair play in politics.

Boss we all know

Even in advanced countries its same everywhere you go

sarrki:


Boss we all know

Even in advanced countries its same everywhere you go

No, it's not. Trump is a very wealthy businessman, he contested and won the ruling party without his businesses bewitched.

dunkem21:


No, it's not. Trump is a very wealthy businessman, he contested and won the ruling party without his businesses bewitched.

Its too early to conclude

Do you remember balisconi of Italy ?

The former president or prime minister I think