Embattled Intels withholds Nigerian govt’s share of N41 billion 2017 revenue 

intels_office_building_project_img_1-720x450
Intels office building (Photo Credit: The Guardian)

As disagreement over treasury single account compliance lingered between it and the Nigerian government, the management of Integrated Logistics Services Limited, Intels, has withheld more than N40 billion it earned between January and September 2017 —including billions that should have gone into the federation account as Nigeria’s cut.

Documents seen by PREMIUM TIMES showed that the firm earned $132,957,286.18 (or N40.55 billion at N305/per dollar) within the first nine months of the year, but failed to remit percentage due, which it calculates at its own discretion due to a lack of formal sharing arrangement, to the government.

The only boat services revenue received by NPA was a paltry $26,502.52 charge which was deposited directly by a customer into NPA’s TSA account at Central Bank, documents show.

The amount represented 0.07 percent of the $132,957,286.18 that Intels, which is partly owned by former Vice President Atiku Abubakar, has paid so far this year.

The withheld fund is part the revenues Nigerian government could have tapped into to beat back its 2017 budget shortfall.

The stalemate over compliance with the administration’s TSA office compelled the Nigerian Ports Authority to discontinue its contractual obligations with Intels for the collection of boat services revenue for oil and gas cargoes at different ports in the country.

The NPA has been locked in a protracted dispute with Intels since 2016 when the agency first demanded that all revenues collected by the firm from service boat operators be paid into a government-run account in line with the TSA public accounting mechanism.

In a June 28, 2016 letter, for instance, the maritime agency warned Intels that the firm was violating extant concession regulations by insisting on collecting revenues into its bank accounts rather than the NPA’s TSA account with the CBN.

Revenue profile of INTELS from service boat revenue
Revenue profile of INTELS from service boat revenue

Officials also instructed Intels to start computing identification and payment profile of service boats individually, rather than the wholesale listing of all service boats under the name of Intels. This would allow each service boat operator pay into NPA’s transit accounts in local banks for onward remittance to the CBN.

The NPA also devised a new standard operating procedure that includes a new revenue-sharing agreement. Under the new SOP, Intels will keep 28 per cent of collected revenues. Of the remaining 72 per cent, Intels will pay 30 per cent to the NPA and 70 per cent will go into amortisation, settlement of outstanding loans which Intels incurred in the course of developing and maintaining the pilotage districts.

The SOP also included provisions for Intel’s 28 per cent commission and 70 per cent amortisation to be transferred into the company’s account by the Nigerian government within seven days, failure of which will attract an interest of 0.15 per cent to be incurred by the government in favour of Intels.

While Intels accepted the new sharing arrangement, the firm said it could not comply with the TSA policy because its loans were backed by the revenue inflows. The firm also demanded a restructuring of its outstanding loans to the NPA because the existing 27-year plan for repayment was not sustainable.

NPA officials told PREMIUM TIMES that Intels had been reluctant to allow revenues go into the NPA’s account because the firm might have been concealing actual revenues it had collected over the years.

Intels officials declined to comment on the matter with PREMIUM TIMES throughout the weekend. The company’s spokesperson, Bolaji Akinola, neither acknowledged nor replied messages and calls to his telephone.

‘Mutual accord contract’

The NPA engaged Intels on August 9, 2010, to coordinate oil and gas related activities in the compulsory pilotage district within the country’s exclusive economic zone.

Amongst the six key aims of the contract, which has a duration of 10 years, was for Intels to collect all revenues for service boat operations and other relevant dues invoiced against vessel owners.

The contract agreement stated that Intels should take a 28 per cent commission from collected revenues, which includes a 10 per cent withholding tax but excluding five percent value-added tax.

But the agreement did not state how much should go to NPA. It only mandated Intels to give NPA a share of the remaining 72 per cent while the rest goes towards amortisation.

The missing clause then left Intels with the discretionary powers to give NPA any share it found convenience.

This allowed Intels to give NPA an average of 18 percent of the 72 per cent from 2013 to early 2014.

By mid-2014, Intels began paying 33 per cent of the 72 per cent to NPA, following demands by ports officials that the agency needed to improve its liquidity position, documents showed.

The company paid NPA 29.59 per cent (or $62,093,087) and 23.79 (or $40,047,458) of the 72 per cent of collected revenues in 2015 and 2016, respectively, documents showed.

But in 2016, NPA’s new managing director, Hadiza Bala Usman, demanded an end to the arbitrary allocation of revenues by proposing a binding 70:30 split in favour of Intels and NPA, respectively, from the shareable 72 percent of collected revenues.

This demand, as well as others, including the need for compliant with TSA regulations, triggered the confrontation that lingered until now.

Attorney-General Abubakar Malami advised NPA to abort the contract because it failed to comply with Nigerian Constitution, to begin with.

After initially condemning NPA’s unilateral cancellation of the contract, Intels later issued an apology to the ports authority, with its co-founder Gabriele Volpi telling THISDAY the company was ready to comply with all demands by the government.

PREMIUM TIMES later reported that Ms. Bala Usman had not received an apology letter from Intels, but said she would entertain such communication if it eventually arrives at her desk.


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  • statesmanship

    Premium Times Editor,

    INTELS is 100% correct

    The Buhari government should be less illiterate
    and borrow some sense if it hasn’t any, although that’s a tall order for a useless,
    corrupt and irresponsible government whose attorney-attorney general (Abubakar
    Malami) struggles to covertly reinstate a criminally wanted fugitive from justice for
    pension fraud (as a promoted Director, inside the same government which declared
    him wanted and issued an INTERPOL alert to all the countries of the world – and whilst
    that Interpol alert remains in existence till today. Such a government is too daft and too
    retarded to benefit from good advice from the country’s citizens.

    But even then, and for history’s sake, let it be recorded today that only sums
    exactly due to the federal government are required to be paid into the federation
    account. Whenever the federal government enters into revenue-sharing nothing is
    due to the federation account until agreed percentages are worked out on the
    gross revenue collected, and the amount due to the federal government is then
    arithmetically ascertained. On this point therefore INTELS is right and correct to
    hold onto the entire revenues pending reconciliation of accounts.

    • Damilare Ajani

      The whole process is nothing but fraud.How can Intel’s be 100% right?, we have people in government who claimed to be working for the people but the case is the opposite. Volpi and Atiku is a fraud.

      • Boboyo

        @damilareajani:disqus

        Is it that Premium Times wants me to get very angry and rush to INTELS
        OFFICE to start beating up Abubakar Atiku, or what? Why publish this kind of
        thing for me to read after church service and after taking my Holy Communion,
        why? I am not interested in this kind of thing because thief cannot catch,
        thief just like Buhari cannot catch Atiku. Show me Buhari’s Wasc/Gce
        certificate first and I will start warming up to go and beat up Abubakar Atiku.
        Anyone that tells lies can be a thief. That is African proverb for you right
        there!

        • Sam

          Moronic post as usual, you claimed to be Godly ,yet at the same lying to suit your biased view of events , at least don’t deceive yourself even if you try to deceive other’s.

          • chiemex

            Company sources informed THISDAY that until recently, the former
            vice-president held a 17.2 per cent stake in Intels, which he whittled
            down after he sold part of his stake to former Lagos State governor and
            National Leader of the All Progressives Congress (APC) Bola Tinubu,.’

          • tundemash

            Keep pasting same rubbish all over the place.
            Cl0wn, assuming this your ale THISDAY sources are true, was Bola Ahmed Tinubu crying/complaining when the fraudulent INTELS contract was terminated ??

      • Prosperous Nigeria

        Bros., contract na contract. NPA is owing Intels $800M dollars the same way they are owing the Oil Manors $5B dollars in cash cow. Why have they not harassed the Oil Majors? Is it because Atiku is involved? The National Assembly will wade in and settle the matter. You don’t fight investors, it is not good for our national image. I don’t trust Attorney General Malami’s opinion. Just look at Maina Gate!

    • Prosperous Nigeria

      Gbam! If NPA feels it is not okay with the contract they should go for arbitration. Contract is an agreement between two parties. One party to a contract cannot unilaterally change the terms of a contract without a concurrence from the other contracting party. It is Business Law 101. We should stop advertising our ignorance to the outside world. Little wonder serious investors often overlook Nigeria hence our Government keeps borrowing like Oni Gbese. Very soon we shall reach our borrowing limit( obligor limit) and Yawa go gas.

    • TRUSTIN BRIGHT

      Some of you have a long way to go. What a backward analysis. Any contractual agreement that was done through the back door can never see the test of time period!

  • dami

    So Atiku and co have been robbing Nigerians….Operating a contract that is not open to the NPA / FG and just remitting what they like….shoving it down their throats…this is your percentage…take!!
    It’s difficut to support intels here…FG is totally right…they even proposed a late payment fee, this is good faith negotiations by the FG….why didn’t intels accept this? Simple – cos they were robbing Nigerians.

  • Shahokaya

    If Atiku as Vice President can corner this kind of selfish business for himself to the detriment of Nigerians only God knows what he will loot if he is to become the president.

    • Suleiman Alatise

      Na one chance be that o.

    • whereto

      Simple matter. All of Nigeria’s earnings will be paid into his account and subsequently, a percentage will be remitted to the country. The contract will be for only ten years and he will generously grant us loans when we go broke.

    • Prosperous Nigeria

      The contract was consummated in 2010. Was Atiku the Vice President in 2010? NPA is playing Jankara game the same way FAAN is playing Koso game with WalaBabalakin on MMA2. Someone who borrows money to invest in a business expects to make money. Why are government officials jealous? The question is, how much was NPA making before Intels came into the picture?

      • TRUSTIN BRIGHT

        Transparency! TSA! Simply.

      • tundemash

        So if the law says all govt money should henceforth go into TSA, why should anyone have issues with that irrespective of their investment? Why are you comfortable with people looting your destiny ?

        • Prosperous Nigeria

          Government is owing Intels and you expect Intels to pay Government so that the Banks can take over its assets. I wonder why FG cannot take advantage of provision for arbitration in the contract. Let us play by the rules. It is is Intels today and can be Tundemash tomorrow. Look at what is happening to Dasuki today.

    • chiemex

      Company sources informed THISDAY that until recently, the former
      vice-president held a 17.2 per cent stake in Intels, which he whittled
      down after he sold part of his stake to former Lagos State governor and
      National Leader of the All Progressives Congress (APC) Bola Tinubu,,,

  • Dr Pat Kolawole Awosan

    The finance minister Mrs. Kemi Adeosun, must ensure that Intel. Ltd. remit the tax due to Nigeria single account public treasury or serve Intel Ltd. closure notice forthwith as Nigeria, must approach Intel Ltd. with tough hands.

    • Prosperous Nigeria

      Go and register for Business Law 101. Nigeria is a democracy governed by the rule of law not the rule of force. You cannot wake up overnight and seek to unilaterally review a valid and subsisting contract because you don’t like it. It is even worse for you to try to invalidate it on very flimsy grounds. The Standard Operating Procedures worldwide before a contract is terminated is that you must inform the other contracting party that it is in material breach of the contract terms . Thereafter, if no remedial action is taken common sense dictates that you serve a notice of termination of contract. Better still, you can activate an arbitration clause if any . I am a Business Consultant and I can tell you for a fact that what NPA is doing will hurt our ability to attract foreign investors. I was at an Executive Education Programme at London Business School and people complained that Nigerian governments don’t keep to terms of business contracts. Look at what they are doing to Wale Babalakin at MMA 2 today. Ask Richard Branson why he left Nigeria. Foreign investors are beautiful brides and you have to treat them the same you treat a pretty bride. We are doomed without private investment. It is the lack of private investment that is responsible for the sorry state of key infrastructural facilities across the county. Putin style of predatory economic policy will not help us. The World has become a global village and iwhatever we do will reverberate around the globe. Harassing private businesses through state power is not the way to go in this age. It belongs to the ancient past!

      • Pluti

        Did you know intel has been notified 11months back; that is 2016?

      • Rafiu ebiti

        Prosperous Nigeria
        We all know bus law 101.
        A contract based on MALFEASANCE
        IS INVALID.
        WHO WAS VICE PRESIDENT IN 2010?.HOW AND WHY IS INTELS REFUSING PAYMENTS INTO TSA ACCOUNTS.THERE ARE SO MANY THINGS WRONG WITH THIS INTELS/NPA COUNTRACT THAT THE BEST THING IS TO TERMINATE.
        As for so called “foreign investor”.some are just briefcase investors. Richard Branson’s Virgin is certainly not a good example. Most cases they are not bringing any serious investment or commitment and they bankroll their activities through the Nigerian Financial system.
        The serious Foreign investors would always do their due diligence and decide the level of risk they are willing to take.
        Nigeria is not an exveption.

    • chiemex

      Company sources informed THISDAY that until recently, the former vice-president held a 17.2 per cent stake in Intels, which he whittled down after he sold part of his stake to former Lagos State governor and National Leader of the All Progressives Congress (APC) Bola Tinubu.///

      • tundemash

        Dunce, assuming this your fake THISDAY sources are true, was Bola Ahmed Tinubu crying/complaining when the fraudulent INTELS contract was terminated ??

  • Ekoile

    I know right…Atiku the landlord! The audacity of FGN to ask intel to pay back…lol

  • Austin Peters

    @suleimanalatise:disqus

    Where is Chief Dan Etete – the ex Oil Minister?

    What I want to read is where is CHIEF DAN ETETE – the former Minister of Petroleum?

    The latest thing we hear is that Chief Dan Etete has escaped with 250 million dollars from
    oil bloc OPL 245 illegal theft. Italy government is arresting the other people involved in
    Agip/Eni Nigeria oil company branch. Do you know what $250million means?

    Just multiply it by 345
    and you will get the Naira conversion. That is the amount Dan Etete has
    run away with. EFCC is not telling the High Court that it is difficult to find
    Chief Dan Etete. What nonsense is that? Chief Dan Etete is 77 years old. If he
    is stealing at that age it is for Police and EFCC to catch him and flog him on
    his bare buttocks like a child without home training.

    • 360°

      @suleimanalatise:disqus

      DAN ETETE at age 77 ran ON EXILE FOR STEALING $250m to ESCAPE COURT TRIAL.

      IT IS FOR THE POLICE TO SEND INTERPOL RED ALERT TO ARREST HIM ABROAD.

  • YahayaOmaye

    Mr President, thank you for working hard to free Nigeria from the hands of its enemies. These enemies laugh with Mr President but behind him they plan how to make things hard for him. . God will not allow them to smell presidency to enslave our dear country. All well meaning Nigerians must continue to pray for the President so that he can stronghly stand against these thivies.

    • Epsilon_Delta

      But the president is a thief too!

      • tundemash

        When he’s no more the President, let him be caught by the Grace of God. As of now, you are simply wailing !

        • Epsilon_Delta

          TundeNyash, suffering and praising.

  • wazobia decomposition !!!!!!

    and crooked atiku wants to be president???/

    i stand by obj on this one ………. over his dead body…………

  • Dr Bunmi Binitie

    And yet some haters and wailers reduced all this shenanigan to PMB punishing Atiku for declaring his presidential ambition! PMB is not petty by any standard!

    • Okokondem

      “PMB is not petty by any standard!”

      Really? Define pettiness. Granted we are entitled to our individual opinions but not our own truth.

      • Dr Bunmi Binitie

        Oh you can google the word “pettiness” yourself. And yes i can choose what i believe is the truth. Nobody can take that away from me!

        • Epsilon_Delta

          You are the very definition of pettiness!

        • chiemex

          You are a personification of the word “pettiness”

          • Dr Bunmi Binitie

            Not me but your unfortunate mother who taught you to abuse elders is the personification of the word pettiness, chiemex, you e-beast! Why the abuse just becos i reason differently from you (thank God)? You have no home-trainning at all! The Lord rebuke you!

    • Timothy

      The truth about the matter is that they want Buhari to be blamed for everything…no matter who went wrong or at what point ( the idea is to dent his so-called integrity so that he loses support)….am sorry to say but I think we are not going to make it as a country no matter who is leader….they think Buhari is bad….corrupt or witch hunting….I challenge anyone to bring out the next candidate for the next election and lets see how clean his records are or any of his family members…..lets see if the same treatment they gave to Buhari would stop at Buhari? The more they keep at it…do they think when they get their preferred candidate that the supporters of Buhari will keep mum? The cycle will continue and if we are not lucky it would get worse than it is now….I believe they should allow the man Buhari…being human to run and finish his term so that the next president would also have the courage to do the same without any unnecessary criticism but rather suportive criticism. It is our country! No one is perfect….we should realise that by now and just emphasis on unity and what will benefit the people. Period. No matter who is there as president.

      • Concern

        Majority of the comments abusing every move made by Buhari if you notice are mostly from a particular section of the country. This is a big shame since it is out of hatred for the President, hatred for anybody who is not from their region. I believe Buhari has done pretty well considering the mess left behind by the PDP after 16 years in government. By the grace of God Buhari administration will win a second term and this same people will complain of marginalization hoping to rip where they did not sow. I wish them and their PDP co-travelers good luck.

        • Timothy

          What do you think happened with Nnamdi Kanu…people were sponsoring him simply because they hated Buhari and wanted to cause havoc and disarray in the country simply because they hate Buhari…They spent money and donations for the Biafra ideology only that some sane people who you would though should know better fell for it…now the your man has ran away with all their donations and its shame to the entire Igbos that they were misled foolishly…..how I wish that money spent on trying to actualise Biafra was used for the development of the region….now the man is living large off people’s sweat all because they hate Buhari…how sad.

        • chiemex

          Company sources informed THISDAY that until recently, the former vice-president held a 17.2 per cent stake in Intels, which he whittled down after he sold part of his stake to former Lagos State governor and National Leader of the All Progressives Congress (APC) Bola Tinubu.=

          • tundemash

            Cl0wn assuming ,this your ale THISDAY sources are true, was Bola Ahmed Tinubu crying/complaining when the fraudulent INTELS contract was terminated ???

    • chiemex

      Company sources informed THISDAY that until recently, the former vice-president held a 17.2 per cent stake in Intels, which he whittled down after he sold part of his stake to former Lagos State governor and National Leader of the All Progressives Congress (APC) Bola Tinubu.]]

      • tundemash

        Keep repeating same old lies.
        Cl0wn assuming ,this your ale THISDAY sources are true, was Bola Ahmed Tinubu crying/complaining when the fraudulent INTELS contract was terminated ??

      • Dr Bunmi Binitie

        Jobless e-rat! Trolling the web with lies!

  • Alagbado+

    @dr_bunmi_binitie:disqus

    To me,
    Nigeria today is a failed state under the rule of thieves. Any country
    where the elderly, octogenarian man like Dan Etete – in the same age group
    as Olusegun Obasanjo, Ibrahim Babangida, Muhamadu Buhari
    – can be
    stealing, or telling lies over credentials and assets, or running away on
    exile, is a failed state.

    It is now for
    the youths to arm themselves fully to take over and get rid of these useless
    elders by force. There is no other way to make Nigeria a good place unless
    these useless elders are imprisoned or killed and their loot is seized by
    force, so that their children do not automatically inherit Nigeria as stolen
    wealth.

    We can see how Kwara state has
    already become the personal inheritance of Bukola Saraki. If care is not taken Nigeria
    too will become the personal property of these stealing octogenarian elders.

    • 360°

      @dr_bunmi_binitie:disqus

      DAN ETETE at age 77 ran ON EXILE FOR STEALING $250m to ESCAPE COURT TRIAL.

      IT IS FOR THE POLICE TO SEND INTERPOL RED ALERT TO ARREST HIM ABROAD.

      • Veeva Revolution

        @dr_bunmi_binitie:disqus

        Yepa!! A whopping $250 million dollars stolen by Chief Dan Etete alone. Wow! No wonder, there’s no electricity in Nigeria. How can there be water to drink when one person steals $250 million and runs
        through the forest of Yaounde in Cameroon at the age of 76 to become a fugitive from justice?
        Nigeria is a hopeless case. Only a bloody revolution can save the country.

        One man one vote has no meaning in a country of majority illiterates. Only a bloody revolution can save Nigeria. In one stroke the revolutionaries will strike and kill 500,000 treasury thieves and a sudden peace
        will come upon Nigeria the morning after. Just kill 500,000 rogues who make Nigeria un-liveable, kill them!

        Any country calling these useless thieves LEADERS or ELDERS can never progress because it means
        the victims of these thefts accept to bow down before these useless thieves. Blood must flow to repair
        a badly stolen Nigeria. There is no longer any peaceful solution to this genocidal theft in Nigeria.

        • Dr Bunmi Binitie

          Shedding of blood is never the answer. It may look like the faster way but it was done in Ghana and the pain is still there affecting the people and their relationships decades later.

          The slower but sure way is what this government is doing – exposing and stripping away structures of corruption laid down for ages and then rebuilding new foundations of righteousness. It leaves more solid and lasting results.

    • chiemex

      Company sources informed THISDAY that until recently, the former vice-president held a 17.2 per cent stake in Intels, which he whittled down after he sold part of his stake to former Lagos State governor and National Leader of the All Progressives Congress (APC) Bola Tinubu.

    • chiemex

      Company sources informed THISDAY that until recently, the former vice-president held a 17.2 per cent stake in Intels, which he whittled down after he sold part of his stake to former Lagos State governor and National Leader of the All Progressives Congress (APC) Bola Tinubu–

      • tundemash

        Cl0wn assuming ,this your ale THISDAY sources are true, was Bola Ahmed Tinubu crying/complaining when the fraudulent INTELS contract was terminated ??

  • Ahmed Tukur

    How can a Nigerian who have initiated such a deal turn around and becomes a leader.

    • chiemex

      Company sources informed THISDAY that until recently, the former vice-president held a 17.2 per cent stake in Intels, which he whittled down after he sold part of his stake to former Lagos State governor and National Leader of the All Progressives Congress (APC) Bola Tinubu…

    • chiemex

      Company sources informed THISDAY that until recently, the former vice-president held a 17.2 per cent stake in Intels, which he whittled down after he sold part of his stake to former Lagos State governor and National Leader of the All Progressives Congress (APC) Bola Tinubu

      • Timothy

        The oldest trick in the book…if am going down…you are coming with me….we dont see Tinubu crying…he already has his hands full with the Oando saga….implicating him with Atiku’s Intel does not save any of them….so lets try something else…lets see the sharing formula of Intel and lets see who has the lions share…

  • chiemex

    Company sources informed THISDAY that until recently, the former vice-president held a 17.2 per cent stake in Intels, which he whittled down after he sold part of his stake to former Lagos State governor and National Leader of the All Progressives Congress (APC) Bola Tinubu.

  • chiemex

    Company sources informed THISDAY that until recently, the former vice-president held a 17.2 per cent stake in Intels, which he whittled down after he sold part of his stake to former Lagos State governor and National Leader of the All Progressives Congress (APC) Bola Tinubu.”

  • chiemex

    Company sources informed THISDAY that until recently, the former vice-president held a 17.2 per cent stake in Intels, which he whittled down after he sold part of his stake to former Lagos State governor and National Leader of the All Progressives Congress (APC) Bola Tinubu,,

    • tundemash

      Olodo, assuming ,this your ale THISDAY sources are true, was Bola Ahmed Tinubu crying/complaining when the fraudulent INTELS contract was terminated ??

    • Dr Bunmi Binitie

      Jobless e-beast!

  • Timothy

    Intel we are yet to see your apology letter ooooo! if you cant write one let me help you write…if have written one and dont know how to deliver it….use DHL and ensure the receiver signs as received….if that does not work publish it on the pages of THISDAY newspaper as your preferred newspaper to state your views….we are all hoping we can resolve this matter so that Nigerians would not be short-changed…we get to know what comes in and what we make….Nigerian govt can be able to channel the income to other development areas….you as a company would have better opportunity to work in other parts of the country and given more contracts…expanding your revenue as we work together….Now is that not a better deal than open confrontation? This has nothing to do with Atiku…