BusinessDay 22 Jun 2017

6 BUSINESS DAY
NEWS
Govt to lose revenue from de-categorisation
of port terminals - INTELS
… battles NPA over de-categorisation of port terminals
AMAKA ANAGOR-EWUZIE
INTELS Nigeria Limited has
criticised the move to decategorise
port terminals by
the Nigerian Ports Authority
(NPA), saying it was not in the nation’s
best interest, as it will result
in huge revenue loss to the Federal
Government.
Dominic Onwuchekwa, a
senior legal manager of INTELS
Nigeria, said this while giving his
witness statement on oath filed at
the Federal High Court Abuja in
a case instituted by the company
against NPA and four others.
Onwuchekwa stated that the
proposed de-categorisation of
the terminals will not only jeopardise
the prospect of the plaintiff
recovering its investments under
the concession agreement signed
with the Federal Government,
but that it will also undermine the
commitments made to its lenders.
“De-categorisation will lead
to a situation whereby all terminals
will charge the lower fee of
$1.2 per ton (even for oil and gas
CEOs want government to tackle inflation rate
IHEANYI NWACHUKWU
CAC refutes report on internal disharmony among staff
ISAAC ANYAOGU
cargoes for which $5.83 per ton
should be paid) in order to attract
patronage from port users, but on
the other hand short-changing the
government itself and the people
of Nigeria,” Onwuchekwa said in
the Witness Statement on Oath.
He further averred that in
discharging its obligations in accordance
with the terms and conditions
of the various Lease Agreements
(including the Concession)
with the Federal Government,
INTELS expended huge sums of
money in upgrading port facilities
and building infrastructures
as well as developing specialised
oil and gas designated terminals
based on the need and requirements
of the oil and gas industry
world-wide.
“Conservatively, the Plaintiff
has, thus far, expended over USD2
billion out of its own resources
without amortization in various
projects and has budgeted additional
USD5 billion in phased
Port Terminals development and
infrastructural renewal,” he stated.
He said the huge investment
… as FG says committed to steering Nigeria out of recession
Nigeria’s inflation rate
has been on the decline
since this year,
but its remaining above 12
percent is still a source of
concern to most chief executive
officers.
Most of them who were
panellists at the third edition
of ‘NSE Bloomberg CEO
Roundtable’ were unanimous
in their submission that Federal
Government policies
should wrestle inflation.
Ahead of most analysts’
consensus, May 2017 inflation
rate came in at 16.3percent
year-on-year (y/y), but down
from 17.2 percent in April.
The CEOs include Andrew
Alli, CEO, Africa Finance Corporation;
Funke Opeke, CEO
MainOne; Demola Sogunle,
CEO Stanbic IBTC Bank; Graham
Hefer, MD, Okomu Oil
Corporate Affairs Commission
(CAC) says
there is no risk of any
industrial disharmony within
the commission causing any
impediment on the ease of doing
business in reaction to an
earlier story in BusinessDay expressing
the concern by some
staff of a possible internal strife.
Godfrey Ike, head of public
affairs of CAC, in a letter addressed
to BusinessDay, says,
“The Commission had issues
bothering on welfare between
officials of Amalgamated Union
of Public Corporations, Civil
Service Technical and Recreational
Service Employees
(AUPCTRE), and the management.
“The Federal Ministry of
Labour has since intervened
and mediated on the issues
involved, of which both parties
have agreed on the terms and
the issues amicably resolved.”
Palm Plc; Ngozi Adebiyi, CEO,
Outsidein HR.
The consensus of these
panellists, which had Mark
Bohlund, senior Economist
Africa/MiddleEast Bloomberg
Intelligence as discussants was
for Federal Government to
create enabling environment
for private sector to thrive and
contribute to the economic
growth of the nation.
Themed, “Innovating out
of Nigeria’s Recession: Exploring
New Paradigms for
Nigeria’s Economic Growth”,
the conference was headlined
by the Minister for Finance,
Kemi Adeosun with over 150
participants, including African
captains of industry,
government officials, dealing
members and key influencers
in attendance.
The latest figures released
by the National Bureau of
Statistics (NBS) show that the
In a story published on
June 12, the CAC chapter of
AUPCTRE, had told our correspondent
that lack of proper
sensitisation, poor remuneration
of low cadre workers in
comparison with management,
lack of collaboration and an
unmotivated workforce may
scuttle the executive order on
the ease of doing business.
Ike says this is not the case,
as “CAC is well positioned to
continue to play its leading role
towards providing an enabling
environment for business to
thrive in Nigeria. The Commission’s
registration process has
been strengthened. Customers
and investors can now access
the services of the Commission
online through the Company
Registration Portal (CRP). This
ensures smooth service delivery
with 24 hours timeline for
company registration.
“Furthermore, the Commission
regards its workforce as its
greatest asset and will always
by INTELS in five concessioned
port terminals across the country
were made in response to the
Federal Government’s quest and
demand for investment in port
infrastructure development in
Nigeria.
“In addition to the above,
the Plaintiff had also expended
these huge expenses because it
had entered into and executed
5 nos. Lease Agreements on the
Concessioned Port Terminals
which life span were 25 years
with option of renewal for a
further term on each terminal,”
Onwuchekwa stated.
He said INTELS’ investment
in the concessioned
terminals was “based on the
assurances and comforts from
the 1st - 5th Defendants, especially
the 3rd Defendant’s
(NPA) categorization of Ports
and Terminals, stating that the
company “was persuaded into
financing huge capital intensive
projects for the benefits of
the 1st- 5th Defendants and the
people of Nigeria”.
economy shrank by 0.52percent
in the first quarter (Q1) of
2017 raising hopes that Nigeria
is close to exiting recession.
Participants at the forum
deliberated on how to lift the
Nigeria growth trajectories
and examined sustainable
growth factors that can rebuild
economic fundamentals, address
structural vulnerabilities
and forge new sources of
growth.
Oscar Onyema, CEO, NSE,
noted that the NSE Bloomberg
CEO Roundtable was borne
out of the need to bring leaders
from various sectors of
the economy to discuss and
proffer solutions to pertinent
issues affecting their sectors
and examine global trends
applicable to them. “The NSE
Bloomberg CEO Roundtable
has turned into a special dialogue
platform in terms of
both shape and content.”
ensure that their welfare is given
utmost priority.”
Acting President Yemi Osinbajo,
on May 18, had signed
three executive orders expected
to change some of the ways
government businesses and
operations are conducted. The
orders stipulate sanctions and
punitive measures that will be
imposed where necessary.
According to statement
from the government, the orders
will ensure the promotion
of transparency and efficiency
in the business environment
designed to facilitate the ease
of doing business in the country.
They will also ensure support
for local content in public
procurement by the Federal
Government.
The orders were also meant
to ensure timely submission of
annual budgetary estimates by
all statutory and non-statutory
agencies, including companies
owned by the federal government.
C002D5556
Thursday 22 June 2017