INTELS Pays N56.3bn Concession Fees To NPA, BPE

Intels Nigeria Limited says it has so far paid the sum of $184.6 million which is about N56.3 billion as concession fees to the Nigerian Ports Authority (NPA) and the Bureau of Public Enterprises (BPE) between 2006 and 2016.

A statement from the company which was made available to the press stated that a breakdown of the payment includes: $10.3 million as commencement fee, $68.4 million as lease fee, $35.7 million as through put fee and $79 million as land industrial area fee.

INTELS in its report said prior to the concession, it tailored its services, facilities and operations to support its acitvities in the oil and gas industry.

According to the statement, the highly technical facilities required to support oil and gas related operations also requires special equipment and highly skilled manpower to manage such operations, which therefore leads to higher level of investments by INTELS relative to competitors.

“The Logistics and equipment infrastructural needs of the terminals concessioned to INTELS require much higher investment and specialised skill in contrast to other terminals.

“This consequently was projected to yield higher returns to the concessionaire as well as the government.

“This informed the basis for fixing a higher through put fee per ton for these terminals to be paid by concessionaries of terminals located in the ports at that time of concession, while other terminals pay a much lower figure per ton under their concession agreements.

The report further stated that it had always been clear that certain ports on account of their specific character and locations were to be dedicated and designated for oil and gas cargo hardling while others were not.

The report also said that the firm was committed to developing the Badagry Port and Free Zone of over 5,00 metres of Quay wall and 603 hectares port area consisting of container terminal, refined products terminals, oil services centre, general purpose terminals and Roll off (RORO) terminals.

According to the report, the Badagry port had provision for 322 hectares industrial area, 162 hectares dedicated logistics park, 26 hectares expatriate housing compound and free trade zone state.