As many Nigerians speculate on Federal
Government’s decision to terminate the contract between the Nigerian Ports
Authority and Alhaji Atiku Abubakar’s multi-billion dollar cash cow Intels,
many assume it to be a result of a political disagreement, however the
facts of the matter may not be so.
Former vice
president Atiku Abubakar may indeed have many political foes but it was his
near stranglehold monopoly on oil and gas cargoes that was his undoing. Atiku’s
sweet heart deal with the Nigerian Ports Authority is the kind of deal only a
select privileged few in the Nigerian economy cabal are capable of entering
into.
Atiku’s position
as a top Peoples Democratic Party chieftain, former customs boss and former
national leader secured him the deal and sustained the deal for him.
However it was
other players in the logistics business, namely Lagos Deep Offshore Logistics
Base (LADOL), founded by Ladi Jadesinmi that took the bull by the horns and
sued the Goodluck Jonathan-led Federal Government over its concessioning of all
oil and gas cargoes at the NPA terminals in Onne, Warri, and Calabar.
Earlier this year, the Minister for Transportation, Rotimi Amaechi had hinted
that his office was working on a legal solution to the Intels/Atiku monopoly
and appealed to industry stakeholders to maintain the status quo until a
solution arose.
“If indeed there
was such agreement that all oil and gas cargoes should be brought to Warri,
Onne and Calabar, then it would be wrong to take part of somebody’s job and
give it to another person,” Amaechi had said.
CEO of LADOL,
Mrs. Emmy Jadesinmi had said that there had been presidential directives from
both Olusegun Obasanjo and Umaru Yaradua cancelling the diversion of all oil
and gas caroges to eastern ports.
She argued that
diverting the cargoes would create a monopoly and unfair advantage for some
operators at the expense of others including LADOL which had invested to $500
million in facilities and equipment.
According to a Premium Times report,
in May 2016, the Minister of Transportation, Rotimi Amaechi, wrote President
Buhari about various issues affecting the concession of Nigerian ports to private
businesses. In July, the presidency forwarded the letter to the Attorney
general of the federation (AGF), Mr. Malami, for his legal opinion on the
various bottlenecks and a review of some of the policies that were adopted
since 2000.
In April 2017, President
Buhari approved the recommendations of the AGF which included the reversal of
the exclusive handling of oil and gas cargoes at Intels controlled ports.
In 2008, Mr.
Yar’Adua’s administration reviewed the agreement and issued a circular to the
effect that irrespective for the designation of Onne, Warri and Calabar ports
as oil and gas terminals, importers could approach any port of their preference
for business.
The directive
came after a move by the Minister of Transportation at the time, Diezani Alison-Madueke,
asked the BPE to re-categorise the ports so that Intels could be given
exclusive right to handle oil and gas cargoes. Mrs. Alison-Madueke’s circular
also appointed Intels as managing agent in Lagos Pilotage District.
But in a letter
to his chief economic adviser, the minister of transportation and the managing
director of the NPA, Mr. Yar’Adua reversed the re-categorisation because of its
“potential damage the said circular was capable of wreaking on the Nigerian
economy”, the report claimed.
“The circular
issued by the minister reversing the approval of the former President in 2006
(to the effect that oil and gas importers are free to choose ports of their
preference for the cargoes) be withdrawn immediately and the approval of the
former President stands and cannot be reversed without referring to the
President.
“The appointment
of Intels as Managing Agents at the Lagos pilotage district is hereby revoked.
Another competent agent should be appointed to allow for competition. These
decisions take effect immediately,” the letter by Mr. Yar’Adua read.
But In 2014,
another directive by Mr. Yar’Adua successor, Mr. Jonathan, designated Onne,
Warri and Calabar Ports as exclusive oil and gas terminals created confusion in
the industry.
The new directive
was given on January 18, 2014 but a month later, Mr. Jonathan surprisingly
suspended the policy he had approved. He however did not state which policy
will now govern the handling of oil and gas cargoes.
On April 20,
2015, following a recommendation by Ministry of Transport, Mr. Jonathan gave
another directive stating that “all oil and gas related cargoes must be handled
only at the designated terminals as in the letter from the BPE”.
This gave birth
to the agitations by concessionaires and ultimately triggered the decision of
Ladol to sue the government to protect its interest.
But Mr. Malami
stated that the BPE letter referred to by Mr. Jonathan was on written on July
10, 2008 to Mrs. Alison-Madueke. He said the letter was designed to
deliberately misinform Mr. Jonathan.
“The fact are
that former President Yar’Adua had vide his directives on 4th August, 2008 overridden any such
position by directing that the earlier approval by the President Obasanjo
(which gave the oil and gas operators the liberty to choose terminals) should
be restored. Therefore, as at 2015, when president Jonathan gave the purported
approval, the policy position was as affirmed by President Yar’Aduain 2008 and
not the erroneous position conveyed in the memorandum by the former Minister of
Transport,” Mr Malami wrote.
In its review of
the controversies around the concession of the ports, the office of the AGF
said that the categorisation of the terminals in Onne, Warri and Calabar as
exclusively oil and gas terminals “is not only unknown to the shipping
industry, it encourages monopoly and therefore inimical to the investment
climate in the country.”
The AGF office
also argued that an independent verification it undertook also confirmed that
in the global shipping industry, the three broad categorisations of ports and
terminals are Bulk Cargo, Container Cargo and multi-purpose Cargo. It added
that oil and gas is generally not classified as a category in itself.
Thus the office
of the AGF recommended that “government should pursue a policy of
liberalisation of ports and terminals use which emphasises the liberty of
importers to so choose their ports/terminals.”
It added that
this will promote competition, value for money and even spread of port
infrastructure along the country’s coastal belt.
Source; premiumtimesng
No comments: