Nigerian Ports Authority gives Intels 2-week ultimatum over $48mn debt

Managing Director of the Nigerian Ports Authority Hadiza Bala Usman told CNBC Africa that Intels is yet to remit 48 million dollars it owes the NPA and that they have given the firm (Intels) an ultimatum of two weeks to make the payment.

Tue, 30 Jan 2018 11:41:28 GMT

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AI Generated Summary

Non-compliance with Treasury Single Account policy led to dispute
Intels apologizes and begins complying with regulations after NPA issues notice of termination
$48 million debt owed by Intels for 2017 revenue collection
NPA gives Intels two-week ultimatum to settle the debt

The Nigerian Ports Authority (NPA) has resolved a significant dispute with Intels Nigeria Limited over a $48 million debt that the firm owed to the NPA. Managing Director of the NPA, Hadiza Bala Usman, revealed in an exclusive interview with CNBC Africa that the conflict arose from Intels' non-compliance with the Treasury Single Account (TSA) policy instituted by the Nigerian government. The TSA requires all government revenues to be deposited into a single account to promote transparency and accountability. Intels, which collects revenue on behalf of the NPA, had been withholding funds in contravention of the policy. Usman explained that despite initial resistance from Intels, the company eventually apologized and began adhering to the TSA regulations. The NPA issued a notice of termination to Intels, prompting them to rectify their non-compliance. As a result, the contract that was originally terminated is now in the process of being reinstated, pending the resolution of financial issues. However, the key issue at hand is the $48 million debt that Intels owes the NPA for revenues collected in 2017. This amount accounts for 30% of the total revenue generated by Intels on behalf of the NPA during that period. Usman emphasized that these funds are crucial for the Nigerian government and must be remitted to the TSA account. The NPA has given Intels a two-week ultimatum to settle the debt, signaling a firm stance on compliance and accountability. The resolution of this dispute highlights the NPA's commitment to enforcing regulations and ensuring a level playing field for all entities operating in the Nigerian port sector. Usman stressed the importance of compliance with laws and regulations, noting that no company is above the law. She pointed out that all third-party agreements with the NPA follow similar structures, and it is essential for all parties to uphold their financial obligations. As the NPA works towards restoring its relationship with Intels, the focus remains on recovering the outstanding $48 million debt and promoting transparency and accountability in revenue collection. The NPA's proactive approach to addressing non-compliance underscores its dedication to upholding standards and safeguarding the interests of the Nigerian government and its citizens.