Intels Nigeria Limited is not taking the termination of its agreement lightly, as it has written a letter to the Nigerian Ports Authority calling the alleged termination highly injurious to the company. News broke yesterday, that the Attorney General of the Federation (AGF) Abubakar Malami had asked the agency to terminate the agreement as it was unconstitutional, and violated the TSA policy.
Intels defence
In a letter addressed to the Managing Director of the NPA, Intels stated that it was being owed the sum of $674 million excluding interest and $109 million for additional work done and the NPA had proposed both parties open a joint account, in which all revenues would be paid. 30% of revenues were to go to the NPA, and the rest to reduce its debt to Intels. The Treasury Single Account (TSA) which was one of the reasons given for the termination of the agreement, did not exist as at the time it was signed.
Intels also stated in the letter that it was in a tight spot financially due to the money owed by the NPA, and had taken several bank loans. The firm was also of the opinion, that its agreement with the NPA would be in compliance with the TSA policy, as ling as it was able to deduct its entitlements.
What happens next ?
Intels may decide to take the case to court, if it does not get a favourable response from the NPA in order to recover its debt and get a clear interpretation of the termination order. Firms with similar arrangements with the Federal Government will also be watching keenly. Banks and other financial institutions that gave Intel loans will also pay keen attention to the unfolding drama.
