Headlines Pilotage crisis, parties agreed to proposed terms of settlement By maritimemag December 5, 2023 ShareTweet 0 By Abiodun OBA Parties in the pilotage contract crisis with the Federal Government have agreed on proposed terms of settlement. The Nigerian Ports Authority (NPA) stated that it was agreed INTELS Nigeria Limited waived $193 million. NPA explained that the agreement was struck in the spirit of national interest, adding that revenue generation would increase. It added that government would save $326.895 million from the pact. The agency added that the current administration would earn over $500 million. The organisation lauded Minister of Transportation, Marine and Blue Economy, Adegboyega Oyetola for ensuring that the crisis was resolved. In a statement titled, “Setting the Record Straight in Respect of Service Boat Monitoring Operation in Nigerian Ports Authority: Reinstatement of INTELS Nigeria Limited as Management Agent,” the agency stated that it had become necessary to put the record straight for benefit of the public and stakeholders. NPA said it agreed a waiver of $100 million being part of the accrued interest as of July 31, 2023, on the indebtedness to Deep Offshore Services Limited under the Phase 4B agreement. According to the organisation, a further waiver of interest accruing on outstanding debt for the period of two years commencing from July 1 to 30, 2023, was $93,317,556. The agency said it will be saving a $326.8 million from waivers and interest rates, ranging between 6.5 per cent and three per cent on the debt over the next 15 years. “Reduction of the agency’s commission on pilotage collections from 28 percent to a lower commission of 24.5 per cent, as opposed to increasing it due to astronomical rise in cost of operations. “The proposed spread of debt of $522.4 million to be paid back over a 15-year period will, of itself, earn for the Authority a huge benefit in terms of preservation of funds to meet its other operational needs over the period,” it stated. The ‘facts,’ NPA said, represent true reflection of the matter adding that the interest of the agency was to ensure that services are provided in line with international best practices and enhance the revenue profile of government. © 2023, maritimemag. All rights reserved.