The Federal Government has dropped its earlier plans to buy 10 percent equity in logistics giant; Intels, Shipping Position Daily has learnt authouritatively.
Source at the Ministry of Transport confirmed to our correspondent last week that, while it was true that government made moves to acquire the shares that were hitherto held by the late Emir of Kano; Alhaji Ado Bayero, an inter agency committee advised against it.
The Federal Government has dropped its earlier plans to buy 10 percent equity in logistics giant; Intels, Shipping Position Daily has learnt authouritatively.
Source at the Ministry of Transport confirmed to our correspondent last week that, while it was true that government made moves to acquire the shares that were hitherto held by the late Emir of Kano; Alhaji Ado Bayero, an inter agency committee advised against it.
An insider in the Onne Rivers State-based company also confirmed the earlier move, but added also that there are signals that the idea had been dropped.
A senior ministry official who sat on the inter-ministerial committee on the acquisition of the 10 per cent equity told one of our correspondents last week that, “we had to advise against it, it is not in tandem with the prevailing spirit of concessioning that the Federal Government had embarked upon since 2006”.
Besides, he explained that, “we told them (government) that it will give Intels a 100 per cent monopoly over other concessionaires. I don’t think that is what the government wants; we all know that before now, Intels has been accused of undue monopoly”.
“When I, as a person heard of it, I was very surprised, Government intended to, but it never did, it was vehemently opposed by all us”
“There was an intent, but it has been dropped”, he confirmed.
He also confirmed that the Onne-based company is indeed not averse to the intent, because they know what advantage it will bring to their operations.
The official also hinted that another major reason that made government to have a rethink is the position of the Nigerian Shippers’ Council as the Economic Regulator.
It is going to put the Council in difficult position, how do you as a regulator begin to regulate a company like Intels, when it’s now owned partly by the government”, he told our correspondent last week.
Intels had in the wake of the intent, issued a statement in which it explained that, “it is the Federal Government of Nigeria that moved to key into our success story by acquiring our shares."
In the statement signed by its General Manager, Legal and Corporate Affairs; Mr Mike Epelle, INTELS threw more light on it. “Government’s plan to acquire our shares came from their initiative. The discussions are still on-going. There is nothing secret or untoward about what is going on,” he said.
The controversial deal, which was hatched towards the end of the last administration of President Goodluck Jonathan, would have seen government taking over the equity that was held by the late Emir of Kano, whose first son; Sanusi Ado Bayero is now the managing director of the Nigerian Ports Authourity (NPA).
There were unconfirmed reports that, Bayero’s predecessor inn office; Habib Abdulahi was fired because he like other heads of maritime industry agencies were opposed to the deal.
Justifying any decision to buy into the company; Intels had said that: “The late Bayero’s children resolved upon his death that they wanted his shares sold. Accordingly, Ado Bayero’s shareholding has been liquidated and family members paid off. The sale agreement was signed on the 18th September, 2014 and the payment based on the agreement was made to the family in the first week of December 2014. The agreement was duly signed by the representative of the late Emir’s company, Northern Energy Limited, by its Director, Prince Nasir Ado Bayero, and their company secretary, Mr. Femi Atteh, as duly authorised by the family. The shares were sold to Orleans Invest Holdings Limited represented by its president, Mr. Gabriele Volpi, and the General Manager Legal and Corporate Affairs, Mr. Mike Epelle, signed as witness.
It added that, “in deciding to approach INTELS for the acquisition of 10% shareholding, the federal government took cognizance of the fact that none of the seaport terminal operators had been so successful as our company.
“The federal government discovered that among the seaport terminal operators none had so far invested and continued to invest in port facilities development like INTELS. Similarly none had achieved the feat of INTELS in bringing and attracting foreign investors into Nigeria."
Intels also welcome that Federal Government’s intention, saying it is favourably disposed to it, “so long as it will create more opportunities and consolidate on the development of the Maritime sector of Nigeria and the economy in general”.
Our source also confirmed that, indeed the former Managing Director did a memo to the then-Federal Executive Council, in which he expressed his opposition. He was quoted as saying that: “Venturing directly into the shareholding of a private partner may compromise the neutrality of NPA as landlord and the federal government as umpire in the industry".
But, a source at Intels, who should know denied knowledge of the Federal Government’s latest action. “I am hearing in from you, I am not aware of this”, he told our correspondent.
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