Frontline terminal operator; Integrated Logistics Services (INTELS) may be contravening the Federal Governments' directive that all transactions should be done in the local currency, even as the concessionaire have continued to pay its staff in hard currency.
On his assumption of office, President Muhammadu Buhari had through the Central Bank of Nigeria (CBN) embarked on a tough FOREX restriction in order to enhance the value of Nigeria's local currency; the Naira.
Frontline terminal operator; Integrated Logistics Services (INTELS) may be contravening the Federal Governments' directive that all transactions should be done in the local currency, even as the concessionaire have continued to pay its staff in hard currency.
On his assumption of office, President Muhammadu Buhari had through the Central Bank of Nigeria (CBN) embarked on a tough FOREX restriction in order to enhance the value of Nigeria's local currency; the Naira.
But fresh indications have showed that INTELS may not have complied with this directive as the company, which has interests in Onne port, Warri port and Calabar port, has shrugged off the efforts of the government to strengthen the local currency as it still collects hard currencies from the users of its facilities.
When contacted, Intels Public Relations Manager; Mr. Isidore Sambol confirmed the receipt of foreign currencies by the company for his services.
In rationalizing the practice, Sambol claimed that Intels operates in a free zone which he said was exempted from such forex restrictions.
‘’Yes, we are exempted from the forex restriction because we operate in a free trade zone. If you conduct your investigation well, you will notice that free trade zones are not part of the policy"
‘’You should also be aware that oil and gas is an international business and there is nothing wrong if we collect international currency, mostly US dollar’’, the image maker of the port concessionaire declared.
He however disclosed that the company can collect the naira equivalent of foreign currency from its clients.
‘’If the clients want to pay in naira, we collect because we need tons of naira to drive our business. So the allegation that we insist of collecting only foreign currencies is not correct. We collect naira’’, Sambol stated.
The Federal Government has been reaffirming its stringent foreign exchange policy in the face of dwindling revenue accruing to the nation as a result of the drop in commodity prices, notably Nigeria's main foreign exchange earner.
However, stakeholders have expressed fears that the activities of INTELS may jeopadise the efforts by the administration of Buhari to keep a tight rein on foreign exchange transactions and check the continuing slide of the Naira against the United States Dollar (USD) and other major currencies, if the company is not checked in its excesses.
INTELS which has a chieftain of the government party, All Peoples Congress (APC), Alhaji Atiku Abubakar, as majority shareholder, was in 2006 awarded concession for Onne, Warri and Calabar ports each for 25 years, each renewable for another 25 years.
Earlier, in 1988, Intels had secured five-year leases at the Federal Lighter Terminal (FLT) in Onne Port, and at Warri Port.
Intels was in 1992 awarded 21-year extension of leases at Onne Port Complex, Warri Port Complex, and Calabar New Port.
The establishment of the Onne Oil and Gas Free Zone by the promulgation of Decree No. 8 of March 29, 1996, had favoured Intels, according to sources, in assuming the role of "oil and gas service centre".
Checks revealed that, over the years, the numbers of oil and gas licensees operating in Onne have risen astronomically, earning INTELS huge returns on its services that are dominated in US Dollars
It was gathered that, while there had been eight companies operating at Onne in 1997, the numbers had grown in leaps and bounds in subsequent years as follows: 95 companies, 2004; 170 companies, 2014; and 2015, 190 companies.
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