By Joy Enamuna
---enforces payment for its services in foreign currency.
A moral challenge, which will need strong political will power to surmount, is currently facing President Mohammed Buhari, in its effort to strengthen the sliding value of the Naira.
On assumption of office, the President, through the Central Bank of Nigeria, has embarked on a tough FOREX restriction in order to enhance the value of the local currency which has hitherto been treated with disdain by Nigerians and other business interests in the country.
This disdain for the Naira has further weakened the currency as foreign currencies, especially the American Dollars, have inadvertently become legal tender in the country.
As a result, the administration of Buhari placed a ban on transactions in foreign currencies, insisting that any transaction should be done in the local currency.
However, one company, Integrated Logistics Limited, (INTELS), which prides itself as the leading logistics provider in the oil and gas free trade zone in Onne, has continued to treat the policy with disdain and scorn.
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.
Curiously, Alhaji Abubakar Atiku, the former Vice-President of the country and a leading chieftain of the ruling All Progressive Party (APC), has major equity control in the company run by Italians.
Intels has continued to ride on the influence and powers of its major shareholder to rough shod on major policies of government, brushing aside the protests of stakeholders.
One of such brazen affronts of the company was an attempt to annex the oil and gas free trade zone, using its powerful link of its chief promoter to force all oil and gas related cargo to go through its facilities, despite the protests of other concessionaires who felt shortchanged in what they regarded as an arm-twisting tactics of the company to run them out of business.
To protest what they regarded as the larger than life posture of Intels, importers of oil and gas related cargo boycotted the use of Intels facilities, instead, chose to divert such consignment to the neibouring ports from where they bring them to the country.
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 denominated in USD.
It was gathered that, while there had been eight companies in operating at Onne in 1997, there numbers had grown in leaps and bounds in subsequent years as follows: 95 companies, 2004; 170 companies, 2014; and 2015, 190 companies.
In a document, "Development of facilities at Onne, Warri and Calabar Port Complexes", which it issued in May 2015, Intels notes: "190 companies presently operating in Onne with investment valued at over USD6.0 billion and supporting livelihood for over 204,000 persons (direct and indirect employments and family members)."
Perhaps indicative of the company's alleged disdain for the Naira, Intels did not give the Nigerian currency's equivalent of the purported value of investments by the 190 companies operating at its FLT and Federal Ocean Terminal (FOT) facilities at the Onne Port Complex.
Industry watchers contend that, with its long history of romancing the USD, in particular, and other major currencies, and estrangement from the Naira, Intels will be hard put providing the value of its investments.
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 restriction.
‘’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.
The Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele, told journalists from Nigeria on the sidelines of the International Monetary Fund (IMF)/the World Bank Group meetings in Lima, Peru, that the apex bank will continue to deny importers access to foreign exchange to bring in goods that can be produced locally.
The CBN has identified about 41 items which it denied eligibility to access foreign exchange from the interbank window, a policy Emefiele stressed was not up for review.
"We have not banned any items. What we just did was to exclude them from accessing foreign exchange; items that can be produced in the country. We think that because of the problems we've had, the drop in commodity prices and revenue accruing to the nation, and because we know that these items have been produced in large quantities in this country in the past, that provision still stands. The CBN is not reconsidering the ban, the exclusion still stands," Emefiele said.
He added: "The Central Bank has at different fora even received the list of additional items which some section think should be included from receiving foreign exchange, but the CBN has for now limited the options to the existing ones."
---enforces payment for its services in foreign currency.
A moral challenge, which will need strong political will power to surmount, is currently facing President Mohammed Buhari, in its effort to strengthen the sliding value of the Naira.
On assumption of office, the President, through the Central Bank of Nigeria, has embarked on a tough FOREX restriction in order to enhance the value of the local currency which has hitherto been treated with disdain by Nigerians and other business interests in the country.
This disdain for the Naira has further weakened the currency as foreign currencies, especially the American Dollars, have inadvertently become legal tender in the country.
As a result, the administration of Buhari placed a ban on transactions in foreign currencies, insisting that any transaction should be done in the local currency.
However, one company, Integrated Logistics Limited, (INTELS), which prides itself as the leading logistics provider in the oil and gas free trade zone in Onne, has continued to treat the policy with disdain and scorn.
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.
Curiously, Alhaji Abubakar Atiku, the former Vice-President of the country and a leading chieftain of the ruling All Progressive Party (APC), has major equity control in the company run by Italians.
Intels has continued to ride on the influence and powers of its major shareholder to rough shod on major policies of government, brushing aside the protests of stakeholders.
One of such brazen affronts of the company was an attempt to annex the oil and gas free trade zone, using its powerful link of its chief promoter to force all oil and gas related cargo to go through its facilities, despite the protests of other concessionaires who felt shortchanged in what they regarded as an arm-twisting tactics of the company to run them out of business.
To protest what they regarded as the larger than life posture of Intels, importers of oil and gas related cargo boycotted the use of Intels facilities, instead, chose to divert such consignment to the neibouring ports from where they bring them to the country.
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 denominated in USD.
It was gathered that, while there had been eight companies in operating at Onne in 1997, there numbers had grown in leaps and bounds in subsequent years as follows: 95 companies, 2004; 170 companies, 2014; and 2015, 190 companies.
In a document, "Development of facilities at Onne, Warri and Calabar Port Complexes", which it issued in May 2015, Intels notes: "190 companies presently operating in Onne with investment valued at over USD6.0 billion and supporting livelihood for over 204,000 persons (direct and indirect employments and family members)."
Perhaps indicative of the company's alleged disdain for the Naira, Intels did not give the Nigerian currency's equivalent of the purported value of investments by the 190 companies operating at its FLT and Federal Ocean Terminal (FOT) facilities at the Onne Port Complex.
Industry watchers contend that, with its long history of romancing the USD, in particular, and other major currencies, and estrangement from the Naira, Intels will be hard put providing the value of its investments.
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 restriction.
‘’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.
The Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele, told journalists from Nigeria on the sidelines of the International Monetary Fund (IMF)/the World Bank Group meetings in Lima, Peru, that the apex bank will continue to deny importers access to foreign exchange to bring in goods that can be produced locally.
The CBN has identified about 41 items which it denied eligibility to access foreign exchange from the interbank window, a policy Emefiele stressed was not up for review.
"We have not banned any items. What we just did was to exclude them from accessing foreign exchange; items that can be produced in the country. We think that because of the problems we've had, the drop in commodity prices and revenue accruing to the nation, and because we know that these items have been produced in large quantities in this country in the past, that provision still stands. The CBN is not reconsidering the ban, the exclusion still stands," Emefiele said.
He added: "The Central Bank has at different fora even received the list of additional items which some section think should be included from receiving foreign exchange, but the CBN has for now limited the options to the existing ones."
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