INTELS Nigeria Ltd. has so far paid $184.6 million (N56.3 billion) between 2006 and 2016 as Concession fees to the Nigerian Ports Authority (NPA) and the Bureau of Public Enterprises (BPE).
The company indicated this in a report on Tuesday in Lagos.
INTELS said the fees are: Commencement Fee $10.3 million; Lease Fee $68.4 million; Throughput Fee $35.7 million; and Land Industrial 0Area fee $79 million.
According to the report, prior to the concession exercise, INTELS tailored its services, facilities and operations to support activities in the oil and gas industry.
“The highly technical facilities required to support oil and gas related operations also require special equipment and highly skilled manpower to manage such operations, which, therefore, leads to higher level of investments by INTELS relative to competitors.
“The logistics and equipment infrastructural needs of the terminals concessioned to INTELS requires much higher investments and specialised skill in contrast to other terminals.
“This consequently was projected to yield higher returns to the concessionaire a well as the government.
“This informed the basis for fixing a higher throughput fee per ton for these terminals to be paid by concessionaires of terminals located in those ports (INTELS) at that time of concession, while other terminals pay a much lower figure per ton under their concession agreements,’’ the report stated.
It explained that it had, therefore, always been clear that certain ports on account of their specific character and locations were to be dedicated and designated for oil and gas cargo handling while others were not.
The report also said that INTELS was committed to developing the Badagry Port & Free Zone of over 5,00 metres of Quay wall and 603 hectares port area consisting of container terminal, refined products terminals, oil services centre, general purpose terminals and Roll On Roll Off (RORO) terminals.
INTELS said the Badagry port had provision for 322 hectares industrial area, 162 hectares dedicated logistics park, 26 hectares expatriate housing compound and free trade zone status.
