The seeming unending friction between the Minister of Transportation, Rotimi Amaechi, and the Managing Director of the Nigerian Ports Authority, Hadiza Bala-Usman, may not be unconnected with the former’s scheming for the 2023 presidential election after all.
Careful watchers of goings on at the NPA would recall that Bala-Usman, currently on suspension, had been in the firing line of Amaechi’s wrath ostensibly for her handling of contracts involving the Integrated Logistics Nigeria Limited.
This is the catch: INTELS is owned by former Vice President Atiku Abubakar, who has not hidden his ambition to contest the 2023 presidency.
The Transportation Minister is trying desperately to worm himself into Abubakar’s heart so as to run with him – and Bala-Usman is hurting that ambition by working against the interests of INTELS at the NPA.
The desire to actualise this long-time ambition may be the reason Amaechi, a former member of the Peoples Democratic Party, is desperately showing preference for the restoration of all business relationships between the NPA and INTELS.
Observers say that by restoring INTELS’s contracts at the NPA, the Minister would have successfully built a financial war chest and at the same time wormed himself back into Abubakar’s heart, who may be disposed to considering him as running mate.
The Eagle Online recalls that Amaechi while inaugurating the administrative panel set up to probe the management of the NPA had urged the panel to “examine and investigate issues leading to the termination of pilotage and other contracts of Nigerian Ports Authority and confirm compliance with the terms of the respective contracts, court rulings and presidential directives.”
Sources say the main concern of the Minister is the multi-million-dollar pilotage contract, which INTELS executed for the NPA since 2005.
That relationship had been weakened progressively since the Bala-Usman management came on board at the NPA in 2016, until it was terminated finally in August 2020.
Bala-Usman’s management had insisted that INTELS failed to comply with Treasury Single Account policy of the government, but her supervising Minister, Amaechi, would have none of it.
Bala-Usman’s NPA management had also been uncomfortable with INTELS monopoly as the only oil and gas terminal in the country and had moved to break it – a decision believed to have gone down well with operators in the sector.
However, Amaechi succeeded in getting presidential approval sometime earlier this year to request the restoration of all contracts between the NPA and INTELS, hitherto suspended or terminated by the Authority.
The NPA was also directed to withdraw all court cases involving both parties.
Bala-Usman was said to have drawn President Muhammadu Buhari’s attention to this, with facts showing that the pilotage contract was not terminated but simply expired, on which the president reportedly consulted the Attorney-General of the Federation and Minister of Justice, Abubakar Malami.
Sources close to the Minister said Bala-Usman’s presentation of superior facts to the Presidency without his knowledge or approval infuriated him.
That act of “insubordination” and the fact that Bala-Usman’s actions are directly threatening his political ambition for 2023 are the reasons he wants the now suspended NPA boss out of the way.
Sources say the transportation minister is mulling leaving the All Progressives Congress, especially given the fact that President Buhari will no longer be standing for elections and has shown his determination to make the contest a free- for-all.
He is also believed to be leveraging on his business relationship with the Chinese government, using his office as Minister, through the ongoing multi-billion dollar rail projects for his 2023 ambition.
It will be recalled that leading investors in Nigerian Free Trade Zones recently threatened to commence divestment from the zones, calling on the board of Nigeria Export Processing Zones Authority to summon a stakeholders’ meeting.
In a statement on behalf of the Investors, signed by Yusufu Abdullahi, Director,
Snake Island Integrated Free Zone Lagos, the proposed reform was described as “a ploy to destroy multi-million naira private investment in the free zones”, calling on NEPZA “to call a meeting of stakeholders and investors on the subject.
A leaked draft report from the Federal Ministry of Trade had proposed to transfer supervision of such private sector investment from the NEPZA to the Oil and Gas Free Trade Zones in which INTELS owns major shares.
The statement by Abdullahi added: “The Governing Board of NEPZA should meet with the Stakeholders to listen to our concerns on this issue and collate coordinated views and inform FMITI before going to FEC with a memo.
“The course of action is to prevent possible disinvestment in the Free Zone Scheme because the affected Zones are all Private Sector Direct Investment without a single government grants.
“For the report to be genuine it should be processed through NEPZA and Free Zone Developers cum-Zone Sponsors, Zone Management and selected Free Zone Enterprises under the Regulatory Authority of NEPZA, they constitute Stakeholders.
“The reason is to prevent disinvestment in the Free Zone Sector because the affected Zones are all Private Direct Investment without a single Government grants.
“The genesis of the Evaluation of FTZ Licensees was NEPZA refusal to comply with FMITI letter Ref. No T/FAL/1164/210 dated 30th April, 2020 directing the transfer of selected free zones regulated by NEPZA to OGEFZA whose primary focus was oil and gas activities and were affected by the interpretation of the Hon. Minister of Justice and Attorney General on Section 5 and 25 of OGEFZA Act, in 2008.
“It was NEPZA refusal to comply with the FMITI letter Ref. No T/FAL/1164/210 dated 30th April, 2020 directing the Authority to transfer ‘the free zones currently regulated by NEPZA whose primary focus was oil and gas activities and were affected by the interpretation of the Hon. Min. of Justice and Attorney General on Section 5 and 25 of OGEFZA Act, in 2008 and that the following Private Direct Investments in Free Zone development and Zone Management should be transferred to OGEFZA to regulate:
a) Dangote Industries Free Zone
b) LADOL Free Zone
c) Snake Island Integrated Free Zone
d) Tomato Industrial Park
e) Olokola Oil and Gas Free Trade Zone.
“NEPZA replied to FMITI vide its letter Ref. NEPZA/LS/SF/22/IV dated 20th May, 2020 notifying the Hon. Minister that the announcement and directive of Mr, President that Steve Oronsanye Presidential Committee Report on Rationalisation of the Government Agencies which recommended that “the Onne Oil and Gas Export Free Trade Zone (OGEFZA) be reverted to the Nigeria Export Processing Zones Authority (NEPZA) should be executed.
“NEPZA also drew the attention of the Hon. Minister on the pending Court Case on the same interpretation the FMITI was relying upon was before Federal High Court instituted by a Private Zone Operator against OGEFZA, Ministry of Justice and FMITI which seeks judicial determination of the regulatory powers of OGEFZA over SIIFZ, the later having been licensed to operate under NEPZA Act.
“NEPZA further told the Hon. Minister the solemn fact that, at the time the promoters of all the listed Free Zones commenced the process of setting up their businesses in the country, they were aware of the existence of OGEFZA, yet in recognizing the limitation in scope of approved activities and geographical constraints (Onne/Ikpokiri Area of River State) under OGEFTZA Act, they chose to register under NEPZA, the Authority with statutory powers to regulate ALL activities across ALL parts of Nigeria.”
The statement called on NEPZA Board Authority to collate and coordinate all views and inform the FMITI before going to the Federal Executive Council with a memo accordingly.
The Investors added: “It is not possible for private sector investment to be transferred into an unknown unlegislated institution “OGFZA”. White Paper cannot be substitute to National Assembly constitutional powers and authority to legislation. The only recognized Free Zones Authority legally recognized is NEPZA. However the report intends to execute the failed effort of the Hon. Min., FMITI in his letter Ref. No T/FAL/1164/210 dated 30th April, 2020 directing NEPZA to transfer five zones being regulated by it to OGEFZA which they declined to do from legal point of views.
“In conclusion, Membership of the Committee are Political Office Holders and Public Servants who do not have investment in the free trade zone but are willing to frustrate and destroy billions of dollars of private investment collaboration in the scheme. It is self-interest composed Committee that is not ready to advance Nigeria progress and development but advance personal interest.”
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