Intels to cut 40,000 jobs over pilotage contract termination

INDICATIONS are rife that oil and gas logistics giant, Intels Nigeria Limited may be considering cutting close to 40,000 direct and indirect jobs in the face of the termination of the Nigerian Ports Authority (NPA) boats pilotage monitoring and supervision agreement.

According to a senior official of the firm, who declined to have his name in print, the termination of the contract will definitely affect jobs because people have been employed over the years since the contract was signed.

Speaking to Nigerian Tribune, the Intels official stated that, “While we are considering legal actions against the termination of the pilotage contract by the NPA, let’s not forget the fact that thousands of jobs were created based on this agreement. I am taking of about 40,000 jobs in Onne, Rivers State alone.

“Has government considered what will happen to this jobs? Obviously, we won’t keep people on our payroll when there are no jobs. These people were employed because of the contract. Now that government has terminated the contract, these people may have to go since we can’t pay them for doing nothing.

“Since the pilotage contract was signed in 2013, about 40,000 direct and indirect jobs have been created. People have been employed while the contract itself has created jobs for other sectors indirectly. Let’s not forget that our role in Badagry deep seaport was also set to create closed to 100,000 jobs directly and indirectly. That’s all what the NPA has closed its door on.”

It will be recalled that the Nigerian Ports Authority (NPA) had said that it acted in accordance with the constitution of Nigeria as regards the termination of its boats pilotage monitoring and supervision agreement with Intels Nigeria Ltd.

According to a statement signed by the agency’s General Manager, Corporate and Strategic Communications,  Abdullahi Goje, the agency stated that it has taken note of Intels threat to withdraw its investment in certain projects in the country.

“The Authority has taken note of threats by Intels to withdraw its investment plans in Nigeria and must point that business thrives in favour of everyone involved only when the laws of the country of operation are adhered to. No organisation is above the Nigerian constitution and it is only when all corporate entities obey the laws of the country that everyone benefits. There must be a level play field for all players in the sector and this is the commitment of the Authority.

“However, the Authority respects the right of Intels and all other corporate entities in Nigeria to explore opportunities presented by the courts to enforce their rights in as much as the Authority is confident of the correctness of the step that it has taken.

“The board and management of the NPA is committed to serving the best interest of Nigeria at all times and this is what has happened in the case under discussion.”