In a bid to shore up its revenue amidst the nation’s economic recession, the Nigerian Maritime Administration and Safety Agency (NIMASA) has appointed Snecou Financial Services Company Ltd. to assist in revenue generation.
The Director-General of NIMASA, Dr Dakuku Peterside, said on Sunday in a statement in Lagos, that the approval for the contract was recently granted by the Parastatal’s Tenders Board (PTB) of the agency at its 55th session held in the agency’s head office in Lagos.
“The contract which also has the company serving as a recovery agent for debts owed the agency is for a period of two years in the first instance with an option for renewal.
“Given the urgent need to recover the agency’s debts which is in billions of Naira, the agency sought and obtained approval for a “Certificate of No Objection’’ from the Bureau of Public Procurement in line with the Public Procurement Act (PPA).
“According to the contractual agreement already endorsed by both parties, the contract is based on a success rate of 13 per cent using a benchmark of $19.75 million dollars and N239.60 million monthly revenue,’’ Peterside said.
The director-general said that, “A maximum cap of 15 per cent success rate is payable on any new revenue head discovered by the consultants within the contract period.’’
“In other words, Snecou Financial Services Company Ltd. will be paid 13 per cent of only the revenue that is above the threshold of the approved benchmark in the course of the contracting period.
“Similarly, Messrs Snecou will also be entitled to a maximum of 15 per cent of new revenue streams discovered during the period,’’ quotes Peterside as saying.
He said that the contract was in line with his vision, which was in accordance with the agency’s Medium Term Strategic Growth Plan, part of which is to enhance the agency’s revenue.
According to the director-general, we have awarded a debt recovery contract which is totally different from what Global West was doing for NIMASA.
“The contract was not awarded to the Chairman of the APC in Rivers State. It was awarded to Snecou Nigeria Ltd. and we advertised the contract in several newspapers.
“So I do not see what is wrong with awarding a contract to get our money from debtors,’’ the director-general said.
Peterside said that debts owed the agency “are around four to five billion dollars which has necessitated an urgent need to recover them in order to develop requisite infrastructure for the maritime industry’’.
“Debts owed NIMASA by various operators in the maritime industry had grown exponentially over the last five years.
“Even necessitating an investigation and convocation of a Public Hearing by the House of Representatives Committee on Maritime Safety, Education and Administration in June this year.
“This contract is expected to recover these debts and channel the funds into developing critical infrastructure as well as knowledgeable manpower for the industry,’’ The director-general said.