Findings have shown that the Federal Government failed to capture the Apapa and TinCan Island port reconstruction projects in the 2023 budget presented to the National Assembly last week.
In the budget, the sum of N20m was allocated for agencies
under the Federal Ministry of Transportation such as Nigerian Ports Authority,
Nigerian Maritime Administration and Safety Agency, Maritime Academy of
Nigeria, Oron; and Nigerian Shippers Council for other consultancy services.
Meanwhile, agencies like MAN in Oron and the Council for the
Regulation of Freight Forwarders in Nigeria got N1.5bn and N775m respectively.
It will be recalled that the Managing Director of the
Nigerian Ports Authority, Mohammed Bello-Koko, had said that a whooping sum of
about $600m (N258bn) was needed for the rehabilitation of Nigerian
ports. However, this figure was not captured in the budget as only N10m was
allocated for implementation of strategies for the rehabilitation, utilisation
and patronage of Eastern ports.
The seaports being considered included: Apapa, and Tin Can
Island Ports in Lagos; Calabar Port in Cross River as well as Warri, Koko and
Burutu ports in Delta State.
Bello-Koko had said that not all the terminal operators had
the financial capacity to handle the reconstruction of the quay aprons.
“Like I said before, not all of them have the financial
capacity to reconstruct because it is no more rehabilitation but full
reconstruction. While some of them might be able to have financing in the next
few months, others might not be able to meet up and then you need to have
uniformity in terms of the construction plans and so on. We also didn’t want
the terminal operators to come up with their own engineering designs.
“So, we are coming up with a holistic engineering design of
the ports. When we do that, we also have an estimated cost of over $600
million. Now, we are looking at the funding options. The first option is for
the terminal operators to reconstruct those berths. Either we give them time to
recoup their investments or we extend their leases.
“The other alternative is for the NPA to reconstruct those
quays and to do that, we are going to fund it ourselves. We are working towards
requesting the government’s approval to use a certain per cent of our revenue
to fund the reconstruction of Tin Can.
“We are just being proactive. When the government decides to
go that way, we know that we have already done some of the work. The other
option is to just get a multilateral lending agency to fully fund that
reconstruction. The FMOT has been pushing and giving timelines in terms of the
starting of the reconstruction of Tin Can.”
Meanwhile, a source close to the NPA told THE PUNCH that
though one of two terminal operators wanted to undertake the project, it was
still the responsibility of the ports authority.
“It is the responsibility of the NPA. The agency is looking
for funding options. Some terminal operators like one or two want to undertake
the project, but if one person does it and the other does not do it, there will
be distortions of the whole system. This is why NPA wants to do it itself. So,
if it is not in the budget, I don’t know who they want to do it with.”
Reacting to this, Vice President of Business Action Against
Corruption, Integrity Alliance, Lagos, Jonathan Nicol, questioned why shippers
were charged a seven percent development fee if the ports would not be
developed.
He said that it was the duty of terminal operators to
develop the terminals.
“Shippers pay a 7 per cent surcharge for port development
levy across the country. The 7 per cent surcharge is a levy for every cargo
that comes into the ports. Shippers have been paying that levy for 30 years. It
is enormous money for development of the ports, which has not been used,
looking at the state of the ports.
The question is, why do shippers have to pay for port
development levies when the port has been concessioned. This is because
concessionaires are supposed to develop their own spaces at the ports, which
they rented from the Nigerian Ports Authority. It is their duty to develop them
and not that of the shippers to do it for anybody.”
Nicol said NPA had the right to request money to develop the
ports from what they had been paying to the government.
“The NPA has a right to request funds from what it has paid
to the government. If the government is saying they are not going to fund the
NPA, NPA has the right to hold the funds and remit part of what they collect to
the government and use the rest for salaries and development of the ports.”
According to him, “With the way it is, if care is not taken,
the NPA might increase its tariffs. Government is introducing, increase the
cost of doing business instead of decreasing it. The 7 per cent surcharge is a
levy for every cargo that comes into the ports.”
He said that the government was increasing the cost of doing
business instead of reduction, noting that it was not healthy for port
development.
“The government is increasing the cost of doing business
instead of decreasing it.”
Meanwhile, the General Secretary of the Association of
Bonded Terminal Operators of Nigeria, Haruna Omolajomo, lamented poor
infrastructural maintenance by the government, stressing that it was not good
for the growth of the industry.
“As far as I am concerned, it is very painful that the
Nigeria government, through its agencies and other parastatals, is very poor in
maintenance culture. If infrastructure is not obsolete, decayed, collapsed or totally dilapidated, no one will be
bothered.”
According to him, “Even where budget provisions are even
made, the money would be diverted or cornered by some bad eggs in the country.”
According to him, “One is therefore not surprised to see the
dilapidated ports and quay aprons of our premier ports, especially those of
Lagos ,TinCan and Onne just to mention a
few. They are not being attended to or accommodated in 2023 budget.”
Omolajomo noted that the government was only concerned when
the crisis involved the big men and the powerful in the society.
“But let there be a disaster or killing that involves one of the big men in the
governmental or higher authority, you will see the speed with which those in
authority would put things in order.”
He said that a state of emergency should be declared on the
dilapidated quays aprons at the ports.
He added that if the matter was not taken seriously, it
would attract international maritime operators.
“In actual fact, without further delay, we have suggested,
and we are still suggesting that all the dilapidated ports and a state of
emergency should be declared on quay aprons in the above stated premier ports.
If this is not done or taken seriously, it will soon attract international
maritime operators or the world in general.”
According to him, “Our premier ports can be declared a no-go
area or unsafe for foreign investors and vessels. This will definitely have
adverse effects on the people, the government and our economy that is already
down.
“It is not yet too late for the Minister of Transport as
well as the National Assembly to do the needful now. Let them quickly
accommodate these facilities involving restructuring in the 2023 budget.”
He urged the government to use the time of concession
renewal to ensure that the terminal operators participated in improving the
port infrastructure.
“Like we suggested, there is a need to review the renewal of
the concessionary agreement with the current terminal operators. They should be
made to show concrete commitments and make money available for the
restructuring of these dilapidated ports.
“They cannot just be milking the country and carting away
the money they get freely to enjoy themselves somewhere else.”
According to him, “The premier ports of Apapa and Lagos and
the newly constructed Lekki port are advantages to these agencies to get
adequate funds and funding. The Lekki port will definitely be a huge economic
blessing not only to these agencies but also to the people of Nigeria. These
agencies would definitely get a lot of money from the barge operators, truck
owners, agents, importers , indigenous bonded operators around the axis .
Business will definitely blossom in this Lekki port axis.”
Also speaking, a member of the National Association of
Government Approved Freight Forwarders, Start Ezenga, said, that the government
might have removed that from th agreement.
“When the Federal Government concessioned the port, they
cleverly removed the repairs of the ports from the agreement. They may be
expecting the concessionaires to do that. One of the terms in the agreement
would be for the government to maintain the ports. Hence they may have removed
that budget or from the government pulse.”
The Acting National President of the Association of Nigerian
Licensed Customs Agents, Kayode Farinto, said, “That is very funny. If the
government does not look at the infrastructure, it will be very funny. If they
didn’t capture it in the budget, it is not a good omen,” he said.
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