NEPZA Lauds Federal Govt, NPA Over SIIFZ Port Expansion Agreement

The managing director of the Nigeria Export Processing Zones Authority (NEPZA), Prof. Adesoji Adesugba, has described the new 45-year concession agreement for the expansion of the Snake Island Port worth over $450million as another investment milestone brokered by the President Muhammadu Buhari’s administration.

Adesugba stated this yesterday in his congratulatory message to the management of the Snake Island Integrated Free Zone (SIIFZ) in Abuja for securing the agreement on May 17.

The NEPZA chief executive officer said that the president Buhari’s understanding of the importance of the free trade zone in unlocking the economy had led to progress of the scheme in recent years.

He explained that the federal government and the Nigeria Port Authority (NPA) made this economic concession for the benefit of the country, adding that the agreement was aimed at restoring the facility as a global ship hub once again.

“Just as we are rejoicing over the inauguration of the Dangote Refinery, also a free trade zone, this agreement also calls for celebration. You can see the strategic manner in which this administration delivered much of its economic policies through the free zone.

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“I wish to therefore, congratulate Mr President and the management of the NPA for this feat. 

We will like to also express our profound appreciation to all stakeholders whose expertise were used to arrive on this agreement.

“It is important to mention that we have added another cap to the feather of NEPZA who midwifed this major investment worth over $450million.

“We are hopeful that this project when completed will provide more job opportunities for Nigerians, attract investments to the sector and contribute significantly to the revenue hub of the government,”he said.

Nigerdock is a multipurpose port facility sitting on 85-hectare, comprising three terminals located within SIIFZ.

Aside its operations in ship repair, logistics, and free zone solutions, Nigerdock had been in terminal operations following approvals by the NPA and the Nigeria Customs Service (NCS).

The Nigerdock was originally awarded free zone and port Status by the federal government in 2005 and later switching name to become Snake Island Integrated free zone the same year.

In the bid to further enhance the performance of the port, the federal government did approve direct shipping for the facility in 2017 and green-lighting cargo handling operations in 2021 respectively.“This plan is subject to evaluation, approval and oversight of our Board and Management teams and is underpinned by actionable, specific initiatives for decarbonising our operations and increasing the overall sustainability of our business model,” Omiyi said. 

Mr. Matthew Akinlade, President, Noble Shareholders Solidarity Association, said: “I wish to commend the Board and management for a good performance, in spite of the challenges of year 2022, you were able to raise revenue by about 38 per cent and cost of sales at just 18 per cent, which shows an effective management of the company’s cost.”

Also, a shareholder, Mr. Patrick Ajudua, said: “I want to commend the company for the special dividend of 5 cents, in addition to the final dividend of 2.5 cents, bringing the total to 15 cents. We are, indeed, very grateful and we appreciate the Board for being consistent in dividend payment and ensuring a generous reward to the shareholders at a very difficult time, when most companies are even finding it difficult to maintain profitability.”

Speaking at the meeting, the acting CEO, Seplat Energy, Mr. Samson Ezugworie, said: “As part of Seplat Energy’s drive to become a leading supplier of lower carbon and renewable energy, we are exploring ways to expand into these new and exciting markets.

“The first and most obvious option is to provide more gas for Nigeria’s power sector, to reduce the country’s reliance on imported diesel fuel, which is highly carbon intensive and a drain on the nation’s wealth. We will also look at hybrid systems where we install solar or other renewable technology alongside gas, which will provide baseload power at all times,” he added.

Seplat Energy Plc is listed on both the Nigerian Exchange Limited (NGX) and the London Stock Exchange (LSE). In its 2022 full year financials the company’s total revenue rose by 29.8 per cent to $951.8m while profit before tax rose by 15.3 per cent to $204.4m.