Despite the impact of COVID-19 pandemic on global trade and supply chain logistics, the Nigerian Ports Authority (NPA), said the authority had exceeded its revenue target having remitted N89.9 billion into the Consolidated Revenue Fund (CRF).
This was disclosed by the acting managing director of the authority, Mohammed Bello-Koko in documents presented to the House of Representatives Committee on Ports and Habours.
However, the impressive revenue performance achieved by the Bello Koko led management of the Authority, which has been in office for only six months, has been highly applauded by industry stakeholders.
Bello-Koko who said that the authority has reduced its operating expenses by 20 per cent of its budget for this year in his presentation to the committee revealed that as at the end of September 2021, the Authority earned N256.28 billion as against the expected N214.65billion (approved estimate N271.70billion) for the same period, representing a performance of 120 per cent or 95 per cent of its total annual budget for 2021.
He said, “in compliance with the quarterly remittance of its operating surplus to the Consolidated Revenue Fund and provisions of the Finance Act 2020, the Authority has remitted the sum of N62.66billion to CRF for the year 2021 as at October 31, 2021, while a cumulative sum of N89.9billion has been transferred to the CRF in the last six months.
“At the current state of increased revenue drive, it is projected that the Authority will exceed its 2021 revenue projections and the projected transfer to the CRF for the year 2021 which is expected to be over N80billion, which would be the highest in the history of the authority, “he said.
“For operating expenses, as at the end of September 2021, actual spending stood at N55.10bn as against the budgeted figure of N65.49billion, comprising employees’ benefits, pension costs, towage services, supplies, repairs & maintenance and other administrative overheads. This indicates a “savings” of N10.39billion or 85 per cent performance of the approved budget of N87.32 billion.”
The NPA’s helmsman informed the House Committee that contrary to newsreports insinuating that Nigerian ports are the most expensive in the sub-region, a study commissioned by the Authority with the support of UKAid in 2019, indicated that it is cheaper for general and container vessels to berth in Nigeria than in Ghana or Togo.
He explained that a huge chunk of what shippers or cargo owners spend to clear their consignments include terminal and freight charges paid to terminal operators and shipping companies, payments for customs duty, inspection services, haulage, insurance and other sundry trade levies and fees, which are outside the purview of the Authority.
Aside the towage dues which was reviewed in 2015, Port tariffs in Nigeria have remain same since 1993, he said.