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Plugging Revenue Leakages, Revitalising Decayed Infrastructure At Seaport

The Nigeria maritime sector, according to experts can solve the nation’s economic woes, but revenue leakages, infrastructure decay among others have been identified as it albatross. YUSUF BABALOLA writes on how the present management of the Nigerian Ports Authority (NPA), is changing the narrative.

by Yusuf Babalola
2 years ago
in Business, Feature
Calabar Port

The managing director, Nigerian Ports Authority (NPA), Mohammed Bello-Koko,

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Before now, one of the many challenges facing the nation’s Marítime sector was not revenue collection rather, it was revenue leakages that has made government not able to maximise potentials inherent in the sector.

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For instance, stakeholders have argued that the maritime sector alone, can take over from oil as the highest revenue earner for the federal government. They argued that the sector can generate N7 trillion annually and can on its own, fund the national budget without any deficit.

But, activities such as revenue leakages, dilapidated port infrastructure, absence of dedicated export processing terminals, limited channel draught, increased Vessel Turnaround Time, Cargo dwell time among others, are limiting the potentials of the Nigeria seaports.

However, since the appointment of Bello-Koko as the substantive managing director, Nigerian Ports Authority (NPA), he has been plugging revenue leakages, been at the forefront of agitating for the revitalising and reconstructing collapsed port infrastructure.

Bello-Koko, a renowned accountant has also increased revenue generated by the NPA, increased remittances to the Consolidated Revenue Fund (CRF), and ensure quick turnaround of vessels, and trucks to achieve efficiency in the seaports.

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In increasing government revenue, he tightened the collection mechanisms and plugged revenue leakages that resulted in the unprecedented generation of N286 billion and the remittance of N103 billion as at October 2022 to the Consolidated Revenue Fund (CRF) of the federation.

Building decaying port infrastructure has always been Koko’s dream, and he has done so with the provision and installation of 86 Buoys for Warri and Calabar Pilotage Districts. Others include, survey and installation of Buoys at Ijegun/Kirikiri water channel, licensing and upgrading of Pilots across the four Pilotage District, acquisition of Harbour Crafts (Tugboats, Pilot Cutters, and Patrol Boats, licensing of additional four truck parks to increase capacity of truck parks servicing the Lagos Ports and licensing of 10 Export Processing Terminals to facilitate exports at Nigerian Sea Ports. Four of these terminals are already fully operational.

The NPA, to increase port productivity and efficiency, reduced the truck turn-around time due to successful monitoring of the E-Call Up System and also to minimise breakdown of trucks on port access roads, about 3,000 trucks were inspected, certified and issued stickers to ensure safety and compliance with ISO certification requirements and Minimum Safety Standards (MSS).

This, has however, led to 65 per cent reduction in number of accidents recorded, arising from improved standard of trucks operating within the Port premises. The NPA, following Koko’s directive has enforced full compliance of trucks to E-Call Up regime and minimum safety standard resulting in significant reduction in the traffic gridlock along the main Port corridor and the internal access roads through enforcements, proper batching, continuous access control mechanisms and movement of cargo via barge operations.

To save the country the much-needed foreign exchange, Koko has ensured that complete dry-docking of some Tug Boats are done locally and this has increased the authority’s fleet. To ensure adequate security at the ports, the NPA has procured and deployed six Security Patrol Boats (SPBs) to all Pilotage Districts to address incessant attacks of vessels along the channels and at Ports’ waterfronts. In the period under review, the NPA has ensure standardisation of Operational Procedures for Different Activities, created Forcados Signal Station to enable the Port capture the movement of more Service Boats and completed bathymetric Survey for the dredging of Escravos Channels.

With vital things necessary for effective port operation lacking,  the NPA, surveyed and mapped the FairWay Buoy up to Warri-Sapele-Koko Ports to the prescribed standards of the UKHO Charts, increase Container holding capacity at Rivers Port arising from conversion of unused space within PTOL Terminal into stacking area, provision of 24 motor cycles deployed to aid effective monitoring of Truck E-Call Up operation at Apapa/TCIPC/Ijora axis to ease free flow of traffic.

He also, ensured signing of Memorandum of Understanding (MoU) with the National Bureau of Statistics (NBS), for data digitalisation and exchange for effective integration of Ports statistics with National Database and upgrading of website and daily Shipping Position Portal.

Others are the upgrade of infrastructure at Terminal ‘B’, Berth 7 and 8, Onne Port Complex based on Messrs WACT Nigeria Limited proposal for investment exceeding $110 million over a period of two years. “The overall progress on all ongoing works is 75 per cent as at end of October, “competent source at the NPA said.

Also, completion of the construction of 6,000 metric tonnes Bitumen Tank in Rivers Port Complex to improve the company’s bitumen storage capacity which will ease their operations and have impact on the infrastructural development of the South-South, approval for the Completion of Road Network for the integration of Berth 9,10, &11 at Federal Ocean Terminal, Onne Port, completion of the modernisation of Control Towers at Lagos Port Complex and Tin Can Island Port, installation of One Hundred and Eighty (180 Nos) Marine Fenders on all Quays Authority Wide for safe berthing were all achieved during the period under review.

The NPA has also completed review of expired concessions while reviewing all available funding options in order to commence immediate reconstruction of: TinCan Island Port Complex, Berth 4-14 in Apapa Port Complex, Berth 2 in Onne, Terminal C in Warri and Warri Jetties. Also, the synergistic partnerships at instituting transparency harbingered by the Mohammed Koko – led management recently gained international commendation as Nigerian Ports won, “Outstanding Achievement in Collective Action Award,” of the Switzerland-based Basel Institute.

In its drive to take the lead in the effort by the federal government to diversify the nation’s economy and boost exports, the NPA last month commissioned Nigeria’s first Export Processing Terminal at Lilypond in Ijora, Lagos.

The facility, the NPA said, will ensure prompt and seamless processing of export cargoes accessing Apapa and Tin-Can Island Ports in Lagos.

Speaking, the managing director of the NPA, Mohammed Belo-Koko stated that the Export Processing Terminal will further enhance Nigeria’s non-oil exports currently in the region of $2.5 billion.

Bello-Koko said the export terminal will help Nigeria optimise the benefits inherent in the African Continental Free Trade Area (AfCFTA) agreement as greater efficiency will be infused into the logistics surrounding the entry of export boxes into the ports for onward loading on vessels.

Bello-Koko who commissioned the terminal, said the facility will help to reduce wastages and rejection of Nigerian export goods, and also reduce the time wasted before exports gain access to the port.

According to him, there have been several cases of rejection of export originating from Nigeria, which could be attributed to time wastages and spending longer time at the port, but the terminal will ensure speedy processing of exports.

He added that the initiative is in line with the NPA’s commitment to the implementation of the National Action Plan on agro-export and the federal government’s desire to diversify the national economy from oil to non-oil export.

He said the NPA is also working to integrate the Central Bank of Nigeria’s NXP (Nigeria Export Proceed Form) into the electronic call-up regime.

According to him, “The need for Export Processing Terminals is underscored by the limitations of current port facilities in the Lagos area which are operating beyond their built capacity for cargo handling. The export terminals will serve as holding areas positioned in Lagos and Ogun states to help exporters prepare the arrival at port terminals in view of the traffic management challenges that are visible in Lagos.”

He said the Nigerian Export Promotion Council (NEPC) has served as the technical partner of the NPA through the journey of setting up the terminals.


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