The Nation Newspaper

Tag: NPA

  • NPA explains $852.93m, N1b levies flagged in Audit report

    NPA explains $852.93m, N1b levies flagged in Audit report

    The Nigerian Ports Authority (NPA) has explained to the Senate Committee on Public Accounts its debt of N1 billion.

    The committee had said the money was not clarified in the report of the Auditor General of the Federation.

    The NPA also made clarification on the $852,093,731.10 cited in the Auditor General of the Federation’s report being circulated in the media.

    It explained that $232,354,156.43 out of the sum had been recovered.

    NPA’s Managing Director Mohammed Bello-Koko gave the explanation when he appeared before the committee.

    The agency boss said the House Committee on Public Accounts had, during the Ninth Assembly, verified the money and given the authority a clean bill of health.     

    Read Also: NPA clarifies $1bn unremitted levies flagged in audit report

    Bello-Koko said the differences between the position of the Senate and House of Representatives Public Accounts Committees arose from the continuous repetition of money dating back to Year 2006 concession of the authority.

    He said the current NPA management had accounted for the money but that it was not expunged from its books.

    Speaking when he appeared before the Senate Committee on Public Accounts, Bello-Koko said: “Most of the debts date back decades. I mean legacy debts from companies like Nigerian National Shipping Line (NNSL) Limited and from the pre-concession period.

    “But we have been carrying these debts in our books and we have been impairing the amounts, thereby making provisions for all such debts. We have written to the Auditor General of the Federation on the procedure to take them out of our books and solicited the support of the Senate Committee in this regard.” 

    The NPA managing director assured the Senate Committee on Public Accounts that “in the spirit of public accountability, we will always be open to give account”.

  • NPA clarifies $1bn unremitted levies flagged in audit report

    NPA clarifies $1bn unremitted levies flagged in audit report

    The Nigerian Ports Authority (NPA) has offered clarifications to the Senate Committee on Public Accounts on the debt sum of N1 billion, which the committee said was not clarified in the report of the Auditor General of the Federation.

    Its clarifications also extended to the $852,093,731.10 cited in the Auditor General of the Federation’s report being circulated in the media, even as it claimed that a total of $232,354,156.43 out of the sum had been recovered.

    Managing Director of the NPA, Mr Mohammed Bello-Koko, who appeared before the Committee said that the House Committee on Public Accounts had, in the 9th Assembly, thoroughly verified the money and had given the Authority a clean bill of health.  

    Bello-Koko explained that the misunderstanding between the position of the Senate and House of Representatives Public Accounts Committees arose from the continuous repetition of sums dating back to the period before the year 2006 Concession of the Authority, which the current NPA Management had already accounted for but the sums had yet to be expunged from its books.

    Speaking on Thursday (December 8th, 2023) when he appeared before the Senate Committee on Public Accounts Bello-Koko exhaustively explained the facts of the matter to the Senators.

    He said “most of the debts date back decades. I mean legacy debts from companies like Nigerian National Shipping Line Ltd and from pre- concession period.

    “But we have been carrying these debts in our books and we have been impairing the amounts, thereby making provisions for all such debts. We have written to the Auditor-General of the Federation on the procedure to take them out of our books and solicited for the support of the Senate Committee in this regard.”

    Bello-Koko assured the Senate Committee on Public Accounts that “in the spirit of public accountability, we will always be open to give accounts.”

    Responding to the question that he should further clarify the debt issue, he explained that the debt figures were composed of estate rents, lease fees and throughput charges among others as stipulated in the Concession Agreements.

    According to him, “The debts date back to the period 2006 to 2019,” adding that “There have been recoveries within the period under review, and they are unrecoverable debts owing to issues such as Volume Change, Gross Minimum Tonnage (GMT)/Penalties, Encumbered Areas. etc.”

    He added: “For avoidance of doubt, it would be necessary to explain the following terms: “Volume Change – Means volume adjustment. The Executed Contract Agreement stated that if the percentage variation between actual/ performance and projected volume is within minus 10% to plus 10% the lease fee will be paid in full. However, if the percentage variation performance is more than minus 10% to plus 10% the lease fee payable will be adjusted by an equivalent percentage. Therefore, the adjustment is against the lease fee payable by the percentage change in volume.

    “Encumbered Areas – Refers to areas that are inaccessible due to factors not caused by the tenant such host community hostility, marshy land etc.

    “Guaranteed Minimum Tonnage (GMT)- This to the projected tonnage pledge by the Concessionaire to achieve, this arises from the inability of the Concessionaire to meet up the pledge.

    “Unpaid VAT- This relates to the VAT element of the unpaid Lease Fees arising from adjustment brought about by the volume change defined above.

    “Penalty- Refers to financial burden suffered for failure to meet terms of payment in a contractual agreement. It is as a result of the Concessionaire not paying within the specified time /days allowed in the contractual agreement. Simply put, it refers to a charge for late payment.”

    He continued: “The figure quoted in the press relates to the 2019 Auditor General’s report and it doesn’t reflect the current position of indebtedness to NPA.

    “It would be pertinent to clarify that out of the amount of $852,093,731.10 cited in the Auditor General of the Federation’s report and being circulated in the media, a total of $ 232,354,156.43 have been recovered.

    “The balance $504,663,452.37 constitutes uncollectible portion due to volume change and Contentions, $54,663,452.37 constitutes uncollectible portion due to Gross Minimum Tonnage (GMT), $19,619,459.00 constitutes Portion due to Encumbered Areas, $11,908,355.82 constitutes various penalties imposed on the terminal operators for not meeting set standards and $ 28,693,607.07 represents VAT of said amount.

    “In relation to the concessionaire debt of N1.8bn, a total of N269m has been recovered leaving a balance of N1.6bn which represents encumbered areas of the terminals.

    Read Also: DSS to unveil self-made UAVs, other weapons soon, says DG

    “As regards the outstanding estate rent, Ship Dues and service boats of $67m a total of $10.6m has been recovered.”

    Bello-Koko added: “It is very important to note that the uncollectible debts are summation of GMT stated above (which is a performance metrics) which the Terminal Operators could not meet mostly because of change in government policies (e.g issues like force majeure) and infrastructure decay.”

    According to him; “Some of the other debts are also legacy debts being owed by a government agency which metamorphosed into a limited liability company and for which the Authority is working out modalities with the relevant parties to recover accordingly.”

    He confirmed that the Authority was in advanced talks to resolve the disputes surrounding these amounts, pointing out that all outstanding amounts due to NPA had been accounted for by the end of the year 2022.

    Bello-Koko disclosed that the management of the Authority, in a concerted effort to correct the anomalies as seen in the concession agreements, engaged the World Bank to provide consultancy services for its review while an inter-agency committee comprising NPA, FMOT, FMOJ, BPE and ICRC developed a template to address the inherent anomalies in the agreements that allowed for the accumulation of such debts and to forestall a recurrence.”

    “This has resulted in the signing of supplemental concession/legal agreements which will come into effect shortly,” he added.

  • Investments in berthing facilities to boost economy, says NPA

    Investments in berthing facilities to boost economy, says NPA

    Managing Director, Nigerian Ports Authority (NPA), Mohammed Bello-Koko has said that investments in berthing facilities for ships and ongoing collaborations with critical government and non-government stakeholders like the Nigeria National Petroleum Company Limited (NNPCL) would boost the economy.

    He said NPA’s investments make its vessel pilotage regime very efficient to support the oil, gas and allied sectors of the nation’s economy.

    Bello-Koko disclosed this yesterday in Lagos, while delivering a paper on Port Strategies to Promote Seamless Import of Petroleum Products, at a forum organised by Lagos Chambers of Commerce and Industry (LCCI).

    Bello Koko, who was represented by the  General Manager, Office of the Managing Director, Ayodele Durowaiye,, said the pilotage, towage and mooring services represent some of the major areas it is supporting the oil industry, even in a post subsidy removal regime.

        According to him, the NPA has invested heavily in the provision of berthing facilities directly for ships while working with critical government and non government stakeholders like the Nigeria National Petroleum Company Limited (NNPCL)

        The NPA MD added that the authority has continually invested in equipment to support it’s operations across various pilotage districts.

        Giving a breakdown of NPA interventions across various operational areas comprising four pilotage districts, Bello-Koko  said in addition to existing platforms, the NPA acquired two units of 80 Bollard Pull Tugs to support it’s operations at Dangote and Pinnacle Oil while reassuring that more are expected as the authority’s assessment shows greater porentials for increased oil related maritime operations in the Lekki axis in future.

    Read Also: NDIC to recover N400b loans from liquidated banks

        On dredging to support vessel navigation, he said NPA dredging campaigns are regularly undertaken notably in Lagos where we have a joint venture (JV) relationship with the Lagos Channel Management (LCM) and Bonny Channel Management, for the Bonny /Port Harcourt axis.

        This is for both capital and maintenance dredging done to allow bigger draft ships to access the ports seamlessly and at cost saving amounts

        He said “In Warri Pilotage District, the restriction to the port in Warri, is that of cargo that can be loaded, not necessarily the size of the vessel. The authority is working hard to address the issue of collapsed beeakwater moles which causes serious siltation into the Escravos Channel. The consultancy service for the project has been completed and advert for bidding by contractors will soon be out

        “For the Calabar Channel Management, there is a Presidential directive that all court cases involving the parties should be suspended to pave way for take off of the Channel management company joint venture relationship. This is a good development that will eventually ensure dredging campaign that addresses the restrictions to the cargo volumes that can be loaded onboard vessels arriving the port” he said

        He added that his office has commissioned several study groups to look into tarrif on ship/harbour dues and the issue of payment in foreign currency but noted that the dredging cost, quay wall strengthening and other costs associated with the services NPA offers are  denominated in US dollars.

  • NPA, NIMASA, SON, Shippers Council chiefs sign performance bond

    NPA, NIMASA, SON, Shippers Council chiefs sign performance bond

    In what could be described as a joint commitment to turn around the socioeconomic fortune of the newly-created Federal Ministry of Marine and Blue Economy, the heads of agencies and departments (Chief Executive Officers and Directors) under the ministry, yesterday, signed a Performance Bond with the Minister, Adegboyega Oyetola.

    This was revealed by the minister’s spokesperson, Ismail Omipidan, via his X handle.

    According to him, the initiative is aimed at strengthening efficiency, proficiency and effectiveness for the overall development of the marine and Blue Economy sector.

    The signing of the Performance Bond followed a fruitful and resourceful two-day retreat, organised by the Ministry in Lagos, to chart a new course towards actualising its lofty objectives.

    He further noted that, with the signing of the performance bond, the Ministry became the first to cascade the Performance Bond initially signed with President Bola Tinubu to its Directors and Chief Executive Officers (CEOs).

    Read Also: Oyetola gives marching orders to NPA, NIMASA, SON, NIWA

     Recall that the Ministry had on Tuesday held a stimulating Stakeholders’ Roundtable Engagement with key players in the maritime sector as part of efforts to scale up its productivity and enhance Public Private Partnership (PPP) initiative for greater development.

     “Today, after a stimulating stakeholders’ roundtable engagement with industry players and another two-day engaging and exciting retreat in Lagos, Directors and CEOs within the Ministry of Marine and Blue Economy, signed their Performance Bond with the minister, Adegboyega Oyetola CON.

        “With this development, the Ministry becomes the first to cascade the Performance Bond initially signed with President Bola Tinubu to its Directors and Chief Executive Officers (CEOs).

        “The Ministry of Marine and Blue Economy is prepared and set to actualise its deliverables and contribute to the delivery of Mr President’s Renewed Hope Agenda,” Omipidan said.

  • NPA  warns against illegal container stripping on port  roads

    NPA  warns against illegal container stripping on port  roads

    Perpetrators of illegal stripping  of containers  on the Port access roads will henceforth be dealt with, Nigerian Ports Authority (NPA) Managing Director Mohammed  Koko, has warned.

    The NPA boss gave the warning when he  visited  Tincan Island Port, Lagos where he inspected designated container stripping yards and the port access roads to ensure trucks are not loitering.

    Specifically, he warned that truckers caught in the act stand the risk of being delisted from the Electronic Call-up System (eto) platform managed by the Truck Transit Park (TTP) limited.

     Koko said the NPA has rolled out Standard Operating Procedure (SOP) for barge operators, adding the SOP will serve as a guideline to all operators.

    On concerns surrounding container stripping also known as devanning, Bello Koko emphasized that stripping constitutes a menace when undertaken outside designated yards, as it provides a platform for trucks loitering around the ports access roads which results in traffic disruptions and attendant chaos.

    He said the NPA will intensify its vigilance and monitoring to nip the negative trend in the bud.

    Addressing the scarcity in some of the stripping yards, the Managing Director acknowledged the impact of global economic upheavals on cargo flow and reiterated that low business downturn cannot constitute a justification for illegality.

    Read Also: Support Tinubu’s administration – Ekpo urges politicians

    He said that proposals for well-equipped stripping yards, referred to as devanning yards are receiving accelerated attention, signaling a shift from illegal roadside stripping.

    Regarding sustainability of the measures, he informed that the NPA has collaborated with other government agencies and the Lagos State government to ensure that such unhealthy practices no longer take place along the port access road

    He  said such unannounced visits would become more frequent and will be followed by regular stakeholder engagements to continuously improve the seamless operations of the eto platform.

    He also warned that stripping yards that violate the operational rules will face temporal shutdowns for first time offenders, and the possibility of non-renewal of land leases for recalcitrant offenders.

    He noted that these stringent measures are geared towards maintaining orderliness and safety within the port environment.

  • NPA goes tough on container stripping on port access road

    NPA goes tough on container stripping on port access road

    The Managing Director, Nigerian Ports Authority, Mohammed Bello Koko, has issued a stern warning against the illegal stripping of containers along the port access road, stressing that the authority will deal decisively with perpetrators of the unwholesome practice.

    Bello Koko stated this, at the weekend, when he paid an unscheduled visit to Tin-Can Island Port where he inspected designated container stripping yards and the port access roads to ensure trucks are not loitering around the port corridors.

    The NPA chief warned that truckers caught in the act stand the risk of being delisted from the Electronic Call-up System (eto) platform managed by the Truck Transit Park (TTP) limited.

    He added that the NPA has rolled out Standard Operating Procedure (SOP) for barge operators adding the SOP will serve as a guideline to all operators.

    Speaking further, Bello Koko emphasised that stripping constitutes a menace when undertaken outside designated yards, as it provides a platform for trucks loitering around the ports access roads which results in traffic disruptions and attendant chaos.

    He said the NPA would intensify its vigilance and monitoring to nip the negative trend in the bud.

    Addressing the scarcity in some of the stripping yards, the Managing Director acknowledged the impact of global economic upheavals on cargo flow and reiterated that low business downturn cannot constitute a justification for illegality.

    He revealed that proposals for well-equipped stripping yards, referred to as devanning yards are receiving accelerated attention, signaling a shift from illegal roadside stripping.

    Read Also: No more strike in varsities, Tinubu assures

    Regarding sustainability of the measures, he informed that the NPA has collaborated with other government agencies and the Lagos state government to ensure that such unhealthy practices no longer take place along the port access road

    The Managing Director also stated that such unannounced spot visits would become more frequent and will be followed by regular stakeholder engagements to continuously improve the seamless operations of the eto platform.

    He warned that stripping yards that violate the operational rules will face temporal shutdowns for first time offenders, and the possibility of non-renewal of land leases for recalcitrant offenders.

    He noted that these stringent measures are geared towards maintaining orderliness and safety within the port and its environ.

  • NPA okays $1.1b for port rehabilitation

    NPA okays $1.1b for port rehabilitation

    • Badagry sea port construction kick-off early next year

    The Nigerian Ports Authority (NPA) said, yesterday, that it has embarked on a $1.1 billion port rehabilitation plan, as part of its efforts to ensure a strong commitment to improve the nation’s competitiveness in international trade.

    The objective of the plan, NPA said, is to enhance the physical infrastructure of the nation’s sea ports to accommodate vessels of all sizes and increase the draft at the quay side, with the aim of achieving draft depths of up to 14 meters expressing that the initiative will render Nigerian ports more competitive on a global scale

    Speaking during during the second day of the 43rd  Port Management Association of West and Central Africa (PMAWCA) conference in Lagos, the Managing Director of NPA, Mohammed Bello Koko, disclosed that with almost every port in Nigeria requiring necessary rehabilitation, the NPA has embarked on substantial overhauling of port facilities, starting with the TinCan and Apapa ports in Lagos.

    The NPA chief added that the agency is also strengthening collaborations with the private sector to establish new seaports.

    He said the Lekki Deep Seaport has already commenced operations, and that the Badagry Deep Seaport recently signed an agreement with a Middle Eastern party, with construction scheduled to commence early next year.

    He said these endeavors exemplify the NPA’s determination to create a multimodal transportation system connecting all ports seamlessly.

    Recognising the inefficiencies associated with road-dependent cargo evacuation, he said the NPA is actively working on alternatives initiatives which include implementing barges and expanding rail infrastructure. He informed that the rail line has reached Apapa port and will soon extend to TinCan port.

    Bello-Koko said the survey for deploying cargo rail and tracks to Onne port has been completed, setting the stage for the project to kick off next year.

    To streamline operations and reduce costs, Koko informed that the NPA has embraced automation.

    He said: “The authority has automated its collection system and is collaborating with the International Maritime Organisation (IMO) to introduce a state-of-the-art port community system, poised to optimise cargo clearance processes”

    Acknowledging the need for more efficient operations, he said the NPA is working on clarifying the responsibilities of government agencies within the ports with the newly developed port process manual aimed to reduce overlaps and eliminate duplication of duties.

    Read Also: Reps uncovers how NPA sold 16 vessels for N156.2 million

    On security, he said deployment of the “Deep Blue Sea” project, equipped with air and sea assets, is enhancing security in the Gulf of Guinea and contributing to a significant reduction in piracy incidents within Nigerian waters.

    He stated further, that the NPA is collaborating closely with the Nigerian Customs to reduce bottlenecks and cut the cost of doing business within the ports.

    He also disclosed the development of a 25-year port master plan that will guide the location, sizes, and activities of ports, terminals, and jetties across the country.

    He disclosed the master plan will serve as a national working document, uniting all stakeholders towards marine and logistics development.

    Speaking earlier, the President PMAWCA, Martin Boguikouma, , urged African countries to address challenges facing the region to be able to receive the new volume of traffic that would emerge due to AfCFTA

        Boguikouma listed ways to solve the challenge as collaboration between Customs and Port Authority to harmonise Customs procedures.

        “We need to ensure capacity building of all seaport and customs officials, and sensitise them on how to address cross border trade.

        There is a need to work in reducing transport cost, investing in efficient transport infrastructure, and maritime safety through enhanced interstate cooperation,” he said.

        He said Gabon had put in place things that would ensure that free trade became a success.

        He listed some the steps taken like signing of a Memorandum of Understanding on facilitation of trade, harmonised Customs Duty which are very important for AfCFTA.

  • AfCFTA: how port summit will boost trade, by NPA chief

    AfCFTA: how port summit will boost trade, by NPA chief

    • Oyetola confident about gains of forum

    Nigerian Ports Authority (NPA) will provide regional leadership in port competitiveness in Africa, Managing Director, Mohammed Koko, has said.

       He spoke in Lagos ahead of the Port Management Association of West & Central Africa (PMAWCA), Annual Council and 18th Managing Directors’ Roundtable on NPA.

      Koko noted the event, holding from Monday at Lagos Continental Hotel, Victoria Island, will further boost realisation of African Continental Free Trade Area (AfCFTA).

    President Bola Tinubu is to open the conference, titled: “The Role of Ports in the African Continental Free Trade Area (AfCFTA).”

    Read Also: Reps uncovers how NPA sold 16 vessels for N156.2 million

    Koko said: “Our confidence in hosting the summit in demonstration of our readiness to provide regional leadership in port competitiveness is inspired by the trade facilitation orientation of Mr. President who endorses our initiatives for maximisation of our littoral assets under Ministry of Marine and Blue Economy.”

    The Minister, Adegboyega Oyetola said: “This gathering is timely coming at a time Nigeria is eager to provide the leadership to actualise our marine and blue economy potential in a bid to provide opportunities for youths”.

    He added “to demonstrate the premium we place on maximising opportunities of AfCFTA, we have given NPA the support to host a flawless conference”.

    The forum is a platform for cross-fertilisation of ideas, experiences and knowledge sharing to guide policy action towards maximising the maritime comparative advantage of the sub-region.

  • NPA, Customs explore ways to ease ports’ processes

    NPA, Customs explore ways to ease ports’ processes

    Managing Director, Nigerian Ports Authority (NPA) Mohammed Bello Koko, and Acting Comptroller General of Customs, Bashir Adewale Adeniyi are working to ease processes and services at Nigerian points.

    Given that balance of trade is crucial to strengthening the value of the naira, the duo, reached agreement to work together to enhance efficiency at the ports.

    Koko visited Adeniyi at the Customs Headquarters yesterday in Abuja.

    Their meeting focused on enabling the ease of exports processing by eliminating all procedural bottlenecks that constitute delays and affect the competitiveness of Nigerian goods especially agro-allied products in the international market.

    Whilst commending the NPA for creating export processing terminals (EPTs) which have advanced the fortunes of exports, the Customs boss assured that the NCS was finalising efforts at streamlining the multiplicity of Customs units and checkpoints, evacuation of overtime cargo from the Ports, speedy relocation of the Custom facility standing on the rail link of Apapa Ports and resolving all challenges to pave way for the optimisation of Ikorodu Lighter Terminal.

    “We thank you so much for supporting the committee that was set up. Members of this committee have gone round the country,” Bello Koko said.

    Read Also: Blue Line Rail commercial operations begin Monday — LAMATA

    He also expressed worries over the congestion at the port, which, according to him, makes it difficult for the Authority to operate properly.

    In his response,  Adeniyi expressed his commitment to enhance the output of designated export processing terminals.

    The Customs chief also spoke about some recent developments at Lilypond terminal in Lagos, and assured  Bello Koko that the two agencies need to synergise to streamline the operations of the nation’s seaports.

    “We need to form a joint team that will engage other Government Agencies to refine the activities of exporting goods through the installation of trackers to avoid delays in the diversion of goods, and I want to assure you that the Management Team of the Nigeria Customs Service will work with you, ” Adeniyi said.

    This renewed collaboration between the Nigerian Ports Authority and the Nigerian Customs, stakeholders said, would add fresh impetus to the efforts of President Bola Ahmed Tinubu at growing the national economy, generate massive employment and eradicate poverty.

  • NPA, Customs renew export promotion ties

    NPA, Customs renew export promotion ties

    Nigerian Ports Authority (NPA) and Customs have pledged to boost exports and facilitate trade.

    They renewed their synergy when NPA’s  Managing Director, Mohammed Bello-Koko, visited Customs’ Acting Comptroller General, Bashir Adewale, at Customs Headquarters in Abuja.

     The meeting focused on ease of exports processing by eliminating procedural bottlenecks causing delays affecting competitiveness of Nigerian goods, especially agro-allied products, in international market.

    Read Also: Stock market hits highest level

     Adewale commended NPA for creating Export Processing Terminals (EPTs), saying they had advanced the fortunes of exports.

     He promised that Customs was finalising efforts at streamlining multiplicity of Customs Units/checkpoints, evacuation of overtime cargo from ports, speedy relocation of Custom facility standing on the rail link of Apapa Ports and resolving challenges to pave the way for optimisation of Ikorodu Lighter Terminal.

     Given that balance of trade is crucial to strengthening the value of naira, this renewed collaboration between NPA and Customs will add fresh impetus to the efforts of President Bola Tinubu at growing the economy.