Tag: Ports

  • Experts call for inclusive approach to ports development

    Experts call for inclusive approach to ports development

    • Tariff hike must be considerate

    Stakeholders in the nation’s maritime sector at the weekend called for a balanced approach that focuses on the need for the development of the Nigerian ports and the general growth of the sector and the economy.

    They  expressed concerns over the economic implications of the Nigerian Ports Authority’s (NPA) recent decision to implement a 15 per cent tariff increase on port charges. They also called for greater accountability from industry regulators in their dealings across the sector.

    The policy, which took effect on March 1, 2025, has generated great concerns amongst stakeholders over the potential impact it would have on trade, port competitiveness, and overall economic stability.

    Operators in the industry fear that the new charges could lead to increased costs for importers, inflationary pressures on consumers, and potential diversion of vessels to neighbouring countries with more competitive port fees.

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    But while the sector operators are worried about the policy, the NPA, on its part, has justified the increment as “necessary to align the country’s ports with global standards and improve infrastructure.”

    A former President of the National Association of Government Approved Freight Forwarders (NAGAFF), Increase Uche, argued that Nigerian ports are already overburdened with multiple charges from different government agencies.

    He contended that the decision to impose a 15 per cent increase on every service provided by the NPA is unwarranted, especially since the agency already generates revenue from various sources, including a seven per cent surcharge on Customs duties, pilotage fees, and vessel-related charges.

    For him, the 15 per cent increase by the NPA is simply a revenue-driven agenda by government agencies instead of focusing on efficiency.

    “The issue with ports operation at the moment does not require any increase in tariffs or port costs. But what we keep witnessing is a situation where government agencies maneuver their way through the National Assembly to insert tariff increments into their acts, and once that is done, they return to the ports to implement it,” he said.

    He continued: “Every agency is focused on raising revenue. Even at the departmental level, they are now being given targets on what to generate annually.”

     It does not make any sense increasing any charges—15 per cent on every port process. After all, NPA is just a landlord; terminal operators handle the commercial aspects.”

    Explaining the economic implication of the tariff on maritime business and the economy, Uche, who was also a former member of the Governing Council of the Council for the Regulation of Freight Forwarders in Nigeria (CRFFN), noted that the it would  have a ripple effect on cargo owners and ultimately on consumers because the burden arissing from it would ultimately be passed on to end-users.

    “The consequential impact of all these anomalies is when you go to the market to buy all these items that the merchants are bringing through the ports, the costs becomes outrageous and this is not their fault. Ambiguous increases such as this is killing the economy,” he warned.

    According to him, the major problem with the nation’s ports is not the lack of revenue but poor management and policy inconsistency, which he noted has led to the frequent changes in port regulations and policies. Conversely, these inconsistencies have created uncertainties and increase in operational costs for importers and businesses.

    Rather than the increase, which he described as an imposition of additional tariffs, he canvassed for a comprehensive restructuring of port operations to enhance productivity and eliminate inefficiencies.

    He said: “In my view, since it is not going to add any value because we are not seeing the money at the end, the best course of action is to initiate a comprehensive restructuring of the ports.

    “We are already operating under a failing port system. These ports should be converted into industrial ports because they are no longer productive, which is why we continue to witness various inefficiencies. 

    “Policy inconsistency is a major issue, one policy is introduced today, only to be changed tomorrow. There is no continuity, and this constant shift is overburdening the importing public.

    “To address this, we need to go back too the drawing board and ureview all the establishment Acts governing port agencies, consolidate them, and send them to the National Assembly for harmonisation. The government must take the initiative to streamline these regulations if it truly wants the ports to function effectively.

    Uche also carpeted the argument that the tariff hike is necessary to fund port upgrades, questioning whether the additional revenue would genuinely be reinvested into infrastructure improvements. He argued that essential maintenance work, such as the repair of quay aprons at the Tin Can port, has been neglected for years despite existing revenue streams.

    He also highlighted the risk of vessel diversion, stating that shipping companies may opt for neighbouring ports with more predictable cost structures and better services to avoid the the additional 15 per cent service charge imposed by the NPA, which he described as “excessive.”

    Additionally, he warned that patronage at the nation’s ports could decline as some vessels may seek ways to bypass regulatory requirements. He noted that certain vessels might under-declare their actual tonnage, a practice, he acknowledged has existed and could worsen over time. 

    Founder of the Blue Economy Academy and former Special Adviser to the Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA) on Communications Management and Strategy, Ubong Essien, on the other hand, offered a more nuanced perspective.

    He acknowledged that the concerns of stakeholders like Uche are valid, particularly regarding the potential economic consequences of the tariff hike. However, he also emphasised the urgent need for the country to develop a more modern and competitive port infrastructure.

    Essien described ports as the backbone of any thriving blue economy and argued that the NPA faces significant challenges in maintaining and upgrading port facilities. He noted that many of Nigeria’s ports operate with outdated infrastructure, limiting their ability to compete with regional and global counterparts. Without substantial investment in modernisation, he warned, Nigeria risks falling further behind in global trade.

    He maintained that the NPA, like any business entity, must find ways to finance its operations and infrastructure development.

    “Now, NPA does have some challenges. We know that because we know the state of our ports. Our ports are not as competitive as they should be. And NPA, I think, made a case about this, outlining the state of our ports. NPA wants to survive. If you’re running a business and your business is the cash cow but the machinery of that business is climbing down, deteriorating, what are your options for renewing your equipment, organising your infrastructure? You have to raise money.”

    While acknowledging that the tariff hike may lead to increased operational costs for manufacturers and businesses, he believes the long-term benefit of an improved port system could outweigh the short-term financial burden.

    However, Essien stressed the need for accountability in the implementation of the tariff increase. He suggested that stakeholders, including industry players and regulatory bodies, must actively monitor the NPA’s spending to ensure that the additional revenue is used for the intended purpose of port modernisation.

    He said: “With the new charges now in effect, stakeholders have little they can do but to hold NPA accountable.

    “So, if you are saying that you want to renew the infrastructure, which is the argument that NPA is making, then the stakeholders within the industry must begin to take an interest. What are the timelines? What are the milestones? So that we don’t have NPA coming again in five years’ time, saying, ‘Oh, we need to improve or modernise our infrastructure or our backbone.’”

    He called for greater transparency, proposing the establishment of a performance reporting framework that allows stakeholders to track progress on infrastructure projects.

    “If hiking tariffs is the only option at the moment, the question should then be for all stakeholders: can we be vigilant in participation to ensure that NPA is transparent enough to show that there is a firm approach and there are improvements over time? And there’s a performance reporting framework that is accessible to all people,” he added.

    Essien also aligned with the Lagos Chamber of Commerce and Industry (LCCI), which advocates for a balanced approach—one that supports the survival of the NPA while ensuring that businesses are not unfairly burdened. He suggested leveraging the Nigerian Port Consultative Forum as a platform for industry engagement, where key stakeholders can hold the NPA accountable and push for a structured timeline for infrastructure upgrades.

  • ‘How the National Single Window will drive economic rebirth’

    ‘How the National Single Window will drive economic rebirth’

    Nigeria is targeting a $1 trillion economy by 2030, and the National Single Window (NSW) initiative is set to play a pivotal role in realising this ambition. By streamlining and digitising trade processes, the NSW aims to enhance efficiency, eliminate bottlenecks and increase transparency, ultimately positioning Nigeria’s ports and trade systems for global competitiveness and sustainable economic growth. EKAETE BASSEY reports

    As Nigeria sets its sights on a $1 trillion economy by 2030, President Bola Ahmed Tinubu’s administration is moving with determination to achieve this ambitious goal. With just five years left on the clock, the government is zeroing in on one sector that could make or break the nation’s economic future: trade.

    The first phase of the National Single Window (NSW) initiative—a transformative approach to streamline Nigeria’s import and export processes—will kick off this year. This is not just another digital upgrade; it represents a bold shift toward simplifying the complex and often chaotic systems that have plagued the nation’s trade industry for decades. The initiative promises to consolidate all trade-related processes into one unified platform, replacing the fragmented multi-window system where various agencies run separate digital platforms. Originally introduced in 2016 and revived in 2024 by President Tinubu, the NSW is an electronic portal designed to connect all the players in Nigeria’s trade ecosystem—government agencies, importers, exporters, and customs officials—on a single, integrated platform. By addressing long-standing issues such as delays, lack of transparency, and revenue leakages, the NSW aims to boost trade efficiency, enhance government revenue, and improve national security at Nigeria’s borders. These improvements are crucial, especially considering Nigeria’s consistently low ranking on global ease-of-doing-business indexes.

    However, the NSW initiative is not a sudden innovation. It’s the next logical step in a series of efforts to modernise Nigeria’s trade systems. Over the years, the country has cycled through different systems—from the Nigeria Integrated Customs System (NICIS I and NICIS II) to the Automated System for Customs Data (ASYCUDA + and ASYCUDA ++). Each evolution has been an attempt to solve the same problems: inefficiency, opacity, and the constant challenge of navigating multiple, disconnected systems. With the NSW, the goal is clear: to create a seamless, one-stop-shop for all trade-related transactions.

    The President, National Council of Managing Directors of Licensed Customs Agents, (NCMDLCA), Lucky Amiwero, however, pointed out that the NSW is essentially distinct from NICIS I and NICIS II, and other systems, which are only procedural frameworks rather than platforms with a single window. Rather than being completely integrated trade solutions, these systems, according to Amiwero, function as process recommendations. “A true single window is about streamlining documentation and transactions into a single application, often referred to as a one-stop-shop,” he said.

    Explaining further, the NCMDLCA boss said unlike NICIS, which focuses on procedural checks, a single window ensures harmonised data exchange among all trade-related agencies. “Similarly, ASYCUDA ++, which I played a key role in introducing, was a Customs processing system, not an initiative of the Customs Service or the Federal Government. It was developed based on a proposal I authored, forming part of the broader push for destination inspection and digital trade facilitation,” Amiwero added.

    Now, going by Amiwero’s informed perspective, it means that on the behest of the NSW project, all trade-related agencies, such as Nigerian Customs Service (NCS), Nigerian Ports Authority (NPA), Central Bank of Nigeria (CBN), National Agency for Food, Drug Administration and Control (NAFDAC), Standards Organisation of Nigeria (SON), and others, will now operate under a single, unified system, powered by a one-stop-shop that will streamline documentation and transactions into a single application.

    Driving Nigeria’s transition to $1tr economy with NSW

    The Minister of Marine and Blue Economy, Mr. Adegboyega Oyetola; Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole; Minister of State for Finance, Dr. Doris Nkiruka Uzoka-Anite; Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji; and Managing Director of the Federal Airports Authority of Nigeria (FAAN), Mrs. Olubunmi Kuku, all made insightful presentations at the recent “Stakeholders’ Forum on the Establishment of National Single Window” in Lagos. Each emphasised that the National Single Window (NSW) project is one of the key initiatives introduced by the Federal Government to propel Nigeria toward becoming a $1 trillion economy.

    In his presentation, Oyetola explained that the NSW system is designed to enhance transparency by eliminating redundancies in the trade process. This will help prevent revenue leakages, which are estimated to exceed $3 billion annually. He further highlighted that, once fully implemented, the NSW system could reduce average cargo clearance times at Nigerian ports by up to 60%. This efficiency boost, Oyetola noted, is expected to significantly improve port operations and strengthen Nigeria’s competitiveness in global trade.

    It’s important to recall that last year, the Federal Government launched a new financial inclusion policy aimed at transforming Nigeria into a $1 trillion economy by 2030. Vice President Kashim Shettima unveiled the policy in Abuja, emphasising the administration’s commitment to enhancing financial and economic inclusion across the country. Since then, all Ministries, Departments, and Agencies (MDAs) have been collaborating with the private sector to achieve this ambitious goal. “The implementation of the National Single Window in Nigeria’s trade industry is fully aligned with President Tinubu’s Renewed Hope Agenda. It is a strategic enabler for greater port efficiency, improved revenue collection, and enhanced transparency,” Oyetola affirmed during the Stakeholders’ Forum.

    The Minister highlighted that countries like Singapore and the Netherlands have demonstrated how Single Window systems can revolutionise port op erations, transforming them into global trade hubs. He emphasized that Nigeria has the potential to achieve similar success by fully embracing this initiative. He pointed out, for example, that the cost of doing business at Nigerian ports can be up to 40% higher than in other West African nations due to delays and administrative bottlenecks. This inefficiency leads to an estimated annual revenue loss of N2.5 trillion within the business community.

    Dr. Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service (FIRS), expressed optimism about the potential of the NSW project to accelerate Nigeria’s transition into a $1 trillion economy. He noted that the NSW project is not just an improvement in Nigeria’s trade processes but a transformative leap towards unlocking the country’s vast economic potential. He added, “This initiative will significantly contribute to the realisation of a $1 trillion economy by 2031, in alignment with Mr. President’s Renewed Hope Agenda.”

    Similarly, Dr. Doris Nkiruka Uzoka-Anite, the Minister of State for Finance, emphasised that by simplifying trade processes, reducing bureaucratic hurdles, and fostering greater efficiency, the NSW system will enable Nigerian businesses to seamlessly connect with global markets. She pointed out that the shift to paperless trade under the NSW platform is expected to yield an annual economic benefit of around $2.7 billion. Countries like Singapore, South Korea, the UAE, Kenya, and Saudi Arabia have already experienced substantial improvements in trade efficiency after implementing similar systems. Dr. Uzoka-Anite also reiterated that the initiative goes beyond enhancing the ease of doing business. It will support the diversification of Nigeria’s economy, reduce dependency on oil exports, and encourage the growth of non-oil sectors. These measures aim to build a resilient economy capable of weathering unforeseen challenges, aligning with the ongoing reforms under President Tinubu’s administration for a better and stronger Nigeria.

    The MD FAAN, Mrs. Kuku, also said the vision of the NSW initiative aligned with the Federal Government’s goal of expanding the national economy to $1 trillion. She, therefore, urged stakeholders to embrace the initiative, emphasising the initiative’s role in enhancing trade facilitation and positioning Nigeria as a global economic powerhouse. “It’s an innovative digital platform that seamlessly integrates government agencies, private stakeholders, and financial institutions,” she stated.

    Mrs. Kuku, while noting that leveraging digital solutions, Nigeria could improve efficiency and transparency within its trade ecosystem, reaffirmed FAAN’s commitment to supporting trade growth and enhancing aviation infrastructure to align with global standards. “These initiatives reaffirm the Ministry of Aviation and Aerospace Development and FAAN’s unwavering commitment to transforming Nigeria into a global trade and aviation excellence hub,” she said.

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    Industry Minister Dr. Oduwole is no less expectant. She said the transformative power of the NSW would redefine ways trade was being conducted across Nigeria’s borders. “The establishment of a NSW system for trade processes in Nigeria is not merely a policy objective; it is a transformative reform that will fundamentally redefine the way trade is conducted across our borders. Our single window project will provide a centralised digital platform for traders to submit, process, and access trade-related documentation, thereby eliminating corruption through improved transparency, reducing administrative burdens, and significantly enhancing the ease of doing business in Nigeria,” Dr. Oduwole said.

    The Minister, who recalled that she had been part of the NSW project since 2016, enthused that “the time for delivery is now.” She stated that economic growth and job creation are key priorities under President Tinubu’s 8-Point Agenda, and that the NSW will play a significant role in achieving these goals by enabling Nigerian businesses to compete more effectively in global markets and strengthening Nigeria’s position as a regional trade hub under the African Continental Free Trade Area (AfCFTA). “Exports not only contribute to Nigeria’s GDP but also provide the foreign exchange needed to stabilise our economy and foster sustainable development,” Dr. Oduwole said, pointing out that the NSW would align Nigeria’s trade processes with global standards, including frameworks under the AfCFTA, which is a priority area.

    “Indeed, this initiative aligns seamlessly with Nigeria’s commitments under the World Trade Organisation (WTO) Trade Facilitation Agreement (TFA), finalised at the 9th Ministerial Conference in Bali, Indonesia, in December 2013, and enforced in 2017. Article 10.4 of the Agreement encourages the adoption of single window systems, recognising their potential to reduce trade costs by over 14 per cent in low-income countries and 13 per cent in upper-middle-income countries,” she stated.

    On his part, the Managing Director, Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho, said the NSW is a central piece in the modernisation of Nigeria’s trade facilitation, and the NPA is fully committed to its successful implementation. He said while repositioning Nigerian Ports to maintain regional and continental competitiveness, the NPA has embarked on process reengineering aimed at aligning its functions with the objectives of the NSW and ensure parity with regional competitors, focusing on seamless data availability and enhanced transparency. In Dantsoho’s words: “Our mission is to position Nigeria as the trans-shipment hub in West Africa, and with our strategic location, a population of over 200 million people, and a large market, Nigerian Ports have the potential to become the leading transshipment hub in the African region. We also have the potential to serve as a transit port to land-locked countries since out of the 44 land-locked countries in the world, 16 are in Africa.”

    The NPA boss, however, lamented that this potential is currently constrained by infrastructure challenges and competition, as neighbouring countries continue to develop their port’s infrastructure. He, however, said the Authority’s port modernisation projects will bridge this gap and ensure that Nigeria’s ports remain competitive with regional counterparts.

    ‘NSW’s implementation not a roller-coaster’

    The challenge of inadequate port infrastructure, as highlighted by Dr. Dantsoho, represents just one of the many formidable obstacles that could hinder the successful implementation of the National Single Window (NSW) project and the creation of an efficient, seamless trade industry. Such an industry is critical to Nigeria’s goal of becoming a $1 trillion economy by 2030. Ms. Hadiza Bala-Usman, the Special Assistant to the President on Policy Coordination, also emphasised the importance of strong political will in ensuring the NSW project’s success. She remarked, “We must ensure the ICT readiness of all agencies involved, and more importantly, we need strong political will, which the Chairman of FIRS has demonstrated through the support from President Tinubu.”

    The Comptroller General of the Nigeria Customs Service (NCS), Bashir Adewale Adeniyi, represented by Deputy Comptroller General Kikelomo Adeola, cautioned that relying solely on technology would not meet the expectations of the NSW project. “The deployment of advanced digital platforms must be accompanied by thorough process reengineering, capacity building, and effective change management,” he said. “Past initiatives in Nigeria faltered because there was an overemphasis on technology without adequately addressing the human and operational factors.”

    The fragmented implementation of the NSW system was a point of criticism for Amiwero, President of the NCMDLCA. He expressed concerns about the lack of integration, stating, “When you talk about a NSW, you’re essentially dealing with multiple windows. For example, Customs has its own window, the Nigerian Ports Authority (NPA) has its own, the government has another, and even the Central Bank operates its own window. This creates a situation where you have multiple windows instead of a unified system.” Tola Fakolade, Head of the NSW Secretariat, announced that the first phase of the NSW project will begin this year, focusing on training and testing. He emphasised the need for full cooperation from all stakeholders and noted that the NSW system, which originated in Singapore, has also been successfully implemented in countries such as Djibouti and Kenya.

    Despite this progress, Amiwero stressed that the true value of a NSW lies in data harmonisation, which ensures seamless and integrated trade processes. “NSW is not just about talk; it requires proper data harmonisation,” he explained. “This means integrating all relevant agencies under a single platform so that when a transaction is initiated, approvals from bodies like NAFDAC, SON, Customs, and others are processed automatically in the background, eliminating the need for multiple, separate interactions.” He further compared Nigeria’s trade process to that of countries like the United States, Senegal, and Singapore, where goods can be declared within minutes. In contrast, he noted, “In Nigeria, it takes several days because we must account for numerous factors and deal with multiple agencies.”

    ‘NSW shouldn’t be mistaken for revenue-generation tool’

    For NSW to work effectively, Amiwero said data harmonisation is crucial, ensuring a single application process that eliminates redundant steps. This initiative, he noted, must be driven from the highest level of government, as the presidency has already begun efforts in this direction. The NCMDLCA chief further argued that the NSW is designed for trade facilitation, not revenue generation, suggesting that if the government focused solely on revenue, the essence of the NSW will be lost. He insisted that the primary function of a single window is to streamline transactions, making trade processes more efficient, adding, however, that by enhancing trade efficiency, it indirectly accelerates revenue collection. “A NSW should not be mistaken for a revenue-generation tool,” the industry activist cautioned, pointing out that “if the goal is to boost revenue, an integrated revenue system is required, and the key to increasing government earnings lies in harmonising and integrating revenue streams, rather than relying on the single window, which is meant to reduce business costs and simplify trade operations.”

    An economic analyst, Prof Ndubisi Nwokoma, highlighted that “Nigeria does not suffer from a lack of policies but rather from poor implementation.” While noting that Nigeria’s trade sector is plagued by systemic inefficiencies, which hinder smooth policy execution, he said every administration whether under Obasanjo, Buhari, or Jonathan has introduced good policies to tackle such systemic inefficiencies. Prof Nwokoma insisted that Nigeria’s problem has never been about policy formulation but about implementation. He also identified corruption, bureaucratic bottlenecks, and revenue leakages as major hindrances, warning that policy success elsewhere does not guarantee effectiveness in Nigeria due to the peculiarities of the operating environment. “So, if we are going to import any policy framework that works in other countries, there is no guarantee it will work in Nigeria because of the peculiarities of the operating environment,” he said.

    The economic analyst added: “I don’t really bother about whether a policy is good, has been implemented or is not good. The critical issue is the environment and the players. The leakages are too enormous. And that’s a very critical issue. When it comes to import and export in Nigeria, a major issue is the presence of leakages within the system, including in foreign exchange earnings and Customs operations. These inefficiencies often lead to compromise and revenue loss for the government.” He further stated that he does not see a problem with policy formulation, design, or implementation in Nigeria. “The real challenge,” he insisted, “lies with those responsible for executing these policies, as operational bottlenecks and inefficiencies persist at that level.” He also questioned the government’s revenue drive, stating, “We often talk about revenue generation, but how are these funds used? Do they actually improve the human condition, or do they fuel more leakages in the system?”

    Kayode Farinto, a former Acting President of the Association of Nigerian Licensed Customs Agents (ANLCA), expressed optimism about the long-awaited implementation of the National Single Window (NSW), citing emerging political will as a key factor for success. However, he stressed that one of the most critical components for ensuring the system’s success is a solid legal framework. According to Farinto, both importers and government agencies must be adequately protected under this framework. He gave the example that if an agency deliberately causes delays in cargo clearance, importers should have legal recourse, including the ability to demand compensation for storage costs or pursue legal action. “The National Single Window is achievable if there is a legal framework in place. This framework must ensure accountability, so no agency can arbitrarily delay consignment clearance without consequences,” Farinto explained.

    In addition to the legal foundation, Farinto emphasised the importance of shifting government priorities from focusing solely on revenue generation to facilitating trade. He criticised the persistent focus on revenue collection, which he argued hampers smooth trade operations and ultimately undermines both business efficiency and revenue targets. “You cannot keep pushing for revenue while failing to facilitate trade; it’s counterproductive. If trade is not facilitated, you may not even generate the revenue you seek,” he warned. Farinto also stressed the necessity of imposing strict sanctions on government agencies that violate or distort the NSW process. He warned that without such disciplinary measures, the system would be rendered ineffective, as agencies would continue to operate outside its intended framework.

    In addition, Farinto called for an expansion of the NSW beyond cargo clearance at ports. He proposed the inclusion of a time-release study, which would track the movement of released cargo from port terminals to consignees’ warehouses. This, he argued, would help eliminate unnecessary bureaucratic bottlenecks, particularly Customs’ post-clearance interventions, thereby improving overall trade efficiency. “We should not limit single window to pairs of cargoes alone. Let us incorporate what is called time-release study. When cargo ‘A’ is released from the terminal at Apapa Port, how long does it take to reach the consignee’s warehouse? Bureaucratic hurdles after clearance, particularly from Customs, often delay the process under the pretext of conducting additional checks. This is why the World Customs Organisation (WCO) has created what is called post-clearance audits to ensure compliance without unnecessary disruptions.”

    According to him, if one succeeds in stealing 10 containers in the port indirectly or directly without paying proper revenue, such person shouldn’t celebrate because under seven years, Customs can still visit and demand appropriate payment of duty. “So, for the single window to succeed and for the revenue they are targeting to be realisable, these factors must be put in place. And above all, the regulatory agencies must be confined to their constitutional responsibility, that is, you are regulating this product. Government should stop giving them targets again,” he stated.

    How the NSW project can deliver on its promises

    Olumide Fakanlu, the National Secretary of the Association of Nigerian Licensed Customs Agents, acknowledged the potential benefits of the National Single Window (NSW). He highlighted that, unlike previous systems such as NICS and ASYCUDA, which focused solely on Customs clearance, the NSW aims to streamline all trade-related processes, impacting government revenue beyond just duties. While Fakanlu affirmed that the NSW system is designed to integrate various agencies, including NAFDAC and NDLEA, into a unified platform for easy access and sharing of requirements, his optimism about the system’s potential benefits remains cautious. He expressed concerns about Nigeria’s readiness for the successful implementation of the system, noting that significant challenges still lie ahead. “We are used to having good ideas, but when it comes to implementation, we start dangling legs. The NSW will facilitate trade, impact the nation’s progress but are we ready?” Fakanlu asked, pointing out that “There are some people who are by the corner, though may not be the majority, but are ready to sabotage the initiative just for their own selfish reasons.”

    The freight forwarder also pointed out that infrastructure and technological readiness remain significant barriers to the successful implementation of the National Single Window (NSW). For example, he noted that some banks have yet to integrate into the Customs’ B’Odogwu system, causing delays in duty collection. “Are we ready?” he questioned, emphasizing that “as we speak, some networks are still not functioning. Let’s start with that—have we built enough network capacity?”

    Fakanlu, while acknowledging that Customs introduced the B’Odogwu system, which will be incorporated into the NSW, expressed disappointment that many banks have still not adopted it. “For the past three months, they have not been able to move forward on the B’Odogwu because the banks are not on board,” he revealed. “It is only in one command in Nigeria that they’ve started, but they haven’t expanded to other commands.”

    Despite these challenges, Fakanlu remained cautiously optimistic, saying, “Let us be hopeful. We will get there.” He reflected the sentiment that while the NSW could revolutionize Nigeria’s trade sector, its success hinges on government commitment, stakeholder collaboration, and addressing deeply ingrained structural issues. Promoters of the NSW project are aware of these concerns raised by operators and stakeholders. For instance, Dr. Jumoke Oduwole, Minister of Industry, Trade, and Investment, issued a “call to collaboration,” acknowledging that the successful implementation of the NSW would require collective effort. She emphasised that transparency, inter-agency cooperation, and adherence to international standards must remain guiding principles. Dr. Oduwole assured that the Federal Ministry of Industry, Trade, and Investment would fully support the initiative to “build a system that not only facilitates trade but also drives economic growth, attracts investment, and creates opportunities for all Nigerians.”

    Dr. Adedeji of the Federal Inland Revenue Service (FIRS) echoed Oduwole’s views, underscoring that the success of this ambitious project depends on one crucial element: collaboration. “We must dismantle the traditional silos that have hampered our efforts, foster a spirit of shared responsibility, and commit collectively to achieving our common goals,” he said. “This requires a fundamental shift in our mindset—a willingness to embrace change, adapt to new ways of working, and prioritize the national interest above individual organizational interests.” Indeed, if properly implemented, the NSW has the potential to streamline trade, reduce delays, lower costs, and enhance Nigeria’s global competitiveness. However, experts insist that success will depend on strict compliance by government agencies, eliminating systemic leakages, and ensuring full digital infrastructure readiness.

  • ‘$800m ports modernisation fund almost ready’

    ‘$800m ports modernisation fund almost ready’

    The Federal Government has said the $800 million needed for port rehabilitation and modernisation of Tin-Can, Apapa and other sea ports across the country is almost ready.

    The fund will be used to get the full potential of the nation’s blue economy and strengthen the security of the ports.

    Minister of Marine and Blue Economy, Adegboyega Oyetola disclosed thus yesterday at the official commissioning of the newly acquired security patrol boats by Nigeria Ports Authority (NPA).

    He said that the commissioned boats will boost security and improve efficiency at port.

    With the acquisition of patrol boats, the Minister said, the nation’s territorial waters and port facilities would be secured to generate enough revenue for the country.

    This, Oyetola said, is coming at a time when the federal government is looking for alternative sources of revenue apart from oil.

    The boats, it was learnt,  guarantee adequate cover in the event of exchange of fire in the course of patrol. And it is a far departure from those the NPA acquired in the past.

    According to the Honourable Minister, “I commend the management of the NPA for taking the initiative to strengthen safety in the maritime space.

    “Security is very important and we need to give it the kind of attention it deserves. We cannot be talking of trying to get the full potential of the blue economy without strengthening the security aspect of our ports.,

    Oyetola added that, he was delighted to be at the venue and  disclosed that the government is going to acquire more of the boats.

    “It is deliberate on the part of Mr. President to have created the Marine and Blue Economy ministry. Blue economy had always been there, but not as structured as to generate the kind of revenue a maritime nation like Nigeria should be earning.

    “So, part of what we are trying to do is to first ensure maritime security. Secondly we will be talking of automation of the ports to make it more efficient. Just two weeks ago, I received the report of the consultant of the Port Community System. Part of that is to drive efficiency at our ports.

    Oyetola said further that the government is “modernising the ports. We want to be able to compete with any port in the world. We want to ensure that the vessel turnaround time is reduced to four days as opposed to about six to 10 days that we currently have.

    Operators and stakeholders in the maritime industry, Oyetola said,  “must commend Mr. President for taking the initiative of creating the Ministry of Marine and Blue Economy and for supporting us all the way.

    “I can tell you that the fund for the Port rehabilitation is almost ready and we are going to commence rehabilitation anytime from now,” the Minister said.

    In his address, the Managing Director of the NPA, Mohammed Bello-Koko said that the procurement of the seven Security Patrol Boats was preceded by a robust needs assessment process undertaken by a highly experienced team drawn from the agency’s Security and Marine Operations Divisions and the Vessel Management Department, who were painstaking and followed through with the product output specification including necessary sea trials.

    According to him: “This event today is another testament to our commitment to continuous improvement in the journey towards transforming our strategic intent of “becoming the maritime logistics hub for sustainable Ports services in Africa” from potential to actualities.

    Bello Koko disclosed that “enhanced maritime safety, security and  compliance to global acceptable standards is one of Nigerian Ports Authority’s deliverables under the Presidential Priorities of Federal Government of Nigeria.

    “What we are witnessing today therefore, is pursuant to achieving these deliverables and aligns with the presidential directives regarding performance of MDAs.

    In addition to positioning NPA to fulfil the fundamental requirement of security which constitutes a critical success factor in fulfilling two crucial aspects of its post-concession statutory mandates of “regulating maritime business and promoting ports security and safe haven for ships and safeguarding and securing assets of the Authority while maintaining their optimal use,  the deployment of these state-of-the-art Security Patrol Boats takes us a notch higher in our compliance with the dictates of International Ship and Port Facility Security (ISPS) code of the International Maritime Organisation.

    “I therefore, want to on behalf of the Management and Staff of the Nigerian Ports Authority commend and appreciate our amiable Minister for his tireless endorsement of our efforts at enhancing the competitiveness of our Ports.

    “Our profound appreciation also goes to our highly valued security partners; the Nigerian Navy, Nigeria Police Force, Nigerian Army, the DSS and the Lagos state government whose collaborations continue to enhance our ability to detect, deter and respond to security threats and incidents before they fester.

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    “The procurement of the seven Security Patrol Boats we are commissioning today, was preceded by a robust needs assessment process undertaken by a highly experienced team drawn from our Security and Marine Operations Divisions and the Vessel Management Department, who were painstaking and followed through with the product output specification including necessary sea trials, and I will like to seize this moment to commend their professionalism and dedication to duty.

    The distinctive features and multiple functionalities of these marine crafts and the game changing effect they bring to bear on our security preparedness and capacity to respond to emergent threats, he said “are enormous. I have chosen to refrain from mentioning those superlatives here because of the security implication of doing so.

    “However, I am especially delighted to say that these Security Patrol Boats positions us to achieve our set goal of driving increased vessel traffic to the Eastern Ports of Onne, Rivers, Warri and Calabar Port Complexes where four of the vessels to be commissioned today have been allocated.

    “Although Onne Port has in recent witnessed increased vessel traffic, we cannot rest on our laurels. We will continue to push the advocacy and galvanize stakeholder opinion towards growing the fortunes of the Eastern Ports. Distinguished ladies and gentlemen, before I take my seat I will like to appreciate the goodwill of all stakeholders here present and to assure you of our commitment to continuous improvement,”  Bello Koko said.

  • Nigeria loses $7b yearly to poor ports management

    Nigeria loses $7b yearly to poor ports management

    The Federal Government is losing a whopping $7 billion yearly to inefficiencies and poor management of the nation’s ports, the House of Representatives said yesterday.

    The two members of the House, Hon. Julius Ihonvbare and Hon Ibrahim A. Isiaka, who spoke also said the country’s seaports receive barely 10 per cent of West African imports out of 60 per cent destined for the country while others are lost to neigbouring countries.

    In their joint motion at the resumption of plenary, the two lawmakers said there was the need for the House to carry out a comprehensive investigation to unravel the gaps and opportunities lost by the country yearly.

    The House, therefore, resolved to mandate its Committees on Port and Harbours, National Planning and Economic Development, Maritime Safety Education and Administration and Nigerian Shippers’ Council to investigate the gaps affecting the full realisation of the economic advantage of Ports and Harbours and other Blue Economy in Nigeria.

    Presenting the motion, Hon. Ihonvbare said the maritime sector is crucial for the economy’s survival, but lamented the under-utilised seaports which can increase the nation’s revenue and indeed the National Gross Domestic Product (GDP).

    He said:  ”Nigeria’s seaports receive barely 10per cent of West African imports out of 60 per cent destined for Nigeria, a significant economic loss due to poor management and inefficiencies, estimated to cost $7 billion annually.

    “Most ships bringing goods to Nigeria prefer to go to other ports order than Nigerian ports. Indeed the Benin Republic benefits from Nigeria’s large market, while Cotonou remains a popular importer’s haven, huge trade cargoes are lost to Togo and other neighbouring countries from where they are offloaded and transshipped to Nigeria due to Poor shipping connectivity and shallow drafts of the port channels which lead to trade cargo losses, estimated to be N250 billion in 2016 alone”.

    He questioned why the nation is unable to provide adequate infrastructure and reduce pressure on Lagos ports and why the Calabar, Port Harcourt, Warri, and Koko ports cannot be developed as a haven for importers in the region.

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    According to him, the lack of adequate infrastructure and capacity in the growing cargo and maritime business is a significant issue.

    He said Nigeria’s Apapa Port lost West Africa’s leading position due to congestion and poor quality services to shippers. Port of Lomé, with a capacity of 1.1 million twenty-foot containers, overtook Lagos Port due to modernization reforms which tripled its capacity from 311,500 containers to 3.1 million, thus, making ‘Togo’s Port of Lomé becoming a regional transit hub;

    He said: “Nigeria’s Apapa Port, Lagos, which handles about 1 million TEU annually, lost 30 per cent of its container traffic over five years due to several factors bedeviling its inability to deliver efficient services to cargo owners, this explains why Nigerian ports have remained inefficient over the years.

    “Nigeria’s major seaports in Lagos do not have deep draughts to handle bigger vessels, while modern seaports in Port of Lomé have a depth of 16.60 meters and capacity to accommodate third generation ships, Apapa port operates with a 13,5 meters draught that can only allow vessels with about 4,000 TEUs of containers to call the port.”

  • Nigeria losing $7 billion annually to poor management of Ports – Rep members

    Nigeria losing $7 billion annually to poor management of Ports – Rep members

    Two members of the House of Representatives said on Tuesday, December 19, that the country was losing a whopping 7 billion dollars annually to inefficiencies and poor management of the nation’s ports.

    The two members, Hon. Julius Ihonvbare and Hon Ibrahim A. Isiaka also said that Nigeria’s seaports receive barely 10% of West African imports out of 60 per cent destined for Nigeria, while others are lost to neigbouring countries.

    In their joint motion at the resumption of plenary, the two lawmakers said there was the need for the House to carry out a comprehensive investigation to unravel the gaps and opportunities lost by the country annually.

    The House therefore resolved to mandate its Committees on Port and Harbours, National Planning and Economic Development, Maritime Safety Education and Administration and Nigerian Shippers’ Council to investigate the gaps affecting the full realisation of the economic advantage of Ports and Harbours and other Blue Economy in Nigeria.

    Presenting the motion, Hon. Ihonvbare said the maritime sector is crucial for the Nigerian economy’s survival, but lament the under-utilized seaports which can increase the nation’s revenue and indeed the National Gross Domestic Product (GDP).

    He said: “Nigeria’s seaports receive barely 10% of West African imports out of 60 per cent destined for Nigeria, a significant economic loss due to poor management and inefficiencies, estimated to cost $7 billion annually.

    “Most ships bringing goods to Nigeria prefer to go to other ports order than Nigerian ports. Indeed the Benin Republic benefits from Nigeria’s large market, while Cotonou remains a popular importer’s haven, huge trade cargoes are lost to Togo and other neighbouring countries from where they are offloaded and transshipped to Nigeria due to Poor shipping connectivity and shallow drafts of the port channels which lead to trade cargo losses, estimated to be N250 billion in 2016 alone.”

    He question why the nation is unable to provide adequate infrastructure and reduce pressure on Lagos ports and why the Calabar, Port Harcourt, Warri, and Koko ports cannot be developed as a haven for importers in the region.

    According to him, the lack of adequate infrastructure and capacity in the growing cargo and maritime business is a significant issue.

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    He said Nigeria’s Apapa Port lost West Africa’s leading position due to congestion and poor quality services to shippers. Port of Lomé, with a capacity of 1.1 million twenty-foot containers, overtook Lagos Port due to modernization reforms which tripled its capacity from 311,500 containers to 3.1 million, thus, making ‘Togo’s Port of Lomé becoming a regional transit hub;

    He said: “Nigeria’s Apapa Port, Lagos, which handles about 1 million TEU annually, lost 30 per cent of its container traffic over five years due to several factors bedevilling its inability to deliver efficient services to cargo owners, this explains why Nigerian ports have remained inefficient over the years.

    “Nigeria’s major seaports in Lagos do not have deep draughts to handle bigger vessels, while modern seaports in Port of Lomé have a depth of 16.60 meters and capacity to accommodate third generation ships, Apapa port operates with a 13,5 meters draught that can only allow vessels with about 4,000 TEUs of containers to call the port.”

  • Labour strike cripple ports, courts, schools activities in Lagos

    Labour strike cripple ports, courts, schools activities in Lagos

    The strike embarked upon by the Nigeria Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC) has paralysed activities at some business areas, schools, and other public places in Lagos state.

    Lagos courts on Wednesday, November 15, shut down in full compliance with the strike.

    The Nation reports that the last sitting of the coroner inquest into the cause of death of the late rapper, Mohbad which was adjourned to Wednesday, November 15, was stalled by the ongoing two-day-old workers’ strike as security officials at the court, refused magistrates and judiciary staff entry into the building.

    As a result, many litigants and court customers lamented the effect of the strike on judicial processes.

    A court official said that the closure of the courtroom was a result of the absolute adherence to the industrial strike action.

    The indefinite strike was called by the two unions to protest the assault of the NLC president, Joe Ajaero, and some other executives of the congress in Owerri, Imo state, on November 1, as well as the pending labour issues in the state.

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    The Nation also observed the activities around markets places like Ladipo, Agege, Oshodi/Isolo and other was devoid of the usual ‘hustling and bustling’.

    Schools (public) were not left out as pupils and students were seen returning home as they were sent away by the school authorities in the observance of the ongoing labour strike action.

    A secondary school student in the Isolo area of Lagos state explained though classes were held on Wednesday, they were, however, asked by their teachers to return home because of the ‘strike’.

    The NLC Public Relation Officer (PRO), Lagos chapter, Adejumo Ismail, who spoke to The Nation on Tuesday evening assured full compliance in the state on Wednesday, owing to the ‘level of mobilisation and sensitisation’ of their members.

    He admitted the ‘partial’ compliance on Tuesday was a result of the ‘late notice’ as the organised labour had announced a nationwide strike with its commencement from Monday midnight.

    The Maritime Workers Union of Nigeria (MWUN) on Tuesday, joined other affiliate unions of the Nigeria Labour Congress and the Trade Union Congress to enforce a nationwide strike at the seaports.

    The Apapa and Tin-Can port facilities were all under lock and key as terminal operators suspended their operations. Facilities were shut against the stranded freight forwarders in total compliance with the strike action.

    A few port officials and clearing agents were seen gathered around the gate since they were unable to gain entrance into the port. Trucks were also observed to be stranded on the access roads due to their inability to enter the port.

    The APM terminal in Apapa in a notice to its clients informed that its services will be unavailable for the duration of the indefinite strike. But noted once the strike, which it said began on Monday, November 13, ends, operations will resume at the terminal.

  • LCCI seeks removal of Customs Strike Force from ports

    The Lagos Chamber of Commerce and Industry (LCCI) has kicked against the deployment of a Customs Strike Force with the power to intercept and effect cargo seizure in the ports.

    LCCI Director-General,  Muda Yusuf said the move by the Nigeria Customs Service (NCS) will hurt investment and further complicate the already difficult cargo clearing process. He said it will undermine the Ease of Doing Business policy of the Federal Government and negate the Presidential Executive Order on the streamlining of ports processes.

    He said: “Some of the implications and consequences are as follows: The directive confers vast discretionary powers on the Strike Force which makes the cargo clearing process vulnerable to arbitrariness and coercion which could undermine the integrity and credibility of the process. The deployment of the strike force to the ports suggests a distrust and lack of confidence in the resident customs officers who were deployed to the various commands by the Comptroller-General in the first place.

    “The appropriate thing to do in the circumstance is for the CG to replace these officers with trusted ones rather superimposing another set of customs operatives on the system.  This new deployment would make the entire process chaotic, cumbersome, costly and inefficient.  It could also create an additional credibility problem.”

    He said LCCI is concerned that over the past two years, the scanners at the Lagos Ports Complex have not worked.  The persistent dependence on physical examination for cargo releases has not only been laborious and arduous, it is also time wasting.

    “The Lagos Ports are the largest ports in the country handling over 1.5 million 20-foot containers equivalent (TEUs) annually. This underscores the enormity of the consequences of physical examination of containers for the efficacy of cargo clearing. It is incredibly detrimental to the cargo release process and the economy.  It is imperative for the Federal Government to expedite actions on the procurement of scanners for the ports in order to put an end to the physical examination of cargo and make the system technology driven. The LCCI submits that the deployment of the Strike Force to the ports should be reversed forthwith. Where the Comptroller-General does not trust the resident officers, they should be replaced with trusted ones rather than creating overlapping responsibilities and authorities which would further muddle an already arduous cargo clearing process.  Delays in the cargo clearing often results in high and avoidable demurrage to importers; high interest cost on funds used for import transactions, disruption of business processes including manufacturing activities, and many more.

  • IGP orders speedy cargo clearance at ports

    The Acting Inspector-General of Police, Mr  Mohammed Adamu, has ordered the streamlining of Nigerian police operations at all the ports for speedy cargo clearance and improved efficiency.

    The order followed Adamu’s meeting with the Executive Secretary, Nigerian Shippers’ Council (NSC) Malam Hassan Bello at the Police Headquarters in Abuja.

    “Towards this end, directives aimed at streamlining police operations in and around Ports Terminals have been given to the Maritime Police Command and other formations.

    “The directives reinforce the mandate of the Assistant Inspector General of Police (Maritime) and the commissioners of police in-charge of the responsibility for police operations at all ports across the country.

    “No other Police Formations, Commands, Units or Teams by any designation are authorized to undertake any operation or investigation in and around any Nigerian Ports Terminals.

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    “Any operations must be with the knowledge, written authorization and active involvement of the Assistant Inspector General of Police (Maritime) or the commissioners of Police in-charge of the Western and Eastern Ports Authority as the case may be,” he said.

    The acting I-G also pointed out that the stoppage of containers to clearing agents by different units in the police has also been harmonized.

    He stated that such orders would henceforth be routed through the office of the AIG (Maritime) to the Nigerian Shippers’ Council for execution.

    “The implication of this order is that the Maritime Police Command is to work in conjunction with the Shippers’ Council to ensure the actualisation of the IGP’s order.” (NAN)

  • ‘Why ports are less competitive’

    A maritime expert, Mr. Lucky Amiwero has blamed poor organisation and low capacity for maritime sector’s slow growth. This, he said, had made the country’s ports less competitive.

    Amiwero, the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) President, in a chat with The Nation, said over 9,000 jobs had been lost in the industry.

    He listed low draft, poor port infrastructure, lack of proper operating system and politicisation of key maritime positions, which should have been held by experts, as causes of declining fortunes.

    He blamed the government for much emphasis on revenue collection without making the port environment business friendly to attract investments and generate employments that will grow the economy.

    According to him, Nigeria’s highest draft of 13meters is not deep enough to accommodate bigger vessels with 20,000 TEUs while smaller neighbouring countries like Cameroun, Togo and Benin Republic have ports with depth of 16meters.

    This, according to him, has threatened Nigeria’s quest for a regional hub port status as the smaller countries with lesser cargo throughput are taking away almost all benefits Nigerian citizens should enjoy.

    He added that aside freight components being lost, the trans-shipment of cargoes from a port owner country to land locked neighbours is being enjoyed by other countries while Nigeria is losing out.

    He described lack of functional scanners at the ports as a serious setback, capable of exposing the country to risk of arms smuggling under the destination inspection regime.

    On the deplorable state of ports access roads in the country,  Amiwero blamed the Federal Government for poor response to the challenge, which according to him, has resulted in loss of lives and damage to import and export consignments.

    “The roads are so bad that you can’t predict when you access the ports. You can’t even say when your cargo can exit the port.

    “This is a neglected function of Nigerian Ports Authority (NPA) under Section 32A of its act.  It has the responsibility of working on port access roads, dredging of channels leading to the ports and fairway buoy

    “But what we have today, is that they are deviating from their core functions to pursue revenue collection.’’

    On the government’s drive for Ease of Doing Business in the port, he rated the government’s performance as very low and decried Nigeria’s position as number 184 among 190 countries on trading across borders.

  • 690 power equipment retrieved from ports

    The Federal Government has retrieved 690 of the over 800 power equipment containers abandoned at various ports by the previous administration, Minister of Information Lai Mohammaed said yesterday.

    Also yesterday, a Senate committee on oversight function to Lagos said the Federal Government, lawmakers and power agencies would meet on how to jointly address the power sector’s problems.

    Featuring on a Radio Nigeria programme, “Politics Nationwide”, Mohammaed said: “You will remember that about 800 containers of power equipment were abandoned at the ports, because the previous administration did not pay the contractors.

    “As of today, we have been able to retrieve 690 of the containers,’’ he said.

    The minister said despite the shoddy privatisation process of the Power Generation Companies (GenCos) and Power Distribution Companies (DisCos) by the previous government, the President Muhammadu Buhari’s administration had taken pro-active measures to improve on electricity.

    “When we came in 2015, we found out that many of the beneficiary companies of the privatisation process were undercapitalised, unequipped and they lack the necessary expertise.

    “We, however, resisted the temptation of cancelling the privatisation of the GenCos and DisCos in order not to send wrong signal to the investing world.

    “What we met on ground was very chaotic because the gas suppliers said they would not supply the GenCos with gas because GenCos were not paying.

    “The GenCos said they would have loved to pay but the DisCos were not paying them,’’ he said.

    To salvage the situation, Mohammed said the government set aside a N7.1 billion Payment Assurance Programme.

    He said the programme guaranteed that as long as the suppliers supplied gas and GenCos generated power for distribution, the government would pay them.

    Mohammed said the policy led to increase in power generation from about 4,000 megawatts they met in 2015 to more than 7,000 megawatts being generated currently.

    He said the government had made intervention fund available for the take off of the 3,050 megawatts Mambilla hydro-electric plant project which would commence in early 2019.

    Also on power generation, the minister said the 2.4 megawatts solar power project in Katsina would be inauguirated in the next few weeks.

    The minister said the total capacity for power transmission in 2015 was 4,000mw which the Buhari government had increased to 7,125mw in three and half years.

    Mohammed also said that government had embarked on distribution expansion programme to help the capacities of DisCos in meeting the needs of electricity consumers.

    Chairman, Senate Committee on Power, Steel Development and Metallurgy, Senator Enyinnaya Abaribe, said yesterday during an oversight visit to Ikeja Electric Plc, noted that the issues militating against effective delivery of services by power generating companies and power distribution companies should be addressed the government.

    He said that identified gray areas in the power sector should be taken care of by the government, National Assembly and other stakeholders.

    He said, “And this is what this committee will have to engage the Minister of Power, the Distribution companies and the Government of Nigerian on how to resolve the issues.

    “Merely coming out to blame these companies for inefficiency does not resolve the problem. And that is why we insist that the right things are going to be done.”

    He noted that perhaps, most Nigerians do not know that 40 per cent of the Discos are owned by the Federal Government and our responsibility as representatives of the people is also to find out how these agencies are doing.

    He said, “We have been briefed by the chief executive and senior staff of Ikeja Electric Plc and we have also seen the constraints under which they work on, and we have taken note of the difficult operating environment of the Distribution companies.

    “Essentially what Nigerians want is that with privatisation, there should be a difference between Power Hold Company of Nigeria (PHCN) and the successor companies, 11 of them, in terms of provision of power, in terms of improvement of services, in terms of also cash flow that comes back to government for its investment and also what has come out of the divestment as a public policy.

    “We know that there are growing pains as a result of this privatisation. But our conviction is that we didn’t make a mistake in privatising these companies.”

    The Chief Executive Officer of Ikeja Electric Dr. Anthong Youdeowei said “the way forward is not something we can solve on our own. It is what the government and all stakeholders have to do.

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    The CEO said the Ikeja DisCo generates N6.2b monthly up from the N3billion monthly generated at takeover

    “But all that does not stay with us here. Technically, DISCOs are like collection agents right now we collect N6.2 billion monthly.”

    On metering, he said they met 600,000 gap and were committed to closing the gap.

    The CEO said they invested N53 billion out of which N20billion went to metering.

    He blamed paucity of fund for their inability to meter all consumers.

    Youdeowei said, “The loss in 2016 according to our audited reports stood at N65 billion. The problem is that the invoicing system is not correct. Its like buying at N10 and selling at N6. There is inbuilt losses. So there is no chance of paying dividends to investors, absolutely no chance.

    “What hit everyone, which we did not envisage is the devalution of the Naira and the recession.

    “By November, it will be five years when the BPE is supposed to re-evaluate but have shifted it to 2019, due to the challenges.

    “The cost has changed but the tariff remained.  NBET is invoicing us at the rate of N360 to the dollar but we are stuck to charging at the rate of N198 to the dollar.”