Managing Director of Nigeria Ports Authority had an interactive session with select Business Editors in Lagos. He spoke of the challenges in the maritime industry, the role of NPA in the economy and what the authority is doing to key into the diversification sermon of the federal government. Excerpts
WHAT are the challenges facing the Nigerian maritime industry?
The maritime sector is dependent on import and export of goods. So definitely, there is less business now in the ports. Less business means less revenue for us. That in itself is a very big challenge.
Buhari has vision, however, what are NPA’s vision in repositioning the maritime industry.
Interestingly, we are pushing to ensure that all revenues are generated. You are aware of what the economy situation is like, and so my earnest duty is to raise more revenues for the federal government and to assist to expand the economy away from the dependency of oil dependencies. Also to encourage foreign direct investment. Primarily, to grow the country’s revenue, expanding of the industry and promoting foreign direct investment in the country’s maritime sector.
On Calabar dredging, the project has stopped because of some petitions but will kick off after government give the directives
To be honest, the responsibility is much but because of the economic situation there are some challenges and they could not do what is expected of them but we suggest that we even allow them to some properties, we rent some properties and take care of some environment and cleanup operations and making sure that things are done rightly and correctly and are supposed to even go out and compete to build up to the state and local government within this environments.
In which way has the current policy direction affected the fortunes of your operations?
We are very much aware that there is some challenge in foreign exchange which is related to the revenue of the whole nation. We are highly dependent on oil revenue and the price of oil has come down. We are very much reliant also on the world economy because the port industries are dependent on world trade. So in that way it has impacted in our activities. And when I say it has impacted on our activities, it goes without saying that it has impacted our revenues.
At what rate would you say your revenue has been impacted?
If you look at the number of our goods and services, we are less by about 10 percent. I have the statistics with me. The number of ocean going vessels was 5900 as at last year, that is, a decrease of 8.1 per cent from upward of 541 for example in 2015. Generally if you look at all these traffic and the cargo traffic as well, you will see that there is some negative impacts and that definitely has to do with the source of our revenue and the economic activity of the nation. So it has negatively impacted us.
How are you reorienting the ports?
We have to go with the current government’s thinking. And that is diversification of the economy so that we are less dependent on oil. That is what the government direction is. And what we are trying to do now is to make sure that we encourage exports and we have already written a letter to the federal ministry of agriculture and the Nigeria Export Promotion Council. I will give you one interesting example. There are quite a number of empty containers in the port. Why are they lying idle? If only we can encourage people to export instead of taking them out of the ports as empty. People are exporting yams and other agricultural products, so if you create that, you can diversify the economy.
Some of your old traditional mandate has been taking up by concessionaires to what extent has this affected your revenue generation profile?
It has affected it positively, you see then we had operators, we also take care of the infrastructures, engineering, cradles which you see around.
Also it was NPA that have to take care of them and to be honest that is how we work. As you are aware it is ours and we spend a lot of money on it. There are lots of patronages and when people come in they want to repair one thing or the other that is the whole essence of the ports reform. The port operation has become more efficient and we are assigned to take our own kind of responsibilities.
The volume has increased; the concessioners them self now have to go out to look for market which increase the volume of business. If you compare all that to our annual report, for instance at 7 and 6 percent or 7 and 5 percent, and what we have earned between 7 and 15 percent, the difference is clear. I have said it everywhere that when people say that the concession is not working, it is not a success, I disagree with them. The port concession is a success and I think there are challenges which I believe could be much better.
How many of these concessionaires owe NPA?
First and foremost, there are quite a number of them that are owning definitely, but you see, business like this continues every year, monthly, and every quarter we sit down and reconcile our accounts just like the Nigerian National Petroleum Corporation (NNPC).
Well there are different kinds of revenue, different kind of dues that we are supposed to collect from the concessionaires. Government is very much aware of what is happening so it is dynamic and continuous. And then due to the challenges that we face, the question of the Treasury Single Account, because some of them do not even know how to deposit the charges or due. Because of the introduction of the TSA, there is that challenge especially on the dollar component of the rents and charges.
How effective is the checking of the volume of containers?
You remember the inland containers terminals in Kano, Kaduna, Enugu and Ibadan, I could see the impact of the port even till now. For now there are huge terminal that is owned by the Nigerian radio co-operation, but then it was the rail-way that was taking over. But now the place is given out, people are building houses. And honestly, it is very disturbing and unfortunate because the responsibility was taken over by some other agencies which was prior under the NPA, but now controlled by us.
But, I am refusing to collect that because what they are also collecting is in dollars so they should go and find the dollar because that is what they are collecting.
So these are all the challenges that we are trying to sort out which is quite normal.
Some of this people are paying, some of them are current but, there are some that are facing some difficulties and problem, and every day we are making sure we reconcile with them and very soon you will see the result. I have written a letter to the government that there is a need to review all the concessions, so that at least, all the challenges are addressed from both sides.
On the issue of Port infrastructure development, what are you doing to improve it?
Again I have to re-educate the public. It is not our responsibility to provide access roads into the ports. I wish it were. If it were, I assure we would have done something about it because it is very disturbing. You see anything that happens, it is NPA but access road is the responsibility of the federal ministry of works, Lagos State government as well more especially when it comes to some policies. It is even part of the responsibility of the local government. But we spend quite a lot of money on the ports. Last year, we spent about N500 million in order to meet our CSR obligations. The only thing we can do is within the ports. And we are developing the infrastructure within the ports. You know the 1.6 km roads that we constructed in Apapa. We have also done similar works in Tincan Island. The federal government now is doing something about it and I would like to say that there is already a committee, which we are also members of that committee, which is trying to see that the access roads and the place is being cleared.
Do you derive some form of revenues from the free trade zones
It is not the responsibility of NPA to have anything to do with free trade zones. They have their own responsibility, management and so it is not our responsibility. But where it has maritime activity, like jetty, it is our responsibility to ensure that such jetty is supervised by NPA.
Some of these jetties fall within the port jurisdiction. And so, they may fall under, Apapa, port -Harcourt ports’, Calabar ports. They are all within the port and have no restrictions.
On Lekki port, Lagos state government is interested in it, NPA also. It is taking off and we are waiting for the grand breaking ceremony maybe with the presence of Mr. President to open it and then it takes off.