NPA Exceeds Revenue Target In Half Year, Hits N256.28Bn Revenue

The Nigeria Ports Authority (NPA) has recorded a revenue generation of N256.28bn as at September this year.
The Acting Managing Director, Mohammed Bello- Koko, who disclosed this said the figure was against the expected N214.65billion for the same period.

Koko in a presentation to the House of Representatives Committee on Ports and Habours disclosed that the authority remitted N89.9 billion into the Consolidated Revenue Fund (CRF).

He had during the presentation said the authority was able to reduce its operating expenses by 20 per cent for the year.

According to him, the effort made so far was despite the effect of Covid-19 on trade.

In the presentation, he said, “For operating expenses, as at the end of September 2021, actual spending stood at N55.10bn as against the budgeted figure of N65.49billion, comprising employees’ benefits, pension costs, towage services, supplies, repairs & maintenance and other administrative overheads.

“This indicates a “savings” of N10.39billion or 85 per cent performance of the approved budget of N87.32 billion.
“Furthermore, in compliance with the quarterly remittance of its operating surplus to the Consolidated Revenue Fund and provisions of the Finance Act 2020, the Authority has remitted the sum of N62.66billion to CRF for the year 2021 as at October 31, 2021, while a cumulative sum of N89.9billion has been transferred to the CRF in the last six months.

“At the current state of increased revenue drive, it is projected that the Authority will exceed its 2021 revenue projections and the projected transfer to the CRF for the year 2021 which is expected to be over N80billion, which would be the highest in the history of the authority”.

He told the Committee that it was not true that Nigerian ports was the most expensive in the sub-region, disclosing that a study commissioned by the Authority showed that it was cheaper for general and container vessels to berth in Nigerian ports than in Ghana or Togo.

He pointed out that mostly, what importers complain about was the amount paid as terminal and freight charges paid to terminal operators and shipping companies.

Others, he said, include customs duty, inspection services haulage, insurance, sundry trade levies and fees that have nothing to do with NPA.

According to him, apart from the towage dues, which was reviewed in 2015, Port tariffs in Nigeria have remained same since 1993.

Koko also said his management has been making every effort to reposition the authority for quality service delivery for ports operators and users since he assumed office May this year.

He added, “Accordingly, my management has focused on improving the overall efficiency of the country’s port industry. To support the economic diversification agenda of the federal government through the promotion of non-oil exports, the Authority has partnered with the Nigerian Export Promotion Council (NEPC) for the establishment of third party dedicated export terminals or export parks to be located in Lagos and Ogun states.

“The initiative is aimed at the processing, packaging and certification of exports under a one stop platform that houses all relevant agencies responsible for quality control and regulatory validation of exports before shipment. The objective is to enhance and fast-track Nigerian export cargo for shipment at the export parks without any further port clearance protocol.

“A pilot project has been established at the Lillypond Container Terminal in Lagos, while 10 other exports terminals are in the process of being certified in order to begin operations by 1st quarter of 2022. The Authority is in the process of consolidating its various electronic platforms under a unified port community system. Currently, the NPA utilises the following technology platforms.”