News
NPA Chief Calls for Urgent Review
of Ports Agencies
The Managing Director of Nigerian Ports Authority, Mallam Omar
Suleiman, has called for a reduction in the number of government
agencies manning the ports.
He spoke last week when the Director General of the Bureau of
Public Enterprises (BPE), Ms. Bolanle Onagoruwa, paid a courtesy
visit to the NPA boss. Onagoruwa had visited the Western ports,
which were concessioned by the BPE in 2006, as part of the
post-privatization monitoring exercise of the privatization
agency.
Suleiman contended that with multiple agencies at the ports,
“our dream of clearing cargo in time will be defeated.” He added
that the challenge of multiplicity of agencies is compounded by
the fact “that they do not undertake joint inspection but
individual inspections. This leads to undue delays and
contributes to congestion in the ports.”
The NPA boss described the concession of the Nigerian port
system as one of the most successful concessions in the world.
He pointed out that it was due to concession that the Lagos port
can host vessels of 4, 500 TUE (Twenty feet equivalent unit.)
Prior to privatisation in 2006, Nigerian ports could only
accommodate vessels of 1, 000 TEU. He noted that the dredging of
the Lagos port has achieved a draught of 13.5 metres, although
he admitted there were challenges at the entrance of the Lagos
channel which were being addressed to ensure that the same
draught would be achieved at the entrance of the channel.
In terms of revenue, Suleiman said that the benefits of
concession have stabilized the NPA, thus allowing the Authority
to concentrate on dredging and non-operational issues.
He stated that contracts had been awarded for the rehabilitation
of all access roads at the Tin Can Island Complex, adding that
work had started on some of them.
The NPA Chief Executive expressed concern about the approval
process for procurement which he noted hampers their ability to
respond quickly to challenges.
The Director General of the BPE, Ms. Bolanle Onagoruwa,
commended Suleiman for being an ardent advocate of the benefits
of concession. She added that the NPA boss was also realistic in
drawing attention to some of its drawbacks.
The BPE Chief Executive expressed the willingness of the
privatisation agency to engage with the NPA on the challenges,
so that the resultant resolutions would be escalated to higher
authorities to address.
On the multiplicity of agencies at the ports, Onagoruwa informed
the MD of NPA that the BPE had recommended the reconvening of
the Presidential Task Force on Ports Reform given that one of
its sub-committees had addressed that challenge. She explained
that the sub-committee had recommended that the agencies be
pruned to five in line with international best practice, and was
awaiting the opportunity to submit its report to the main
committee. She noted that “the multiplicity of agencies affects
the cost of doing business and that in turn defeats the purpose
of reform.”
The BPE boss visited Tin Can Island Port Terminal; Five Star
Logistics, APM Terminal, Josephdam Port Terminal; ENL Terminal
and Apapa Bulk Terminal. Save for Josephdam, Onagoruwa commended
the efforts of the concessionaires and urged them not to rest on
their oars. The BPE Chief Executive urged the concessionaire at
Josephdam Terminal to live up to the obligations it signed with
Government failing which sanctions would be invoked against the
terminal operator.
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