- Minister accused of running one-man show
- Smooth running of ports crippled – Investors
- Board to be constituted soon – Presidency
For over two months now, the Nigerian Ports Authority has been operating without a fully constituted board.
This development, The Point gathered has been affecting the smooth running of the agency.
Recall that on July 12, 2024, President Bola Tinubu approved the appointment of a new Managing Director and Board Chairman for the NPA.
In a statement issued by the President’s former Special Adviser on Media and Publicity, Ajuri Ngelale, Tinubu appointed Dr. Abubakar Dantsoho as the Managing Director of the NPA while Senator Adedayo Adeyeye was appointed the Board Chairman.
“Dr. Dantsoho holds a Doctorate in Maritime Technology from Liverpool John Moores University, United Kingdom, and a Master’s degree in International Transport from Cardiff University of Wales, United Kingdom.
“Before his appointment, he had served in various roles in the Nigerian Ports Authority as assistant General Manager; Technical Assistant to the Managing Director; Port Manager, Onne Port; and Principal Manager, Tariff & Billing,” the statement partly read.
“The appointment, promotion of staff, and award of contracts fall under the purview of the board, that is mandated to meet not less than four times in a year but without a board all these have fallen on the table of the Minister of Marine & Blue Economy, Adegboyega Oyetola, who according to various unions, runs a one-man show”
Adeyeye, a seasoned lawyer, journalist, and politician, was a former Minister of State for Works and former Senator representing Ekiti South Senatorial District.
The statement had added that “the President expects the new leadership of this pivotal agency to deploy excellence in the discharge of their duties to enable efficient port services and improved industry outcomes.”
Meanwhile, findings revealed that President Tinubu’s delay in inaugurating the NPA board has been threatening port services and frustrating improved industry outcomes which Tinubu is expecting.
When contacted by The Point at the weekend, the Special Adviser to President Tinubu on Information and Strategy, Bayo Onanuga, said the board would “soon” be constituted.
Onanuga, while replying to a text message sent to him by The Point in the absence of the board, wrote, “The board will soon be constituted.”
The board chairman, Senator Adedayo Adeyeye did not answer telephone calls by The Point correspondent and neither had he replied to a text message sent to his mobile by our reporter.
However, stakeholders in the maritime sector complained that the non-composition of the board that is responsible for the policies for the running of the organization is having a negative impact on the sector.
For instance, they stated that the appointment, promotion of staff, and award of contracts fall under the purview of the board, that is mandated to meet not less than four times in a year but without a board all these have fallen on the table of the Minister of Marine & Blue Economy, Adegboyega Oyetola, who according to various unions, runs a one-man show.
This, according to them, has affected the industry negatively with accusations of the minister running around and doing anything he feels like unchecked thereby affecting the creation of strong institutions by projecting the individual.
“The concept of boards is to improve the capacity to manage any organisation and to have a type of intellectual input necessary for its development and growth.
“So the whole marine sector is on one man’s head. I would like to say it is in one man’s hand and it is dangerous. So we have a one-way track; one-way track for the NPA; no diversity. There is nothing like cross fertilisation of ideas. So the disadvantages are numerous,” an expert in the sector who pleaded for anonymity said.
The revenue of the NPA grew from N361 billion in 2022 to N501 billion in 2023 despite the economic headwinds that impacted trade negatively.
NPA’s remittances to the Consolidated Revenue Fund of the federation, also grew from N93.4 billion in 2022 to N131.2 billion in 2023, according to a document titled: ‘Consolidation of Superior Performance at the Nigerian Ports Authority 2023-A Synopsis of the Authority’s Performance Improvement 2022-2023,” sighted by The Point.
The document stated that taxes paid to the government also grew in the period under review totaling $77.7 million and N17.6 billion respectively.
It further disclosed that the former Mohammed Bello-Koko-led management of NPA was able to grow revenue and remittances by creating a trade facilitation platform to surpass its performance.
One such platform was the licensing of 10 Export Processing Terminals within the period under review, to facilitate exports at Nigerian ports.
The export terminals provided a one-stop shop for export processing where quality control, cargo assessment, and statutory checks by all government agencies were carried out.
It also helps to eliminate bureaucracy and attendant delays that hitherto undermined the competitiveness of Nigerian exports in the international market.
In its first year, the terminal led to an increase in the number of Nigerian export-laden containers from 156,790 TEUs in 2022, to 226,456 TEUs in 2023.
The Ports Authority said it contributed to the deepening of Nigeria’s balance of trade through the promotion of exports of non-oiI in response to the national exigency of strengthening the naira.
To create new businesses and promote multi-modalism in line with global best practices as prescribed by the International Association for Ports and Harbours, the NPA initiated barge operations services which, apart from reducing pressure on the roads, had grown into an N2 billion annual businesses both from direct investment and accompanying externalities.
“Movement of cargo by barge has greatly enhanced port hinterland connectivity as evidenced by the sudden rise in numbers from a total of 80,244 twenty-foot equivalent units (TEUs) in 2022, which by 2023 had grown to 118,046 TEUs.
In addition, the NPA said it grew the number of ship calls following the consistent dredging of channels, installation of buoys, and improved security at the ports’ channels.
According to the performance report, the number of ship calls grew from 1,997 vessels in 2022 to 2,179 vessels in 2023.
Also, Lekki Deep Seaport, Nigeria’s first fully automated port that commenced operations in 2023, processed 6,076 TEUs of transshipment cargo.
This showed the NPA’s readiness to cater to the maritime needs of Nigeria’s landlocked neighboring countries and to win back cargo hitherto lost to maritime neighbours.
To maximise the distinctive advantage of economies of scale that the Lekki Deep Seaport with its capacity to berth super post panamax vessels, the Authority in 2023 acquired and deployed two units of first-of-its-kind in Africa Azimuth Stern Drive (ASD) 8213 model 80 Ton Bollard Pull Tugboats to enable the berthing of very large vessels of 300 metres LOA and above.
The Authority sustained its revenue performance, during the period under review, by looking beyond the sole dependence on earnings from core port operations.
“The revenue of the NPA grew from N361 billion in 2022 to N501 billion in 2023 despite the economic headwinds that impacted trade negatively”
In this respect, the Authority had set Public Private Partnership modalities in motion to derive revenue from Ports’ Independent Power Production, Bunkering Stations, Fallow Lands for Logistics, Fresh Water Provision, and Ship Repairs and Maintenance and to insulate its income from leakages, even as the Authority had firmed up its Revenue Invoice Management System (RIMs) to the cutting edge version of RIMs 2.0
In terms of security, the Authority collaborated with the NLNG Ship Management Limited to deploy the Vessel Traffic Service (VTS) to complement the newly-equipped control towers across its locations to assure stakeholders of its domain awareness capacity for enhanced security and in response to emergent threats and vulnerabilities.
Last week, the Minister of Marine and Blue Economy, Adegboyega Oyetola, highlighted the need for Nigeria to invest in port facilities upgrade to safeguard shipping and drive operational efficiency in the nation’s maritime sector.
He spoke in Lagos on Wednesday at the 2024 World Maritime Day where he said increased investment in the sector will help Nigeria to build capacity and ensure the country remains competitive in the global seaborne trade.
The Minister who was represented by the Permanent Secretary of the Ministry, Michael Oloruntola, urged the stakeholders to re-examine the safety and security challenges that confronts the maritime sector, particularly in the context of new technologies and alternative fuels that aim to reduce greenhouse gas emissions from ships.
According to him, the Federal Ministry of Marine & Blue Economy is taking proactive measures to enhance the maritime sector by embracing emerging technologies and fostering innovation to drive growth.
“Key among the initiatives of the Ministry are digitalisation and automation of port operations to enhance safety, security, and efficiency as well as performance optimisation to reduce costs and increase reliability, and the adoption of innovative practices to propel our industry towards sustainable development.
“President Bola Tinubu is investing heavily in port modernisation to reduce inefficiencies, lower operational costs, and improve safety in our ports. This process is being financed through Public-Private Partnerships (PPP) arrangements,” he explained.
Oyetola said the government has also made significant progress in creating a conducive environment for port operations by aligning its policies with global best practices. This, he said, has enhanced safety, security, and efficiency in our ports, leading to notable reductions in the delays associated with processing exports and imports.
He, however, said that the government needs the support of the private sector to be able to provide the resources and state-of- the-art facilities needed to take Nigeria’s maritime industry to higher trajectory.
He said Nigeria has consistently worked to align its regulatory framework with International Maritime Organisation standards and other international maritime regulations, reinforcing our commitment to upholding the highest standards of maritime safety.
Speaking earlier, the Managing Director of NPA, Abubakar Dantsoho, said the authority was at concluding stages of the deployment of the Port Community System.
According to him, the PCS will set the pace for the operationalization of the National Single Window Project of the Federal Government.
Dantsoho, who was represented by the executive director, Engineering & Technical Services, Ibrahim Umar, said the maritime sector is not just pivotal to national economic prosperity, but to global economic sustainability.
“Realizing that automation is the linchpin of port efficiency, the Nigerian Ports is at conclusive stages of the deployment of the Port Community System (PCS), which actually sets the pace for the operationalization of the National Single Window Project of the Federal Government.
“This is in addition to the comprehensive modernization of Ports infrastructure and equipment to enhance competitiveness. Indeed, making global port operations healthier, safer and more secure whilst actualizing the other noble objectives of the World Ports Sustainability Programme rests heavily on our shoulders as policy framers, investors and stakeholders in its broadest ramification.
“I have said all of these to establish the irrefutable fact that the maritime sector is not just pivotal to national economic prosperity, but to global economic sustainability. I have said all of this to reiterate the unwavering commitment of the Nigerian Ports Authority under the leadership and guidance of the Minister of Marine & Blue Economy, Alhaji Adegboyega Oyetola to the maximization of the opportunities inherent in our maritime endowments for the benefit of the good people of Nigeria and the larger world.
“Before I take my seat permit me to remind us all that as far as the noble cause of advancing the fortunes of the maritime sector is concerned, we are all in one boat as eloquently captured in the seminal words of French oceanographer and naval officer Jacques Yves Cousteau that “The sea, the great unifier, is man’s only hope. Now, as never before, the old phrase has a literal meaning: we are all in the same boat.”
