The year 2023 has been a landmark period for Nigerian Ports Authority (NPA). It was a year filled with growth, challenges, and advances. NPA embarked on new ventures, expanded its global presence, and embraced technological innovations, all while staying true to its core values and mission.
UGO Amadi reviews the activities of the agency that has been a great support to Nigerian economy.
Since, President Muhammadu Buhari approved the appointment of Mohammed Bello-Koko as the Substantive Managing Director of Nigerian Ports Authority (NPA), Which takes immediate effect. The NPA boss has effectively shown great Leadership in the way he thinks and acts and, most importantly, have shown efficiency in the way he communicates .
On assumption of office, Koko promised to turn the organization around and ensure Nigerian ports are the most efficient in Africa. He is doing that and more. For Koko, the first order of business on ascending the saddle was to initiate fresh initiatives targeting cost and value maximisation by infusing greater efficiency in NPA’s diverse operations, plugging income leakages and cutting down on administrative overheads. The quick impact of this course could be felt. There are more. Any staff of the multifaceted organization will tell gladly today that they have never had it this good. Bringing his private sector experience to bare, there has been improvement of the debt recovery and collection mechanisms, which triggered a remarkable decrease in the debt owed the agency for services rendered to stakeholders such as the NNPC Limited, international oil companies (IOCs) and other partners.
From January 2023, the Koko-led transformation, re-engineering and repositioning of the NPA speak to fundamental changes that are afoot at the apex maritime organisation.
It was exciting to note that within first half of the year in 2023, the Nigerian Ports Authority (NPA) has generated a total revenue of N191, 430,093,501.00 (One hundred and ninety-one billion, four hundred and thirty million, ninety-three thousand and five hundred and one naira only) from its operations .
The NPA, in the same period, remitted N55,712, 565, 027.46 (Fifty-five billion, seven hundred and twelve million, five hundred and sixty-five thousand, twenty-seven naira and forty-six kobo only) to the Consolidated Revenue Fund (CRF) of the Federation.
These disclosures were contained in a half-year 2023 performance reports released by the NPA Managing Director and Chief Executive Officer, Mohammed Bello Koko.
Elucidating on the report, Mr Bello Koko said given the existential economic headwinds both at the micro and macro levels, these operational statistics for the first six months were reassuring, adding that they catalysed the commendable remittances to the Consolidated Revenue Fund (CRF) of the Federal Government thus far.
According to him: “viewed within the context of current global economic upheavals which have affected trade volumes in all climes, our current growth trajectory is encouraging and gives us confidence to project a revenue growth of over 500 billion with concomitant increase in remittance to CRF by end-of-year 2023, given that shipping activities peak around the second half of the year.
“The smart policy thrust of the new administration which is already throwing up new vistas of growth further lends credence to the feasibility of our projections and gives fillip to our organizational initiatives.” Bello Koko added that “the operationalization of Lekki Deep Seaport, expected restoration of the service boat management contract, digitalisation and intensified tightening of collections mechanisms buoys our confidence at meeting and indeed exceeding the revenue projections.”
The Authority has completed operations on a total number of one thousand eight hundred and fifty-one (1851) vessels for the 1st half of 2023 with a combined Gross Registered Tonnage (GRT) of fifty-seven million, eight hundred and seventy thousand and eighty-three (57,870,083). Cargo throughput for the period under review stood at 33,895,784 metric tonnes, whilst container traffic was 707,985 TEUs (Twenty-foot Equivalent Units).
A key indicator of port efficiency which is the average turn-around-time (TAT) of vessels, stood at 5.16days. “This is an improvement and we have put measures in place to surpass in the second half of 2023, ” the NPA chief executive said.
Truck turn-around
Anyone who has been to Apapa in recent years will testify to the menace of truckers and the resulting gridlock on port access roads. Today, there is significant reduction in truck turn-around time due to successful monitoring of the E-Call Up System. To minimize breakdown of trucks on port access roads, about 3,000 trucks have been inspected, certified and issued stickers to ensure safety and compliance with ISO certification requirements and Minimum Safety Standards (MSS). This lead to 65 per cent reduction in number of accidents recorded, arising from improved standard of trucks operating within the Port premises. The NPA, following Koko’s directive has enforced full compliance of trucks to E-Call Up regime and Minimum Safety Standard resulting in significant reduction in the traffic gridlock along the main Port corridor and the internal access roads through enforcements, proper batching, continuous access control mechanisms and movement of cargo via barge operations. To save the country the much-needed foreign exchange, Koko has ensured that complete Dry-docking of some Tug Boats are done locally and this has increased the authority’s fleet. To ensure adequate security at the ports, the NPA has procured and deployed six Security Patrol Boats (SPBs) to all Pilotage Districts to address incessant attacks of vessels along the channels and at Ports’ waterfronts. In the period under review, the NPA has ensure standardization of Operational Procedures for Different Activities, created Forcados Signal Station to enable the Port capture the movement of more Service Boats and completed bathymetric Survey for the dredging of Escravos Channels.
With vital things necessary for effective port operation lacking, what the NPA has achieved in the last 10 months is unprecedented. They include; the survey and Mapping of the FairWay Buoy up to Warri-Sapele-Koko Ports to the prescribed standards of the UKHO Charts, increase Container holding capacity at Rivers Port arising from conversion of unused space within PTOL Terminal into stacking area, provision of 24 motor cycles deployed to aid effective monitoring of Truck E-Call Up operation at Apapa/TCIPC/Ijora axis to ease free flow of traffic, signing of Memorandum of Understanding (MoU) with the National Bureau of Statistics (NBS) for data digitalization and exchange for effective integration of Ports statistics with National Database and upgrading of Website and Daily Shipping Position Portal. Others are the upgrade of infrastructure at Terminal ‘B’, Berth 7 and 8, Onne Port Complex based on Messrs WACT Nigeria Limited proposal for investment exceeding $110 million over a period of two years.
Escravos breakwaters and Concession Review
For several years the Escravos breakwaters were left to rot, things are turning around for good following the completion of consultancy services for the shore protection and rehabilitation of the Escravos breakwaters by Royal Haskoning. The contract for rehabilitation will soon be awarded. The NPA has also completed review of expired concessions while reviewing all available funding options in order to commence immediate reconstruction of: TinCan Island Port Complex, Berth 4-14 in Apapa Port Complex, Berth 2 in Onne, Terminal C in Warri and Warri Jetties. Also, the synergistic partnerships at instituting transparency harbingered by the Mohammed Koko – led Management recently gained international commendation as Nigerian Ports won, “Outstanding Achievement in Collective Action Award,” of the Switzerland-based Basel Institute.
Technology
With technology being the linchpin of port efficiency, the authority’s sustained updating of ports systems automation as well as the ongoing collaboration with the IMO for the development of the Port Community System (PCS) signposts the current Management team’s seriousness to advance Nigeria’s trade fortunes.
The PCS which lays the groundwork for the National Single Window (NSW- the global benchmark of port efficiency), is a sector-specific automated system that eases information exchange between all parties that have activities related to the seaports, the Nigerian Ports Authority (NPA) has been at the forefront of measurable actions steps necessary to operationalize the PCS.
Although the PCS by its operational dynamics requires multi-agency actions, which have been time consuming, the NPA as Nigeria’s foremost trade facilitation platform has through advocacy and collaborations fast tracked the process and as at date completed the second phase of the consultancy under the technical guidance of the International Maritime Organization (IMO).
To enthrone transparency and eliminate opacity, the Authority has also completed the automation of port-ship reception and billing payment with the Revenue invoicing and management system (RIMS),
Deployment of Electronic manifest and Ship Entry Notice (ESEN), deployed electronic Traffic Management System (e-Call Up), currently operates Oracle Financials and Oracle HR and is on track for the procurement of software for harbour automation and is implementing an Authority-wide equipping and strengthening of Radio Signal Stations.
To assure Domain Awareness Capability to enable the Authority guide and provide safety information to vessels within its channels and ports approaches in line with the Safety of Lives at Sea (SOLAS) convention, the current management partnered with the NLNG Ship Management Ltd (NSML) for the deployment of Vessel Traffic Service which at its conclusive stage.
Equipment & Infrastructure
Ports sustainability is dependent on quality infrastructure and equipment. Whilst awaiting the necessary approvals for the funding of the reconstruction of the aged Tin Can Island Ports Complex and rehabilitation of challenged aspects of all Port locations, the current Management team has in the period under review undertaken commendable steps in this direction as follows:
- Acquisition of first-of-its-kind in Africa marine crafts such as the recently commissioned two units of 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.
- Equipping and Operationalization of state-of-the-art Control Towers for Lagos and Tin can Island Port Complexes.
- Procurement and deployment of Security Patrol Boats (SPBs) across all Port locations leading to enhanced channel security and address incessant attacks of vessels along the channels and at ports’ waterfronts which has resulted in unprecedented cargo traffic in the Eastern Ports especially Onne Port Complex.
- -Acquisition of more Harbour Crafts (Tugboats, Pilot Cutters) to eliminate delays associated with berthing and sailing of vessels and improve efficiency at the Ports.
- Procurement and installation of navigational Aids and Buoys for Warri and Calabar Pilotage Districts, for proper channel marking and route mapping.
- Completion of the Road Network for the integration of Berth 9,10, &11 at Federal Ocean Terminal, Onne Port.
- Procurement and Installation of Marine Fenders Authority Wide. This is to boost the overall integrity of the quay facilities and serve as a precautionary measure to prevent any form of accident arising from direct vessel impact on the quay wall.
- Completion of Consultancy services for the shore protection and rehabilitation of the Escravos breakwaters.
- Survey and Mapping of Warri Pilotage District from Fairway Buoy-Warri-Sapele up to Koko Port to the prescribed standards of the UKHO Charts, which had been left unattended for decades.
In addition to the above, the three-pronged transformational strategy of the Mohammed Bello Koko – led Management of the NPA has actualized the following:
New Ports devt.
In a bid to position Nigeria to optimize the comparative advantages that the nation’s maritime endowments as a littoral nation confers, the Authority provided the technical guidance and fast tracked the approval processes responsible for the commencement of operations of Nigeria’s first Deep Sea Port; Lekki Deep Sea Port which doubles as Nigeria’s first fully automated port at take-off.
The Lekki Deep Sea Port laid the groundwork for the recent Federal Executive Council (FEC) approval of Badagry Deep Sea Port, Ondo Deep Sea Port, Snake Island and Koko Port in Delta State.
Promotion of Export , Trade Facilitation
Cognizant of the importance of balance of trade in strengthening the value of the naira, the NPA under Bello Koko’s watch certified and licensed 10 Export Processing Terminals (EPTs) in Lagos and Ogun states in the first instance. The EPTS were conceptualized to eliminate all procedural bottlenecks that hitherto made Nigerian exports uncompetitive in the international marketplace. The authority in the period under review also successfully enforced the Stevedoring Regulations, which in addition to deepening professionalism and adherence to global best practice in the maritime sector, created jobs and wrested huge revenue from International Oil Companies (IOCs) that was hitherto lost. Creation of new businesses and attendant job opportunities such as the Barge Operations services which apart from reducing pressure on the roads has grown into a N2 billion annual generation business both from direct investment and accompanying externalities. The NPA has also embarked on the Licensing of additional Truck parks to increase capacity of truck parks servicing the Lagos Ports.
Also, there has been a significant reduction in truck turn-around time due to successful implementation of the E-Call Up System.
The NPA has also ensured the enforcement of Minimum Safety Standards on trucks, which stipulates that all trucks accessing the Ports are inspected, certified, and issued safety assurance identification. Others are: 65% reduction in number of accidents recorded, arising from improved standards of trucks operating within the Port premises and tandardization of operational procedures for different activities such as barging, private jetties, pilotage, vessel berthing/sailing etc.
Diversification of Revenue Sources
In a move that is indicative of the readiness and capacity to fit into the reinvigorated capacity optimization drive of the new Ministry of Marine and Blue Economy under the visionary ministerial direction of His Excellency Adegboyega Oyetola, and in a bid to surpass the current revenue performance, Mohammed Bello Koko and his team are already looking beyond sole dependence on revenue from core port operations and have already put modalities in place to create jobs and add value to the national economy from the following alternative sources of revenue through Public Private Partnerships; Ports Independent Power Production, Bunkering Stations, Fallow Lands for Logistics/Real Estate, Fresh Water Provision, Ship Repairs and Maintenance and Tourism and Hospitality.
Gleaned from the foregoing, it is evident that the Nigerian Ports Authority has been placed on sound footing to guarantee its growth, competitiveness, and future readiness to maximize the opportunities inherent in the the African Continental Free Trade Area (AfCFTA) Agreement.
.INTELS Waived $193m Debt to Resolve Service Boat Contract
Also, this year the Nigerian Ports Authority (NPA) says INTELS Nigeria Ltd. has waived $193 million as part of a deliberate and conscious effort to resolve the stalemate on the pilotage contract with the Federal Government under the last administration.
The NPA said the agreement that culminated in the waiver of the $193,317,556 in accumulated interest on debt owed, which was reached with INTELS, was done in the national interest.
It assured stakeholders and Nigerians that revenue generation would now increase as a result of the effort, even as it praised the Minister of Transportation, Marine, and Blue Economy, Adegboyega Oyetola, for working tirelessly to ensure that the crisis was resolved.
The Authority pointed out that the minister was unhappy about the needless loss of revenue as a result of the stalemate on the pilotage contract, adding that the minister’s show of concern underscored his commitment and patriotism towards resolving the protracted dispute.
Significantly, the NPA disclosed that Nigeria would save a princely $326.895 million from the agreement it reached with INTELS on the contentious pilotage contract.
The Authority said the federal government would earn a benefit to the tune of over $500,000,000.00, taking into consideration the interest waiver of $193,317,556.
The arrangement also included the reduction in interest rate on the outstanding debt from a 6-month LIBOR rate of +6.5 percent to a 6-month SOFR rate of +3 percent, the spread of the repayment of the debt over 15 years, with the first two years interest-free, and the reduction in commission from 28 percent to 24.5 percent.
