Despite the impact of Covid-19 pandemic on global trade and supply chain logistics, the Nigerian Ports Authority (NPA) has raised its Internally Generated Revenue (IGR) between January and September 2021 by 120 percent.
According to documents presented by the Authority’s Acting Managing Director, Mohammed Bello Koko, to the House of Representatives Committee on Ports and Habours, the NPA has also reduced its operating expenses by 20 percent of its budget for this year.
In the presentation to the Committee, as at the end of September 2021, the Authority earned N256.28billion in IGR as against the expected N214.65billion (approved estimate N271.70billion) for the same period, representing a 120 percent increase or 95 percent of its total annual budget for 2021.
For operating expenses, as at the end of September 2021, actual spending stood at N55.1billion 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 percent performance of the approved budget of N87.32billion.
Furthermore, in compliance with the quarterly remittance of its operating surplus to the Consolidated Revenue Fund (CRF) 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, the highest in the history of the Authority.
This impressive revenue performance achieved by the Bello Koko led Management of the Authority, which has been in office for only six months, has been highly applauded by industry stakeholders.
The NPA’s helmsman informed the House Committee that contrary to news reports insinuating that Nigerian ports are the most expensive in the sub-region, a study commissioned by the Authority with the support of UKAid in 2019, indicated that it is cheaper for general and container vessels to berth in Nigeria than in Ghana or Togo.
He explained that a huge chunk of what shippers or cargo owners spend to clear their consignments include terminal and freight charges paid to terminal operators and shipping companies, payments for customs duty, inspection services, haulage, insurance and other sundry trade levies and fees, which are outside the purview of the Authority.
“Aside the towage dues which was reviewed in 2015, Port tariffs in Nigeria have remain same since 1993”, he said.
Following his assumption of office in May this year, Bello Koko has taken deliberate steps to reposition the Authority to focus on cost-optimization and quality service delivery, while maximizing business value for port operators and users. Accordingly, the Bello Koko-led Management has focused on improving the overall efficiency of the country’s port industry.
Vanguard News Nigeria
