Tag Archives: Ports

The Cost Of Reforms: Hadiza Bala Usman As A Case Study – By Theophilus Opaleye

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The evolutionary trend of Nigeria’s socio-political journey since Independence has shown a clear path for the permeation of corruption, from an alien concept to the statutory way of getting business done. Corruption has become the existential reality of the ordinary man or woman in Nigeria trying to eke out a living for himself or herself.
 
The effect of this moral decadence is evident in both the political dysfunctionality and economic debilitation of the Nigerian state. The implication is that those who seek to do the right thing often find themselves alienated by the system while battling forces that are loyal to the status quo for various reasons.
 
It is a trend that takes vast amount of political will to undo as systemic reformers battle against the devastating current of blackmail, libel, insubordination and sometimes direct threat to their lives by machineries of the beneficiaries of corruption. The latest survivor of this onslaught is Hadiza Bala Usman, Managing Director of the Nigeria Ports Authority.
 
Hadiza Bala Usman’s appointment as MD of Nigerian Port Authority by President Buhari in July 2016 came on the back heel of dwindling revenue from crude oil and the urgent need to diversify the federal government’s income sources. The move signalled President Buhari’s resolve to make NPA one of the most efficient economic drivers of his administration. And Hadiza was the woman he trusted to make that happen.
 
Hadiza’s appointment sent ripples through the fabric of Nigeria’s civil service structure – it is an anomaly to have a 40-year old woman head one of the most important agencies of government in Nigeria. For stakeholders in the ports sector, it marked the end of an era of doing business at the ports the corrupt way, the end of defrauding the Nigerian state and people through sharp practices at the port.
 
Since her appointment, Hadiza has set about cleaning the Augean stable at the NPA, bringing to bear major reforms in the way stakeholders conduct business at the nation’s seaports. Under Hadiza, NPA became the first federal agency to fully adopt the open governance model and open its books to the scrutiny of the public and civil societies. By integrating the operations of the NPA with the federal government’s single treasury account policy, she ensured monies meant for remittance to the federation account were not locked in private accounts yielding interests for corrupt elements in high places.
 
Also, the high and mighty who had made defrauding the Nigerian people the norm, by not paying due import duties suddenly found themselves locked out in a system where transparency and accountability reigned supreme. Those who had enriched themselves by using their influence to bring goods into the country without paying the appropriate fees are being forced to do business the right way.
 
These and more are reform policies introduced to the operations of the NPA that did not go down well with a section of the Nigerian elites that made Hadiza Bala Usman a target for the campaign of calumny and character assassination as characterized by the recent report as published by the faceless online platform – The Breaking Post NG.
 
The powers that be who are used to having their way have now decided the best way to do it is no longer through the ports because illegality has been blocked there but now through internet infestations of lies, half truths and alternative facts. Their latest effort in dragging Hadiza’s name through the mud in which they themselves have permanent residence have failed, but they are not likely to stop.
 
Less than 24 hours after posting with all glee and certainty, an “exclusive” report on Hadiza targeted at painting her as corrupt, The Breaking Post tweeted an excuse-ridden apology to save face after Nigerians rose in Hadiza’s defence. In the interest of a just and equitable society, and to serve as a deterrent to others who might be tempted to make themselves available as tools for the propagation of falsehood on social media, Hadiza’s determination to go ahead with a lawsuit against the fake news platform is a welcome development.
 
There is perhaps no better visualization of the cost of doing things the right way and enforcing progressive reforms in a society as ours as the barrage of falsehood against the person of Hadiza and her position as MD of the NPA. It is however heart-warming that rather than dampen her morale, this campaign against her by the enemies of the Nigerian people have strengthened her determination to see through ongoing reforms at the NPA.
 
Theophilus Opaleye is a public finance expert based in Lagos.

2016, bad year for Nigerian ports – NBS

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From 5,369 in 2013, the number of vessels that berthed at ports in Nigeria dropped to 4,025 in 2016, representing the lowest in four years.

The National Bureau of Statistics, NBS, made this known in its 2013-2016 Shipping and Port Related Activities Data released on Wednesday.

According to the bureau, the number of vessels dropped from 5,369 in 2013 to 5,349 in 2014. In 2015, the figure dropped to 5,090 and reduced drastically to 4,025 in 2016.

Similarly, the report said the Gross Registered Tonnage at the ports peaked at 146,820,488 in 2014 and dropped to 144,207,122 in 2015 before sliding to 122,186,758 in 2016.

Statistics for the Apapa Port show the extent of decline in vessels over the last three years.

From 1,510 in 2013, the number of vessels that berthed at the Apapa Port dropped to 1,097 in 2016.

According to the bureau, the number of vessels dropped from 1,510 in 2013 to 1, 503 in 2014. In 2015, the figure dropped to 1,399 and reduced to 1,097 in 2016.

Similarly, the report said the Gross Registered Tonnage at the Apapa port peaked at 37,041,879 in 2014 and dropped to 36,142,339 in 2015 before sliding to 31,032,377 in 2016.

The data revealed that ship traffic statistics at Nigerian ports also reflected that a total number of 19,833 vessels berthed at the various ports between 2013 and 2016. Similarly 543,842,425 tonnages were registered within the period under review.

Further analysis of the report showed that the year 2014 recorded the highest number of vessels berthed as well as tonnages registered while the least were recorded in 2016.

Tin Can Island Port handled the most ships accounting for 33 percent of total number of ships that berthed in all ports and 32 percent of total tonnage registered in all ports. It is closely followed by Apapa port which accounted for 28 per cent of ships that berthed and 25 per cent of total tonnage registered ; and Onne port which accounted for 15 per cent of ships that berthed and 30 per cent of total tonnage registered.

According to the report, cargo traffic statistics revealed a total of 312,185,808 cargo traffic was recorded at all Nigerian ports between 2013 and 2016. 196,851,236 of the cargo traffic were inwards while 115, 334572 were outward.

Apapa port handled the most number of inward cargoes accounting for 39 per cent of total inward cargoes and closely followed by Tin Can Island and Delta ports accounting for 31 per cent and 11 per cent respectively.

Calabar port accounted for 4.29 per cent to record the least.

Similarly, Onne port handled the most number of outward cargoes accounting for 80 per cent of total outward cargoes; closely followed by Delta and Apapa port accounting for 10.63 per cent and
3.52 per cent respectively.

The Calabar port accounted for 0.05 percent, to record the least.

Meanwhile, the number of passenger traffic within the period under review was put at 52,262.

BREAKING: Nigeria Customs Service intercepts huge cache of pump action rifles.

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Information reaching Omojuwa.Com has it that Nigeria Customs Service has just intercepted a huge cache of pump action rifles concealed in a 40ft container at the Lagos Ports.

 

As at the moment of filing this report, it is still unclear who the importer of this consignment is and what the weapons are for. However, there may be no connection between this incident and the seizure of two military-type helicopters some days ago, reportedly ordered by the Rivers State Government under Rotimi Amaechi. The helicopters have since then been handed over to the Nigerian Airforce.

 

Omojuwa.Com awaits further information on the issue as men of the Nigerian Customs Service are already carrying out detailed investigation into the importation details of the consignment.

 

More details later…

Vehicle importers shun Nigerian ports over ‘Undue bureaucracy’ – ANLCA

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The Chairman of the Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu, has blamed the Nigeria Customs Service for why vehicle importers shun the nation’s ports.

 

“Tell Nigerians the truth,” Shittu said while reacting to the recent ban on vehicles importation through land borders in Asaba, Delta State at the weekend.He said importers avoid the nation’s ports because of undue bureaucracy in the operations of the customs.

 

Shittu stated that the poor condition of the nation’s ports and the disparity in freight charges on imports, which is very high, has made the seaports unattractive.Due to this, he said neighbouring countries are living on the nation’s economy by developing their ports and making them conducive for importers.

“Government and the customs should stop the bureaucracy in ports operations,” he stressed.He expressed disappointment that over 10,000 vehicles meant for Nigerian ports are now trapped at the borders with neighbouring countries because of the ban by the government.

 

Instead of the hasty decision, the customs service should advise the Federal Government to wait until modern facilities are provided in our ports, which would make them attractive to importers, he said.

 

Source: Guardian

How NPA officials by-passed procurement laws to corner N717 billion contracts.

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Officials at the Nigerian Ports Authority (NPA) are brazenly and fraudulently bypassing Nigeria’s public procurement law to award multi-billion naira contracts to handpicked contractors, a month-long investigation by PREMIUM TIMES has shown.

At least N717 billion in juicy contracts have so far been illegally awarded to one contractor alone. Under Nigerian Public Procurement Law (PPA), contracts of such magnitude should go through open competitive bidding.

The PPA Act, enacted in 2007, prescribes principles by which public procurement entities within the various Federal Government Ministries, Departments and Agencies should conduct their affairs.

The principles, which include honesty, integrity, transparency, accountability, fair competition, economy and efficiency and value for money, apply to all transactions, large or small, and describe the behaviour expected of every public officer in the conduct of public procurement.

The spirit of the Act is to offer all interested contractors, suppliers and consultants a level-playing field on which to compete and thereby, directly expand the purchaser’s options and opportunities.

It is also to serve as a key deterrent to collusion and corruption, submission of inflated or deflated tenders, followed by delayed or defective performance.

The law also frowns at procurement officials betraying and abusing public trust for personal gain.

To avoid these pitfalls, the Procurement Act stipulates that bids shall be invited only from qualified/approved contractors/suppliers competent to do the work or provide the services to the nominated standards.

It also says that contracts shall be awarded to the lowest evaluated responsive bidder, and shall meet all technical requirements and standards on the basis of competitive tendering unless overriding technical grounds exist to justify any other course of action.

Impunity unparalleled

NPA officials have however ingeniously found a way of circumventing Nigeria’s procurement regulations, carefully engineering what appears a fraudulent process of disguising contracts as Joint Venture projects between the authority and companies of their choosing.

The processes of choosing the joint venture partners are never thrown open, and so also are the procedures for awarding contracts to them.

One company that featured prominently in the so-called joint venture arrangement is Bonny Channel Company Limited.

In its own official document, Bonny Channel Company Limited (BCC) describes itself as a Public Private Partnership (PPP) arrangement between the NPA and The Channel Management Company, through a joint venture agreement signed on June 23, 2014.

The Channel Management Company, TCMC, is itself described as a technical consortium made of Dredging International, Vinci and IPEM. The share structure arrangement gives 60 per cent to NPA and 40 per cent to TCMC.

BCC says it “creates and maintain a safe navigational passage for all marine users to and in the eastern ports of Bonny Island, Onne, Okrika and Port Harcourt”.

For 10 years, beginning from 2006, BCC carried out two major contracts a year; one in Rivers Port and the other in Onne Port. In 2006, the contract sum awarded without passing through the standard procurement process was 127 million dollars.

Total contract figure was 163.2 million dollars in 2007; 195.4 million dollars in 2008; 143.4 million dollars in 2009 and 192.1 million dollars in 2010.

In 2011 the sum of contracts awarded to BCC for projects in Rivers and Onne ports respectively was 327 million dollars. Total contract sum was 300.2 million dollars in 2012; 296.3 million in 2013; 328.6 million dollars in 2014 and 286.2 million in 2015.

Curiously, the same contract of “Capital and Maintenance Dredging” is awarded to the BCC Joint Venture year after year. The company was awarded a total of $2.4 billion (or N717.3 billion) contracts in 10 years, in disregard for the nation’s procurement law.

The Procurement Process

There are nine essentials steps in public procurement in Nigeria. They include (1) efficient procurement plan driven by needs assessment; (2) adequate appropriation; (3) advertisement: (4) transparent prequalification /tender; (5) bid submission /opening; (6) bid evaluation – technical and financial; (7) tender board /FEC approval; (8) contract award /execution; (9) project implementation.

The fine details of this process are captured in sections 17 and 24 of the Public Procurement Act. The transparency steps for procuring goods, works and services must begin with the public posting of procurement notices and solicitations on a Notice Board located in a public area.

The Requests for Proposals (RFPs) must also be advertised in at least two national newspapers of general circulation – and the Federal Tender’s Journal. The same announcement must be made in the government official gazette and by placement on the procuring entities’ website.

The name of the procuring entity must be stated; also the name or nature of the contract; items to be procured; contact information for obtaining tendering documents; cost of the tendering documents; place and deadline for tender submission; Required Bid security amount and format; the place, date and time of tender opening; and the minimum qualifications bidders must meet.

Others are transparent pre-qualification of bidders; submission/receipt of tenders; evaluation of tenders; comparison of tenders; recommendation of the winning bid to Tenders Board /FEC; issuance of Certification of ‘No Objection’ to Contract Award by the Bureau of Public Procurement (BPP); debrief the bid losers on request; resolve complaints and disputes, if any; obtain and confirm the validity of any performance guarantee; announce and publicize contract awards; and execute all contract agreements.

To forestall cases of sweetheart deals and protect the integrity of the process, formulators of the Procurement Act found it pertinent to include a provision forbidding communication with bidders. It says: “At no stage shall the composition, names or any other details of any of the above committee members (the Technical and Financial Evaluation sub-committees) be divulged to the bidders. Other than when direct negotiations are required with the bidders, members of the above named committees shall not communicate directly with the bidders. All such communications shall be done through the procuring entity.

NPA has ‘superior’ ideas to the Procurement Law

The Procurement Act may have spelt out statutory procurement guidelines for all Federal Ministries, Departments and Agencies, but the NPA does not appear to think much of the law. If anything, the parastatal sees it as a clog in the wheel to be avoided as much as possible.

Justifying the joint venture, six reasons are given by BCC (that is NPA top managers and TCMC Consortium), one of which is “the need for an uninterrupted project (that may arise) from frequent bidding and due processes which are common in one-off government contracts”.

The agency gave a second reason for the joint venture saying it “provides the additional technical capacity, mainly with regards to capital and maintenance dredging, bathymetric survey, buoys maintenance and surveillance, continuous monitoring of the access channel, wreck removal, training, planning and management”.

These are supposed to be the statutory duties of the NPA but they are routinely contracted out under a joint venture.

“Given that maritime is the second largest revenue earner for the nation after oil, all NPA contracts should pass through the eye of the needle under the Procurement Act,” an NPA insider said.

“That the NPA has cleverly resisted by resorting to what is called restricted tendering method or in some cases single bid method, none of which subjects the procurement process to any form of competition. The only competition that exists is among the different companies or consortium begging to give an arm just to be NPA’s joint venture partner.”

Although the Procurement Act makes provision for direct contracting, it expects that that would only apply only in exceptional cases. For example when the contractor is needed for early delivery of essential goods in emergency operations. Or when an equipment required is proprietary and there is only one source and no alternative equipment or products with equivalent performance characteristics are available.

Direct contracting is also recommended when there are only a few known suppliers or exceptional reasons such as emergency actions related to a major natural disaster which may justify the waiving of advertising of competitive bids.

Other joint venture partners

PREMIUM TIMES gathered that BCC is not the only joint venture partner the NPA uses in circumventing the nation’s procurement laws.

Investigations by this newspaper showed that the agency arbitrarily awards N750million worth of contracts annually to SeaView Properties Ltd, another so-called joint venture, to provide various categories of environmental services.

The company in turn awards these contracts in batches of N2million to sub-contractors. The contract award by the sub-contractor is done through an internal advert process that is not subjected to the public procurement law.

“The threshold is maintained at N2million to retain the award threshold to domicile with the MD of the company and below what is required for public tender,” a top official of the authority told PREMIUM TIMES.

“The small lots of N2million are inefficient and cumbersome, the scope does not seek to maximize value for money but just to ensure that the contract award is not subjected to public tender.”

The parastatal also set up joint venture structures that gave birth to such companies as Lagos Channel Management (LCM) and Calabar Channel Management Limited (CCM).

PREMIUM TIMES found that the same CCM has a working relationship with another company called Nigeria West Minister Dredging Marine Limited. It is these handpicked companies, some of them amorphous, that NPA parades to give a semblance of compliance with the Procurement Act under its restrictive tendering. Other times it is just single bid process involving only one company.

The Lagos Channel Management Company manages the Lagos Pilotage District. It was incorporated in August, 2005 by NPA with an equity shareholding of 60 per cent and 40 per cent equity to the Joint Venture partner, Depasa Marine International.

Another NPA’s joint venture is called Continental Shipyard Limited. This is described by NPA as a joint venture partnership between the Nigerian Ports Authority and Dockyard Engineering Service Limited of Geneva Switzerland.

“The primary purpose for the establishment of the Joint Ventures is to turn around the Dockyard as a lucrative commercial enterprise through operating, up-grading and modernizing the facility to provide essential support for construction, repair manufacturing and maintenance of vessels, crafts, rigs etc.”, the NPA stated on its website.

The Calabar Channel Management Company Limited is stated as a newly established Joint Venture arrangement between Niger Global Engineering and Technical Company Limited with the Nigerian Ports Authority for what is described as Management Contract on Dredging of Calabar Channel. The NPA holds 60 percent equity while the consortium led by Messrs Global Engineering and Technical Company Limited has 40 per cent shareholdings.

Yet another of NPA’s joint venture, although incongruous with the organization’s core competence, is Agura Hotels Limited in Abuja which is listed as the agency’s joint venture in the hospitality industry.

There are no available information on how much contracts the NPA has so far awarded to the Calabar Channel Management Company Limited under the joint venture arrangement. None too for Continental Shipyard Limited and the Lagos Channel Management Company.

The N717 billion naira is the value of contracts awarded to just one joint venture partner, Bonny Channel Company (BCC) over ten years.

Explaining its joint venture arrangement with the NPA, BCC (NPA and TCMC) says the works it undertook were “carried out at a cost effective way based on the fact that competitive rates charged to NPA are more or less within the same range with that for third-party jobs carried out by BCC …”

Industry watchers queries NPA’s claim to competitive rates saying it is the statutory duty of the Bureau of Public Procurement (BPP), not that of NPA or BCC to determine what is a good price for a contract.

In fact the BPP itself, alarmed by the manipulations and total lack of transparency at NPA has stepped forward to say that the NPA joint venture agreements “contained terms that were skewed and disadvantageous to the financial interest of the Nigerian Ports Authority”.

NPA Reacts

Hadiza bala Usman

 

In August 2016, the new Managing Director of NPA, Hadiza Bala Usman, was quoted by the News Agency of Nigeria (NAN) as saying there was need to look at some of the funds expended on capital and maintenance dredging.

She said the funds used for such dredging projects in the past “should not be that high’’.

“It’s good time for us to compare capital dredging and maintenance dredging,’’ NAN quoted the managing director as saying.

When contacted Tuesday, Ms. Bala Usman said she had been taking stock of affairs at the NPA since she assumed duties in July, and that one of the areas her team was scrutinising was the procurement system in the agency.

“We will surely overhaul the procurement system here to ensure it complies with the PPA and Bureau of Public Procurement’s regulations,” she said.

“For instance, at the second board meeting of Seaview Properties last week, I directed that henceforth contracts will be classified into lots that are efficient and the authority will advertise them in line with BPP and if the subsidiary or joint venture wants to bid, they can, alongside other companies.

“We will commence the process of the new lot sizes and scope. Then we will have a public tender process of awarding the contracts. We believe by 1st quarter 2017 the process will be complete and new contractors that have gone through a public tender process will emerge and take over.

“We are hoping to do that with other joint ventures and subsidiaries going forward.”

W’Bank budgets N12.2bn to clear Apapa gridlock

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The World Bank is to support Nigeria’s maritime sector with N12.2bn ($40m) to help clear the traffic congestion that characterises most roads around the Nigerian Ports Authority in Apapa, Lagos, the Nigerian Shippers Council has said.

 

According to the NSC, the National Freight Information and Transport Hub, an arm of the World Bank, is working with the NPA on how the funds will be used to clear the trucks and tankers that cause heavy gridlock at Apapa, Orile, Tin Can Island and other areas around the Lagos port complex.

 

The Executive Secretary, NSC, Mr. Hassan Bello, told journalists in Abuja during a press briefing that the move was aimed at making the NPA more efficient, adding that it would also ensure that oil pipelines were used to transport petroleum products instead of tankers.

 

He said, “No matter how efficient the terminal is, if you don’t have the road to evacuate cargo, how will you move your goods out of the ports? So, there must be an intervention and in that regard, the NSC has introduced the NAFITH to the NPA. Now, the NAFITH, an international finance corporation and an arm of the World Bank, is bringing $40m to put an end to the traffic situation in Apapa.

“The fund is meant to improve logistics around the Apapa, Tin Can and Orile areas for every time there are over 5,000 trucks on that axis. But what are they doing there? What we need is about 1,500 trucks in that Apapa vicinity logistically, but you find about 5,000. So, what are the other 3,500 trucks doing? They are doing nothing!

 

“So the idea is to have an electronic passage where a truck is in Apapa only when it is needed to pick or drop cargo. The tankers too don’t need to be there for the pipelines will do the transportation of products. The moment we have the pipelines pumping to Mosimi and other flow stations, then we don’t need the tankers in Apapa. So, all these things are what the World Bank is coming to do in order to solve, once and for all, the gridlock in Apapa.”

 

Bello noted that maritime sector was a formidable source for the diversification of the Nigerian economy.

NPA, BudgIT sign deal on budget implementation.

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The Nigerian Ports Authority has signed a Memorandum of Understanding with BudgIT Information Technology Network to open up its budget for the public.

The General Manager, Public Affairs, Chief Michael Ajayi, in a statement on Monday in Lagos, said the MoU would promote transparency and accountability.

The Managing Director of NPA, Ms. Hadiza Usman, said the partnership became necessary for the development of an open budget system platform and implementation of a public data dissemination programme.

She said that this would help the organisation in blocking revenue leakages.

Usman said the MoU would provide Nigerians with all the necessary information during implementation of the NPA’s budget.

She said BudgIT had achieved feats in socio-technological advocacy toward opening up of public budgets for citizens’ comprehension.

Usman said with the MoU, NPA would be able to deliver its mandate and create more wealth for Nigerians.

She said that the MoU would also assist NPA as a critical organ in the economic artery of the nation to promote effective and efficient management of all its terminals across the country.

The managing director said the partnership, apart from promoting transparency in public expenditure, would also instil a framework for transparent budget provisions for the authority.

She said the MoU would allow stakeholders to add their inputs, “encourage participatory governance by way of feedback and creates an enabling environment to encourage foreign investment’’.

She added, “The collaboration will ensure that key research, industry policies and innovations are effectively communicated.

“It will also ensure that critical data are generated and made accessible for policy makers, private sector actors, stakeholders and the general public.”

The Lead Partner of BudgIT, Mr. Oluseun Onigbinde, said NPA was the first revenue generating government agency to make its budget public.

He said the Management of the NPA would not regret keying into the programme.

Onigbinde said the collaboration, apart from promoting probity, transparency and accountability, would also restore government and public confidence in the Management of NPA.

NPA denies plan to sack workers, announces recruitment.

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Managing Director of the Nigerian Ports Authority (NPA), Ms Hadiza Usman, has denied alleged plan by management to sack workers.

She spoke on Thursday during a tour of Warri Port.

Usman said rather than the NPA retrenching staff, management was set to recruit more staff and had tasked the General Manager, Human Resources, to work on succession plan of the organisation.

Usman said the management has introduced performance-based appraisal whereby every personnel would be appraised based on his or her performance.

The managing director said that the management would take remedial measures so as not to allow ships to be grounded at the Escravos breakwaters due to high siltation.

Earlier, Port Manager of Warri Port, Mr Simeon Okeke, had highlighted the dangers posed by the breakwaters and the channels leading to the port due to high siltation.

The port manager also lamented that the right vessels were not coming into Warri Port because of the shallow nature of the berths.

Okeke suggested dredging and mooring of the channels of Warri Port as well as the removal of wrecks.

He said that more manpower should be recruited into the various departments.

Meanwhile, Senate has threatened to revoke the port concession agreement with any terminal operator that fails to keep its own side of the agreement.

FG to reduce number of agencies at ports.

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Worried about the loss of business to neighbouring countries arising from low competitiveness, indications emerged at the weekend that the Federal Government may further reduce the number of agencies at the nation’s ports.

This is part of measures to address complaints bordering on the ease of doing business.

The Government said efforts are underway to reduce human intervention at the ports, some of which have been responsible for the poor operational efficiency, by deploying technology and increasing stakeholder collaboration on regulatory frameworks.

The Minister of Transportation, Rotimi Amaechi, noted that the present administration is looking at issues raised by stakeholders bordering on concessions, charges and local content as well as the number of agencies at the ports. This is with a view to improving earnings from non-oil exports as well as encouraging bilateral ties between Nigeria and other trading partners.

With many importers and traders diverting their cargoes to neighbouring countries, the Government noted that measures are underway to address the bottlenecks in the maritime sector.

Besides, the government also announced plans to invest massively in infrastructure and human capacity development, noting that it is focusing on policies and reforms geared at promoting diversification and structural reform of the economy.

The Government had in the past reduced the number of agencies at the ports in a bid to check complaints by operators on the number of signatories and turnaround time needed to clear their cargoes at the ports.

Vice President, Prof. Yemi Osinbajo, noted that successful policies execution is expected to result in enhanced productivity growth; increase manufacturing share to Nigeria’s total export earnings and drastic reduction in susceptibilities of the economy to external shocks from commodity volatility currently being experienced by the nation.

He explained that reform efforts at the ports is focused on deploying a deliberate, well thought through automation strategy that achieves the tripartite objectives of blocking revenue leakages, improving process efficiency and reducing human intervention.

During a public-private dialogue on port efficiency and maritime sector roadmap organised by the Lagos Chamber of Commerce and Industry (LCCI), he revealed that in the strategic implementation plan for 2016, the Government is making efforts at facilitating trade by ensuring that the environment is conducive for operators and investors.

Osibajo, who was represented by the Senior Special Assistant ?to the President on Industry, Trade and Investment, Office of the Vice President, Dr. Jumoke Oduwole, stated that to improve ease of doing business in Nigeria, particularly trade across borders, the administration is focusing on critical infrastructure to achieve the objective.
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In his words, “In light of the well-documented challenges experienced by users of Nigerian ports today, making it easier and faster to facilitate the exit and entry of goods into Nigeria, as well as improving the business environment are critical to the sustainable and inclusive development of the Nigerian economy.”

How $3bn Nigeria-Bound Rice Rots Away In Benin Republic

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An estimated $3 billion bags of rice destined for the Nigerian markets are stuck in various warehouses in the Benin Republic due to the Federal Government’s refusal to allow importation through land borders and fierce customs anti-smuggling drive.

The annual routine of importing rice into the neighbouring country from July to December to make massive sales in Nigeria during Yuletide period has hit a brick wall this year as Controller-General of Customs, Colonel Hameed Ali has insisted that his men have tightened the frontiers.

Nigeria shares major border frontiers with the Benin Republic at Seme Border (Lagos), Idiroko (Ogun), Shaki (Oyo),Chikanda (Kwara) and other smaller openings. Prominent among them is Seme where the highest volume of trade and largest smuggling opportunity exist because of its easy access to Lagos, Nigeria’s commercial capital city.

Seme Border which hitherto was a major transit point for foreign rice importation suddenly became impenetrable for smugglers as almost daily seizures of 50kg bags have taken a good portion of the customs warehouse in the area.

A recent visit to Benin revealed that most of the warehouses where the bagged rice is kept before shipment into Nigeria are now battling for space.

Some consignments of imported rice no longer have storage space at the popular stores and so are exposed to rains, weevils and other unhygienic forms of storage.

Popular warehouses no longer receive rice shipments as thousands of bags earlier delivered to them since July could not be evacuated into Nigeria as planned as was the case in previous years.

Popular Cherika Warehouse in Akpakpa near Cotonou with a capacity to store 25,000 bags is fully loaded with Thailand rice with no hope of evacuating them into Nigeria except government relaxes its policy of rice importation through the border.

Defezi Warehouse close to the Cotonou Port is filled with over 40,000 units of 50kg bags of Indian and Thailand rice. Defezi got occupied earlier due to its proximity to the port but was not evacuated as the owners could not risk entering Nigeria with it.

Cica Warehouse in Missebo area of the Cotonou outskirts that suffered a lack of patronage in the past due to the distance from Seme Border and bad road presently has over 15,000 bags.

Some grains are getting moulded, caked with their bags torn and quantity reduced while endlessly awaiting shipment into Nigeria.

As hope of smuggling them into Nigeria gets slimmer by the day, there is a conscious effort to bring in the commodity without using bags.

The unwholesome method requires pouring grains of rice into various compartments of vehicles like the boots, bonnets, inner parts of the doors, under the seats and other spaces meant for spare tyres and tools.

Sources disclosed that the more the attempt to smuggle hundreds of bags into the country, the more customs in Seme and Idiroko make more seizures.

Unfortunately, some of these grains are no more safe for human consumption and so cannot be donated to Internally Displaced Persons (IDP) as was done in the past.

Over 37,000 bags of rice have so far been seized in Seme and Idiroko between January and September 2016 including the 13 vehicles laden with smuggled rice.

From the owners of the rice to the transporters, loaders, landlords and operators of warehouses, there is a general lull as it has been a season of stockpiling without transiting.

They expressed frustration at the government policy but more on what they described as Seme Customs lack of cooperation.

Nigerian Customs had in an October 2016 press statement reiterated government’s ban on rice importation through the borders. The statement signed by Wale Adeniyi, customs spokesman reinforced its resolve to protect government’s attempt to improve local rice capacity.

Part of it reads: ‘’We like to reiterate the position that importation of rice remains banned through our land borders, and we have the commitment to partner government agencies and stakeholders to enforce this restriction. While this restriction is in force, rice imports through the ports are still allowed subject to payment of extant charges.

‘’It is equally important to restate the confidence of the Nigerian Customs Service in the ability of Nigerian rice producers to fill the existing sufficiency gaps in the supply of the product. The service has noted with satisfaction the ongoing rice revolution undertaken by many state governments, and strategic interventions by the Federal Government agencies.’

‘’The service is convinced that the bumper harvests expected from these efforts will address the supply gap in 2017. It is our belief that continuous waste of scarce forex on a commodity that can be produced locally makes no economic sense, most especially during a period of recession. The service will, therefore, advocate a total ban on rice importation into Nigeria with effect from 2017’’

There are loud cries in Benin over what is going on at Seme and other borders. A respondent simply identified as Mr Sewanu said things have taken a turn for the worse as every attempt to bring rice into Nigeria has failed.

‘’You can see we are idle here because rice is not entering Nigeria through Seme Border. We can’t work. Each day we come here , it is in prayer that the customs should cooperate with our bosses so we can have jobs to do to survive.

‘’By this time in previous years, thousands of bags of rice had entered Nigeria from here and more ships had been discharging at the Cotonou Port. But this year is different, nothing is working.

‘’Seme customs have spoiled the business for us.We don’t want to take the risk of transporting rice through any other border because Lagos is the largest market. Once you enter through Seme,you are already in the market.

‘’If this continues, we may die of hunger. Benin customs in Krake cooperates with us but the customs in Nigeria are our only headache. We want the Controller removed. He is making things difficult,’’ Sewanu lamented.

A visit to the border shows smooth running and processing of imports into Nigeria and there are so many activities in the banks. People were seen paying customs duties for items not on Nigeria’s import prohibition list.

While the stockpiling of imported rice continues to increase in Cotonou and neighbouring towns, there may never be a market for them as they face the risk of either being expired or going bad due to poor storage condition.

The Benin Republic with an estimated population of 11 million persons and closest to Togo with a little above 8 million, there appears to be no market for the stocked rice as these countries lack the population and luxury to consume them.

Prices of rice which presently sells for between N11,000 and N13,000 in Cotonou is expected to crash ahead of the Yuletide period as they continually face difficulties in getting them into Nigeria.

Source :

https://www.today.ng/business/198539/3bn-nigeria-bound-rice-rots-benin-republic

FG introduces SOP to fight corruption at Lagos ports

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The Federal Government has introduced the Standard Operating Procedures, SOP, with the aim of combating corruption in Lagos ports.

 

This was just as the Nigerian Ports Authority, NPA, has commenced moves to sanction terminal operators who violate the concession agreement entered into with the government regarding developmental plans.

 

To fight corruption at the ports, the Federal Ministry of Transportation, yesterday, introduced the Standard Operating Procedures, SOP and the Port Services Support Portal, PSSP, in the Lagos Ports Complex.

 

The SOP was designed by the Federal Government to stop illicit activities, corruption, increase transparency, accountability and to make Nigeria Ports users friendly.

 

Speaking at the official launch in Lagos, the Minister of Transportation, Mr Rotimi Amaechi said that the Maritime Anti-Corruption Network and the UNDP had in 2013 noted that the pre-requisites for port effectiveness and efficiency in Nigeria are in short supply and recommended intervention by government.

Amaechi, who was represented by the Managing Director of the Nigerian Ports Authority, NPA, Ms Hajia Usman, said “As you are aware, the corruption risk assessment project is an anti corruption project focusing on strategies to reduce corruption in the Nigeria Port sector.”

 

Meanwhile, the NPA has threatened erring terminal operators who violate the concession agreement entered into with the government regarding developmental plans.

 

Speaking during a recent tour of Lagos ports, MD of the NPA Mrs Usman said that most of the operators have defaulted in developing the port facilities and in its revenue generation drive for the government.

 

Usman also said the Ports Authority will soon embark on an aggressive collection of debts, which will be paid in foreign currencies.

 

She said, “We have had discussions with the terminal operators around critical areas such as port development that they have not complied to. I have raised that with them.

NPA Moves To Review Tariffs At Ports

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The Nigerian Ports Authority (NPA) has signified its readiness to review its tariff regime in order to draw traffic to the Nigeria ports.

 

This was disclosed over the weekend by the Managing Director, NPA, Ms Hadiza Bala Usman, at a stakeholders meeting in Lagos. She said the tariff regime would be reviewed both upward and downward to make the ports competitive and attractive.

 

‘‘Our tariff regime will be very competitive looking at the role of Nigeria within the West African sub-region and in the continent. The tariffs will ensure that we are competitive and will also drive traffic into our ports,’’ she said.

 

She also disclosed that the NPA would ensure operational efficiency of the nation’s ports. ‘‘To ensure that our terminals are competitive, we are taking into considerations the fact that we cannot afford to have traffic moving away, so any decision taken in tariff regime will put into considerations the competitiveness of Nigerian Ports in West Africa coast and in the continent of Africa.

 

The managing director also disclosed that it would be impossible for the agency to accept payment in naira from terminal operators and shipping companies. According to her, the NPA has most of its obligations in foreign currencies and unless it was able to negotiate its obligations in naira it would be difficult to accept payments in local currency.

She said: ‘‘As I mentioned to our stakeholders, we have obligations in United States dollars, so it is very difficult to accept payments in naira. We know the concerns of forex in the country, but we shall continue discussions and ensure that all indebtedness in dollars to the NPA are paid promptly.’’

 

Usman also disclosed that there was a need for the management to decongest access to the ports through the road. My assessment of the port is that we need to improve on a number of things, we need to prioritize the decongestion of access road to our port complexes.

 

There are lots of things we need to improve, we need to improve the ease of doing business within the port and I have asked the terminal operators to automate some of their services to reduce human traffic.

 

Also speaking at the event on acceptance of payments in foreign currencies, the Executive Director, Finance and Account, NPA, Mohammed Bello Koko admitted the difficulties in sourcing foreign exchange but charged the terminal operators to pay up their debts.

 

‘‘We understand the difficulties in accessing forex, but we expect our customers to think outside the box on how to pay us. This is part of what we will be discussing in the review of the concession agreement,” he said.