NPA, making Nigerian Ports work for economic growth

“This is why matters related to the operationalisation of Lekki Deep Seaport before the end of this year have been placed on top priority”

By Uzor Odigbo

Nigerian Ports Authority (NPA) is reviving up the productivity level of various ports in the country and encouraging enabling business environment for greenfield port projects

Mohammed Bello-Koko (NPA) MD had in recent visit to Portharcourt Port after an earlier one to Warri had confirmed this.

As part of supporting it’s readiness for smooth take off of commercial activities, the NPA also secured approval for the designation of Lekki Deep Seaport as Customs Port and Approved Wharf.

In keeping to the promise of ensuring the operational take off for berthing of commercial vessels at the Lekki Deep Seaport before the end of 2022, the Authority had written a letter through the Ministry of Transportation seeking expedited presidential approval for the Port to be gazzetted as a Customs Port and Approved Wharf in line with the requirements of the law. It got the approval.

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It explained that with the approval granted by President Muhammadu Buhari, it meant all was set for commercial vessels from across the world to berth and clear cargo at Nigeria’s first Deep Sea Port and first fully automated port.

The Managing Director of the NPA, Mohammed Bello Koko had on July 1st, 2022, whilst receiving the first vessel to berth at the Lekki Deep Seaport said,

“the commitment of the NPA to providing every support necessary to place Nigeria on the global list of countries with deep seaports is unflinching.

“This development shows that Nigeria’s renewed export orientation and the readiness of the NPA to take trade facilitation a notch higher is no fluke.”

According to Journal NG Magazine, the NPA has also strengthened it’s corporate relationship with relevant government and non government stakeholders in the port environment.

At separate meetings with Manufacturers Association of Nigeria (MAN) and the Standards Organisation of Nigeria (SON), the MD assured members of the organised private sector of conducive ports to enhance their businesses

NPA and SON also resolved to collaborate to boost the country’s non-oil export drive and check the influx of fake and substandard goods into the country.

Speaking during a one-day working visit to the NPA, Director General of the SON, Mallam Farouk Salim, who led the top management of the organisation on the visit, solicited the cooperation and support of the NPA towards ridding the country of fake and substandard products, which he said are inimical to the growth and development of the country as well as the wellbeing of the citizens.

He noted that it has become necessary and expedient for relevant stakeholders in the port industry to join hands with the organisation in the fight against fake and substandard goods illegally imported mostly from Asia and other parts of the world, which are destroying the local industry as well as posing a serious threat to the safety of the citizens.

Mallam Salim commended the current management of the NPA for the various reforms it is carrying out across all locations of the nation’s seaports, which includes infrastructural upgrade, which he argued remains vital in making the ports efficient and competitive.

Bello-Koko pledged NPA support towards the fight against fake and substandard products in the country, which he said was a course that must be supported by all in the overall interest of the economy.

He also noted that the NPA was doing everything in its powers to boost non-oil exports, especially agro and allied products in line with the Federal Government’s economic diversification policy geared towards increased foreign exchange earnings and checking the over-dependence on crude oil export.

Bello-Koko cited the decision of the NPA to dedicate some port terminals exclusively for the handling and packaging of non-oil export products for shipment abroad to avoid delays, assuring that plans are on to dedicate more terminals across all port locations to facilitate ease of handling the country’s export cargo.

The NPA-boss also urged the SON to key into the authority’s vision of automating the seaport systems, including cargo operations and harbour services with the introduction of the Port Community System being put in place in conjunction with the International Maritime Organisation IMO, the global maritime regulator and an organ of the United Nations.

The Nigerian Liquefied Natural Gas Limited (NLNG) and NPA have agreed on a partnership geared towards deploying a Vessel Tracking Service (VTS).

The agreement was reached on Wednesday, July 27th, 2022 when Phillip Mshelbila, the managing director of the NLNG paid a partnership renewal visit to the NPA Headquarters in Lagos.

VTS, which is to be deployed through the NLNG Ship Management Limited (NSML), a subsidiary of the NLNG, will enhance the capacity of the NPA in the area of domain awareness and management.

Speaking on the development, NPA MD said the authority is delighted with the development especially as it is coming at a time when the authority is ramping up efforts under the technical guidance of the International Maritime Organisation to deploy the Port Community System (PCS).

He said the VTS will support the successful deployment of the Port Community System.

Vessel Tracking Service is a control measure for vessels required to assure the Safety of Life at Sea (SOLAS); an International Maritime Organization Convention which provides safety assurance for the ship, crew, cargo, the environment, and ports host community.

The synergy between NPA, a port regulator, and NLNG, a major player in the global Liquefied Natural Gas business, signposts a lot of positives for the renewed export drive of the Federal Government.

The Federal Government has approved a concession arrangement for the development of Badagry deep seaport at a cost of $2.59 billion over a period of 45 years.

The approval was finalised following a presentation by the Federal Ministry of Transportation at the Federal Executive Council (FEC) weekly meeting presided over by President Muhammadu Buhari in Abuja on Wednesday.

The port, according to officials, is expected to generate $53.6 billion revenue over the 45 years concession period.

The Minister of Transportation, Mu’azu Jaji Sambo confirmed the deal on Wednesday, shortly after the meeting at the State House, Abuja.

“I am pleased to announce to you and the general public that I presented a memo today at council with respect to the development of the Badagry deep seaport under the public-private partnership arrangement, where the private sector will inject money for the development of the port and at the end of the concessionary period, the port reverts to the Federal Government of Nigeria through the Nigerian Ports Authority (NPA).

“The project cost as contained and approved in council based on the final business case as approved by the Infrastructure Concession Regulatory Commission (ICRC) in line with extant laws stood at $2.59 billion. It has to be developed in four phases with milestones and the concessional period of 45 years. Reversion is, like I said, to the Federal Government of Nigeria.

“This is to further the government’s goal of making Nigeria the maritime hub of the West and Central Africa sub-region.

This project, it may interest you to know, will also generate total revenue of over $53.6 billion over the concession period.

It will create about one quarter million jobs and also attract foreign direct investments to the country and help in improving Nigeria’s economy in general and the wellbeing of Nigerians,” he said.

In November 2012, APM Terminals and its consortium partners announced plans to develop the Badagry deep seaport.

When fully built, the deep-water full-service port will be one of the largest in Africa with 7km of quay and 1,000 hectares (2,470 acres) of dedicated yard, and will include state-of the art facilities for container, bulk, liquid bulk, Ro/Ro and general cargo as well as oil and gas operations support and a barge terminal.

Plans for the adjoining Badagry Free Trade Zone will include a power plant, oil refinery, industrial park and warehousing and Inland Container Deport functions.

The Badagry consortium partnership is comprised of APM Terminals, Orlean Invest, the Macquarie Group, Oando, the Chagoury Group and Terminal Investment Limited