NPA remits N78.5b to treasury in H1 2022
By Jeph Ajobaju, Chief Copy Editor
A sum of N78.5 billion was remitted to the Consolidated Revenue Fund (CRF) from
a total N172.3 billion revenue the Nigerian Ports Authority (NPA) generated from its operations in the first half of 2022 (H1 2022).
‘‘The breakdown of the figure indicates that N50.3 billion represents cash remittances, the compulsory deduction of 25% of revenue generated and other sundry payments for the absolute period of January-June 2022,” explained NPA Managing Director and Chief Executive Officer Mohammed Koko.
He gave the explanation in the half-year 2022 operational reports of the NPA, in which he also disclosed that the remaining N28.2 billion relates to the remittance with respect to other periods.
Koko said the half-year operational statistics are encouraging in the face of global economic and inflation crises, among other negative factors.
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Operational constraints
“Global economic and inflation crises, global reduction in household incomes and purchasing power and scarcity of foreign exchange all of which have negatively affected business environment, affected Government revenue and constrained expenditure,” Koko added, via Vanguard reporting.
“The development in the port industry cannot be severed from the macro-economic environment with galloping inflation that has grossly reduced the disposable income of households, the depreciating exchange rates that stifle business environment and the dwindling government revenue that constrains expenditure.
“In the face of these harsh macro-economic indices, the Nigerian Ports Authority has forged on to deliver port and harbour services to the teeming operators in the export and import businesses across the country.”
Auditor asks NPA to refund N40.13b, $921.64m to treasury
Federal Auditor General Adolphus Aghughu in a report earlier in the year indicted the NPA for failing to recover and remit N40.126 billion, $921.636 million, and £289,931.82 to the treasury from various revenue sources in 2019.
This is contained in 13 audit queries for the NPA signed by Aghughu and submitted to the National Assembly (NASS).
Among other things, the report said:
Agreements the NPA signed with terminal operators says: “A fixed annual payment of a sum as specified in the schedule be paid in 12 equal installments in each operating year, the first installment to be paid on the first day of the month after the effective date and then, on the same date of every month thereafter.”
Terminal operators failed to comply with lease agreements in terms of payment of fixed and throughput fees, holding back $852,093,730.77 and N1,878,560,509.57 that should have been remitted to the NPA.
Estate tenants, shipping companies, and service boats operating from the ports owe the NPA $67.425 million and N32.266 billion in estate rent, shipping due, and service boats.
Sizeable percentages of these debts are non-performing or dormant due to long period of non-settlement, leading to loss of revenue to the government and possible diversion of government revenue to unauthorised users