Its Cheaper To Birth Container Vessel In Nigeria Than In Togo,Ghana – NPA MD
It is cheaper for general and container vessels to berth in Nigeria than in Ghana or Togo.
This was revealed by the Acting Managing Director, Nigerian Ports Authority (NPA), Mohammed Bello-Koko.
Bello-Koko disclosed this in the documents presented to the House of Representatives Committee on Ports and Habours.
According to him, this is evident in a study commissioned by the authority with the support of UKAid in 2019. The outcome of the study contradicts media reports insinuating Nigerian ports were the most expensive in the sub-region.
Bello-Koko also informed the House 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.
The NPA boss added that aside from the towage due, which was reviewed in 2015, port tariffs in Nigeria have remained same since 1993.
Bello-Koko added that he has taken deliberate steps to reposition the NPA to focus on cost-optimization and quality service delivery, while maximizing business value for port operators and users, on the assumption of office in May this year.
Also, the NPA helmsman informed the port that the authority has exceeded its revenue target, having remitted N89.9 billion into the Consolidated Revenue Fund (CRF), despite the impact of the COVID -19 pandemic on global trade and supply chain logistics
Bello-Koko said the authority also reduced its operating expenses by 20 percent of its budget for this year.
The NPA boss, in his presentation to the committee, revealed that as at the end of September 2021, the authority earned N256.28 billion as against the expected N214.65billion (approved estimate N271.70billion) for the same period, representing a performance of 120 per cent or 95 per cent of its total yearly budget for 2021.
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He said for the operating expenses as at the end of September 2021, the actual spending stood at N55.10bn as against the budgeted figure of N65.49billion, comprising employees’ benefits, pension costs, towage services, supplies, repairs and maintenance, and other administrative overheads.
He said this indicates a “savings” of N10.39billion or 85 per cent performance of the approved budget of N87.32 billion.