NPA To Review Concession Agreement

 …Terminal Operators Fails To Remit $852m, N1.8b

 The Nigerian Ports Authority (NPA) said it has gotten consultancy from the World Bank to review the concession agreements which would be free from any form of encumbrances as against what was done in 2006.

The review was necessitated following the claim by NPA of unmerited the sum of $852m, N1. 8b by the terminal operators which  the NPA said was due to the faulty concession agreement that the federal government signed with the port concessionaires in 2006.

Putting more light on the unremitted funds, the Managing Director of the NPA, Mohammed Bello-Koko, said the port concessionaires refused to remit these sums due to the encumbrances fostered on them by the federal government in the concession agreement.

The managing Director said this while speaking before the Senate Committee on Public Accounts, he absolved the NPA of any complicity in the unremitted sum.

The Office of the Auditor General of the Federation had in the 2019 Audit Report, alleged that NPA did not collect remittances which amounted to $852m and N1.8bn from terminal operators.

The Senate Committee on Public Accounts, on the strength of the audit queries against NPA on Tuesday, directed its Managing Director, Mohammed Bello-Koko, and other management staff, to appear before it unfailingly within 48 hours.

In response to the committee’s directive, the Managing Director of NPA explained to the committee that the lump sums of $852m and N1.8bn, raised in the queries, were an accumulation of unremittances from private port operators who came on board through 2006 concession agreement.

He explained that faulty concession agreements signed with the private operators by the Federal Government in 2006, largely accounted for the unremittances NPA is being held responsible for today.

Bello-Koko said, “The $852m and  N1.8bn unremittance by private operators to NPA, are largely caused by faulty concession agreements the Federal Government signed with them in 2006 when the ports were concessioned.

“The concession agreements were faulty in the sense that some of the operators are facing encumbrances in different ways to cover the space concessioned for them which also encumbered them to remit what is due from them to NPA.

“The encumbrances in question range from the inaccessibility of some portions of areas leased by concessionaire, communal encumbrance and volume change or tonnage  amount”.

He went further to inform the committee members that the Federal Government that signed the concession agreement with the private operators even contributed to encumbrances faced by the concessionaires at the beginning by not removing structures that belonged to it from the right of way of the affected concessionaires.

 

The NPA MD added, “Out of the $852m, going by our in-house assessment, $504m are accumulated unremitted levies due to encumbered areas;

However, we have been able to recover $232.2m and N269.4m from the N1.8bn”.

In his remarks, the Chairman of the Committee, Senator Aliyu Wadada, told the NPA boss to furnish the committee with their financial statement and way out for the government to write off the legacy debts.