Oil Glut: NPA Reaffirms Commitment To Revenue Drive

The Nigerian Ports Authority, NPA, has reassured the Federal Government that the agency is positioned to turn around the fortunes and gains of the economy aside the oil and gas sector, saying that the sector can be second to none in foreign exchange earnings for the federal government.

Managing Director of the NPA, Mallam Habib Abdullahi gave the assertion at the just concluded conference on Improved Port Operations put together by the Maritime Correspondents Organization of Nigeria, MARCON, in Lagos.

Habib who was represented by the General Manager, Public Affairs, NPA, Captain Iheanacho Ebubuogu explained that ports efficiency as a catalyst for economic growth is germane to the Federal Government’s drive for economic revival through non-oil revenue resources.
“It is envisaged that with the recovery of global economy and the stimulation of Nigerian industries and consequent exports, the Nigerian ports will be poised to catalyze the economic growth of Nigeria, and be second to none in foreign exchange contribution to the Federal Government’s coffers” the MD stated.

According to him, the agency has continually made efforts to re-position the organization in line with global trends and in order to enhance the growth of the nation’s economy, pointing out that the Federal Government of Nigeria embarked on a comprehensive port industry reform initiative for better performance.

” The desire was to build a robust and responsive economy that will have the private sector as its back bone.”

He recalled that at inception, Nigerian seaports were owned, operated and regulated by the NPA before the concession in accordance with its enabling Act and the system did not allow for fast port development and therefore reduced operational efficiency.

The NPA frontman maintained that the role and contribution of private operators were grossly stifled and private investments into the industry were limited.

According to him,the turnaround time of vessels in the Nigerian Ports was high thus there was low labour productivity as well as low level of vessel and cargo traffic.

“The period was the height of cumbersome and long traffic procedures; the ports were congested and were on the centralized administration. These conditions ensured that Nigerian is not aligned to global trend of port management and lost its competitive edge.”

Habib added stressed the need for ports reform in the country, which according to him , has resulted to increased efficiency of port operations and to reduce the cost of port services.

He also said it has boosted economic activities and accelerate development which in turn has made Nigeria the hub for maritime trade in West and Central Africa.

The Managing Director also stated that it has reduced the out flow of funds from limited government resources.

“Ports all over the world are veritable gateways to the economies of nations that are fortunate to have them. With 853 kilometers of coastline, 6 major ports of varying specializations, ongoing development of green-field port infrastructure and other maritime facilities, the Nigerian Ports is indeed a gateway to the Nigerian Economy. Being a modal point through which Nigeria’s international trade transits, the efficiency or otherwise of the ports can make or mar the fortunes of the Nigerian economy.”

The MD added that “The price of imported goods in the Nigerian market, and the competitiveness of Nigerian exports in the international market is highly influenced by the efficiency of the logistics and ports services applied to the shipment of the goods.”

He called on all maritime stakeholders to key in to government reform programmes to ensure efficient, cost effective service and better economic fortune for all.