By Steve Agbota

The Acting Managing Director of the Nigerian Ports Authority (NPA), Muhammed Bello- Koko, has advocated the support of the NPA board to drive the process of alternative revenue sources in addition to revenue from traditional port operations to fix the challenge of decaying port infrastructure.

According to him, due to the increasing pressure to remit more revenue to the Consolidated Revenue Fund (CRF) of the Federation, it has become very difficult for NPA to have sufficient funds to attend to these decaying facilities.

Bello-Koko disclosed this at the just concluded retreat for the reconstituted Board of Directors of the Authority, said unlike the practice in other sister francophone countries where the government funds dredging of ports, the NPA is responsible for funding dredging of ports, thereby putting a lot of strain on the Authority’s resources and capacity to invest in critical port infrastructure.

“We are facing decaying port infrastructure, for example sections of the quay aprons or walls at Tin Can Island Port, Onne, Delta and Calabar ports are collapsing and require huge funds to repair them. With the increasing pressure to remit more revenue to the Consolidated Revenue Fund (CRF) of the Federation, it has become very difficult to have sufficient funds to attend to these decaying facilities, hence the need to explore alternative funding sources outside the traditional port service offerings,” he said.

He added that the Authority’s management has begun to explore smart ways to boost the revenue performance of the organization, adding that the Authority is blessed with prime real estate which could serve as alternative funding sources outside the regular budget.

“NPA has a lot of high value landed properties in Onne, Snake Island, and Takwa Bay that are designated free trade zones and mostly allocated but with poor arterial road network and other infrastructure to make them attractive for private investments which would bring good revenue to the Authority and Federal Government.

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“Management will need the support of the Board to drive the process of alternative revenue sources to actualize the lofty aspirations of the Authority,” he said.

He said that the management has opened correspondences with some multilateral financial institutions like the French Development Agency (AFD), African Development Bank (AfDB), European Investment Bank (EIB) and Sanlam Infraworks (a Central Bank of Nigeria approved fund manager for InfraCorp), all part of plans to access long term low interest credit, for port infrastructure upgrades and expansion.

However, he said the Authority is poised to leverage Nigeria’s status as Africa’s biggest economy to actualize the country’s maritime hub status in the region, through investments in modern deep seaports that would attract very large merchant vessels with the attendant multiple socio-economic benefits, as well as boost port revenue performance.

Speaking on the new direction and measures being put in place to actualize the Authority’s aspirations, the NPA acting Managing Director explained that a lot has been done, especially in the last few months to resolve most of the identified constraints to efficient movement of cargoes to and from port locations.

“Nigeria accounts for about 70 percent of cargoes imported into West and Central Africa and the country controls an impressive stretch of the Atlantic Ocean. Nigeria’s rich aquatic endowments and her border with landlocked nations makes development of deep seaports a huge potential revenue earner for the nation.

“The move towards earning the status of hub in the region is in line with our new vision statement which was adopted at the recent NPA management retreat, “To Be The Maritime Logistics Hub For Sustainable Port System In Africa”, he said.