By Oluyinka Onigbinde
Findings by Shipping Position Daily have revealed that despite the expiration of concession agreements with some terminal operators at the nation’s ports since 2021, they have continued to operate freely, without any legal binding between them and the Nigerian Ports Authority (NPA).
Our correspondent gathered that about three years have passed since the concession agreements of several terminal operators at Nigerian ports expired, and there are fears about transparency, efficiency, and potential exploitation of the loopholes.
Stakeholders in the maritime industry have raised concerns about the legality and accountability of such actions, even as they pointed at lack of clarity about the delay in taking action about such an important contract.
Recall that the immediate past Federal Executive Council, (FEC), under President Mohammadu Buhari’s administration, turned down the applications for the renewal of concession agreements by four terminal operators for failing to meet the Key Performance Indicators (KPIs) and other benchmarks.
The then-Minister of Transportation; Mr. Muazu Sambo, had stated that the concession renewal agreements were not approved by the FEC, because much holes were identified in the bids for the renewal with the former Minister being given a marching order to the leadership of the Nigerian Ports Authority (NPA) to conclude the Port concession renewal agreement within a specific period of time before the exit of the regime. However, this was not achieved before the last administration exited.
In a chat with our correspondent, Mr Chidi Anthony Opara; a freight forwarder expressed scepticism about the delay in renewing concession agreements, this is even as he suspected political manoeuvring and “new friends eyeing the juicy port concessions” as potential reasons for the delay.
While he acknowledged a possible clause allowing continued operation until a new contract is signed, he noted that the lack of transparency fuels public speculation.
He said: “It would have been normal to say that because a new government is in place now, that the authorities may have been taking their time to plug previous loopholes before going into new concessions, but this is Nigeria where in most cases, the normalcy is the abnormality.
“So, it is very likely that since there is a new government, there are new ‘friends’ who are eyeing the juicy port concessions, and then Abuja would have to take time to apportion the cash cows among its friends.
“While they are at it, the ones whose concession contracts have elapsed can continue to milk the cows. You may call that illegality if you like, but then this is Nigeria where in most cases, the normalcy is the abnormality.
“In fairness however, it may be possible that there is a clause in the concessions agreement that stipulates that the contract would subsist until a new contract is in place” he said.
In contrast, Mr Bolaji Sunmola, the Chairman of the Nigeria Port Consultative Council (NPCC), emphasized the need for proper engagement between terminal operators and the government. He emphasized the importance of addressing any delay through constructive dialogue and ensuring compliance with contractual terms.
Regarding the performance of terminal operators, Sunmola refrained from making definitive statements, citing the need for thorough audits and assessments. He harped on the importance of understanding the challenges faced by operators and addressing them effectively through dialogue and collaboration.
When asked if he feels they have justified why their concession needs to be renewed, he said. “I am not sure we have any major complaints about any one of them not meeting the agreement that was signed.
Now far beyond reading what people say, is there any proper audit to be done? Are there limitations? Because they have their own problems too, so it is not an off-cut thing that one should make. “But whether they performed or not, I cannot say much about that, I know that you will not be put in such a wild position to perform and then you will come back and say or give excuses. So there is need for dialogue with them”, he said.
Meanwhile, Mr Ismael Omipidan; the Chief Press Secretary (CPS) to the Minister of Marine and Blue Economy. Mr Gboyega Oyetola confirmed that the Minister inherited expired concession agreements.
He clarified that the concessions had expired before his appointment and that renewal attempts were rejected by the Federal Executive Council.
Omipidan further confirmed the Minister has constituted a committee to advise him and is awaiting the findings of the committee tasked with investigating the situation.
“First, take note that these concessions expired long before His Excellency Adegboyega Oyetola was appointed as a minister. These concessions expired as far back as 2021. That is one; from the records, we discovered that the renewals were also rejected by the Federal Executive Council (FEC), again before His Excellency Adegboyega Oyetola became a minister.
“So, as someone who is very methodical in his approach to governance, upon assumption of office, he set up a committee to find out what really transpired. He is awaiting the report of the committee as I speak. Therefore, it is not correct to say that the minister may not prioritize the renewals. If anything, the minister is eager to finalise the process. But in doing so, he won’t succumb to any attempt to blackmail or coerce him into taking a decision that will not serve the interest of the government and the vast majority of Nigerians”, he stated.
