The Nigerian Ports Authority (NPA) has exonerated itself from allegations that were leveled against it by the committee on Public Finance of the on-going National Conference in Abuja, saying that the agency has been acting under the financial autonomy given to it under section 13-14 of the Ports Act.
The Committee had two weeks ago alleged that the NPA had failed to remit more than N713 Billion into the Federation Account since 2009, which, it says is in contravention of section 162 of the 1999 constitution.
The Nigerian Ports Authority (NPA) has exonerated itself from allegations that were leveled against it by the committee on Public Finance of the on-going National Conference in Abuja, saying that the agency has been acting under the financial autonomy given to it under section 13-14 of the Ports Act.
The Committee had two weeks ago alleged that the NPA had failed to remit more than N713 Billion into the Federation Account since 2009, which, it says is in contravention of section 162 of the 1999 constitution.
But in a press statement signed by NPA’s Assistant General Manager in Charge of Public Affairs, Mr. Musa Ilya, a copy of which was sent to Shipping Position Daily, the NPA said that the statement is false
“Ordinarily the Management would not have reacted to this misinformation and wrong insinuation but considering the misperception it may cause amongst the wider public, we are constrained to put the records straight”, it said.
According to the statement, the NPA was established under the Nigerian Ports Authority Act, Cap N126 LFN, 2004 which empowers it to construct, equip, operate and provide seaport services to the general public.
The NPA argued that what it remitted was the revenue surpluses after meeting all operational, maintenance, development and administrative cost as appropriated by the National Assembly under section 81 of the constitution in each year.
According to the press statement, the “NPA was established to be the commercial arm of the Government which has to operate almost like any other business and make profit before remitting its operating surplus to the Government, being the owner”.
”In pursuance of the above, the Authority was given financial autonomy under section 13-14 of the Ports Act to apply its revenue towards carrying out the operations, development of ports, purchasing of equipment before remitting the surplus to government”
“Section 14 (1) of the Ports Act allows the Authority to maintain a general reserve fund into which it is set aside appropriate amounts for replacement, contingencies and other purposes. The monies are to be applied for purposes of the Authority with the approval of the Minster as provided under section 14(2).
“However, with the coming into force of the constitution of the Federal Republic of Nigeria, the appropriations in respect of the Authority are approved by the National Assembly by virtue of section 81 of the constitution”
“Section 15 allows the Authority to apply its surplus revenues for its own purposes as it may determine. With the coming into effect of the 1999 constitution, the surplus revenues of the Authority were made subject to the consolidated revenue fund established under section 81(1) of the constitution. This supersedes section 15 of the ports Act in order to bring it in line with the constitution” the statement reads.
According to the NPA, it prepares annual reports not later than six month after the end of each year and submits to the Minister of Transport.
It also argued further that because of the peculiarity of the maritime industry, the requirement to pay all revenues directly to the Federation Account is not practicable as at the point of collection from third parties, according to NPA, the monies are not yet its revenues until the services and all associated costs are covered.
“As a global tradition, the Port industry must conform to outlined safety and operating standards. Hence the need to ensure that all operating expenses are undertaken before surpluses are determined and remitted to the consolidated revenue fund cannot be overemphasized”.
“The retention of our revenue as provided for by the law has enabled the Authority to successfully execute its mandate as enunciated in the Federal Government port reform. This has resulted in the growth of the general cargo handling capacity in the Nation’s sea ports as evident between the periods of 2006- 2012”
NPA argued further that it has embarked on massive capital intensive projects in the areas of improved navigational safety, port infrastructures and information technology. According to the statement, the amount spent on these projects is colossal and deserves timely interventions as desired by the financial autonomy accorded to the Authority in the existing law.
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