Ahead of the terminal date of this present administration, investigation by Shipping Position Daily has revealed that there is palpable fear among some seaport terminal operators over failure to get their concession agreement renewed by the Federal Executive Council (FEC).
There is also the fear over the possibility of cancellation of the renewals that some of the affected terminal operators have secured.
While details of those still struggling to secure a renewal were sketchy as at press time, it was nevertheless confirmed that about four terminal operators have secured the renewal.
Our sources confirmed that terminal operators whose concession agreement had expired and have had their licenses renewed by the Nigerian Ports Authority (NPA) after being cleared by the Infrastructure Concession Regulatory Commission (ICRC) are: Port and Cargo Handling Services at Tin Can Port , ENL at Lagos Port Complex, Josepdam at Tin Can Port, and AMS in Warri.
In documents originating from the Ministry of Transportation and the Infrastructure Concession Regulatory Commission (ICRC), which were sighted by our correspondent, the concessionaires were said to have complied by all the rules and were duly awarded the appropriate certificates by ICRC, which is the constitutionally mandated agency for that purpose.
It was also confirmed that the renewals were granted as far back as December, 2022. This was further confirmed in a memo from the ICRC, dated December 30, 2022 and referenced ICRC/HQ/P/S.04/266.
The memo reads in part, “The Honourable Minister may wish to note that the Commission had given approval to the Nigerian Ports Authority (NPA) for the renewal of the Terminals Concession through letters referenced ICRC/DG/50/S.52/118 dated September 24, 2021, subject to obtaining all necessary approvals including the Federal Executive Council for ease of reference, and attached copies of the letters.
Confirming its action further, the ICRC said its “approval was given based on the Business Case submitted to the Commission by the NPA and subsequent negotiations held between the Government team (NPA, ICRC, the “Transaction Adviser) and the affected Terminal Operators.”
However, some of the terminal operators, including those whose concessions have been renewed are jittery, owing to the imminence of as new administration on May 29, 2023.
Investigation by Shipping Position Daily revealed that the terminal operators whose renewal had expired have begun lobbying members of the Federal Executive Committee (FEC) to get their concession renewed following the recommendation of the Minister and the concession renewal committee. This is even as those who have scaled through as unsure of their fate.
One of our sources confirmed that not less than five terminals are currently waiting to get their concession renewed, while adding that the Minister of Transportation; Muazu Jaaji Sambo is currently under pressure to get the FEC to approve the concession renewal of these terminals.
The terminal operators have argued that the non-renewal of their concession agreement will send negative signal to the international communities about doing business in Nigeria.
Speaking on the delay renewal of the terminal operators concession, a source close to the Ministry Transportation and who is privy to the issue, informed that the Minister last month submitted the terminal operators’ concession agreement to FEC, but said the FEC declined to renew the concession.
According to him, the FEC queried the absence of Nigeria’s Shippers Council’s (NSC) inputs in the renewal process, and ordered a review.
The source revealed that the FEC asked that NSC as the Economic Regulator needed to submit its input before the concession agreement can be renewed.
He said following the FEC observation, the minister returned the concession agreement documentation to Shippers’ Council which has also made inputs and has returned it back to the Ministry for FEC’s anticipated approval.
He also confirmed that the final documents will be submitted next month (May) during the next FEC’s meeting.
Confirming the authenticity of the above, the Director Consumer Affairs Department of NSC, Chief Cajetan Agu in a chat with our correspondent said there is a provision of auditing the terminal in the NSC regulations, which he said the council has eventually done.
According to Agu, the procedure for concession renewal is a committee work, which involves the NSC, NPA, Bureau of Public Enterprise and the ICPC.
Efforts to speak to the Chairman, Seaport Terminal Operators Association of Nigeria (STOAN); Princess Vicky Haastrup proved abortive, even text messages sent to her were not responded to as at press time.
However, when our correspondent got across to a member of STOAN and the Managing Director of PTML Terminal; Mr Ascanio Russo, he told our correspondent that he could not comment on the issue.
He nevertheless he said his terminal’s concession agreement is not due for renewal yet, while stating that he is not in position to speak for other terminals.
Follow us on Facebook/ twitter
