Business
Has Port Concession Met Stakeholders’ Expectations?
In 2006, the Federal
Government conceded Nigerian ports to 26 private terminal operators to ensure efficiency and reduce costs of doing business at the ports.
Stakeholders, conversely, note that although the aim of the concession is to improve productivity and competitiveness, little of the objectives of the exercise have been achieved.
They, nonetheless, admitted that before the concession regime, Nigerian Ports Authority (NPA) demonstrated low level of efficiency resulting in long Turn Around Time (TAT) for ships and increased cargo dwell time.
According to them, the cargo dwell time is in contrast to the 48-hour international standard to clear cargo at ports.
“The pre-concession era was also marked with over-bloated, excessive port charges and pilfering, while ports infrastructure remained in decadence.
“Nigeria’s shipping profile nose-dived with the sale of 21 ships belonging to the defunct Nigerian National Shipping Line (NNSL).
“Up till today, efforts to resuscitate the national carrier NNSL since its demise in the 90s proved abortive.
“Indigenous ship owners also groaned over lack of jobs as their ships were rendered idle, a situation which had yet to improve,’’ they observe.
They opine that conceding Nigerian ports to private operators ought to have improved services beyond the expectations of Nigerians.
In the light of this, Chief Kunle Folarin, the Chairman, Nigerian Port Consultative Council, called for an assessment of the port concession regime.
At a news conference on the Review of Port Concessioning in Lagos recently, he pointed out that in spite of the high expectations of Nigerians from the concession; little improvement had taken place at the nation’s ports.
“Corrupt practices are still prevalent among ports operators, complaints of high port charges still persist as well as lack of adequate and modern equipment by the terminal operators.
“Ships and cargo are lost to neighbouring countries because of excessive charges and access roads to the ports are in deplorable condition,’’ he said.
Sharing similar sentiments, Malam Mohammed Bashar, the Permanent Secretary, Federal Ministry of Transport, said that the port reform had not even met some expectations of government.
He noted that arbitrary and high port charges, undue delay of cargo clearance and abuses of the concession agreement were prevalent.
He explained that the purpose of the concession exercise was to encourage investors in the port sector through Public Private Participation and to reduce cost of doing business at the ports.
He explained that the government approved the concession to create jobs and ensure user-friendly port services.
Bashar, however, said that the Federal Government had made efforts to address the negative impact of port concession by appointing the Nigerian Shippers’ Council (NSC) in 2014 as the interim regulator.
He said that the NSC would establish effective regulatory regime to control tariffs, rates, charges and other related economics activities.
Assuring the stakeholders of efficient services at the ports, Mr Hassan Bello, the Executive Secretary of NSC, said that the council would address cumbersome cargo procedure, massive capital flight, leakages in revenue and inadequate information of port processes.
“Nigerian ports remain costly and uncompetitive, leading to continuous diversion of Nigerian cargo to ports in neigbouring countries,’’ he observed.
He said that the council, as the economic regulator, would abrogate some illegal costs at the ports and increase demurrage and storage free days.
He said the council had constituted quarterly meetings of customs area controllers and collaborated with the relevant agencies to clear the port access roads.
Bello said the council had also set a bench mark rate to discourage arbitrary charges and it had taken steps to ensure full automation of ports operations, vessel intelligence, cargo intelligence and risk management.
“We are working towards the enforcement of the publication of terminal operators rates as specified in the concession agreement in order to install healthy competition ,’’ he said.
This, notwithstanding, a maritime lawyer, Mr Osuala Nwagbara, opined that concession exercise was not a complete failure.
“There is no doubt that nearly10 years after the leasing of port infrastructure to private entrepreneurs in Nigeria, there had been remarkable improvement in port development and service efficiency.
“There have also been complaints by users of port services that concessionaires of Nigerian ports have not kept to the terms and conditions of the tripartite agreement between the concessionaires, Nigerian Ports Authority and Bureau of Public Enterprises,’’ he said.
Nwagbara said it was heartwarming that the role of the NSC as interim port regulator had been gazetted.
“We will look forward with zeal and great hope to invoke sanction against violations of the provisions of the lessee and the concession agreement in the port system.
Similarly, some concerned citizens hold the belief that port concession regime has encouraged increase in cargo throughput imports and exports from 44, 952 containers in 2005 to 1.2 million in 2014, while TAT had also increased.
They advise relevant authorities to address corruption and ensure that documentation processes at ports are internet technology-compliant.
According to them, the NSC, as economic regulator, must issue transparent and enforceable guidelines that will ensure the realisation and sustenance of the objectives of the port reforms.
By and large, Nwagbara advised that the NPA must perform its own obligations and monitor the concessionaires and other service providers with the enforcement of the concession agreement.
Cole writes for News Agency of Nigeria.
Aisha Cole
MoniePoint Inc. a digital financial firm in Nigeria, has said it is empowering community pharmacists across the country with innovative payment solutions to improve access to drugs.
The financial firm said it had also provided loans for pharmacists under the aegis of the Association of Community Pharmacists of Nigeria (ACPN) to drive healthcare delivery in the country.
MoniePoint in a release titled, “Inside Nigeria’s community pharmacies: How Moniepoint drives healthcare access with payments and funding”, has reaffirmed its commitment to providing digital payment solutions to improve health outcomes in Nigeria.
The release examined how community pharmacies play a crucial role as vital access points for medical care in Nigeria, especially in areas with limited hospital or clinic access.
According to the release, the ACPN National Chairman, Ambrose Igwekwam, highlighted the critical role played by community pharmacies in Nigeria’s healthcare system over the years.
Igwekwam, however, expressed concerns over the challenges confronting the nation’s pharmaceutical industry which he said was hindering access to affordable medicines.
The pharmacist listed poor infrastructural systems, power, transportation, regulatory bottlenecks, importation dependency, and limited research opportunities as major challenges facing the pharmaceutical sector.
He also stressed the need for robust collaborative efforts with institutions like Moniepoint to strengthen the sector.
“As Nigeria continues to grow, improving local pharma manufacturing to meet the demands of this growth presents a key opportunity for us all.
“There is also the African Continental Free Trade Area Agreement, which is expected to boost our industry, especially when we start producing our drugs locally, which will provide the much needed foreign exchange from exports.
“We are also seeing advancements in digital health and technology which would hopefully deepen the practice of e-prescription in Nigeria”, the ACPN boss said.
Corlins Walter
In order to enhance customer service and streamline operations, the Chartered Insurance Institute of Nigeria (CIIN) has called on stakeholders in the insurance industry to embrace Artificial Intelligence (AI).
The President of the institute, Yetunde Ilori, made this call at the 2024 Office Representatives Committee (ORC) Workshop, organised by the institute, with the theme “AI and the Future of the Insurance Industry”, in Lagos.
Ilori at the event, emphasised the importance of AI adoption, noting that it was not a threat to jobs but rather a tool to improve efficiency across the insurance sector.
“It is not about AI taking over our jobs, but about us using AI to simplify processes and give maximum satisfaction to all the customers we serve whether as underwriters, brokers, loss adjusters, or in educating our members”, she said.
The workshop, which brought players in the insurance sector together, aimed to address how AI could be leveraged to transform business processes and improve customer interactions.
The Chairman of the ORC, Monica Nwachukwu, underscored the role of AI in modernising the industry, adding, “AI can automate customer and claims processes, allowing insurers to provide faster and more efficient services to their customers”.
She explained how AI could help extract data from legacy systems, enhancing decision-making processes.
“By integrating AI with APIs, insurers can feed valuable data into AI solutions to improve operations and customer service”, she added.
In his address, the Managing Partner of A4S and Training Heights, Orlando Odejide, stressed the need for companies to align their strategies with future technologies like AI, especially as they prepare for 2025.
“Any organisation that wants to grow into the future must have its strategic plan in place. If your strategy for 2025 is not ready, it should be done by October”, he advised.
He encouraged participants to think critically about how AI could be integrated into their business models to ensure they remain competitive.
“The idea is for you to use this workshop as a platform to think about your organization and how AI can help streamline your processes and improve growth”, Odejide noted.
In order to gain global respect and recognition, the National Space Research and Development Agency (NASRDA) has reaffirmed its determination to pursue its goal in ensuring that Nigeria’s space capabilities are recognised on the world stage.
The agency also reaffirmed its commitment to positioning Nigeria as a key player in the global space economy.
In a statement by the Director of Media and Corporate Communications, Dr. Felix Ale, NASRDA revealed that the Director-General of the agency, Matthew Adepoju, emphasised this during recent engagements at the 79th United Nations General Assembly and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Global Alliance Business Association international conference in Michigan, United States.
The statement noted that Adepoju outlined a forward-thinking agenda, stressing the importance of Nigeria’s space programme as a leader in research, exploration, and technological innovation.
“Our goal is to ensure that Nigeria’s space capabilities are recognised on the world stage.
“We must foster collaborations with global space agencies to enhance our satellite capabilities and technological infrastructure”, he stated.
The NASRDA boss said the agency is focusing on enhancing satellite capabilities, expanding international collaborations, and leveraging space science for national development.
He said NASRDA will have no stone unturned in pursuit of excellence, ensuring the agency secures the necessary resources and recognition to propel it forward.
“The relationships we build today will pave the way for tomorrow’s advancements in space science.
“Innovation and progress thrive in an environment built on collaboration and inclusivity”, he stated.
He emphasised that with the support of the government, international partners, and a dedicated team, NASRDA is poised to make significant strides in the evolving global space landscape.
“We are on the brink of a new era for Nigeria’s space agency. Together, we will ensure our nation stands out in the global space economy”, he said.
Corlins Walter