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NPA, Terminal operators disagree with Auditor-General over N490bn concession debt

Eyewitness reporter

Both the Nigerian Ports Authority (NPA) and the terminal operators have disputed the claim made by the Auditor-General for the Federation Adolphus Aghughu that the 18 terminal operators are owing the NPA a cumulative amount of N490bn as concession fees.
The Auditor-General’s report has claimed that the terminal operators were indebted to the federal government to the tune of $753 million and N1.61 billion (cumulatively 490billion).
However, a source close to one of the terminal operators who craved for anonymity explained that the indebtedness was accrued between 2006 and 2019, adding that the period covering 2020 to 2022 was not part of the reported indebtedness.

The source, who happened to be one of the management staff of a leading terminal operator said, “The debts date back to the period spanning 2006 to 2019 and the debt figures are composed of estate rents, lease fees and throughput charges among others as stipulated in the concession agreements.”

He, however, said that there had been recoveries within the period under review and that there had also been unrecoverable debts.
He specifically disclosed, “there have been recoveries within the period under review, and they are unrecoverable debts owing to issues such as volume change, gross minimum tonnage (GMT)/Penalties, and encumbered areas, among others.”
Asked to explain the issues militating against debt recovery, he stated that volume change, for instance, means volume adjustment.
“The Executed Contract Agreement stated that if the percentage variation between actual performance and projected volume is within minus 10% to plus 10%, the lease fee will be paid in full.
“However, if the percentage variation performance is more than minus 10% to plus 10%, the lease fee payable will be adjusted by an equivalent percentage.
“Therefore, the adjustment is against the lease fee payable by the percentage change in volume,” he explained.
He stated that the encumbered areas referred to “areas that are inaccessible due to factors not caused by the tenant such as host community hostility and marshy land, etc.,” while Guaranteed Minimum Tonnage (GMT) referred to “the projected tonnage pledged by the concessionaire to achieve and this arises from the inability of the concessionaire to meet up the pledge.”
According to the official: “unpaid VAT (Value Added Tax) relates to the VAT element of the unpaid Lease Fees arising from adjustment brought about by the volume change defined above,” while “penalty refers to financial burden suffered for failure to meet terms of payment in a contractual agreement.
” It is as a result of the concessionaire not paying within the specified time /days allowed in the contractual agreement. Simply put, it refers to a charge for late payment.”
Similarly, an official of the NPA who did not want his name in print, corroborated the disclosure by the terminal operators when he claimed that the figure quoted in the Auditor-General report of 2019 did not reflect the current position of indebtedness to the NPA.
According to him: “It is pertinent to clarify that out of the $852,093,731.10 cited in the Auditor General of the Federation’s report and being circulated in the media, $504,663,452.37 constitutes an uncollectible portion due to volume change and contentions; $66,627,342.76 constitutes uncollectible portion due to gross minimum tonnage (GMT); $19,619,459.00 constitutes uncollectible portion due to encumbered areas; while the sum of $98,114,442.46 has been recovered, leaving the sum of $163,069034.51 as the actual amount owed by only three (3) of the terminal operators.
“It is very important to note that the uncollectible debts are the summation of GMT stated above (a performance metrics), which the terminal operators could not meet mostly because of change in government policies (issues such as force majeure, infrastructure decay, poor road network outside the port and others.”
He also pointed out that some of the debts were legacy debts “being owed by a government agency which metamorphosed into a limited liability company and for which the Authority is working out modalities with the relevant parties to recover accordingly.”
He expressed optimism that with the Authority already at an advanced stage of talks to resolve the disputes surrounding these amounts, there would be “a resolution and recovery of what is due to NPA by the end of the year 2022.”
He also hinted about the setting up of an inter-agency committee comprising NPA, Federal Ministry of Transportation (FMOT), Federal Ministry of Justice (FMOJ), Bureau of Public Enterprises (BPE) and Infrastructure Concession Regulatory Commission (ICRC), with the task to undertake a review of the Concession Agreement which has led to some of the anomalies.
According to him, the committee had already developed a template to address the inherent anomalies in the agreements that allowed for the accumulation of such debts to forestall a recurrence.
The official further said that the relationship between the NPA and the terminal operators was an ongoing business that entailed the reconciliation of accounts at every point of the way.
He restated the fact that the NPA was on top of the debt situation, saying that the authority had mechanisms in place to recover all debts owed by terminal operators.
He, therefore, dismissed as needless and uncalled for “the entire hue and cry in the media space about indebtedness by terminal operators.”

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Customs

KLT Customs reaffirms commitment to stronger maritime stakeholder engagement

Deputy Comptroller Bolaji Adigun

Gloria Odion, Maritime reporter
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‎The Acting Customs Area Controller (CAC) of the Kirikiri Lighter Terminal (KLT) Area Command of the Nigeria Customs Service (NCS), Deputy Comptroller Bolaji Adigun, has reaffirmed the Command’s commitment to deepening engagement with stakeholders across the maritime industry in line with efforts to promote trade facilitation, transparency, and sustainable economic growth.
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‎Adigun gave the assurance through the Deputy Comptroller in charge of Administration, Comptroller T.A. Jonah, who represented him during a courtesy visit by the newly elected Executive Committee of the Maritime Reporters Association of Nigeria (MARAN) to the Command in Lagos.
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‎The Acting CAC, who was unavoidably absent, underscored the importance of sustained collaboration between the Nigeria Customs Service and key industry stakeholders, particularly the maritime media, in advancing the Service’s mandate and supporting national economic development.
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‎He described the media as a critical partner in disseminating information on government policies, customs reforms, trade facilitation initiatives, revenue generation, and anti-smuggling operations.
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‎According to him, maritime journalists occupy a strategic position in shaping public understanding and perception of activities within the port and maritime sector, stressing the need for professionalism, accuracy, and balanced reportage in the discharge of their duties.
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‎Adigun further assured the MARAN delegation that the KLT Area Command would continue to operate an open-door policy while fostering cordial and productive relationships with stakeholders within the maritime community.
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‎Earlier in his remarks, the President of MARAN, Mr. Oluyinka Onigbinde, stated that the visit formed part of the association’s ongoing stakeholder engagement initiative following the inauguration of its newly elected executive committee.
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‎Onigbinde explained that the purpose of the visit was to formally introduce the new leadership of the association to the Command and strengthen the longstanding relationship between MARAN and the Nigeria Customs Service.
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‎He commended the KLT Area Command for its contributions to trade facilitation, revenue generation, and enforcement activities, describing the Command as a vital component of Customs operations within Nigeria’s port system.
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‎The MARAN President also reaffirmed the association’s commitment to professional, objective, and development-driven journalism, noting that maritime reporters play a significant role in promoting informed discourse on issues affecting the industry.
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‎He further assured the Command of MARAN’s continued support for initiatives aimed at enhancing efficiency, transparency, and competitiveness within Nigeria’s maritime sector through responsible and factual reporting.

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Headlines

One infant, three adults die, several others sustain injuries in fatal train derailment along Warri- Itakpe route 

Funso OLOJO,  Editor 
The Nigerian Railway Corporation (NRC) has confirmed the death of four passengers in a train derailment along the Warri–Itakpe Train Service (WITS) corridor near Agbor, Delta State on Monday, June 8th, 2026.
Several others suffered various degrees of injuries.
In a statement by the Ministry of Transportation  and signed by its Permanent Secretary, Engr. Funsho Adebiyi, the victims included two female adults, one male adult and one infant.
The accident involved four coaches which reportedly capsized while one coach derailed, resulting in the unfortunate loss of four lives.
The statement confirmed that a total of 442 passengers were booked on the train, while 40 crew members, security personnel, and third-party service providers were also on board, bringing the total number of persons on the train to 482.
The NRC had activated immediate rescue and evacuation operations with the support of the Delta State Government, NEMA, FRSC, the Police, Civil Defence, local authorities, security agencies, and other emergency responders, and were completed by 6:30 p.m on Monday .
The Injured passengers were evacuated to medical facilities in Agbor for treatment.
 Other notable individuals on board included the Senator representing Delta Central Senatorial District, Senator Ede Dafinone, and former Delta State Secretary to the State Government, Hon. Patrick Ukah, among others.
As of the time of this release, 24 serious injuries have been recorded, while several other passengers sustained varying degrees of injuries and are receiving medical attention.
One NRC staff member suffered a traumatic limb injury and is currently receiving treatment and is reported to be in stable condition.
“The Ministry and the NRC extend their deepest condolences to the families of the deceased and pray for the quick recovery of all those injured.
“The Corporation also appreciates the swift intervention of the Delta State Government, emergency responders, security agencies, the NRC Mechanical Directorate, the Special Rescue and Emergency Team, medical personnel, and members of the public who assisted in the rescue efforts” the statement declared.
The ministry said full onboard manifest has been retrieved and will be made available upon request by the relevant authorities while efforts are ongoing to identify all the injured and deceased persons for proper documentation.
The Ministry in conjunction with the NRC have commenced a full investigation into the cause of the accident while efforts will continue to account for all passengers and provide the necessary support to those affected.
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Commentaries

Why Nigeria must prioritize competency development and standards to harness gains of  blue economy

Funso OLOJO,  Editor 
Nigeria is endowed with vast maritime resources which offer enormous opportunities for economic growth, employment generation, food security, and environmental sustainability.
With its fabled over 850 kilometers of coastline, extensive inland waterways, and strategic access to the Gulf of Guinea, the country is naturally blessed to emerge as a hub for maritime activities in Africa.
However , taking advantage of these huge massive maritime opportunities should be the priority of Nigerian government which must be intentional on developing competency level of its Maritime professionals and raise their
adherence to international standards.
The blue economy encompasses diverse sectors including shipping, fisheries, aquaculture, marine tourism, offshore energy, maritime logistics, shipbuilding, and marine environmental management.
 These sectors are highly knowledge-driven and require a workforce equipped with specialized skills and globally recognized certifications.
Without competent professionals, Nigeria risks losing economic opportunities to countries with better-trained maritime personnel and stronger institutional frameworks.
Competency development is essential for enhancing productivity, safety, and operational efficiency across the maritime sector.
Skilled seafarers, marine engineers, port operators, logistics professionals, and environmental experts are critical to ensuring that maritime activities meet international best practices.
 As global shipping and offshore industries become increasingly technology-driven, continuous training and capacity building are necessary to keep Nigerian professionals competitive in the international labour market.
Skilled maritime professionals such as seafarers, marine engineers and allied personnel in the sector could be sources of foreign exchange earnings for Nigeria as they could be exported to the international community.
Philippines and India are the world’s top exporters of skilled maritime personnel such as seafarers where they get the chunk of their foreign exchange.
If Nigeria could develop such capacity in skilled labourers in the sector and export their expertise, the country could harvest bountifully from such venture.
Equally important is the adoption and enforcement of internationally recognized standards.
Standards provide the framework for quality assurance, safety management, environmental protection, and operational excellence.
Compliance with global maritime standards established by organizations such as the International Maritime Organization(IMO) and the Nautical Institute enhances Nigeria’s credibility as a maritime nation and attracts foreign investment.
Investors and international partners are more likely to engage with institutions and businesses that demonstrate compliance with recognized benchmarks.
That is why the recent certification of the Maritime Centre of Excellence operated by NLNG Shipping and Marine Services Limited by the  UK Nautical Institute is germaine to Nigeria’s quest to develop training capacity and build compliance with standard procedures
This feat also underscores the importance of world-class training institutions in building local capacity.
That is why the  government should give necessary assistance to training institutions in Nigeria such as Maritime Academy of Nigeria(MAN),  Oron and the Maritime Centre of Excellence operated by NLNG Shipping and Marine Services Limited.
Such government patronage and assistance will not only improve the quality of maritime training in Nigeria but also position the country as a regional centre  for maritime education and professional development.
Prioritizing competency development and standards will also contribute significantly to maritime safety and environmental sustainability.
Well-trained personnel are better equipped to prevent accidents, manage maritime risks, and respond effectively to emergencies.
 Furthermore, adherence to environmental standards helps reduce marine pollution, protect biodiversity, and ensure the sustainable utilization of ocean resources, which are fundamental pillars of the blue economy.
From an economic perspective, a competent workforce and strong standards framework can increase Nigeria’s participation in global maritime trade, create high-value jobs, reduce dependence on foreign expertise, and improve the country’s competitiveness.
 It also supports local content development by enabling Nigerian professionals and companies to meet the requirements of international contracts and projects.
In conclusion, competency development and standards are not optional components of Nigeria’s blue economy strategy; they are foundational requirements for its success.
 By investing in human capital, strengthening training institutions, and enforcing internationally accepted standards, Nigeria can fully harness the immense potential of its maritime resources and transform the blue economy into a major driver of national development, economic diversification, and sustainable growth.
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