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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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Headlines

May Day: Mobereola salutes maritime workers for passion, dedication to building virile industry 

Gloria Odion,  Maritime reporter 

The Director – General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola, has saluted the courage , passion and dedication of maritime workers to building strong and virile industry.
In his message at the Workers’ day on May 1st, 2026, the NIMASA DG extolled the virtues of workers and acknowledged the distinguished service of various stakeholders whose efforts he noted continue to significantly contribute to the development of the Nigerian maritime industry.
Dr. Mobereola, while wishing stakeholders a Happy Workers’ Day said “to all the amazing officers and stakeholders in the maritime sector who bring their passion and expertise to work daily.

“Thank you for your dedication and invaluable contributions”.

He emphasized that as a regulator, the Agency remains committed to its oversight function of regulating maritime labour activities in the industry in line with extant instruments and the expectations of the theme of the 2026 Workers’ Day, which focuses on safety, dignity and productivity.

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Customs

Kaila, Seme Customs CAC, seeks collaboration with stakeholders to achieve seemless trade along border corridor 

Funso OLOJO, Editor
The new Area Controller of the Seme Command of the Nigeria Customs Service, Comptroller Abdullahi Kaila, has  reached out to traditional rulers and  sister agencies at the border communities to ensure the achievement of his mandate of detection, determent of smuggling, revenue generation and trade facilitation along the border corridor.
To achieve these objectives, Comptroller Kaila went on tour of the communities within the border corridor where he met and sought for the support and cooperation of major critical stakeholders, including the traditional rulers and sister agencies.
According to him, his objective was to eradicate trade hindrances affecting free movement of goods and services along the Lagos-Abidjan business corridor.
Speaking at the Palace of Oba Akran of Badagry Kingdom, the Customs Area Controller condoled with the royal family and entire people of Badagry kingdom on the passing away of HRM De Wheno Aholu Menu Toyi I who was a well recognized traditional ruler across the border communities.
“”The purpose of my visit is to introduce myself as the Area Controller of Seme Command and to equally seek your royal blessing and support to achieve the core mandate of the service.
“Our priority remains to generate revenue, facilitate trade, and suppress smuggling.
“And we in the Customs believe that without due support and co-operation from traditional rulers, we can not have effective performance of our functions as Customs officers” he said
 The King Regent, Chief Abel Ogunbiyi, who described Kaila as the son of the soil, added that “We have listened to your request.
” Know that Badagry is a very peaceful town, and we will keep collaborating with you in safeguarding our borders and in promoting legitimate trade, ” he stated.
Comptroller Kaila also visited the Onibereko of Ibereko Awori-Kingdom, where the monarch, Oba Israel Okoya, signifies his commitment to fostering the service relationship with residents living within the border  communities
“I welcome you to Badagry and be rest assured that I will always talk to my people whenever the need is required.
” In our town, our youth does not engage in illegalities as I have no other choice than to assist you in achieving the government mandate, ” he mentioned
While at the Palace of Alapa of Apa Kingdom, the king HRM Oba Oyekan Ajose Ilufemiloye commended and described the CAC, Comptroller Kaila as a professional, seasoned and well respected officer as described by indigenes of border communities.
“I promise you that I will always assist you in my area for anything that you need.
“Our border here has been peaceful because our youth always listen to the elders, and I know with your presence here, things will change for the better, ” he said
In his efforts to consolidate on existing synergy between sister security agencies, Kaila also visited Headquarters of 653 Nigerian Air force base, Ahanve-Badagry.
The  Commanding Officer, Group Captain Hungruy  Medugu,expressed the  readiness of the formation to always support the command in achieving its mandate.
“Our collaboration has been key to various successes we have recorded in our area of responsibility.
” Your presence here strengthens existing bonds of inter-agency collaboration between both Services, and we will not take it for granted ,” he said
The Area Controller then ended his familirisation tour with seeking for mutual cooperation with a visit to the Republic of Benin Police office, showing his readiness to eradicate hindrances affecting the free movement of goods and services across the border.
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Headlines

Opeifa decries encroachment on NRC properties across the country 

— praises collaboration with Abia, Enugu govts.
Funso OLOJO, Editor 
The Managing Director of the Nigerian Railway Corporation (NRC), Dr. Kayode Opeifa, has reiterated his displeasure over the widespread practice of encroachment on the properties of the Nigerian Railways Corporation across the country, warning that such action would not be tolerated by his administration.
Opeifa was speaking during the separate meetings he recently had with the governments of both Abia and Enugu states.
Represented by the Railway District Manager, Eastern District, Mr. Agwonye Francis Ejike, the NRC boss quickly condemned the occupation of the Corporation’s right- of – way by squatters in Umuahia, while correcting the wrongly- held belief that the Railway is defunct.
Opeifa however applauded the cordial and collaborative relationship between the Corporation and the governments of both Abia and Enugu.
According to him, such productive harmony can only yield even greater positive results for the benefit of the people.
During the Umuahia meeting, Dr. Opeifa strongly praised the Abia State Government for its crucial assistance in clearing the NRC’s right-of-way within Umuahia.
 He reiterated unequivocally that no one is permitted to build any structure on railway property without obtaining express approval from his office.
Appealing directly to the public, he urged for greater patience, stressing that the plans for the critical track extension from Aba, through Umuahia to Enugu and beyond, remain very much on course.
Responding on behalf of the Abia State Government, Mr. Kingsley Agomoh stated that the State Government is actively engaging all stakeholders by providing alternative, seamless locations for those currently conducting business on the railway right-of-way.
 He further revealed that the state government has already finalized plans to plant trees along the route, creating a leisurely and aesthetically conducive environment for relaxation, replacing previous commercial activities.
The high-powered team then embarked on an extensive inspection of the alternative relocation site for displaced persons; the demolition site where iron barrier installation is progressing; the Umuahia Central Bus Terminal; the site for the new Umuahia Railway Station; and the route for the proposed link road passing through the existing railway station.
The meeting also explored the provision of a temporary location for the Railway Police and the PTO, pending the construction of the new Umuahia Station, which is designed to include a police station and other NRC offices.
The same impactful message was delivered to Enugu State, where the Commissioner of Transportation, Dr. Obi Ozoh (representing the State Government), equally assured the NRC MD of the Enugu State Government’s unwavering commitment to collaborating with the Corporation to achieve its aims and objectives.
Describing Dr. Opeifa as a personal friend from their private sector days, Dr. Ozoh lauded him as a leader who “knows perfectly well what he is doing.”
He further assured the NRC that the Enugu State Government will actively assist in demolishing any obstruction on the Corporation’s right-of-way, stressing that the state eagerly awaits the flag-off to recommence construction of the rail line from Aba to Enugu and beyond.
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