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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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Analyses

The invisible toll gates:Why National Single Window is Nigeria’s ultimate economic battleground

Monday Discourse with  Ibrahim Nasiru
Walk into any market in Nigeria today, from the commercial hubs of Lagos to the roadside stalls in Yola, and ask why a bag of rice or an imported spare part costs three times what it did last year.
The typical public commentator will blame global inflation, floating currencies, or macro-economic shocks.
But those who understand logistics know the real truth lies buried under layers of paper, manual stamps, and artificial delays at our seaports.
Nigeria’s international trade is suffocating not from a lack of deep water, but from a deliberate design of convenience.
The recent operational rollout of the National Single Window (NSW) has triggered behind-the-scenes panic among Port cartels, and for good reason.
For decades, keeping our clearing processes fragmented, manual, and dependent on desk-to-desk human interaction was the perfect business model for syndicates.
When cargo dwell times drag on for 21 days, those delays are money in the pockets of the gatekeepers and a death sentence for local businesses.
Let us look at the raw field realities. The push by the Nigeria Customs Service to aggressively crash clearance times down to global 48-hour standards is meeting fierce internal resistance.
Why? Because a unified digital ecosystem means you cannot easily manipulate documentation, hide illicit cargo, or demand “mobilization fees” before signing off a container.
The outcry and protests from certain freight-forwarding syndicates aren’t about technical glitches; they are about the sudden closure of invisible toll gates.
This is exactly why governance at our national gateways can no longer be left to the mercy of transactional bureaucratic habits.
Building deep-sea infrastructure like Lekki Port is a massive physical achievement, but concrete and cranes are useless if the administrative processes at the gate remain backward.
 Real structural reform requires turning our Ports into automated, friction-free pipelines that prioritize production over rent-seeking.
If Nigeria wants to survive this fiscal squeeze, the National Single Window cannot just be treated as another glossy IT project launched in Abuja.
 It requires unyielding administrative enforcement to completely dismantle the corrupt cartels managing the manual desk chains.
The invisible toll gates at our Ports must be completely demolished, and that exact same structural discipline must be scaled across our border stations and trade corridors.
The era of managing international trade with 20th-century paper trails is dying. The future belongs to the builders of automated, transparent systems.
Chief Ibrahim Nasiru, a public affairs analyst,  writes from Abuja 
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Headlines

NANTA Exco embarks on seven-day Ghana retreat, fam trip to deepen regional tourism partnership

Gloria Odion, Reporter

The National Executive Council (NEC) of the National Association of Nigeria Travel Agencies (NANTA) has commenced a seven-day executive retreat and familiarisation (fam) trip to Ghana, hosted by Safari World, as part of efforts to strengthen regional tourism partnerships and expand cross-border travel opportunities.

The NANTA delegation was received at Safari World Homes in Accra by the Chairman of the Safari World Group, Mr. Ernest Gyekye, who expressed delight at hosting the Nigerian travel trade leaders.

He assured the delegation of a memorable experience throughout their week-long stay.

Speaking on the significance of the visit, NANTA President, Mr. Yinka Folami, described the retreat and familiarisation tour as a strategic initiative aimed at fostering stronger business relationships and promoting collaborative tourism development across Africa.

“This mission is not a leisure trip,” Folami said. “It is a deliberate step to implement and expand our association’s marketing advocacy for Nigerian brands across borders.”

He noted that Nigeria and Ghana share deep historical, cultural and commercial ties that should be leveraged to drive tourism growth on the continent.

“Nigeria and Ghana share history, culture, trade and people. The future of our tourism cannot be built in silos,” he said.

“This retreat is about moving from policy to practice—creating real products, real partnerships and real movement of travellers between Accra and Lagos.”

As part of the programme, the NANTA executives will engage in strategic business-to-business (B2B) meetings with their Ghanaian counterparts, tour key tourism destinations under the Safari World brand, and participate in cultural exchange activities designed to promote stronger bilateral tourism cooperation.

The itinerary spans Safari World’s three flagship destinations, including Safari Homes in Accra, the Aqua Safari riverfront experience, Safari Island Cruise, Safari Nautica, and Safari Recreation and Sports facilities in Ada, as well as the Safari Valley Eco Resort and Safari Eco Park in Dawu.

Operating under the brand promise, “One World, Three Destinations, Over 20 Unique Experiences,” Safari World is leveraging the visit to strengthen its footprint in the Nigerian travel market while positioning Ghana as a premier destination for leisure tourism, conferences, group travel, family holidays and premium tourism experiences.

A major highlight of the visit will be the Executive Dinner scheduled for July 21 at the Safari Valley Eco Resort, where key stakeholders from Nigeria and Ghana’s tourism industries will deliberate on strategies for deepening travel trade and advancing regional tourism development.

The familiarisation tour is expected to provide NANTA’s leadership with first-hand knowledge of Safari World’s tourism offerings, paving the way for the development of attractive travel packages and stronger business partnerships that will benefit Nigerian travellers and the wider West African tourism industry.

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Customs

Ogun Customs spurns claims of Smugglers’ takeover of Idiroko–Sango Ota trading Route

Funso OLOJO, Editor

The Ogun I Area Command of the Nigeria Customs Service (NCS) has dismissed as false reports alleging that smugglers had taken over the Idiroko–Sango Ota trading route in Ogun State, describing the claims as a deliberate misrepresentation of a traffic incident.
In a statement issued by the Command’s Public Relations Officer, Superintendent of Customs (SC) Chado, the Command clarified that the traffic gridlock on the route resulted from the breakdown of an articulated commercial trailer after it fell into a badly deteriorated section of Atan Road, temporarily obstructing the free flow of traffic.
According to the Command, the vehicles caught in the ensuing congestion were legitimate commercial trucks transporting red palm oil to various local markets and had no connection whatsoever with smuggling activities.
It explained that the large number of heavy-duty trucks trapped in the gridlock may have led some members of the public to wrongly conclude that smugglers had taken over the road.
“The reports that smugglers blocked the road are inaccurate. The disruption resulted from a road accident and poor road conditions. The vehicles involved were lawful commercial vehicles transporting red palm oil for legitimate trade,” Chado stated.
The Command urged journalists, social media users and the general public to verify information before disseminating reports capable of creating unnecessary panic or undermining public confidence in security agencies.
Observers within the border trade sector noted that the allegation does not reflect the prevailing security situation within the Ogun I Area Command, where anti-smuggling operations have been intensified under the leadership of the Acting Customs Area Controller, Comptroller O.O. Afeni.
Since assuming office, Comptroller Afeni has strengthened intelligence-driven surveillance, enhanced collaboration with other security agencies and host communities, and sustained pressure on economic saboteurs operating along the Ogun border corridors.
These measures, according to stakeholders, have resulted in significant seizures of prohibited goods and reinforced the Command’s resolve to safeguard Nigeria’s economy and territorial integrity.
Maritime and border trade stakeholders also cautioned against the spread of unverified information capable of undermining the efforts of security personnel or creating a false impression of lawlessness in border communities.
They stressed that while combating smuggling remains an ongoing responsibility, responsible and accurate reporting is equally critical to ensuring that operational achievements are not overshadowed by misinformation.
The Ogun I Area Command reaffirmed its commitment to sustaining its anti-smuggling campaign while facilitating legitimate cross-border trade in line with the statutory mandate of the Nigeria Customs Service.

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