*Debt reflects factors behind FG’s rising fiscal deficit
The Federal Government through the Nigeria Ports Authority, NPA, is struggling to recover $753 million and N1.61 billion owed by 18 terminal operators since 2019.
The terminal operators inclue APM Terminal, Apapa, Intels Nigeria Limited, BUA Ports and Terminal Limited, Apapa Bulk Terminal and ENL Consortium.
The $753 million and N1.61 billion owed by the firms, which translates to N325 billion at the official exchange rate of N430 per dollar, reflects why the federal government cannot generate enough revenue to finance its expenditure, and hence the over N4 deficit spending in the first four months of this year.
The Managing Director of the Nigeria Port Authority, NPA, Mohammed Bello-Koko confirmed that the agency is finding it difficult to the funds.
He spoke at a session with the Public Accounts Committee of the House of Representatives to probe the indebtedness of the 18 terminal operators, which was first revealed in a query issued by the Office of the Auditor General of the Federation to Nigerian Ports Authority, NPA on the various debts.
It was highlighted in report ending December 31, 2019 submitted to the National Assembly.
Specifically, the operators were doing business at Lagos port complex, Tin-Can Island port, Delta port, Rivers port Complex, Onne Port Complex and Calabar Port Complex.
The Office of the Auditor General for the Federation, had, in the report on non-compliance/internal control weaknesses issues in ministries, departments and agencies of the federal government of Nigeria for year ended 31st December, 2019 said terminal operators were indebted to the government to the tune of 852.094 million dollars and N1,878,560,509.57.
The query stated that “agreements signed between NPA and various Terminal Operators states that a fixed annual payment of a sum as specified in the schedule below to be paid in (12) equal instalments in each operating year, the first instalment to be paid on the first day of the month after the effective date and then, on the same date of every month thereafter.”
A response to the query made available to the Public Accounts Committee of the House of Representatives stated the NPA management as confirming that the original debt owed the government by the port operators was $852,093,730.77 and N1,878,560,509.57.
Of the amount, $753 million and N1,609,150,534.32 were yet to be paid by operators.
According to the query, the terminal operators and their debt profile included APM Terminal, Apapa ($562.060 million), Apapa Bulk Terminal ($4,621.20), ENL Consortium ($957,020.77), Greenview Development ($20,750,443.65); Standard Flour Mills ($893.77); Intels Nigeria Limited, operators of Terminal A at the Delta Ports Complex ($2,429,382.80), Intels Nigeria Limited, operators of Terminal B of the Delta Ports Complex ($4,589,576.75), and Associated Maritime Services ($328,027.64) and Greenleigh Ports Nigeria Limited ($1,734,492.41).
Others were BUA Ports and Terminal Limited ($12,254,424.55), Port and Terminal Operators Nigeria Limited ($107,311,506.46), Brawal Shipping Nigeria Limited ($226,541.72), Intels Nigeria Limited at Onne Port Complex ($430,404.81), Intels Nigeria Limited also at Onne Port ($670,954.72), Intels Nigeria Limited also at the Onne Port ($1,928,250.44), Shoreline Logistics ($1,181,023.57).
However, 3 operators (Tin-can Container Terminal Limited with a debt of $4,043,004.90, Five Stars Logistics with a debt of $33,091,958.06, and Port and Cargo Handling Company with no debt) listed among the debtor were cancelled on the document alongside Port and Cargo Handling Limited and Joseph dam Port Services for reasons not stated.
Similarly, 6 out of the 24 companies listed on the document (Port Terminal Multi Services Limited, Eko Support Services, Port and Cargo Handling Company, Joseph Dam Port Service Nigeria Limited, Julius Berger Services Nigeria Limited and Ecomarine Terminal) had no outstanding debt listed against them by the NPA.
In his remarks, the chairman of the Committee, Hon Wole Oke pledged the intervention of the House to enforce payment, saying the debtor operators will be summoned before the Committee and their identities published in the national dailies.
- I can get every man I set my eyes on – Lady Reveals
- The Knock that Prevented Our Wedding Night Experience from Happening – New Bride Reveals
- 5 Best Sex Positions to Build Up Intimacy with your Partner
- EXCLUSIVE! 5 Locations for Quality Children’s Clothes at Good Price in Lagos
- How to earn 10% interest on your Small Savings
- How To Keep Your Business Running After Working Hours
- Naira depreciation: Nigeria to record highest inflation rate in 16yrs -Financial Derivatives Company
- Why Marriage Helps People Generate More Wealth
- How I turned my “small” travel blog to a 6-figure business-Female Blogpreneur
- 10 Lucrative Side Hustles to Support your Business