NPA Begins Review Of JV, Concession Agreements

The Nigerian Ports Authority (NPA) said it will review both Joint ventures and concession agreements that were skewed in favour of operators but against the Federal Government in the maritime industry.
This was disclosed by the Managing Director, Ms Hadiza Bala Usman at the press briefing to round off her tour of the Eastern Ports last week.
She said most of the agreement skewed against Federal Government were signed when the country was experiencing economic boom.
“We are going through an economic downturn. Some of these provisions were signed at the point when Nigeria had a buoyant economy so we are looking at all agreements.”
“We are looking at every arrangement that existed between NPA and operators or service providers.
As regard to the African circle, what I mentioned is that we are going to look at the deployment of the infrastructures that they have, vis-à-vis the job they are required to do; and if they have done those deployment as required; and then to be determined, if the revenue sharing formula has also been beneficial to the government.
“But first, have they deployed as lettered in the agreement? Have they provided all the required infrastructures? Then, we will go to the next stage which is the revenue sharing formula. Is it beneficial to the government? Is it what we believe should come to the coffers of the federal government of Nigeria?
“So indeed, all agreements, particularly those that have to with revenue sharing formula with the Authority will be looked into; same for all Joint Venture agreements and the Concession agreements; we need to look into them; and to take into consideration why we found ourselves where we are now.
“So, we need to appreciate where we find ourselves today! And then take certain critical decisions.
“One of the immediate revenue plugging measures that we have started is to ensure that Intels as a service provider and revenue collector must ensure that they would pay directly to the federal Government’s account, as opposed to what they used to do; where they would collect the money into their own coffers!
“So, this is one of the first and continuing steps, towards reviving the several agreements that they have with us.”
She also stated that the authority will not invest into any infrastructure that would not be owned by the Federal Government.
“The NPA will not invest money in private entities. The NPA would only invest in infrastructures that would be owned by NPA
“There are several ones we have done. It has to do with amortization concession and that is where an infrastructure is built and it has a reversetionary period to NPA. So, any such information (of NPA investing in private concerns) is incorrect.
“As relates to utilizing our premises for FPSO, these are the things we are looking at, to the extent that we have an existing infrastructure that can take on such, we will utilize it.”

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