Scrutinising Bello Koko’s initiatives at NPA
Despite spending only about six months at the helm of the Nigerian Ports Authority (NPA), Mohammed Bello Koko and his team appear to have already laid a solid foundation for the growth of the agency. SULEIMAN IDRIS in this report scrutinises Koko’s initiatives.
At a recent presentation to the House of Representatives Committee on Ports and Harbours, the acting managing director of the Nigerian Ports Authority, Mohammed Bello Koko, made excellent revelations that suggested that the agency, despite the impact of Covid-19 pandemic on global trade and supply chain logistics, weathered its devastating effects in record time and is on a strong traction to revolutionise the agency.
A perusal of documents showed that the NPA has raised its Internally Generated Revenue (IGR) between January and September 2021 by 120 per cent. The managing director’s presentation to the Committee, as at the end of September 2021, indicated that the Authority earned N256.28bn in IGR as against the expected N214.65 billion (approved estimate N271.70 billion) for the same period, representing a performance of 120% or 95% of its total annual budget for 2021.
For operating expenses, as at the end of September 2021, actual spending stood at N55.10 billion as against the budgetted figure of N65.49 billion, comprising employees’ benefits, pension costs, towage services, supplies, repairs & maintenance and other administrative overheads. This indicates a “savings” of N10.39 billion or 85% performance of the approved budget of N87.32 billion.
Furthermore, in compliance with the quarterly remittance of its operating surplus to the Consolidated Revenue Fund (CRF) and provisions of the Finance Act 2020, the Authority remitted the sum of N62.66 billion to CRF for the year 2021 as at October 31, 2021, while a cumulative sum of N89.9 billion was transferred to the CRF in the last six months.
It showed that at the current state of increased revenue drive, it is projected that the Authority will exceed its 2021 revenue projections and the projected transfer to the CRF for the year 2021 which is expected to be over N80 billion, which would be the highest in the history of the Authority.
The impressive revenue performance achieved by the Bello Koko-led management has not gone unnoticed by industry stakeholders who have applauded the feats. The NPA boss informed the committee that contrary to news reports insinuating that Nigerian ports are the most expensive in the sub-region, a study commissioned by the Authority with the support of UKAid in 2019, indicated that it is cheaper for general and container vessels to berth in Nigeria than in Ghana or Togo.
He explained that a huge chunk of what shippers or cargo owners spend to clear their consignments include terminal and freight charges paid to terminal operators and shipping companies, payments for customs duty, inspection services, haulage, insurance and other sundry trade levies and fees, which are outside the purview of the Authority.
According to Bello, aside the towage dues which were reviewed in 2015, Port tariffs in Nigeria have remained same since 1993.
Following his assumption of office in May this year, he took deliberate steps to reposition the agency to focus on cost-optimisation and quality service delivery, while maximising business value for port operators and users, and has since focused on improving the overall efficiency of the country’s port industry.
The objective, he noted, is to enhance and fast-track Nigerian export cargo for shipment at the export parks without any further port clearance protocol. A pilot project has been established at the Lillypond Container Terminal in Lagos, while 10 other exports terminals are in the process of being certified in order to begin operations by 1st quarter of 2022.
According to him, the Authority is in the process of consolidating its various electronic platforms under a unified port community system; whereas it is currently utilising technology platforms like Oracle Financials and Human Resources Planning, Enterprise Resource Planning ERP, Revenue & Invoicing Management System (RIMS), e-Ship Entry Notice (e-SEN), customs portal for online submission of bills, Hyperion budgeting, 3CI (Command, Control and Communication & Intelligence), Truck Call-Up Access Control and Harbours System Linked with the 3CI for harmonisation of vessel operations.
The first public action of the Bello Koko-led management was to re-jig the implementation of the electronic call up system for trucks (known as ETO). It ensured all identified lapses associated with the system were addressed, particularly breaches observed while the task force saddled with the responsibility of enforcing compliance was in charge. A series of stakeholder engagements were held with the top hierarchy of the military, the Police, other security agencies, the Lagos state government and other critical industry stakeholders. The outcome of those engagements led to tremendous improvement in travel time along the Apapa Port access roads in Lagos.
The agency in conjunction with the Federal Ministr of Transport (FMOT) also reached out to the Federal Ministry of Works on the timely completion of the reconstruction of Sunrise Bus Stop to the Mile 2 Stretch of the Tin Can Island Port corridor.
To complement the above, the NPA also launched Operation Green to remove and clear all illegal structures and shanties on the Apapa and Tin Can Island Port access roads. A great deal of success was recorded by this operation as exemplified by the resultant free flow of traffic to and from the ports. The Authority is cashing on this success to embark on awareness and sensitisation of port stakeholders to drum support towards the implementation of a sustainable policy on traffic decongestion along port corridors. In this regard, the Management has just procured twenty-four motorcycles to be added to the existing assets and in support of continuing collaboration and operations for a better traffic management to the ports.
The Authority is also making efforts to address identified areas of security vulnerabilities with the deployment of Electronic Access Control with Apapa and Onne ports as pilot projects, while procurement process has commenced for the full perimeter fencing of Tin Can Island Port Area to further consolidate compliance with ISPS code. Further compliance to ISPS code, especially as it relates to vulnerabilities of the ports waterfront, Management has procured 13 units of Security Patrol Boats (SPB) ready to be deployed across all pilotage districts including the establishment of Marine Police units in Calabar and Delta ports where none currently exists.
This would reduce incidents of attacks on vessels around the port area and boost the confidence of the international shipping community to use Nigerian ports.
Furthermore, the agency’s leadership is in the process of deploying an electronic call-up system for barges, similar to the one for trucks, to streamline their operations and movements. It has approved rates for barge operations which will ensure more revenue to the government.
According to the agency, in order to address the menace created by trucks carrying empty container and to ensure that Nigeria is not made a dumping ground for empties, it began to enforce the return of empties, where vessels are compelled to ship back at least 80% of the number of imports shipped in.
And to guarantee safety of records and documentation, the management recently commissioned an ultra-modern and fully digitalised archival system of document preservation and storage.
From May till date, the Bello Koko-led management has managed to steady the ship by running an inclusive style of administration along with regular consultation with relevant agencies of government and trade groups operating in the port.
It is no surprise that the current NPA leadership has won plaudits from industry stakeholders for focusing on costs optimisation to shore up revenue accruable to the government, exploring alternative funding sources to address ageing port infrastructure and reposition Nigeria as hub for maritime trade in Africa.
As 2021 winds down, the feelers from the new administration are that all hands are on deck to ensure that the Authority remains a veritable and profitable national asset, even as the Bello Koko-led management shore up its responsibilities to customers under a business-friendly port system, without compromising on security.
