1. How many seaports are in Nigeria?
2. What kind of services does NPA provide for the seaports?
3. How efficient is NPA in performing these services?
4. How does Nigerian seaport operate?
5. Why does Government want to reform and restructure the Nigerian seaport?
6. What are the Governments’ challenges in implementing Port Reform?
7. What are the objectives of ports reform?
8. What mode of privatization will government adopt in privatizing the Nigeria seaports?
9. What is Concession?
10. Is concession the best option for Nigerian seaport?
11. Has Port Concession ever worked anywhere in Africa, developed or developing countries and what were their experiences?
12. How many years will it take to conclude Port Concession?
13. What measure(s) is/are Government taking to ensure that the port does not turn to a private monopoly?
14. What measure(s) does Government have in place to ensure the Country’s security?
15. Of what benefit would the concession of Ports be to Nigerian economy?
16. What would happen to NPA after concession?
17. Will the Government sell any shares of NPA to Nigerians or Foreigners?
18. What shall be the functions of NPA Subsidiaries?
19. What role would the FMOT play before / after Ports Concession?
20. Which Government Agency shall be responsible for tariff setting?
21. What effort is BPE making to create awareness of Port Concession?
22. What kind of Concessionaires is the Nigerian Government looking for?
23. What will be the time line for the Concession agreement?
24. Do the Concessionaires stand to benefit at our expense?
25. What is responsible for the delay in clearing of goods at the Ports?
26. What are the corrupt practices present in the port?
27. Will those corrupt practices still exist after Concession?
28. What causes the bureaucracy in the Port?
29. What are the benefits of Ports Concession?
30. How will Labour redundancy be handled?
31. What is the position of NPA pensioners and their pension scheme after the privatization of NPA?
32. Why privatize the Ports sector and not the semi or already dead parastatals?
33. What will happen to the employees of this sector?
34. Will privatizing the Ports sector increase the tariff charged by the freight forwarders?
35. Don’t you think privatizing the ports will affect the security of the country as the Port is seen as the country‘s eye?
36. What is the state of the infrastructures serving the Ports e.g. railway lines, roads, communication?
37. How will the problem of traffic congestion and touting at the ports be resolved?

1. How many seaports are in Nigeria?

There are eight major Ports in Nigeria namely:

• Lagos Port complex, Apapa
• Tin Can Island Port, Lagos
• RoRo Port, Lagos
• Container Terminal
• Calabar Port
• Port Harcourt Port
• Warri Port
• Onne Port which has both Federal Lighter Terminal (FLT) & Federal Ocean Terminal (FOT)

Other Ports are:

• Kirikiri Lighter Terminal, Lagos
• Federal Lighter Terminal, Lagos
• Koko Port
• Akassa Port
• Bonny Port
• Burutu Port

2. What kind of services does NPA provide for the seaports?

The Nigerian Port Authority was established to provide infrastructure and support services to the seaports. These include construction, rehabilitation and maintenance of the breakwater, berth structures, quay apron, shed, warehouse, roads and sidings, water supply and distribution, power supply, management information system, estate management, dredging of the channels and all other capital and maintenance works of port development. It is also mandated to load and discharge cargo.

3. How efficient is NPA in performing these services?

In recent time, NPA has been unable to perform these services efficiently. The Nigerian seaport has become unattractive to shippers and other port users because NPA lacks the necessary facilities to maintain the ports. These had led to a steady and continuous decline in the quality of services, which has resulted to high operating cost.

Also ports operation is a costly venture that requires huge capital. Nigerian Government lacks the finances to meet up with this demand and compete with other developed ports.

4. How does Nigerian seaport operate?

Apart from Onne that operates as a landlord port, all other ports function as service ports. They own, operate every available asset and report to the Federal Ministry of Transport through NPA. The Onne port has private participant in the port and is more efficient than the other ports. The NPA is simply the landlord and owner of the superstructures. The significant investments and operation of the port are undertaken by the leaseholders.

5. Why does Government want to reform and restructure the Nigerian seaport?

Due to the inefficiency of the services rendered by the seaport as well as lack of modern infrastructure and excess bureaucracy, the government has adopted the restructuring and reform of the port as the best option towards the attainment of a virile private sector led port market / economy.

It is also part of government policy to increase the involvement of the private sector in the financing and operation of port services. The use of private initiative and private investments would increase efficiency in the system.

6. What are the Governments’ challenges in implementing Port Reform?

The following issues pose serious challenges to the expedient reform and management of the port sector:

• Cabotage bill that precludes foreign participation in the management of the ports- such laws need to be reviewed or repealed to enhance effective liberalization of operations within the port sector.
• Bureaucratic inspection procedures of the officials of the various agencies at the ports, which make Nigerian port unattractive to shippers.
• The fears of the organized labour unions within the sector have to be properly addressed regarding redundancy issues, pension liabilities that might arise out of the restructuring of the ports sector.
• Revision of NPA enabling law to ensure the authority is adequately empowered to regulate all operators within the sector.
• Resolving the issue of cross-subsidization of smaller deficit ports by commercially more successful ones.
• Resolving the problems inherent in the administration of transition.

7. What are the objectives of ports reform?

The objectives of port reform include, amongst others:

• To improve efficiency of operations and management of ports.
• To achieve reduction in cost.
• To facilitate further development of the nations transport infrastructure.
• To eliminate congestion and facilitate the emergency of Nigerian as the hub for West African sub–region.

8. What mode of privatization will government adopt in privatizing the Nigeria seaports?

The Ports will be privatized via granting of concessions to terminal operators. NPA shall act as the regulator.

9. What is Concession?

Port Concession is the process where by the Government transfers the operating right to the private sector. The Concession structure provides a framework for the government to retain ownership of port land and responsibility for licensing operators. The government remains the landlord.

10. Is concession the best option for Nigerian seaport?

Port Concession is the best option for Nigerian seaports because it gives the government the right to grant concessionaires the licenses to operate for a certain number of years before transferring such rights back to the government. Concession allows the operator to invest their capitals in the development of the port while the government’s fund is used in infrastructure development.

11. Has Port Concession ever worked anywhere in Africa, developed or developing countries and what were their experiences?

Yes. Port Concession had worked in many countries both in Africa and in developed countries e.g. Antwerp Port Authority, Brazilian’s Ports, Ghana Port Authority, Chile etc.

12. How many years will it take to conclude Port Concession?

It will take NCP a minimum of 20 months and a maximum of 25 months to concession all the ports from the time the Port Privatization Adviser comes in place. The Concession process will commence with a Pilot project of at least one port terminal in Lagos before May 2003.

13. What measure(s) is/are Government taking to ensure that the port does not turn to a private monopoly?

• Government will ensure an effective regulatory framework.
• An independent government regulator to ensure a level playing field Liberalization encourage competition among private operators.

14. What measure(s) does Government have in place to ensure the Country’s security?

It is the duty of the Nigerian Custom Services (NCS) and other government agencies operating within the port to ensure security in the port. These government agencies will still be in the port after concession to perform the same function.

15. Of what benefit would the concession of Ports be to Nigerian economy?

The following are the expected benefits of Port Concession to the economy:

• Efficient services will reduce clearing cost and increase cargo throughput Facilitate further development of nation’s transport infrastructure.
• Eliminate congestion and facilitate the emergence of Nigeria as a trans-shipment hub for the West African sub–region.

16. What would happen to NPA after concession?

• NPA shall regulate the activities of the private secretor in the port.
• NPA shall grant concession.
• Maintenance of superstructure.

17. Will the Government sell any shares of NPA to Nigerians or Foreigners?

Government shall have Concession Agreements with concessionaire to manage the ports operation for a period of 10–20 yrs. Government will not sell NPA shares either to Nigerian or Foreigner.

18. What shall be the functions of NPA Subsidiaries?

NPA subsidiaries shall:

• Enforce Nigerian & international regulations.
• Monitor performance of concessionaires.
• Maintain statistics on port performance.
• Ensure port that superstructure is maintained in accordance with concession agreements.
• Ensure safety and security in the port area..
• Ensure Compliance of environmental regulations.

19. What role would the FMOT play before / after Ports Concession?

• Policy Making.
• Legislative Function.
• Port Statistics.

20. Which Government Agency shall be responsible for tariff setting?

Terminal operators shall negotiate charges directly with their customers in a free & competitive setting. NPA as the landlord shall be responsible for the overall monitoring and supervising rights, as well as ensuring that operators do not abuse their monopoly via prohibitive tariffs. With the introduction of landlord concept, tariff charges due to NPA can be distinguished from charges to the other operators.

21. What effort is BPE making to create awareness of Port Concession?

The BPE has organised workshops, seminars and focus group discussions to encourage indigenous participation and educate stakeholders on the Port Reform Process. Four (4) workshops and focus group discussion had been held with various stakeholders in an effort to create awareness of the intended ports concession. The BPE has also attended an interactive session organised by the NASS for stakeholders in the Port Sector.

22. What kind of Concessionaires is the Nigerian Government looking for?

The Nigerian Government needs experienced terminal operators; forklifters, cargo handlings etc. They could either be local or foreign operators.

23. What will be the time line for the Concession agreement?

The Concession agreement could be between 10-20 years depending on agreement with the particular concessionaires.

24. Do the Concessionaires stand to benefit at our expense?

No. The Concessionaires will not benefit on Nigerians expense because of the following reasons:

• They will pay concession fees and royalties to the port.
• They will be responsible for the development of superstructure & equipment.
• The BOT, which is build, operate and transfer will transferred back to the government after the agreed number of years.

25. What is responsible for the delay in clearing of goods at the Ports?

The high rate of inefficiency in the port has led to the high and exorbitant clearing cost and delay in the duration for clearing of goods between 2–3 months. The volatile dock labor industry and multiple agencies in the port have been responsible for the delay in clearing good.

26. What are the corrupt practices present in the port?

There have been cases of corruption, intimidation, extortions, and murders. There is a high level of indiscipline and vice among the dockworkers labour leadership. The existence of wharf rats and their disruptive and destructive activities have contributed to the decay in the ports.

27. Will those corrupt practices still exist after Concession?

No.

28. What causes the bureaucracy in the Port?

Multiple agencies in ports, centralization of power and lack of information technology.

29. What are the benefits of Ports Concession?

• The number of months for clearing goods will be reduced to 24hrs e.g. it takes 2/3 hours to clear goods in the Malaysian Ports.
• Ports Concession would create more job opportunities.
• The Government will generate revenue from the concession fees.
• There would be an improve efficiency in port operations.

30. How will Labour redundancy be handled?

The privatization labour policy clearly provides for the payment of severance package to retrenched workers as specified in the collective bargaining agreements. Such amount may include severance pay (redundancy benefits), gratuity, and pension, in addition to some support services that may be available under the social safety net.

The following rules will be applied in the payment of severance package:

• Workers affected prior to privatization either voluntarily or involuntarily and those who leave voluntarily during the transition period are entitled to redundancy benefits (in lieu of severance pay). [Note: There is no room for involuntary retrenchment during the transition period]
• Those who leave the enterprise voluntarily or involuntarily are entitled to their end–of–service benefits payable in lump sum including their pension entitlement.
• Workers retrenched (voluntarily or involuntarily) after the transitional period are subject to the new conditions of service to be negotiated between the workers and the core investors.
• Workers who are made redundant prior to privatization, during and after privatization are entitled to social safety net (retraining, re–orientation and self–employment opportunities including unemployment insurance benefits, if any).

31. What is the position of NPA pensioners and their pension scheme after the privatization of NPA?

The ongoing privatization program has brought the problem of inefficient pension administration and un-funded pension liabilities in the public enterprises to national limelight. Until recently, when the Bureau took special interest in the matter, the collection of data in respect of pension liability had not been systematically perused. In–house pension schemes and the retirement benefits as provided in the collective agreements look good only on paper, in reality, the pension system in the public enterprises is in a state of deep crisis.

In some cases the retired workers have not been able to collect their pension benefits nor can the incumbent workers foresee their pension entailments being paid when they become eligible to collect. The Bureau strongly believes and has been able to get government to accept, that the end-of-service liability must be assumed by the government and paid either out of privatization proceeds or general revenue, or from funds to be secured from bilateral or organizations and multilateral creditors. In this connection, the BPE is currently investigating the N400million pension fund issue raised by the NPA pensioners.

32. Why privatize the Ports sector and not the semi or already dead parastatals?

The rationale behind privatizing the ports sector is to make it more efficient. The Bureau of Public Enterprises feels that a lot of problems the Ports are having will be properly handled by the private sectors.

33. What will happen to the employees of this sector?

There will be a Port Reformation whereby those employees whose services are not needed will be compensated. But this is entirely the decision of the management board.

34. Will privatizing the Ports sector increase the tariff charged by the freight forwarders?

NPA is the landlord of all the Ports in Nigeria; they will act as the tariff regulators to ensure compliance with a minimum / maximum standard. A body will be inaugurated that will look into the operations of the Ports.

35. Don’t you think privatizing the ports will affect the security of the country as the Port is seen as the country‘s eye?

The Ports authority, as independent regulator, will have the power to intervene to protect the national economic interest. This however, would only occur under extreme circumstances. It is in the interests of both the people of Nigeria and port concessionaires to have efficient, well–run ports.

36. What is the state of the infrastructures serving the Ports e.g. railway lines, roads, communication?

The rail lines inside the Port are still functioning (Lagos Port). However, the rail lines in the other Ports are not in good working conditions and need to be rehabilitated. Other rail lines can be developed.

37. How will the problem of traffic congestion and touting at the ports be resolved?

One way we can decongest traffic is by the addition of new ports, construction of roads and rail lines to link the ports. The issue of touting can handled by employing a security outfit, which will make sure that touts will not be allowed in the ports.