NPA frustrating investors ―Stakeholders

Stakeholders under the aegis of the Committee of Maritime Professionals (CMP) have raised alarm over impending loss of revenue by the Federal Government if the Nigeria Ports Authority (NPA) under Ms. Hadiza Bala Usman continues to frustrate real and potential investors out of the nation’s maritime sector.

A statement signed by the CMP’s Coordinator, Mazi Charles Gabriel over the weekend said the development is a danger signal, which runs against the change agenda of the government that is bent on attracting Foreign Direct Investment (FDI) into the country.

“The Lekki Deep Seaport terminated sub-concession agreement had granted LICTSE an exclusive right to develop and operate, and to provide handling equipment and container terminal services, at the container terminal within the port located at Ibeju Lekki, Lagos State, for a period of 21 years.”

“The project, initially slated for completion in 2016, called for the development of a container terminal with a 2.5 million TEU capacity capable of handling 10,000 TEU container ships.”

“The terminal was to feature a 1,200-meter quay with 14 Post-Panamax cranes, making it one of the largest single terminals in Sub-Saharan Africa.”

“But now, that agreement has been terminated by the foreign investor. The reason for cancellation of the agreement is down to delay on the execution of the Lekki Deep Seaport project. That was the reason ICTSI gave.”

“It is a shame because Nigeria is the loser in this whole scenario. Foreign investors are leaving our maritime sectors and everybody is going about as if nothing is happening.”

“From our discussions with operators, many other investors in the sector are holding back funds because of the unfriendly posture of the NPA.”

“One of the areas affected are investors in the deep seaport segment. You will notice that deep seaport projects have suddenly become silent. It is because of the wrong signals emanating from NPA and that is why everyone is now withholding their funds. Have you seen anyone invest any money at the port since the woman came on board? No one will invest if contract terms will not be respected.”

“The case with Intels also sends the wrong signal. The political dimension of the case is worrisome. Politics should not come in at all in matters concerning port operation.”

“The maritime business is an international business, and you do not see other maritime nations vilify their investors on the pages of newspapers. Issues arise and will continue to arise but the best way to resolve them is through meetings and negotiations, not through media lynching,” CMP stated.

The Lekki Deep seaport is a joint venture project of the Federal Government, which is being represented by the NPA, the Lagos State Government and a Singaporean based investor, the Tolaram Group. The Federal Government holds 20 per cent equity in the project; Lagos State Government, 18.5 per cent; and Tolaram Group, 61.5 per cent.