NASS C’ttee on Ports and Harbours decries N1trn revenue loss at seaports

Jonas Ezieke, Abuja 

Senators and members of the House of Representatives  Committee on Ports and Harbours have tasked the Minister of Blue Economy, Chief Adegboyega Oyetola on the need for Nigeria to tap into the $1.8 trillion Blue Economy potentials as well as improve on revenue generation through the Maritime industry.

The House Committee Chairman Hon.Nnolim Nnaji who gave the charge during the 2024 budget defence held at the instance of the joint Committees on Ports & Harbours and other Standing Committees, also expressed regrets over the report on the loss of over N1 trillion revenue due to poor infrastructure in the maritime industry.

 

In their bid to improve service delivery and ease of doing business, the lawmakers who frowned at the non-provision of funds in the 2024 budget proposal, called for acquisition and installation of scanners at various ports as part ongoing efforts geared toward making the nation’s ports competitive.

 

The lawmaker and other committee members who expressed concerns over the activities of shippers/importers who abandoned Nigerian Ports to berth at the ports owned by neighbouring countries, as well as roadmap towards addressing myriad of challenges facing the industry.

 

 

 

During the scrutiny of the 2024 budget proposal, the lawmakers also demanded for breakdown of the lump sum of N1 billion proposed for procurement of official vehicles for the Minister, permanent secretary (2 Toyota Landcruisers), 7 Innoson Pickups for Project vehicles and 7 units of 28 seater CNG buses for the new ministry.

 

The lawmakers also queried the Ministry over the underutilization of N130 million released for rehabilitation, utilisation and patronage of eastern ports (N10 million); monitoring for navigational channels Calabar River Port (N15 million); Women empowerment on maritime related activities, world seafarers day and world women in maritime international day (N25 million); Coordination of process of establishing/designating a National Career (Shipping) – N20 million; International seabed Authority (ISA)/United Nations Convention on law of the sea (UNCLOS) and Development of Inland Dry Ports including Ministerial Standing Committee on delivery of Inland Dry Ports (N10 million), respectively.

 

Speaking earlier, Minister of Blue Economy, Chief Adegboyega Oyetola explained that the total capital appropriated for Marine related programmes in 2023 was N777 million, out of which N448,027,468 has been utilised as at the end of November, 2023.

 

According to him, from the sum of N382,185,472 was appropriated for overhead expenditure, out of which N254,790,314.70 was released as at 29th November, 2023.

 

In the proposed 2024 budget proposal, the Ministry proposed N10,781,130,916 as total capital budget while the sum of N191,086,917 as overhead expenditure.

 

He observed that three of the agencies under the ministry, namely NPA, NIMASA and NCS are fully self-funding and make reasonable remittances to the Consolidated Revenue Fund (CRF/TSA) while National Inland Waterways Authority (NIWA), Maritime Academy of Nigeria, Oron and Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) derive their funding from both the federal government budget and internally generated revenue.

 

While responding to various questions from the lawmakers, the Minister disclosed the Ministry’s plans to dredge some of the existing ports while efforts are being intensified to build new ports in various locations across the country, including Badagry in Lagos State and Ondo State.

 

While admitting that shippers divert vessels to neighbouring countries, Chief Oyetola stressed the need for adequate funding for the dredging of various ports so as to enable them to take big vessels.

 

The Minister who expressed displeasure over the level of infrastructure decay at the Tin Can Inland and other ports during his official assessment of the ports on assumption of office, disclosed that about $1.2 billion will be required to fix the ports, adding that he has started discussion with various stakeholders including World Bank and other banks as well as Contractors on the funding of the project.

 

He also assured on the Ministry’s resolve to adopt technology as well as National Single Window policy, reduce level of human interface as well as reduce the clearance of cargoes at various ports across the country.

 

Chief Oyetola who explained that authorities of Nigeria Customs Service (NCS) is positively disposed to the use of scanners at the ports, however underscored the need for attitudinal change.

 

The Minister also solicited for the support of the Parliament on the establishment of Coastal Guard in the bid to ensure safety and Nigerian Ports, and boost revenue through fishery in the Blue Economy industry as part of efforts to reduce $4 billion spent on importation of fishes into the country.

 

While noting that not less than 28 States are connected to water, he underscored the need for massive investment in the dredging of waterways for improved water transportation.

 

While responding to the proposed procurement of some official vehicles, the Permanent Secretary disclosed that the cost of the vehicles were obtained online with additional mark up price because of the fluctuating foreign exchange and other factors.