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Terminal operators lose N75bn to naira fall

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The continuous adjustment in exchange rates, loss in the value of the naira against major foreign currencies and forex scarcity have all combined to bring about loss of revenue for terminal operators, who since the 2006 concession agreement have been paying their dues in dollars.

Terminal operators at the nation’s seaports have lost N75bn to currency adjustments due to the loss in value of the naira against major foreign currencies.

This is due to the fact that the operators pay their concession dues and meet other obligations in dollars.

It was gathered that the loss in the value of the naira coupled with the scarcity of dollars had overtime led to an increase in expenses and put a huge pressure on the income of the operators.

According to a 2017 report by Akintola Williams Deloitte, the foreign exchange challenges that Nigeria is facing as a result of the fall in global oil prices are further pronounced for terminal operators as a large part of their costs, including equipment and maintenance costs, lease fees to the Nigerian Ports Authority and operational costs are in dollars.

The report noted that in order to take care of their costs and dues, the terminal operators had to constantly source for dollars from the parallel market at very high rates.

Confirming this, the spokesperson for the Seaport Terminal Operators Association of Nigeria, Mr. Bolaji Akinola, who spoke to our correspondent on behalf of the operators, said that they were currently spending three times the amount they paid 10 years ago as dues owing to the continued fall in the value of the naira.

“In 2006 when we took over operation at the various terminals in the port, the exchange rate was N125 to the dollar. Now, it is about N400,” he stated.

He added that for every one dollar paid out, an operator lost N275.

“About 85 per cent of our commitments are in dollars. The tenure of the concession agreements ranged from 15 to 25 years and the estimated revenue to government is $6.54bn (N2.6tn) over the period,” Akinola stated.

Due to the challenges, the concessionaires have made several appeals to the government, asking to be allowed to pay their dues in naira.

In response to their pleas, the Managing Director, NPA, Ms. Hadiza Usman, said that the agency would take a second look at the dollar payment policy during a general review of the concession agreement.

She said, “We will look into the dollarisation of payments. This will not be clear until we do a realistic review of the concession agreements.

“Some of our obligations that we pay in dollars, we are looking to see how we can stop paying for everything in dollars. As we review the inflow of dollars, we will also review the outflow of dollars.”

Meanwhile, 83 per cent of port revenues are said to be received in naira from clearing agents; these include terminal handling charges, storage charges, customs examination fees, and others, while the remainder of the revenue is received in dollars, including stevedoring charges from shipping companies.

In addition to exchange rate fluctuations, the Central Bank of Nigeria’s restriction of importers of 41 select items from accessing foreign exchange through the official foreign exchange window as well as the 2014 hike in the import duty of vehicles affected the volume of cargo at the ports, resulting in further revenue loss to operators and government.

According to analysts at Deloitte, between 2006 and 2016, the port business was adversely impacted by the rise in Consumer Price Index or inflation, with the CPI rising to over 177 per cent since 2006, adding that foreign exchange fluctuations also impacted the value of the terminal handling charges with over 224 per cent forex depreciation between 2006 and 2016.

They argued that although the naira value of the THC increased from N31,850 in 2006 to N80,000 in 2016, the THC dollar value equivalent decreased from $232 in 2006 to $180 in 2016.

A maritime expert with the Lagos Chamber of Commerce and Industry, Mr. Vincent Nwani,   suggested that since the terminal operators were earning part of their revenue in dollars, they should pay the appropriate dues in dollars to the proportion of that revenue, while settling other obligations in naira.

He said in order to do that, they had to go back to the original agreements that they signed with the Federal Government, adding, “In some of those agreements, there may be clauses that the price of foreign exchange should determine the dues.

“They collect some fees in dollars; they don’t have to pay all their fees to the government in dollars.

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MWUN Felicitates with Sanwo-Olu, Says Victory Demonstrates People’s Love for Selfless Service

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MWUN Felicitates with Sanwo-Olu, Says Victory Demonstrates People's Love for Selfless Service

The Maritime Workers Union of Nigeria (MWUN) has congratulated His Excellency, Governor Babajide Olusola Sanwo-Olu on his re-election as the Executive Governor of Lagos State.

 President General of MWUN, Comrade Adewale Adeyanju felicitated with the governor, noting that Sanwo-Olu’s victory is well deserved, following his focused selfless service.

According to the President General, the victory is a clear testimony of the love showered on the governor as the Chief Executive of the state by the people of Lagos State.

Prince Adeyanju promised the commitment of the union to making the seaports safer under a better working environment for all the practitioners.

In his words: “The Lagos State election which was keenly contested for, left Governor Sanwo-Olu winning the election on a very wide margin; this which gave him an edge over other contestants was a clear testimony of love showered on him as the Chief Executive of the state by the people.

“We in the Maritime Workers Union of Nigeria wish to felicitate with the amiable Lagos State Governor on his well-deserved victory during the poll in the state. The President-General of the Union, Comrade Adeyanju has promised the Governor of the Union’s commitment towards making the nation’s seaports safer under a better working environment for all the practitioners.

“On behalf of my executives, I wish to express our profound readiness to work and synergies with the Governor in all areas of the Maritime Industry towards achieving the best of economic values for the state and the nation at large. On this note, we say congratulation, Governor Sanwo-Olu!”

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Re-Election: Adeleke congratulates Makinde as Folarin felicitates, lauds Oyo voters

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Re-Election: Adeleke congratulates Makinde as Folarin felicitates, lauds Oyo voters

 Gov. of Ademola Adeleke of Osun has congratulated his Oyo State counterpart, Seyi Makinde, on his re-election in the March 18 governorship poll.

He gave the congratulatory message in a statement on Monday in Osogbo.

He described the outcome of the election as a strong vote of confidence in the performance of Makinde in the last four years.

He added that “I congratulate my brother, Governor Seyi Makinde on his re-election at the polls.

“Residents of Oyo State have reaffirmed their faith and confidence in his performance.

“They have confirmed the rapid development of Oyo State under the able leadership of my brother, Seyi Makinde.

“On behalf of the people and government of Osun State, I extend warm felicitation to Gov. Makinde.

“I look forward to years of partnership and collaboration between our two states on inter-state infrastructure development, among others.”

Adeleke also described Oyo and Osun states as siamese twins, calling for closer partnership in economic and social affairs.

The Independent National Electoral Commission (INEC) had on Sunday declared Makinde the winner of the 2023 governorship election in Oyo State.

Makinde had 563,756 votes to defeat his closest rival, Teslim Folarin of the All Progressives Congress (APC) who scored 256,685 votes.

In a related development, the All Progressives Congress (APC) governorship candidate in Oyo State, Sen. Teslim Folarin, has congratulated Gov. Seyi Makinde on his victory in the March 18 governorship election in the state.

Folarin’s congratulatory message is contained in a statement personally signed by him and made available to newsmen on Monday in Ibadan.

 Makinde, of People Democratic Party (PDP), was declared the winner by Independent National Electoral Commission (INEC) after polling 568,756 votes to defeat his closest rival, Folarin who scored 256,685.

Folarin, while congratulating Makinde, expressed appreciation to the electorate in the state for their support to APC candidates in the just-concluded general elections.

He also expressed gratitude to God for preserving the lives of the people throughout the electioneering process and to his friends and political allies for their overwhelming support.

He commended members of the 2023 Oyo State APC Presidential and Governorship Campaign Council for their issue-based campaigns, loyalty, dedication and commitment to the struggle.

“My gratitude also goes to the coalition parties, candidates of other political parties, volunteers, the press and individuals that contributed to the ‘Itesiwaju Ipinle Oyo 2023’ project,” he said.

The APC governorship candidate, however, appealed to party members and support groups to remain calm, as the results of the election were being studied.

“It is God that gives and takes power. May Oyo State and our people continue to prosper,” he said.

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Nigerian Maritime Women form new Association; Canvasses Equity, Digital Innovations

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Nigerian Maritime Women form new Association; Canvasses Equity, Digital Innovations

Four maritime women associations which jointly organized a summit where they canvassed for gender parity in the maritime sector and encouraged more women’s contributions to technological advancement in the digital space have agreed to form a single association to advance their cause.

The four associations are: Women’s International Shipping and Trading Association (WISTA) Nigeria, African Women in Maritime (WIMA) Nigerian chapter, Women in Maritime of West and Central Africa (WIMOWCA), Nigerian chapter and Female Seafarers Association of Nigeria (FESAN).

The summit, which was part of activities to mark the 2023 International Women’s Day (IWD), was anchored on the IWD 2023 theme; ‘Digital Innovation and Technology for Gender Equality’.


Speaking at the event, the WISTA-Nigeria President, Mrs. Eunice Ezeoke noted that as separate groups their impact have been fragmented while they have also been unable to get requisite support from the federal government in attending crucial regional and international conferences.

Her words: “One of the high points for the collaboration was the inability to get financial support especially in attending international conferences. It is at global meetings that we can network with other women and major global operators. When one intends to contest for regional or international positions, one would need to know women in maritime in other countries to get their buy-in. The federal government hasn’t been giving us the support to attend international conferences.”

“We explained this to the Permanent Secretary of the Transport Ministry, Dr. (Mrs.) Magdalene Ajani at a recent meeting and it was at that point she informed us that there has been no budgetary provision for women at the Ministry for some years. She encouraged us to start sourcing funds. We, however, have examples of other African countries where the women were backed fully for these activities.”

Stressing that government support mustn’t always be financial support, Ezeoke stated that there could be a sort of moral support by recognizing women groups among stakeholders such that shipping companies, terminal operators, NLNG, and oil firms are inclined to take up the financial support to enable women achieve the advocacy dreams.

In her own submission, the President of WIMOWCA Nigeria, Mrs Oritsematosan Edodo-Emore opined that the removal of women budgetary provisions from the Transport Ministry underscored the Importance of getting more women into key leadership positions where such decisions are taken.

Edodo-Emore, who is also Chairman, Zoe Maritime Resources Limited, expressed delight at the utilizing of technology to address the challenges of artisanal fishers who get better fees for their products and are better equipped to preserve them on account of several innovations.

“With this partnership, women are better placed to access funding for women’s education and training. We are all excited and we believe that we are set to begin reaping the benefits of this partnership. As regards fishing, it’s important that we bring technology into the fishing industry.

“The process of catching the fishes, preservation, storage, among other processes have evolved with technology. We need to sensitize and equip the industry, especially artisanal fishers,” she said.

Speaking, Mrs Rollens Macfoy, President of WIMA Nigeria, said that success has no gender even as she encouraged women to seek to be the best at what they do such that it becomes difficult to be marginalized.

“When you strive to bring out your value and worth by your doggedness, innovation, skills and humility; at this point, if you’re being marginalized there is something to shout and fight about. Nevertheless, a lot of organizations have an unwritten law or position that prevented women from rising to Directors or head of the agency. At such organizations, we have observed that gradually women have been emerging as Directors, heads of units and sometimes head of the agency. It is a gradual process and it will keep getting better,” Macfoy said.

She was optimistic that with the Women in Maritime Network operating, by the end of the year, women will make strides like the force of gravity as more women will also be given a voice and attention.

A cadet under the Nigerian Seafarers Development Programme (NSDP), Ms Peace Moulders, said that innovation and technology would play a critical role in addressing the world challenges from climate change to healthcare and others.

Moulders, however, stressed that it is not enough to simply wait for the technology to emerge, advising women to actively embrace and promote them to drive positive change.

“A call for action for individuals and organisations is to foster a culture of innovation by encouraging risk-taking, investing in research and development, promoting ethical considerations and advocating for policy changes. Government and organisation should remove barriers to innovation because by embracing them there would be a better future for the girls, and communities,” she said.

Other participants at the event are the Director General, Nigerian Chamber of Shipping (NCS), Mrs. Vivian Chimezie-Azubuike; Head of Nigerian Ship Registry at NIMASA, Mrs. Nneka Obianyor; Treasurer, WISTA Nigeria and Deputy Director, Revenue at NIMASA, Dr. (Mrs) Odunayo Ani; among others.

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