Better regulation, habour concession to earn Nigeria huge investment

Ongoing efforts to open up Nigeria’s ports and habours for foreign investors gained a boost on Tuesday as the legislative framework which seeks to provide enabling environment for private sector participation in the maritime sector scaled through second reading on the floor of the House of Representatives.

The proposed bill seeks to amend Nigerian Ports Authority Act, Cap. N126, 1999 and for other related matters, sponsored by Nicholas Ossai (PDP-Delta), which enjoyed overwhelming support of members.

In his lead debate, Ossai proposed 60 amendments of the Principal sections including the change of the short title from ‘Nigerian Ports Authority’ to ‘Nigerian Ports and Habours Authority’ in order to make it all inclusive port related operations.

Ossai who observed that Singapore which currently ranked as the one of the 12th leading economies in the world leverage on ports and habours, expressed optimism that Nigeria has enormous potentials to boost its foreign exchange revenue and employment through private sector participation.

Ossai who doubles as Chairman, House Committee on Ethics and Privileges explained that the proposed amendment to the existing bill was to introduce concession arrangement to that will encourage private sector participation and promotion of competitive markers through the overhaul of the Act.

While calling foe overhaul of the existing Act in order to boost private sector funding, he observed that there is no legislative backing for the port concession initiated by the former President Goodluck Jonathan’s regime, adding that the exercise was an administrative in nature.

The bill further seeks to vest ownership of the Ports and Habours on the Authority for and on behalf of the Federal Government; grant concessions to private entities in accordance with the laid down processes and ensure proper management and development of the the ports and habours across the country.

“In African sub-regional level of our coastal activities, Nigeria plays an important role, when viewed from the vantage location of our country within the West and Coastal African sub-region.

“Nigeria offers transit shipment services to her West Coast neighbours and therefore serves as the gateway to her land-locked neighbours. Therefore, the need for a total overhaul of our port system to leverage on both the local and regional economic growth of our nation cannot be overemphasized,” Ossai said.

The proposed bill also seeks to empower the Authority to approve the establishment and planning of offshore cargo-handling facilities and related services; provide landlord services in ports and habours in an economically, socially and environmentally sustainable manner; engage in any business activity, whether alone or in partnership with other persons, as may be approved by the Minister as well as ensure compliance of private operators with its overall policy on health and safety, environmental protection, coastal conservancy.

The bill also seeks to amend section 8 and 9 of the Principal Act that bothers on granting loans to employees and acquisition of real estate by adding new powers for the improvement of standards and professionalism of operations of the Authority.

Ossai also proposed amendment of section 107 and 108 of the principal Act with the view to address various offences ranging from evasion of dues, false statements, offences in connection with safety of vessels, illegal piloting, damage to lighthouses, buoys and beacons are reasonably increased to curb contravention.

According to him, some of the benefits include: separation of cargo handling from landlord functions and technical regulatory functions within the ports, thus fostering greater operating efficiency, accountability and transparency in the management and operation of the ports.

When passed into law, the legislative framework will also help in provision of safe navigation, development and efficiency management of habours, channels and waterways and all other conservatory functions; facilitate the transfer of technology, information systems and managerial expertise through the private sector participation as well as create a better means of planning, coordinating, developing and interesting port policies with other maritime activities, surface and air transport systems.

He added that the Authority will offer advice to Government on National ports practices and development strategies and regulation and provisions of bunkering and channelling services.

Ossai also stressed the need to provide for four year tenure for the Managing Director and renewable for additional one term of four years, as it would repose confidence in the administration of the ports and harbours.

While ruling, Speaker Yakubu Dogara referred the bill to the House Committee on Ports and Habour s and Waterways for further legislative action.