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2021 Budget: Maritime agencies disagree over revenue projection

Senators were left in awe on Monday as revenue agencies in the maritime sector made conflicting projections for their Internally Generated Revenue (IGR) for 2021 budget.

The conflicting signals came from the Nigerian Ports Authority (NPA) and the Nigerian Shippers Council (NSC).

The occasion was the IGR budget defense before the Senator Danjuma Goje-led Senate Committee on Marine Transport.

The NPA Managing Director, Hadiza Usman, in her presentation projected a lower revenue for 2021 but the Executive Secretary of NSC, Hassan Bello, projected an improved revenue or his agency.

Usman had in her presentation based her submission on the COVID-19 pandemic and recession in the country.

Besides, she said the cut in oil production by the Organisation for Petroleum Exporting Countries would further affect revenue.

But Bello who defended his budget after her said there was already improved activity at the ports.

This left the Senators present wondering why two agencies with synergy were making contradictory projections.

Goje (APC Gombe Central) said, “I’m not convinced but if you insist, I will leave you with your projection. We will hold you responsible if you happen to mislead the committee and there will be consequences.”

Bello, who stood his ground, said he had data to back his claims.

Read also: Maritime offers Nigeria opportunity to drive economic diversification, says Jamoh

He said, “The projection of the shippers council is based on actualisation of the advanced cargo information system, which will give us a lot of revenue.

“We also think there will be improvement in cargo delivery especially our import will improve because we are exiting recession in the second quarter.

“Already you could see volumes coming because we are taking the competition from our rivalry ports. I’m very optimistic that we will meet the projection that we have projected.

“The whole budget for 2021 is N17bn. What we had before (2020)/was N14bn, so there is an increase of about N3bn. We are ready to do that.”

Responding, Senator James Manager (PDP Delta South) said, “We have received conflicting signals from NPA and shoppers council, we must take it seriously.

He asked for commitment from the NSC boss, who gave June as the target.

” Our results would have manifested in the first – second quarter, ” Bello said.

Senator Smart Adeyemi (Kogi West) said the NSC boss should be given time to prove his mettle for seeing a positive in the challenging time.

He said the situation would prove whether some civil servants were economical in their projections for the country.

Meanwhile, the NPA MD lamented that the agency incurred more than a billion Naira loss to vandalism during the recent #EndSARS protests in the country .

According to the NPA boss, the sum of N807million had been earmarked for rehabilitation of the burnt portion of the agency’s building .

This she added was different from monies to be spent on replacement of 27 vehicles set ablaze by the vandals and three outrightly stolen .

“These vehicles being operational ones, need to be replaced as soon as insurance companies come up with the aspect of losses to be shouldered .

“Aside burnt building and vehicles , other working tools like 317 computers were looted as well as photocopiers , cost of replacement of which will be above a billion Naira when added to the N807million already estimated for rehabilitation of the burnt building,” she said .

Usman said the NPA had developed a local software for an electronic call up system to address the gridlock caused by trucks along roads leading ports in Lagos.

She said the agency had entered into partnership with Lagos State Government, who had provided a truck park in Orile-Iganmu.

” Trucks Park has been established in Orile which is to serve as call up centre for any truck waiting to evacuate goods at the ports. Any truck loitering will be impounded.

” Besides this arrangement, ultra modern rail line leading to Apapa port! and water transportation being offered by National Inland Waterways Authority (NIWA) are also helping out,” she added.

This is as the National Inland Waterways Authority ( NIWA) declared its readiness to partner with NPA on goods evacuation from the ports as a way of solving the problem of Trucks gridlock on roads leading to ports .

In his own presentation, the Managing Director of NIWA, George Moghalu, informed the committee that the N3.9billlion budget estimates proposed for the agency in 2021, will be primarily implemented towards upscaling the development of Inland Water Transportation in Nigeria .

According to him, out of the N3.9billion budget estimates, N1.3billion is for recurrent expenditure , N1.4billion for capital expenditure and N1.1billion projected as remittance to the Consolidated Revenue Fund ( CRF).

In his remarks after the budget defence session, the Chairman of the Committee , Senator Danjuma Goje ( APC Gombe Central), told the agencies to scale up their projected revenues drive in 2021 for easy Implementation of the entire budget .

” Be rest assured that this committee shall through its oversight functions monitor your revenues drive in 2021 as well as remittance into the CRF,” he said .

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