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NPA Wasted $10b Revenue, Claims Ministry Official

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NPA

The Nigerian Ports Authority (NPA) generated about $10 billion from the Lagos ports between 2006 and last year without anything to show for it, it has been learnt.

A senior official of the Federal Ministry of Finance (FMoF) said the revenue excluded the over N150 billion collected from the Lagos Port Complex (LPC) and Tin-Can Island Port.

The official lamented that there was nothing to show for the “huge proceeds” in terms of infrastructure development at the ports.

He urged the Federal Government to rehabilitate the roads and resolve other challenges to make the ports more attractive and competitive.

The NPA, the official said, generated over $147 million in 2006 and collected over $105 million. From 2007 to 2009, he said, NPA generated $979,010,266 and collected $689,683,545.

According to findings, NPA made $852,623,584 from 2010 to 2012 and collected $816,184,072 from the Lagos ports.

At the LPC and Tin-Can Island Port, NPA generated $311,838,719 and collected $351,153,963 in 2013; $852,269,943 in 2014, while $754,362,679 was remitted to its domiciliary account.

To generate more revenue, the official urged the NPA management to plug all loopholes and embark on programmes that will make the ports more effective and efficient.

According to him, the government would realise its dream of boosting the economy and creating jobs if the loopholes are plugged.

The official said the Minister of Transport, Rotimi Amaechi, must compel the NPA to fashion out a strategy to increase its revenue.

The NPA, the official said, needs to ensure that the terminal operators boost their operations to generate more funds.

The ports, he said, must be turned into an enterprise that will yield more revenue for government through improved vessel calls and enhanced volume of cargoes coming into the country.

“Things are expected to look upward, with the automation of NPA’s operations and its adoption of electronic system. Under its current arrangement, it is expected that revenue leakages would be blocked and operational revenue improved.

“We hope the management of the agency will be able to track where the revenue is leaking and make meaningful contributions to the government purse.

“What the NPA needs now is the trade facilitation role of other government agencies. There is need for the government to ensure that the Customs and other agencies complement the NPA to boost government revenue,” the official said.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

COVID-19 Plunges Nigeria’s Oil Revenue by 41% in the First Nine Months of 2020

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COVID-19 Plunges Nigeria’s Oil Revenue by 41% in the First Nine Months of 2020

Nigeria’s oil revenue declined by 41.44 percent in the first nine months of 2020 to $2.033 billion, according to the latest data from the Nigerian National Petroleum Corporation, NNPC.

This represents a decline of 41.44 percent from $3.47 billion filed in the same period of 2019 when there was no COVID-19.

In the September 2020 edition of NNPC’s Monthly Financial and Operations Report (MFOR), revenue from oil and gas rose by 16 percent to $120.49 million in the month of September, a 66 percent or $234.81 million drop from $355.3 million posted in the same month of 2019.

The global lockdowns caused by the COVID-19 pandemic plunged Nigeria’s crude oil sales and global demand for the commodity. This was further compounded by Nigeria’s high cost of production compared to Saudi Arabia, Russia and others that were offering discounts to boost sales during one of the most challenging periods in human history.

Experts like Prof. Yinka Omorogbe, President of Nigeria Association of Energy Economics, NAEE, were not surprised with the drop in earnings given the effect of COVID-19 on the world’s economy.

She, however, called for the revamp of the nation’s petroleum sector laws and diversification of the economy away from oil revenue dependence. She said “Covid-19 made 2020 a very hot year and it battered the oil industry internationally and we are not an exception; so we could not have been unaffected”.

She also said the effect of the fall “is definitely a wake-up call; we have to diversify, strengthen our other resources and capabilities”.

Omorogbe, a former NNPC Board Secretary, urged the government and the operators in the sector to look inward and think strategically, stating: “think medium term, think of where they want to be and the government, above all, must think of how best we can utilize our resources, so that we can achieve our objectives once we know and define them.

“It is a clear wake-up call, if not we will just sit here and find that we have become one of the poorest nations in the world”, she noted.

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Commodities

Crude Oil, Other Commodities Closing Price for Monday

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Crude oil

Crude Oil, Other Commodities Closing Price for Monday

Brent crude oil, Nigeria’s crude oil benchmark, gained 47 cents to $55.88 per barrel on Monday, while the US crude oil expanded by 50 cents to $52.77 per barrel.

Gold for February delivery fell $1 to $1,855.20 an ounce. Silver for March delivery fell 7 cents to $25.48 an ounce and March copper was little changed at $3.63 a pound.

The dollar fell to 103.80 Japanese yen from 103.83 yen. The euro fell to $1.2139 from $1.2167.

Wholesale gasoline for February delivery rose 1 cent to $1.56 a gallon. February heating oil rose 2 cents to $1.59 a gallon. February natural gas rose 16 cents to $2.60 per 1,000 cubic feet.

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Gold

Gold Gained Ahead of Joe Biden Inauguration 2021

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Gold

Gold Gained Ahead of Joe Biden Inauguration 2021

Gold price rose from one and a half month low on Tuesday ahead of President-elect Joe Biden’s inauguration on Wednesday.

The precious metal, largely regarded as a haven asset by investors, edged up by 0.2 percent to $1,844.52 per ounce on Tuesday, up from $1,802.61 on Monday.

According to Michael McCarthy, the Chief Market Strategies, CMC Markets, the surged in gold price is a result of the projected drop in dollar value or uncertainty.

He said, “The key factor appears to be the (U.S.) currency.”

As expected, a change in administration comes with the change in economic policies, especially taking into consideration the peculiarities of the present situation. In fact, even though Biden, Janet Yellen and the rest of the new cabinet are expected to go all out on additional stimulus with the support of Democrats controlled Houses, economic uncertainties with rising COVID-19 cases and slow vaccine distribution remained a huge concern.

Also, the effectiveness of the vaccines can not be ascertained until wider rollout.

Still, which policy would be halted or sustained by the incoming administration remained a concern that has forced many investors to once again flee other assets for Gold ahead of tomorrow’s inauguration.

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