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NPA Bans Empty Containers From Ports

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Nigerian ports authority
  • NPA Bans Empty Containers From Ports

Nigerian Ports Authority (NPA) Managing Director (MD) Hadiza Bala Usman has warned truck drivers and owners against bringing empty containers to the ports.

Henceforth, such containers must be taken to the shipping firms’ holding bays.

Ms Usman is said to have directed operators to stop using their terminals for storing empty container and no truck driver or owner must be allowed by any official of the NPA and terminal operators to bring empty containers into the ports after delivering goods to importers.

Ms Usman took the step to manage traffic in and around the ports.

Over 40 per cent of the space at the Lagos Port Complex (LPC) and the Tin-Can Island Port is occupied by empty containers.

Ms Usman also ordered terminal operators to declare the number of empty containers in their terminals.

Most of the firms at the ports have no holding bays, despite the huge money they have generated since the ports were concessioned in 2006.

The NPA, the Nigerian Maritime Administration and Safety Agency (NIMASA), the Nigerian Shippers Council and the Nigeria Customs Service, it was alleged, do not have a record of the empty containers in most terminals.

Speaking with The Nation in Lagos, a senior official of the Federal Ministry of Transport (FMoT), who pleaded not to be named, urged the government to support NPA in stopping operators from using terminals for storing.

“The Federal Government must support Ms Usman in her efforts to bring sanity to our ports. The shipping companies who are the owners of the empty containers must acquire holding bays that will receive them. The empty containers are to be evacuated to port terminals for export based on call-up system to be managed by the shipping firms and terminal operators,’’ the official said.

Transport Minister Rotimi Amaechi and the NPA, the official said, should direct operators to publish weekly the number of cargoes with empty containers, at the ports. Most of the operators, the official alleged, connived with some NPA officials and shipping firms to keep containers at their terminals to create the impression that the ports are busy.

Lagos State Shippers’Association Chairman Mr. Jonathan Nicol said shipping firms were required to have bays. He added that most of the containers were in bad shape and could no longer be returned to Europe.

Nicol said the containers were bought at cheaper prices to ship goods to Nigeria where they were dumped. “Nigeria is not a dumping ground for containers. Now that there is no space in the ports for these containers, the shipping firms need to get holding bays and if they don’t have, they should hire,” he said.

He also said the country was losing N1 trillion yearly through cargo diversion to neighbouring countries due to the gridlock on the ports’ access roads.

Association of Nigerian Licensed Customs Agents (ANLCA) immediate past president Prince Olayiwola Shittu advised shipping firms to get holding bays or rent them, adding: “There are so many companies with holding bays that are looking for people to rent them.”

Shittu said the step being taken by the NPA would save importers demurrage on containers trapped in Apapa gridlock for days and reduce cost of goods in the market.

Some truck drivers said the challenge was that there was no truck park in Apapa, resulting in a situation where trucks were parked by the roadside and on bridges waiting to be called up to bring their empty containers into the terminals.

An importer, Chief Onasanya Ladejobi, expressed concern over the Apapa gridlock, which hinders access to the ports.

Ladejobi said the bad roads were hampering trade and affecting delivery of cargoes. He said the empty containers must be moved to their ports of origin and ports infrastructure be revamped to revive the economy.

The business community, according to him, is unhappy that measures adopted have not yielded results to free the roads leading to LPC and the Tin-Can Island Port.

The business community and port users, he said, were waiting for what he called “positive action” from Amaechi soon, adding that the quick rehabilitation of the road must be one of the minister’s major priorities in salvaging the economy.

The Federal Government, states and stakeholders, he said, should work together to find a lasting solution to the problem.

Ladejobi called for the promotion of agro-allied products export to free the ports and boost the economy, noting that he was not happy that about 90 per cent of containers traffic left the ports empty.

The importer urged the public and private sectors to support government’s efforts at diversifying the economy.

X-raying the ports’ last quarter operations, he said there was the need to complement the NPA’s efforts at massive investments in infrastructural renewal and automation of port operations by generating enough export cargo to move empty containers out of the ports.

The NPA, he said, must collaborate with the Nigerian Export Promotion Council (NEPC) and Abuja Commodities & Exchange Commission in the promotion of solid minerals and agro-allied products to boost the economy. The Federal Ministry of Solid Minerals Development and Nigerian Chambers of Commerce, Industry, Mines and Agriculture (NACIMA), he said, must also work with the NPA in tandem with the Federal Government policy on export promotion.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Company News

Axxela Limited Raises N16.4bn in Oversubscribed Bond Issuance

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Bonds- Investors King

Axxela Limited, a leading sub-Saharan African gas and power company, has successfully completed its N15 billion Series 1 Bond Issuance.

The company raised N16.4 billion due to oversubscription and investor confidence in the company’s financial strength and strategic direction.

Bolaji Osunsanya, Axxela’s Chief Executive Officer, expressed his satisfaction with the outcome, highlighting the bond’s oversubscription of 109%.

Despite challenging economic conditions marked by rising interest rates and limited market liquidity, Axxela’s bond offering attracted strong interest from a diverse group of investors, including pension fund administrators, asset managers, and high-net-worth individuals.

Osunsanya explained that the proceeds from the bond issuance would play a crucial role in funding the company’s long-term capital expenditures, managing its weighted average cost of capital, and diversifying its funding sources.

The funds will support the completion of ongoing gas pipeline projects across Nigeria, aligning with the company’s commitment to enhancing energy infrastructure and contributing to the country’s energy transition agenda.

Stanbic IBTC Capital, serving as the lead issuing house alongside seven joint issuing houses, played a pivotal role in facilitating the transaction, with Stanbic IBTC Bank acting as the transaction bank.

The successful bond issuance reflects Axxela’s strategic positioning as a key player in the region’s energy sector and its ability to leverage strong investor confidence to drive growth and innovation in the industry.

As Axxela continues to expand its presence and strengthen its operations, the oversubscribed bond issuance serves as a testament to the company’s resilience and its commitment to delivering value to shareholders and stakeholders alike.

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Company News

Dangote Refinery Continues Price Slashing: Diesel Now at ₦940/Litre, Aviation Fuel at ₦980/Litre

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Dangote Refinery

Dangote Petroleum Refinery has once again sent ripples through Nigeria’s fuel market by further reducing the prices of diesel and aviation fuel.

In a bid to alleviate economic hardships faced by Nigerians, the refinery has lowered the price of diesel to ₦940 per litre and aviation fuel to ₦980 per litre.

This latest move comes on the heels of the refinery’s recent price reduction to ₦1,000 per litre for diesel, which was celebrated across the country.

The decision to slash prices further underscores Dangote Refinery’s commitment to providing affordable fuel to consumers.

Anthony Chiejina, the Head of Communication at Dangote Petroleum Refinery, announced the development.

He revealed that the new prices are part of a strategic partnership with MRS Oil and Gas stations to ensure accessibility and affordability of fuel across all major locations, including Lagos and Maiduguri.

The refinery’s management expressed optimism that the price reduction would significantly ease the financial burden on consumers, particularly amid rising inflation and energy costs.

They also hinted at extending the partnership to other major oil marketers to ensure uniform pricing and prevent retail buyers from purchasing fuel at exorbitant prices.

This marks the third major reduction in diesel prices in less than three weeks, signaling Dangote Refinery’s proactive approach to addressing economic challenges.

The move has garnered praise from various quarters, with Nigerian President Bola Tinubu commending the refinery for its efforts to support the economy.

Industry experts, including Ajayi Kadiri, the Director General of the Manufacturers Association of Nigeria, lauded the refinery’s initiative, highlighting its potential to stimulate economic activities across critical sectors such as industrial operations, transportation, logistics, and agriculture.

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First Bank of Nigeria Appoints Olusegun Alebiosu as Acting CEO Following Resignation of Dr. Adesola Adeduntan

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Olusegun Alebiosu

First Bank of Nigeria Limited, a subsidiary of FBN Holdings PLC, has announced the appointment of Mr. Olusegun Alebiosu as its Acting Chief Executive Officer (CEO).

This decision comes in the wake of the resignation of Dr. Adesola Adeduntan, who has led the bank for the past nine years.

The appointment, which takes immediate effect, is subject to the approval of the Central Bank of Nigeria (CBN), reflecting the bank’s commitment to regulatory compliance and governance standards.

Mr. Alebiosu, a seasoned banking professional with over three decades of experience, is well-prepared to take on the responsibilities of leading First Bank Nigeria during this transition period.

Having served as the Executive Director and Chief Risk Officer, he played a pivotal role in the transformation and growth of the institution over the past eight years.

His extensive experience spans various aspects of the banking and financial services industry, including credit risk management, financial planning, corporate and commercial banking, and project financing.

Before joining First Bank Nigeria in 2016, Mr. Alebiosu held key positions in renowned financial institutions such as Coronation Merchant Bank Limited and the African Development Bank Group.

Expressing gratitude for Dr. Adeduntan’s exemplary leadership, the Board of Directors acknowledged his significant contributions to the bank’s growth and success during his tenure.

Dr. Adeduntan’s departure marks the end of an era characterized by remarkable achievements and milestones for First Bank Nigeria.

As Acting CEO, Mr. Alebiosu is poised to build upon the bank’s legacy and steer it towards continued growth and profitability. With a strong focus on strategic objectives, he aims to uphold First Bank Nigeria’s reputation as a leading financial institution in Nigeria and beyond.

In his new role, Mr. Alebiosu will work closely with the Board of Directors and management team to ensure seamless operations and uphold the bank’s commitment to delivering exceptional services to its customers.

As the banking industry undergoes rapid transformation and evolving regulatory landscape, First Bank Nigeria remains committed to maintaining its position as a trusted financial partner for individuals and businesses across the country.

With Mr. Alebiosu at the helm, the bank looks forward to a new chapter of innovation, resilience, and sustainable growth.

The appointment of Mr. Olusegun Alebiosu underscores First Bank Nigeria’s commitment to continuity and stability amidst leadership changes, signaling confidence in his ability to lead the bank through its next phase of growth and development.

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