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NPA Bans Empty Containers From Ports

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  • 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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APM Terminals in Talks with Government for Terminal Upgrade in Apapa

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APM Terminals is engaging in discussions with the government for a significant upgrade at its Apapa terminal.

Keith Svendsen, the Chief Executive Officer of APM Terminals, disclosed the company’s ambitious plans aimed at accommodating vessels with deep drafts and large ship-to-shore cranes.

The upgrade is part of APM Terminals’ long-term vision to bolster import and export opportunities in the country, create employment, and diversify local opportunities.

Svendsen emphasized the importance of fortifying existing port infrastructure, especially in Lagos, to manage increasing trade volumes effectively.

“While greenfield terminals like Lekki and later on Badagry would support economic growth in the long run, the more urgent requirement is in our view to upgrade the existing port infrastructure,” Svendsen commented.

The proposed upgrades seek to facilitate smoother operations, providing seamless connectivity through road, rail, and barge networks to mainline shipping.

Svendsen highlighted the unique position of the Apapa port in offering access to international markets for Nigerian importers and exporters, leveraging not only road but also rail and waterways, utilizing barges.

APM Terminals has been a pivotal player in Nigeria’s maritime sector for close to two decades. The company’s commitment to the nation’s economic growth is underscored by its proposed investment of over $500 million, subject to a long-term partnership with the government.

The Apapa terminal is a vital gateway for trade, handling a significant portion of Nigeria’s container traffic.

Furthermore, APM Terminals’ operations in Lagos and Onne collectively manage about half of the containers in Nigeria, demonstrating their pivotal role in the country’s logistics landscape.

The proposed upgrades signify APM Terminals’ dedication to supporting Nigeria’s economic reforms and attracting international investments.

The company has already invested over $600 million since its inception in Nigeria in 2006, directly employing approximately 2,500 Nigerians and indirectly contributing to employment for about 65,000 individuals.

“At APM Terminals, we believe strongly in the prospects for the Nigerian economy and the long-term opportunities that the current economic reforms and invitation for international investments will generate,” Svendsen affirmed.

As talks between APM Terminals and the government progress, stakeholders are optimistic about the positive impact of the proposed terminal upgrades on Nigeria’s maritime sector and overall economic development.

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Uber Rolls Out Flex Pay Feature: Daily Earnings for Nigerian Drivers

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Uber has rolled out a feature in Nigeria that promises to revolutionize the way drivers receive their earnings.

Dubbed “Flex Pay,” this innovative initiative allows Uber drivers across the country to access their earnings daily, a significant departure from the previous weekly payment system.

The announcement came during a recent media briefing led by Tope Akinwumi, Uber Nigeria’s country manager.

Akinwumi expressed the company’s commitment to supporting its drivers by introducing Flex Pay, which aims to help drivers meet their financial obligations more promptly and efficiently.

With Flex Pay, drivers now have the flexibility to access their earnings directly through their mobile wallets on a daily basis.

This move is poised to bring about a host of benefits for drivers, offering them greater financial stability and control over their finances.

In addition to the introduction of Flex Pay, Uber also unveiled a set of new features designed to enhance the driver experience on the platform.

One such feature is the ability for drivers to see upfront details about a trip request, including the destination and expected fare.

This added transparency empowers drivers to make more informed decisions about which trips to accept, ultimately improving their overall experience on the platform.

Speaking about the new features, Akinwumi emphasized Uber’s commitment to prioritizing the needs and feedback of its driver-partners.

He highlighted the company’s ongoing efforts to innovate and develop solutions that enhance the driver experience and ensure their satisfaction with the platform.

“We are constantly listening to feedback from our driver-partners and striving to provide them with the tools and support they need to succeed,” said Akinwumi.

“The introduction of Flex Pay and other new features is a testament to our commitment to empowering our driver-partners and enhancing their experience on the Uber platform.”

The implementation of Flex Pay marks a significant milestone for Uber in Nigeria, demonstrating the company’s dedication to driving positive change and innovation in the ride-hailing industry.

As drivers begin to benefit from daily earnings and increased transparency, Uber is poised to strengthen its position as a leading provider of flexible earning opportunities in the country.

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Exxon Mobil’s $1.28 Billion Asset Sale to Seplat Energy Set for Approval, Ending Two-Year Wait

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After a prolonged two-year wait, Exxon Mobil’s anticipated $1.28 billion asset sale to Seplat Energy is poised for approval by Nigeria’s oil regulator.

The deal, which has been in limbo since 2022, could finally see the light of day following recent communication from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Gbenga Komolafe, the chief of NUPRC, revealed to Reuters on Thursday that the regulatory body is on the verge of giving its consent to the transaction.

Komolafe disclosed that Exxon Mobil and Seplat Energy are scheduled to attend a pivotal meeting on Friday, during which they will discuss the final steps towards approval.

He expressed optimism, stating, “Subject to the outcome of the meeting, consent… could be given in less than two weeks from the date of the meeting.”

According to Komolafe, NUPRC will present the companies with two mutually exclusive options, the acceptance of which would pave the way for the deal’s approval.

While he didn’t delve into specifics, he emphasized that Nigerian law mandates provisions for decommissioning, host community development, and environmental remediation.

“We don’t want our nation to carry unwarranted financial burdens arising from the operations of the assets over time by the divesting entities,” Komolafe asserted, underscoring the importance of responsible asset management.

The $1.28 billion sale holds immense significance for Nigeria’s oil industry, which has faced challenges stemming from underinvestment and security concerns in recent years.

With oil majors like Shell and TotalEnergies divesting from onshore shallow water operations due to security issues, regulatory approval of the Exxon-Seplat deal could inject much-needed capital into the sector.

Analysts view the impending approval as a potential catalyst for improved oil output in Nigeria. Moreover, it could serve as a positive signal to investors, paving the way for similar deals in the future.

The regulatory clearance of Shell’s asset sale to Renaissance in January has further bolstered expectations regarding the viability of such transactions.

As Nigeria looks to revitalize its oil sector and attract investment, the imminent approval of Exxon Mobil’s asset sale to Seplat Energy marks a significant milestone, bringing an end to a prolonged period of uncertainty and setting the stage for renewed growth and stability in the country’s vital energy industry.

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