- Report: Customs Responsible for 82% of Charges at Nigerian Ports
A study by Nigeria’s leading accounting firm, Akintola Williams Deloitte, has blamed the high cost of doing business at the nation’s seaports on the Nigeria Customs Service (NCS) and other government agencies, claiming that customs processes are responsible for not less than 82.1 per cent of the charges incurred by consignees.
This assertion was contained an industry report titled: ‘Public Private Partnership (PPP) as an anchor for diversifying the Nigeria economy: Lagos Container Terminals Concession as a Case Study’ which it published and a copy was obtained at the weekend.
Akintola Williams Deloitte stated that its value chain analysis of a 20-foot container laden with cargo worth N44.42million ($100,000) imported into Nigeria from China, revealed that about N6.5million would be required to clear and transport the container out of the port.
It said of this amount, about N5.3million (representing 82.1 per cent) is paid to the NCS as import duty, Comprehensive Import Supervision Scheme (CISS), ECOWAS Trade Liberalisation Scheme (ETLS), Port Development Surcharge and Value Added Tax (VAT).
The firm further stated that other actors in the value chain include shipping companies, Nigerian Ports Authority (NPA), terminal operators, clearing companies and haulage services providers.
It said shipping companies are responsible for 13.8 per cent of the port cost (N897,000); terminal operators 1.8 per cent (N117,000); customs 82.1 per cent (N5.3million); transporters 1.1 per cent (N71,500) and clearing agents (N78,000).
According to the report, “The value chain of a typical container terminal operations begins with the shipment of the goods through a shipping line to the host country. The consignee pays the freight charges for the shipping as well as the container deposit fees. Demurrage charges may apply where the consignee fails to return the containers on time.
“Upon arrival of the container at the Nigeria port, the consignees pays terminal handling charges, storage charges, delivery charges and customs examination charges to the terminal operators. In addition, the consignees also pay the relevant customs import duty.
“Consignees pay for logistics services to get the goods out of the terminal.
“Consignees pay for the services of the clearing agents (where applicable). Large companies are directly responsible for clearing their goods.”
Notwithstanding their huge investment and meager earnings, the report stated that terminal operators bear the burden of most of the challenges at the port.
“Terminal operators face huge challenges in the area of storage as the terminals are used as “cheap storage warehouse alternatives” by cargo owners.
“The current policy provides for a free three days storage after which a charge of N900 is applied per day and regulated by the NPA. Importers take advantage of the low storage charges offered by the terminal operators to store their imported goods at the terminal as opposed to a site warehousing facilities that charge as much as N60,000 per day,” the report stated.
The report further stated that before the port reform and concession of 2006, the Nigerian port system faced major challenges which made it highly inefficient. “The average ship waiting time before berthing was 21 days, vessel turnaround time was 5 days while dwell time for cargo was as high as over 30 days. The ports had poor infrastructure (roads, rail, quay, buildings, equipment, and yard) and were heavily congested leading to insecurity and pilferage, delays in cargo clearance and inefficiencies in cargo handling largely due to manual processes.
“As a result of the challenges, the federal government of Nigeria in 2006, concessioned the ports to 25 terminals operators over a 25-year license period.
“The primary aim of the port concession agreement was to eradicate the poor state of the ports, increase capacity
and promote economic growth and development via the Nigerian ports.
“The federal government adopted the Land Lord model for port operations which gave exclusive rights to the terminal operators (“the concessionaires”) to operate, maintain and carry out investments on port facilities, within designated terminals while the NPA retains ownership of the terminals.
“The “Land Lord” model reduces the financial burden on the federal government as the terminal operators are responsible for both infrastructure development and annual concession fees in the form of lease fees and throughput fees.
“The tenure of the Nigerian concession agreements ranged from 15 to 25 years and the estimated revenue to government from the concession agreement is estimated at $6.54 billion over the period,” the report further stated.
It said as a direct impact of investments by terminal operators, the ports have witnessed increased ship traffic and throughput which has led to a 400 per cent rise in container throughput from 400,000 TEUs in 2006 to 1.6 million TEUs in 2014. “The investments have also led to the eradication of ship waiting time at the container terminals, as ships now berth on arrival. Vessel turnaround time has been reduced to from 5 days to 41 hours while average dwell time for cargo clearance went from over 30 days to just 14 days.
“In addition, due to improved security and lighting of the terminals, the ports now run a 24 hours and 7 days a week operations. This has been made possible by the investments and transformations made at the ports by the terminal operators,” it stated.
The Akintola Williams Deloitte port industry report added that port concession saves Nigerian importers and exporters about $800million (N244 billion) annually which was hitherto paid to shipping companies as congestion surcharge.
USAID/Power Africa Announces $2.6m in Healthcare Electrification Grants to Solar Energy Companies in Nine Countries in Sub-Saharan Africa
Power Africa, through the United States Agency for International Development (USAID), announces grants totaling $2,620,650 to solar energy companies to provide reliable, affordable off-grid electricity to nearly 300 healthcare facilities in sub-Saharan Africa.
Nearly 60 percent of all healthcare facilities in sub-Saharan Africa have no access to electricity, and of those that do, only 34 percent of hospitals and 28 percent of health clinics have reliable, 24-hour access. Energy is critical for powering essential devices, medical and sterilization equipment, diagnostics, cold storage for vaccines and medication, information technology, and lights to enable the delivery of continuous health care services. Efficient health services and responses to diseases – including COVID-19 – depend on reliable access to electricity.
In support of the accelerated provision of off-grid solar energy to healthcare facilities in sub-Saharan Africa, Power Africa is awarding grants to the following solar energy companies:
- Havenhill Synergy Ltd. (Nigeria)
- KYA-Energy Group (Togo)
- Muhanya Solar Ltd. (Zambia)
- Nanoé (Madagascar)
- OffGridBox (Rwanda)
- OnePower (Lesotho)
- PEG Solar (Ghana)
- SolarWorks! (Mozambique)
- Zuwa Energy (Malawi)
These companies will utilize Power Africa funding to provide off-grid solar electricity solutions to 288 healthcare facilities across the nine countries represented.
“Solar energy holds great potential to expand and improve health care delivery in sub-Saharan Africa, and off-grid solar technology offers a clean, affordable, and smart solution to electrify healthcare facilities located beyond the reach of national electricity grids,” said Mark Carrato, Power Africa Acting Coordinator. “Power Africa’s experience shows that off-grid solar energy systems can be rapidly deployed to even the most rural facilities.”
“These awards demonstrate what we can accomplish when the public and private sectors join together to break down the barriers to reliable electricity for rural healthcare facilities,” said Chris Milligan, Counselor to USAID, on September 22, 2020 during a virtual event announcing the grant awardees.
ABOUT THE GRANTEES AND HOW THEY WILL POWER HEALTHCARE IN RURAL COMMUNITIES
Havenhill Synergy will electrify 21 rural healthcare facilities in Oyo State, Nigeria, using an energy-as-a-service business model. The facilities are mostly within peri-urban communities with limited reliable electricity access. Havenhill will provide long-term operation and maintenance of the solar energy systems.
KYA-Energy Group will electrify 20 health centers in Togo. In addition to electricity access, KYA will provide automated solar hand washing stations for infection prevention and solar phone charging stations for generating additional income.
In partnership with the Churches Health Association of Zambia, Muhanya Solar Ltd. will provide electricity access to seven rural health facilities in Zambia. Muhanya will also electrify staff housing to generate revenue for the operation and maintenance of the solar systems installed at the health facilities.
Nanoé will electrify 35 rural health facilities in the Ambanja and Ambilobe districts of Madagascar. The company will deploy nano-grids with the health facilities as anchors and connections running to staff housing. Electricity will be sold to the surrounding communities to generate income for the operation and maintenance of the nano-grids.
With their containerized solution, OffGridBox will provide renewable energy and clean water to six rural clinics in Rwanda. The company will also set up a pay-as-you-go (PAYGO) business model, selling electricity and clean water to the surrounding communities.
OnePower will electrify seven rural health facilities in Lesotho, using the facilities as anchor loads for mini-grids. In addition to powering the health facilities, the mini-grids will provide electricity access for rural communities served by the facilities.
PEG Solar will provide electricity access to 91 rural community healthcare facilities in Ghana. PEG will adopt a private sector approach to energy service delivery for public health facilities, enabling rapid electrification of the facilities while significantly reducing the upfront financial burden of transitioning to solar energy.
SolarWorks! will electrify 92 rural healthcare facilities in Mozambique’s Sofala province. To ensure sustainability of the systems beyond the grant implementation period, SolarWorks! will cover operational and maintenance costs of the solar energy systems for five years.
Zuwa Energy will install solar energy solutions in nine health facilities in Malawi. Electricity access will enable the facilities to provide higher-quality health services throughout the day and more comprehensive services at night. Additionally, Zuwa will electrify staff housing with the aim to increase staff wellbeing and retention rates.
“Through these grants, USAID is investing in a set of pilot projects that demonstrate how healthcare electrification can be delivered in a commercially sustainable manner, with strong private sector involvement,” said David Stonehill, the Lead for Power Africa’s Beyond the Grid initiative. “These grants demonstrate the Power Africa model in action: We use a modest amount of public funding to de-risk transactions, thus opening the door for private investment.”
Market Cap of Five Largest Hotel Chains Decline by $25.2bn Amid Coronavirus Crisis
World`s Five Largest Hotel Chains Lost $25.2bn in Market Cap Amid Coronavirus Crisis
The coronavirus outbreak has affected every sector across the globe, but the hotel industry is among the hardest hit. Although hotels implemented increased safety and sanitation measures and cautiously reopened for the summer travel season, recovery to pre-COVID-19 levels could take years.
According to data presented by Stock Apps, the combined market capitalization of Wyndham Hotels and Resorts, Choice Hotels International, Marriott International, Intercontinental Hotels Group, and Hilton Worldwide Holdings, as the five largest hotel chains in the world, hit $79.2bn in September, a $25.2bn plunge since the beginning of 2020.
Marriot International Witnessed the Biggest Market Cap Drop in 2020
To curb the spread of the virus, countries across the world have imposed lockdown rules, leading to thousands of canceled vacations, and closed hotels between March and May. Although many of them lifted off travel restrictions in the last three months, the first two quarters of the year produced colossal revenue and market cap drops to the largest hotel chains globally.
The market cap of Wyndham Worldwide, the biggest hotel chain in the world by the number of hotels, stood at $5.89bn in December, revealed the Yahoo Finance data. By the end of March, this figure dropped to $2.93bn. Although the second and third quarter of 2020 brought a recovery, the combined value of stocks of the U.S. corporation, which owns 8,092 hotels, stood at over $5bn in September, an $870 million plunge since the beginning of the year.
The second-largest hotel chain globally, Choice Hotels International, lost $440 million in market capitalization amid the coronavirus crisis. In December 2019, the total value of stocks of the company that owns 7,118 properties amounted to $5.76bn. During the last nine months, this figure dropped to $5.32bn.
However, statistics indicate that Marriot International, the third-largest hotel chain with 5,974 hotels in more than 110 countries, witnessed the most significant drop in market capitalization since the beginning of the year. In December, the combined value of stocks of the Washington-based corporation stood at $49.51bn. By the end of the second quarter, it halved to $24.25bn. Although the company’s market cap recovered to $33.86bn in September, this figure still represents a 31% plunge since the beginning of 2020.
Intercontinental and Hilton Lost $8.3bn in Total Stock Value
Intercontinental Hotels Group ranked as the fourth largest hotel chain globally, with 5,070 hotels across nearly 100 countries. Statistics indicate the market capitalization of the British multinational hospitality company amounted to $12.3bn in December 2019. After falling to $6.2bn in March, it rose to $9.7bn in September, a 21% plunge amid the coronavirus crisis.
The total value of Hilton Worldwide Holdings stocks, the fifth-largest chain of hotels globally, dropped by $5.66bn since the beginning of 2020. In December, the market cap of the hotel group that generated around $9.45bn in revenue last year stood at $30.94bn. After a sharp drop caused by the Black Monday crash, it recovered to $25.28bn in September. Nevertheless, the figure represents an 18% fall since the beginning of the year. Statistics show two hotel groups lost $8.3bn in combined market capitalization amid the coronavirus crisis.
Premier League Brand Value Hit €8.5bn, Bigger than La Liga and Bundesliga Combined
Brand Value: Premier League Worth €8.5bn, More than La Liga and Bundesliga Combined
The revenues of the big five European football leagues have soared in the last twenty years, reaching €17bn in the season 2018/2019. However, English Premier League convincingly tops the list of professional football competitions in Europe, both in terms of profit and brand value.
According to data presented by Safe Betting, Premier League hit €8.5bn in brand value in 2020, 19% more than La Liga and Bundesliga combined.
€1.5 bn Higher Revenue than Other Top Football Leagues
Besides leading in brand value, the Premier League also generates the highest revenue of all the European football leagues and has the highest operating profit. Although the coronavirus outbreak caused a massive financial hit to England’s top division teams, Premier League clubs are still expected to generate at least €1.5 bn more than their counterparts in Germany and Spain, revealed the Deloitte Annual Review of Football Finance 2020.
The reason for that is broadcasting rights. Statistics indicate the Premier League clubs are set to reach €2.4 bn in revenue from broadcasting rights this season. Commercial revenues are forecast to hit €1.7bn value in 2020, a €139 million increase year-on-year. Matchday profits follow with €614 million in revenue this season.
Manchester United tops the list of the professional football clubs in England, with over €1.3bn in brand value in 2020, revealed the Brand Finance Football 50 – 2020 survey. Statistics show the club generated €627 million in revenue last year, while its wage costs amounted to €352 million. The 2019 Global Sports Salaries Survey also revealed that Manchester United’s first-team players earned an average of €6.8 million last season, ranking as the second leading football club in Premier League and seventh globally.
Liverpool FC hit over €1.2bn brand value this year, the second-largest among all Premier League clubs. Deloitte’s Annual Review of Football Finance 2020 showed the club generated €533 million in revenue in season 2019/2020, while its first-team members earned an average of €6.1 million last year. Liverpool also represents the second most-expensive football team globally, with €1.02bn in the combined market value of its 30 players.
Manchester City ranked as the third most valuable football brand in England, with over €1.1bn in brand value in 2020. However, statistics show the club, which generated €538 million in revenue last season, tops the list of the highest-priced football teams in 2020, with €1.04bn in the combined market value of its 31 players. In the 2019/2020 season, Manchester City had an average annual first-team member salary of €7.7 million, the highest among all Premier League clubs.
La Liga Has the Most Valuable Football Club Brands
Although La Liga ranked as the second leading European football league with almost €4bn in brand value in 2020, statistics show the two top Spanish clubs represent the most valuable football brands globally.
Real Madrid and FC Barcelona both hit over €1.4bn in brand value this year, accounting for 70% of the total brand value of the highest-leveled Spanish football league.
Statistics show the first-team players of Real Madrid, the world’s largest football brand, earned an average of €9.45 million this season. At the same time, their combined market value hit €930.3 million, ranking them as the fifth most-expensive football team in the world.
FC Barcelona, the second most valuable football brand in the world, tops the list of European football clubs with a €10.4 million average annual player salary in the season 2019/2020. The club’s players also represent the third most expensive football team globally, with €1bn in their combined market value. Moreover, the Spanish football giant hit a record revenue of €813.3 million in the season 2018/2019 and ranked as the biggest cash-generating football club for the first time.
With €3.2bn in brand value or 2.6 times less than Premier League, Bundesliga ranked as the third most valuable European football league. The leading German football club and the sixth globally, FC Bayern München, accounts for one-third of that figure, with over €1bn in brand value this year.
Italy’s Serie A and French Ligue 1 follow, with 1.8bn and 1.2bn in brand value, respectively.
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