There is anxiety for Nigeria’s tottering economy as labor unions threaten total shutdown of Nigerian port over 50% IGR deduction. The Explainer can authoritatively report that the planned 50 percent deduction in the Nigerian Port Authority (NPA) Internally Generated Revenue (IGR) by the Federal Government has received strong condemnation. Stakeholders, which have condemned the move include; the Senior Staff Association of Statutory Corporations and Government Owned Companies (SSASCGOC), Maritime Branch and Maritime Workers’ Union of Nigeria (MWUN).
The two house unions at a joint press conference in Lagos , argued that automatic deduction of 50% of its internally generated revenue would leave NPA financially incapacitated to discharge its responsibilities. The objections from the unions followed a circular from the Federal Ministry of Finance, charging an automatic deduction of 50% from NPA’s internally generated revenue.
“A 50% deduction of NPA internally generated revenue will impede the attainment of this lofty dream. Discharge of Corporate Social Responsibilities: Nigerian Ports Authority operates in a hostile environment, especially in the Eastern axis (Niger Delta),” the unions noted.
They recommended 30% IGR deduction whilst 70% should be allowed for the NPA to use for overhead costs and statutory responsibilities.
“Failure of which the Union would have no other option than to withdraw the services of its members from all Ports formations nationwide.”
Similarly, the President of SSASCGOC, Akinola Bodunde, and President General of MWUN, Comrade Adewale Adeyanju warned that failure to rescind the decision would lead to workers’ withdrawal and total shutdown of the port.
The duo also disclosed that all the infrastructures at the ports, jetties, and terminals are in decrepit position, waiting for urgent repairs.
Parts of the statement read:
“We have carefully studied this circular especially as it relates/affects the Nigerian Ports Authority and hastened to express our displeasure over the same on the following grounds. Nigerian Ports Authority (NPA) is a self-funded Government Agency which receives zero allocation from the Government budget and taking a chunk of 50% of its internally generated revenue will as a matter of fact stall or impede the effective discharge of its corporate responsibilities and the consequential effect of this will not be palatable.
“Few of such corporate duties include; Constant Dredging of our Port Channels: Our channels are probably the shallowest in the West Africa Sub region, especially the Eastern Ports channels. They require constant dredging without which vessels cannot berth.
“Dredging of the Ports channels requires huge financial outlay. This will be pretty difficult to achieve when 50% of its internally generated revenue is removed. The resultant effect will lead to ship owners diverting their vessels to our neighbouring countries where ease of doing business is provided.
“Regular maintenance of our Quay Aprons: Almost all the Ports Quay Aprons are in bad shape due to old age and they therefore constitute grave danger not only to men but also to equipment. We had at one time or the other expressed fear over the dilapidated condition of our Ports Quay Aprons.
“Maintaining and sustaining healthy Quay Aprons is capital intensive and if our Quay Aprons are this bad now, one can only imagine what the situation would look like when NPA is denied 50% of its revenue.
“We need to be proactive as our neighbouring countries are very ready to capitalise on our inability to provide the required infrastructure to attract ship owners. Maintenance of Ports, Jetties and Terminals: Maintenance of Ports, Jetties and Terminals is also capital intensive.
“Presently all the infrastructures in our Ports, Jetties and Terminals are in decrepit position, yawning for urgent repairs. How would they then look like when the Authority is denied 50% of its internally generated revenue?
“Flowing from the above, we hereby reiterate our objection to the circular as it relates to the Nigerian Ports Authority.”
