The Nigerian Ports Authority (NPA) has announced a revenue of N67.19 billion for the three months that ended March 31, 2019. This represents 24.8 per cent of the N270.56 billion earned in 12 months ending December 31, 2018.
The agency’s financial profile (unaudited) showing revenue and remittances to the Consolidated Revenue Fund (CRF) revealed that the NPA raked in the amount via operating revenue while other revenue and investment income, which form a bulk of its revenue, are yet to be available for the period under review.
Also, analysis of the agency’s six years revenue and remittances to CRF between 2013 and 2018 showed a quantum leap in revenue and remittances despite the downturn in ship and cargo traffic as a result of certain federal government’s policies that are discouraging importation.
The financial results showed that the NPA recorded consistent growth in revenue and remittances in the last three years compared to what was obtainable in the past.
A breakdown of the six years revenue and remittances showed that the NPA recorded a revenue of N157.31 billion in 2013. Of the 2013 revenue, it made N137.9 billion through operating revenue and N15.08 billion, N1.24 billion from other revenue and investment income respectively. However, it remitted N13.17 billion.
In 2014, the agency recorded a total revenue of N172.8 billion, N149.7 from operating revenue and N22.4 billion and N636.5 million from other revenue and investment income respectively. However, its remittance for the year improved by a little over N4 billion as it remitted N18.56 billion.
In the year 2015, the agencies revenue improved by N4.4 billion as it recorded revenue of N177.2 billion compared to N172.8 billion the previous year. However, its remittance for 2015 declined by N130 million as it remitted N18.43 billion as against N18.56 billion in 2014.
In 2016, the NPA’s revenue jumped by N5.1 billion as it recorded a revenue of N182.42 billion compared with N177.26 billion in 2015.
The agency’s remittance for the year 2016 also jumped by N5.4 billion as it remitted a total of N23.87 billion as against N18.43 billion the previous year.
In 2017, the authority’s revenue went up by a massive N83.2 billion as it raked in N265.6 billion for the year ended December 31, 2017 as against N182.4 billion in 2016. The NPA recorded the highest remittance in its history in 2017, remitting N30.31 billion. This showed a N6.44 billion increase over the N23.87 it remitted in 2016.
The revenue growth trajectory continued in 2018 with historic revenue of N270.56 billion, almost twice its 2013 revenue, and N4.9 billion increase over its 2017 revenue. However, its remittance to the CRF declined by N5.6 billion as it remitted a total of N24.65 billion compared with N30.3 billion paid in 2017.
Further findings revealed that the NPA might not be able to continue to generate increased revenue in the years ahead owing to government policies that are discouraging importation.
Also, the federal government automotive policy that saw a massive increase in used car tariff in the last two years has impacted negatively on importation.
During the 2019 budget defence before the House of Representatives Committee on Ports, Harbours and Waterways, recently the Managing Director, Nigerian Ports Authority (NPA), Ms. Hadiza Bala-Usman admitted that government policies are affecting the revenue of the authority.
According to her, “We have noted a reduction in traffic coming into our ports. We attribute this to the fact that Nigeria has been advocating self-sustenance in terms of manufacturing and consuming what it produces.
“And so, this attendant reduction in cargo, in our understanding, is attributable to that because some of the items that constitute this drop include for example, the automobile policy, which had increased the cost of importation of automobiles from 30 to 70 per cent in order to stimulate manufacturing in Nigeria. So, there is steep decline in the importation of vehicles.
“We also have an additional list of items that have been banned from importation. This is to try to stimulate production of certain items in the country and ensuring that most agricultural produce are produced and consumed in Nigeria.
“So, you can see the number of ocean-going vessels reducing. The agencies that work around revenue generation for importation of cargo will be seen not to have performed.”