The Nigerian Ports Authority (NPA) has given reasons for the delay in renewing port concession agreements signed with concessionaires over a decade ago.
It insisted that a thorough review is necessary to strengthen investor confidence and avoid future disputes in the nation’s economy, especially in the maritime sector of the economy.
The Managing Director of NPA, Dr. Abubakar Dantsoho who stated this during an interactive session with maritime journalists in Lagos averred that the Federal Government is focused on correcting structural issues in existing agreements before approving renewals.
While acknowledging concerns raised by terminal operators over uncertainty, the NPA helmsman maintained that a flawed agreement would do more harm than a delayed one.
“The end justifies the means. It is better to get it right than to rush into agreements that will be challenged later,” he said.
Dantsoho noted that both the NPA and concessionaires had raised concerns over unmet obligations which must be resolved before any extension.
He maintained that investors prioritise clarity and legal certainty over speed.
“No investor will put money where the legal framework is weak. What matters is the quality of the agreement, not how fast it is signed,” he added.
Continuing, Dantsoho averred that the outcome of the review could attract new investors, especially if existing operators choose not to continue.
He enjoined operators of inland container depots (ICD) and bonded terminals must adapt to changing realities.
He warned that declining congestion may render their current business models obsolete in the years ahead.
His words: “They played their role during congestion. But business is dynamic. They must restrategise.”
