The Managing Director of the Nigerian Ports Authority (NPA), Mohammed Bello-Koko, has presented a N630 billion budget proposal for the 2024 fiscal year for the approval of the House of Representatives.
Bello-Koko presented the 2024 budget estimate to the House Committee on Ports and Harbour, chaired by Hon. Nnolim Nnaji.
The breakdown of the 2024 budget presented to the Committee showed that the gross internally generated revenue for the year under review stands at N629,899,824,842.
Further breakdown of the budget showed that from the projected revenue, the sum of N217,664,655,926 is from cargo, N237,945,950,676 is from ship, N129,379,752,436 is from the concession, and N44,909,465,804 is from the administration.
The budget also indicated that the total sum of N60,499,065,482 is for personnel costs, while the sum of N54,576,198,866 is for short-term employee benefits; N5,922,866,616 is for other staff short-term employee benefits (other staff costs); and the proposed overhead costs stand at N151,534,558,861.
As encapsulated in the documents submitted to the Committee, the sources of funds include: N2.200 billion is for port lighting; N5.143 billion is for roads and crafts; N32.462 billion is for wharves; N23.168 billion is for vessels and crafts; N8 billion is for the sinking fund under the MOU (Lekki Port), N670.606 million is for plants, and N320 million is for office furniture.
The sum of N252,292,223,833 was also proposed as capital expenditure for the year 2024.
A breakdown of the capital expenditure showed that the sum of N149.992 billion is for capital dredging, N2.706 billion for an undisclosed number of generators, N5.558 billion for an unspecified area of land, N2.420 billion for an unspecified number of motor vehicles, and N2.568 billion for an unspecified number of office equipment.
However, members of the Committee who spoke during the 2024 budget defence demanded details of the N200 billion loan from Afrexim Bank and United Kingdom Export Finance (UKEF).
The lawmakers also kicked against the N8 billion proposed for software in the 2024 budget proposal submitted for the Committee’s approval.
Some of the budget lines worth N3,015,221,889 on medical expenses queried by the lawmakers showed sums of N1,260,173,337 for medical expenses (drugs), N1,005,048,552 for medical expenses (local), and N750 million for medical expenses (foreign).
Others are N2,740,369,860 for training overseas; N1,624,828,841 for other professional charges; N1,417,143,808 for software licenses; N12,264,622,288 for commission on service board revenue; N8,500,983,626 for vessel waste reception and management; N2,011,000,000 for the removal of seaweeds, waste, and floating debris along water channels; and N2,687,417,437, among others.
Bello-Koko, however, explained that the agency that the does not have any existing loans being serviced, Mr. Bello-Koko disclosed that one loan is being negotiated.
He said: “The Port Community System (PCS) in 2024 will improve port efficiency and increase business.
“Various efforts being made by the Federal Government through the Nigerian Ports Authority and the Nigerian Export Promotion Council are expected to boost revenue and improve export cargo.”
Bello-Koko further observed that part of the main thrust of the 2024 budget is the urgent need to rehabilitate, reconstruct, and modernise the dilapidated port infrastructure.
His words: “The defects of these facilities are hampering efficiency and productivity in the ports. The defects include the Quay Wall, the replacement of old gravity wails, and the rehabilitation of Escravos breakwaters.
“This is aimed at improving port efficiency and increasing cargo traffic through investment funding from the financiers, United Kingdom Export Finance (UKEF) and Afriexim.”
He assured that the projected surplus for the period is N165.57 billion, which is expected to be remitted to the Consolidated Revenue Fund account.
