The nation’s seaports may be shut by the Maritime Workers
Union of Nigeria (MWUN), over the rejection of the plans by the Federal
Government to slash internally generated revenue (IGR) from Federal
Government-Owned Enterprises (FGOE), including the Nigerian Ports Authority
(NPA) by 50 per cent.
The Senior Staff Association of Statutory Corporations and
Government-Owned Companies Branch (SSASCGOC) and MWUN issued a stern warning
yesterday, that the NPA would be affected if the government proceeds with its
policy.
Speaking at a joint press briefing held yesterday, the
President of SSASCGOC, Comrade Akinola Bodunde, and President-General of MWUN,
Comrade Adewale Adeyanju, said their displeasure with a directive issued by the
Federal Ministry of Finance in a circular Ref FMFCME/OTHERS/IGR/CFR/21/2023
dated December 28, 2023, which was addressed to all Federal Ministries,
Departments, and Agencies/Parastatals on the automatic deduction of 50 per cent
from their IGR.
Speaking on behalf of the unions, Bodunde expressed
displeasure and frustration over the potential consequences of the plan.
He said the 50 per cent deduction would lead to financial
strain and operational disruption, particularly for the NPA.
The unionist said with the NPA being a self-funded entity
reliant on its IGR, a 50 per cent reduction would spell disaster for its
operational capabilities.
He said activities
vital to maritime operations such as dredging port channels and maintaining
infrastructure, would be severely compromised, leading to potential disruptions
in vessel traffic and port activities.
The union leader said the proposed deduction poses a
significant threat to workforce development and corporate social responsibility
initiatives.
In his address, Adeyanju said a well-trained workforce is
essential for efficient port operations, explaining that the reduction in
revenue would hinder investment in employee training and welfare.
He said: “Our attention has been drawn to the Federal
Ministry of Finance’s circular Ref FMFCME/OTHERS/IGR/CFR/21/2023 dated December
28, 2023, addressed to all Federal Ministries, Departments, and Agencies/Parastatals
on the automatic deduction of 50per cent from internally generated revenue.
“We have carefully studied this circular, especially as it
relates to or affects the Nigerian Ports Authority, and hasten to express our
displeasure over the same on the following grounds:.
“NPA is a self-funded government agency that receives zero
allocation from the government budget, and taking a chunk of 50 per cent 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.
“A 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 be easily piloted to berth. Dredging of
the Ports channels requires a huge financial outlay. This will be pretty
difficult to achieve when 50 per cent of NPA’s 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.
Others, according to him, include: "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 another 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 per cent 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
infrastructure in our ports, jetties, and terminals is in a decrepit position,
yawning for urgent repairs. How would they then look when the authority is
denied 50 percent of its internally generated revenue? The situation is better
imagined than described.”
On manpower development, he said, a healthy and well-trained
workforce is a prerequisite for improved productivity and efficient service
delivery. Needless to say, port operations are a specialised one that requires
a well-trained workforce to compete favourably and take the lead to become the
hub of maritime business in the West African sub-region. A 50 per cent
deduction of NPA-generated revenue will impede the attainment of this lofty
dream.
He said: "The NPA operates in a hostile environment, especially
in the Eastern axis (Niger Delta). The discharge of corporate social
responsibilities over time has immensely doused their restiveness, and this has
fostered a clement environment for the Authority and other stakeholders to
operate.
"An automatic deduction of 50 per cent of its IGR will
definitely leave the authority financially incapacitated to discharge these
responsibilities to the host community, which may lead them to resort to
unhealthy activities.
"Staff welfare issues: These are issues that require
urgent attention, failure of which usually leads to an inclement industrial
atmosphere. Automatic deduction of 50 per cent of revenue internally generated
will incapacitate the authority from prompt attendance to staff welfare
matters, which will lead to avoidable crises.
"We hereby reiterate our objection to the circular as it
relates to the NPA. We recommend that 30 per cent of the revenue internally
generated by the Authority could be automatically deducted while 70 per cent is
left for the Authority to accomplish its 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,” he
said.
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