Effect Of Nigerian Ports Authority (N.P.A.) Concessioning On NIPOST: The Need For Urgent Intervention  By National Council Of Privatization [NCP]

By

Emeka Oraetoka

oramekllis@lycos.com

 

 

There is no doubt that successes have been recorded by president Olusegun Obasanjo’s led government in the area of reform-in fact, the reformist regime of President Obasanjo has greatly transformed the face of Nigeria for a better future. With the current reform of Federal Government in all sectors of the economy, government is gradually falling back to its traditional function of provision of enabling environment for business to thrive. To this end, the government is embracing the principle of Laissez-faire; hence privatization, Commercialization and Concessions of government interests in areas hitherto monopolized, from the point of view of business.

 

Just as successes have trial the reform programme of President Obasanjo led Federal Government, some teething problems have also cropped up. Experts believe that these teething problems must be solved immediately so as to restore the focus of the reform programme. The intension of Federal Government at concessioning Nigerian Ports Authority (NPA), as against privatization was borne out of the fact that National security and National image must take precedent at all time. Observers believe that government action in this regard was a welcome development.

 

Information has it that after the concession of the Ports Authority, both Nigerian ports Authority (NPA) and the concessionaire served notices on the Nigerian Postal Service (NIPOST) on the new statues of the ports. Reports have it that NPA revoked the tenancy of NIPOST at shed 6; reports also have it that the new owner of NPA informed NIPOST of the terms and conditions for the continued use of the facility on NPA’s land by NIPOST. A whopping sum of [N28, 000,000.00] Million per annum was sought by the concessionaire for five (5) years. Without prejudice to the concessionaire, they are in business to maximize profit and since they have been given the go ahead to manage the wharf, the concessionaire is at liberty to see how it can make profit so as to remain in business.

 

The current travails of Nigerian Postal Service [NIPOST] should be seen as a function of negligence on the part of Bureau of public Enterprise [BPE], on the overall national importance of NIPOST. One had expected BPE to take comprehensive inventory of Agencies in the wharf in terms of: Their National Importance, National Security and International image projection before embarking on the concession. Here, inventory of the agencies on their importance to Nigeria, would have allowed for drafting of good agreement on the concessioning.

 

Frankly speaking, Irene Chigbo led Bureau of public Enterprises [BPE], may have handled the concession of Apapa wharf poorly. As an implementation agency, BPE should have properly study the functions and powers of National Council of Privatization [NCP] which is the policy making organ of Nigeria’s privatization programme, BPE should therefore, be held responsible for any problem that may arise from the actions of the concessionaires. It is obvious that BPE completely disregarded NCP’s policy guideline in the concessioning exercise. For detail of the major functions and powers of the NCP, it could be found in: www.bpeng.org. Were it not for the negligence on the part of BPE, its legal consultant(s) should have studied the relevant legislation establishing NIPOST in shed 6 of the wharf. It should have known that as far back as 1957 when the building was erected, it was leased out to the then P & T, now NIPOST for 60 years by the Government.

 

In the process of the concession, BPE should have taken cognizance of the fact that, the NIPOST mail processing center at shed 6 in the wharf plays strategic National, Sub –regional and International roles in the processing of surface mail. Its operations cover neighbouring countries in West Africa. Only recently, the International Postal Union (IPU) recognized Nigeria as the hub of mail delivering services in West Africa, because of the laudable achievements recorded by NIPOST in Nigeria in the area of mail delivery services in recent times.

 

The proximity of NIPOST shed to the quayside makes it easy to evacuate bulky mails coming in from other parts of the world as well as those meant for outward dispatches [overseas], this also, BPE should have taken into account in the concession. The installed security gadgets at the NIPOST building and other associated instruments meant for the enhancement of its operations are supposedly to enhance strategic National security, from the point view of security check of mails on arrival to the port for onward distribution. For instance, the Tom Tharcher’s incident not long ago is a case in point. It will be recalled that NIPOST was able to intercept parcel containing gun, imported into Nigeria thorough its security setup on arrival in Nigeria. The issue of Anthrax Powder that rocked the  United States of America (USA) recently, could be replicated in Nigeria, through this entry point [wharf], should NIPOST be forced to vacate its post at the port on account of the mind bogging rent slammed on it by the concessionaires of the port.

 

Viewed also from the point that NIPOST does not carry out any commercial activity at the wharf, the demand for rent, negates the principle behind its establishment – facilitating and enhancing communication, amongst peoples and nations. As a big brother in West-African sub-region, Nigeria owes it is a duty to our land locked neighbours, and others, who rely on this facility to receive their surface mail. It is therefore; in the interest of Nigeria that NIPOST should continue its operation in the wharf undisturbed. Perhaps the most curious issue about the action of the concessionaire of the port is that there are other federal government agencies at the sea port such as Police, Customs and Excise, Immigration etc who are not encumbered by the threat of eviction or rent payment. The question here is: why exempting them?

 

Against this back drop, it is expected that NIPOST, through the Ministry of Communication, may persuasively inform the National Council of privatization [NCP], of this serious oversight on the part of Bureau of Public Enterprises [BPE], in the concessioning of Nigerian ports Authority (NPA); which has placed NIPOST in a precarious position and the urgent need for intervention. It is therefore, hoped that NCP will patriotically look at NIPOST as a vital establishment of government that should be accorded respect, in view of its strategic national importance.. NCP’s track record in this regard is worth recollecting here. This body has had cause to reverse the privatization of Aluminum Smelter Company in Aladja, Delta State, sometime ago. After BFIG had won the bid to take over Aladja, it was discovered that the strategic relevance of the plant may be jeopardized by the exercise; National Council of Privatization (NPC) revoked the agreement for Global Infrastructures Limited, which it can vouch for.

 

Who knows, enemies of the current reform effort of government might have instigated BPE to embark on this not too tidy aspect of the concessioning of NPA without taken cognizance of the strategic national importance of NIPOST in the port.

 

 

Emeka Oraetoka

Information Management Consultant

Contributed this piece from Garki-Abuja

oramekllis@lycos.com