The members of the House of Representatives committee on privatisation and commercialisation took turns yesterday to criticise the operations of a company owned by the former head of Interim National Government (ING), Ernest Shonekan, which they alleged led to loss of revenue due to the Nigerian government.

The operations of AP Moller, the lawmakers said at a meeting in Abuja with players in the port sector, also “create serious threat to security as a result of threat to strike by agents ranging from allegations of multiple charges, unnecessary delays in bookings for examination, very bad working condition, and inadequate handy equipment for 100 percent examination of containers.”

The lawmakers, including Abass Braimah, Akinloye, Nkiruka Onyejiocha, Emmanuel Adedeji, Faruk Abdullahi, and Mayor Eze, said the company’s operations constitute a breach of the 25 years concessionary agreement entered into with the federal government in 2005.

They regretted that government does not have the political will to address the situation, and accused the ministry of transport, the Infrastructure Concessionary Regulatory Commission (ICRC), the Bureau of Public Enterprises (BPE), the Nigeria Port Authority (NPA), and the Nigeria Customs Service (NCS) of shielding AP Moller from punishment, even though the country is losing money as a result of the company’s operation.

The lawmakers, who were shocked when told that Mr. Shonekan is the chairman of AP Moller and ICRC, said they will visit the company (AP Moller) to ascertain the true situation of things in a few week’s time.

It is not true

But the management of AP Moller denied the claims, insisting that it has been keeping with the provisions of the agreement.

The committee chairperson, Khadijat Bukar Abba Ibrahim, who noted that the meeting was convened to get first hand information on the matter, said it received complaints in the drop of custom duties running into billions of naira at the port terminal, including the Kirikiri lighter terminal, that depend entirely on transfers from the Moller Port of Apapa.

Ms. Ibrahim reminded the stakeholders at the meeting that the objectives of port reforms and modernisation, which culminated into the concession of port terminal operations to private operators, were basically to reduce cost of clearing goods by 50 percent of the pre-concession era and also to make the process of clearing goods at the port effective and efficient.

The transport minister, Yusuf Suleiman, told the committee that he was informed that AP Moller produces its own power for 24 hours, and that the two sitting tenants were yet to leave while government was yet to construct the roads. He added that cargo charges were done based on fluctuating rate of the dollars, noting that this may be the reason for the actions of terminal operators.

Not met expectations

Mr. Suleiman admitted that the operations of the Apapa Port had not met the expectation of government, adding that it (government) has constituted a committee to find out a way of creating one-stop-shop for goods clearing at the port.

The minister, however, assured that the ministry would ensure that the company keeps its own side of the agreement.

I.I. Suleiman and G.T. Aliu, both of whom represented the NCS, said though the service has been facing some challenges, especially in the area of accommodation since the concession agreement was reached, the operations of AP Moller had not in any way led to loss of revenue to the nation.

However, Mr. Aliu later withdrew this submission when he was confronted with statistics submitted two weeks ago to the house committee on customs and excise showing that the country has been losing revenue.

Acting director general of BPE, Bolanle Onagoruwa, regretted that there has been lack of political will on the part of government to tackle the breach of concessionary agreement by investors and to call the ports operators to order.

These, she said, may be the reason the port reforms will not be successful. She added that some companies, such as Dangote Holdings and Sunflower Ltd., have refused to move out of the port and that government appeared helpless explaining. According to her, this must have made AP Moller to unilaterally deduct some amount of money from the lease.

Ms. Onagoruwa also said that the issue of multiplicity of agencies at the port is being addressed so as to reduce the cost of doing business at the port. Aminu Diko, who represented the ICRC, which is also chaired by Mr. Shonekan, disclosed at the meeting that the organisation is carrying out its activities effectively.

The managing director of AP Moller, Martins Dirss, insisted that the company has not breached the concessionary agreement, even as he reeled out statistics on its operation. He said the company is committed to its investments and urged Nigeria to create and allow a conducive environment for investment.