THE Nigerian Ports Authority (NPA) has cleared the controversy surrounding the grant of rent waivers to consignees at the ports, even as the terminal operators cited challenges faced in the refund process.
For several weeks the clearing agents have continued to lament delay in the refund of rent waivers by terminal operators.
Managing Director, Nigerian Ports Authority (NPA), Hadiza Bala Usman during the 14th yearly Business Law e-conference, explained that the waivers was meant to cushion the effect of the lockdown occasioned by the COVID-19 on the consignees.
She said the government would refund the terminal operators by way of credit note equating to the exact amount involved.
“We at the Nigerian Ports felt the need to provide the rent waiver, recognising that it has an effect on the turnaround time of vessel. One of the things that we sought to do is to provide consignees with the cushion during the lockdown which make it difficult to evacuate cargo.
“For each waiver that is given for rent free, we (NPA) are giving the terminal operator a credit note for that portion. So, if you now give N10 million of rent fee for the period. NPA is refunding you N10 million in form of credit. It is the federal government that is losing that amount of money that it could have earned from your operations for that period.
“You gave a waiver for N10 million and government has reimbursed your N10 million. As terminal operator, you don’t lose anything, what you could lose is the efficiency in the operation of your port, the turnaround time of your vessels and need for enhanced evacuation of cargo,” she explained.
Legal Adviser to APMT, Nonso Azih, said that the terminal operator complied with the directive, although he agreed that there were some hitches to the process.
“The only challenge that was encountered is that virtually all the ports operators run on automated system and so switching and adjusting the invoices to reflect with the new waiver was difficult.
“However I can tell you that essentially that waiver that was extended to the importers and consignees didn’t have any remarkable improvement in evacuation of cargo, I may not blame the importers because they have to factor in the perennial traffic in Apapa,” he said.
He explained further that: “The success that was achieved by terminal operators post concession in vessel turn around went down even as a low as 48 hours, but in last couple of months it has gone up again because there are many vessels waiting at the anchorage, waiting for a free berth. Essentially, the waiver is something that we complied with, it is something that will help boost the economy before you know it we should be able to go back to what life before this unfortunate pandemic,” he said.
Meanwhile, the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) has called on the Federal Government to take decisive action on the delay in refund of the demurrage waivers by terminal operators.
Presidents, NCMDLCA, Lucky Amiwero in a petition to the Nigerian Ports Authority (NPA) made available to SlyNews alleged that the terminal operators are yet to refund the demurrage waivers as directed by the presidency during the heat of the coronavirus lockdown.
Amiwero, however stressed the need to set up Federal Government committee with the customs agents to pursue the refund and collect the entire money on behalf of the agents.
“The joint committee will collect and refund all total money collected to the importers/ Licensed Customs Agents (LCA) that falls under 23rd March 2020 for 35 days, that is the day of the lockdown” he said.
The waiver was provided as an incentive to consignees to encourage clearance during the lockdown for a period of 35 days from 23rd of March 2020.
