10000 jobs at risk as seaport concession agreement renewal stalls
Efforts to renew the port concession of about eight seaport terminals have stalled following unsatisfactory perception of the level of investment at the various port terminals by the different companies who leased these terminals from the Nigerian Ports Authority (NPA).
The affected port terminals scattered across major Nigerian ports include those located in Apapa, Tin-Can Island, Onne, and Warri. Data obtained by the Nigerian Tribune from official documents detailing concession agreements showed that the expired concessions, which were granted to private operators for periods ranging from 10 to 25 years, covered both bulk cargo handling and container terminal operations.
Among the expired seaport lease agreements is the 15-year concession granted to ENL Consortium for the management of Apapa Terminal D, which expired in 2021. Similarly, Greenview Development Nigeria Limited saw its 15-year concession for Apapa Terminal E end in the same year. The Tin-Can Island Container Terminal Limited (Terminal B) concession, initially granted in 2006, expired back in 2016, yet operations continue amid concerns about the legal status of their activities.
Further findings showed that Five Star Logistics Limited, operators of the Tin-Can Island Port (TCIP RORO) terminal, had its 15-year concession for the terminal lapse in August 2021. Other expired concessions include Ports & Terminal Multiservices Limited, which manages TCIP Terminal E under a 15-year agreement that also expired in 2021, and Brawal Oil Services Limited, whose Onne FLT A terminal lease ended in 2016. At the Warri New Port, the lease granted to Associated Maritime Services Limited for Terminal A ended in 2021, while Intels Nigeria Limited’s concession for Onne FLT B expired over a decade ago, in 2012.
Speaking with the Nigerian Tribune on the implications of a delayed renewal of the expired seaport concession agreements, President-General of the Maritime Workers Union of Nigeria (MWUN), Comrade Adewale Adeyanju lamented that over 10,000 jobs are on the line if the agreements are not renewed.
According to the MWUN President-General, “Many of the port terminals have their lease agreement already expired, and government has been applying lip service to the renewal of these agreements.
“As I speak to you, many jobs are on the line due to the uncertainty that is surrounding these lease agreement renewals.”
It is when these agreements are renewed that jobs will be secured.
“If government terminates or refuses to renew these agreements, many workers will be out of jobs. We are talking of about 10,000 jobs here. It is important that government gives some form of clarity to the expired lease agreements by renewing them.”
Efforts to get the Ministry of Marine and Blue Economy to speak on the matter proved abortive as calls put through to the minister’s media aide, Mr. Ismaila Omipidon, were not responded to as of the time of filing in this report.
However, a source close to the ministry explained that the delay to the concession agreement has been down to the fact that government is not satisfied with the level of investment made so far at the port by the private investors operating the terminals.
“The port concession renewal has been delayed because the level of investment at the port is not what government expected by now. When you look at what is available at neighbouring ports, you will realize that our port is far behind in terms of facilities.
“Government expected more from these private investors running the ports, and that is why the lease agreements have been put aside for now till further notice,” the source told the Nigerian Tribune.
