NPA Says Need to Have Strong Legal Framework Cause of Delay In Port Concession Agreement Renewal Terminal Operators
Dantsoho, MD, NPA
By Francis Ugwoke
The Nigerian Ports Authority (NPA) has explained that the delay in the renewal of some port concession agreement is as a result of the determination to have a strong legal framework guiding the process.
The Managing Director of the NPA, Dr Abubakar Danthoso, said the federal government is making strong efforts to ensure strong legal framework with the concessionaires.
The MD who spoke through the General Manager, Corporate and Strategic Communications, Mr Ikechukwu Onyemakara of NPA, at a public function in Lagos, said such legal framework would be able to promote investors’ confidence.
According to him, the government wants to ensure that any structural issue in existing agreements is corrected before approval for renewals is given.
He said that some concerns have been raised by the concessionaires, but added that a flawed agreement was more harmful than anyone delayed.
He said, “the end justifies the means. It is better to get it right than to rush into agreements that will be challenged later.”
The MD disclosed that both the NPA and terminal operators had pointed out concerns in respect of unmet obligations that need to be addressed, stating that investors were in favour of clarity and legal certainty instead of speed.
Dantosoho said, “No investor will put money where the legal framework is weak. What matters is the quality of the agreement, not how fast it is signed”.
He expressed optimism that the review when well carried out will attract new investors in case the existing terminal operators decide not to continue.
It would be recalled that some terminal operators are yet to have their concession agreement renewed for some years now.
However, the affected terminal operators enjoy annual temporary renewal from the federal government to remain in business.
The Nigerian Ports Authority (NPA) has explained that the delay in the renewal of some port concession agreement is as a result of the determination to have a strong legal framework guiding the process.
The Managing Director of the NPA, Dr Abubakar Danthoso, said the federal government is making strong efforts to ensure strong legal framework with the concessionaires.
The MD who spoke through the General Manager, Corporate and Strategic Communications, Mr Ikechukwu Onyemakara of NPA, at a public function in Lagos, said such legal framework would be able to promote investors’ confidence.
According to him, the government wants to ensure that any structural issue in existing agreements is corrected before approval for renewals is given.
He said that some concerns have been raised by the concessionaires, but added that a flawed agreement was more harmful than anyone delayed.
He said, “the end justifies the means. It is better to get it right than to rush into agreements that will be challenged later.”
The MD disclosed that both the NPA and terminal operators had pointed out concerns in respect of unmet obligations that need to be addressed, stating that investors were in favour of clarity and legal certainty instead of speed.
Dantosoho said, “No investor will put money where the legal framework is weak. What matters is the quality of the agreement, not how fast it is signed”.
He expressed optimism that the review when well carried out will attract new investors in case the existing terminal operators decide not to continue.
It would be recalled that some terminal operators are yet to have their concession agreement renewed for some years now.
However, the affected terminal operators enjoy annual temporary renewal from the federal government to remain in business.
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