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The Challenges Before the New NPA Boss

05 Aug 2012

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Mr Habib Abdullahi, managing Director NPA

The  nation’s shipping  industry 12 days ago, received the news of the  removal of the former  Managing Director of the Nigerian Ports Authority (NPA), Mr Omar Suleiman, with shock. He was replaced by the  authority’s former Executive Director, Finance and Administration, Mr. Habibu Abdullahi. Francis Ugwoke writes on  the task ahead of the new NPA boss.

The nation’s shipping industry was shaken  exactly 12 days  ago  with the news of  the  removal from office  of  the Managing Director of Nigerian Ports Authority (NPA), Mr. Omar Suleiman.  First, it came as a rumour before it was announced by the  Special Adviser to the President on Media,  Dr. Reuben Abati.  Suleiman was not alone as some directors  in  the Nigerian Maritime Administration and Safety Agency (NIMASA)  were also affected.  Government had  appointed  Mr. Habibu Abdullahi, who was the Executive Director, Finance and Administration in NPA as a replacement for  Suleiman.

As is usual with government, no reason was given for their removal. But a good number of industry operators felt sad about the development in NPA considering that Suleiman assumed office  about a year and six  months ago. He was appointed in December 2010, when government in a similar manner  removed the former Managing Director, Mr. Abdulsalam Mohammed. To industry stakeholders, NPA is gradually becoming NIMASA where in the past,  government  was changing the leadership  almost every year. Apart from  the concern  that jobs of individuals are abruptly brought to an end,  particularly as most of these CEOs are young people,  there is a lot of  negative implications  on the industry. It does not allow for continuity or smooth acceleration of developments  in the organisation affected. This is because it is believed that every individual has his idea different from what was met on the ground, a situation that affects progress in the industry.

However, what could be consoling is that  the present NPA boss  has been in the  system, an industry person  that is abreast of goals,  set objectives of NPA as a landlord under the  port reform system.

Omar Suleiman:
For the  period that Omar Suleiman was in NPA, there is no doubt that he  did his best. On assuming office, first, he set out to improve the welfare of the workers.  Just recently, the NPA decided to pay workers who were disengaged about 21 years ago some of their entitlements.  This showed that the former MD  was interested in the welfare of the  workers who served the organisation in the past.  He introduced a lot of training programmes for workers as a way of preparing  them to play greater roles  for the authority as a technical regulator. The only problem has been in the area of technical regulation which  will continue  to be an illusion for  any  chief executive  officer of NPA.  To industry observers, it is not that they do not know what to do, but they lack the political will  to do so. And this is because of their understanding of the body movements of the leaders at the head. Most times, their hands are tied, as a top industry operators said.

Suleiman, while in office continued  with the projects of the former Managing Director, Mr Absulsalam Mohammed. He also initiated new ones. As  former General Manager, Engineering Services in NPA, he understood  the  importance of such projects.  The projects were massive  infrastructure  rehabilitation. There  have been repairs and  maintenance of  buildings, wharves/corrosion, buoys, channels and waterways,  including buoyage system, among others.

These include the Lagos harbour moles, quay wall and apron, Apapa Dockyard Wharf 3, installation of marine fenders in Zone 1,2 and 3, and rehabilitation of the NPA headoffice.

Other capital projects embarked upon  include  rehabilitation of Port Harcourt port Road Network and Water Supply; connection of Onne Port to National Grid (33KVA) from FOT Junction to Main Gate Federal Terminal; rehabilitation of Julius Berger Terminal ‘C’ Old Port Warri ,Delta State; reconstruction of Primeter Wall Fence, Warri; dredging of Escravos-Warri-Aladja to Koko Channel in Warri Pilotage District-proposal and rehabilitation of AMS Terminal ‘B’ Old Port Warri, Delta State. There  are many of such projects that one cannot mention.  Some have been completed, while  some are ongoing. But one cannot leave out the issue of green port development plans in Akwa Ibom State  and Lagos. The target  for these projects, including the  new seaport development,  maintenance dredging,  wreck removal, among others,  is  to make Nigerian ports  the hub in the West Africa. The  efforts have been fruitful with  the rising cargo and ship  traffic.

Challenges for  Abdullahi
The  ports industry, according to  observers, welcomes the new NPA boss, Habibu Abdullahi,  with basket full of  demands. Although  government failed to say what led to the removal of Suleiman, one hopes that the new MD will not  be removed abruptly  at a time when he is on top gear to  implement  port development plans. That  is the issue.  Sometimes, CEOs of government  institutions are  removed not  for failure to perform or fraud, but  most times for  objecting to do the ‘bidding’ of some powerful people.

  That explains why some chief executives exercise caution in enforcing certain regulations that will  check some operators that are likely to plot their removal at government circles. One hopes that government will begin to allow CEOs to do the right thing  in every industry, particularly the ports industry where lack of political will  to right the wrong has  impacted negatively on the  national economy.  Stakeholders have lamented  the excesses  of some terminal operators and multinational shipping agencies to no avail. Incidentally, those  who should check them are in deep romance, a development that  inflicts huge economic  damage to Nigerians.

Ports Infrastructure  Rehabilitation
One good thing about the appointment  of the new NPA boss is the fact that he is an industry person.  Industry stakeholders expect that he will continue with  infrastructure rehabilitation. The reason is obvious.  The infrastructure has been in a state of decay  over the decades. That  explains why  the management of NPA has concentrated in  rehabilitating them since 2006 when terminal operation was handed over to the  concessionaires  as part of the reform process. The former Minister of Transport,  Yusuf Suleiman,  had complained about NPA’s shortcoming in tackling aggressively  the  infrastructure development  to support the port reform after the concessionaires  took over terminal operations in 2006. That was over two years ago, and it was from this point that the management of NPA hastened action on infrastructure  rehabilitation. So, in effect,  the new NPA boss needs to take the issue of ports  infrastructure rehabilitation seriously because it is the key to achieving efficiency at the ports.

Technical Regulation
This is one area that the NPA has been weak in achieving. But, again, the blame can be placed on  the doorsteps of  government.  However, the new boss of the NPA  should  improve the situation. He should aim to check the excesses of some terminal operators and  shipping companies that are over-billing Nigerian importers who in turn transfer the cost to the consumers.

The  Minister, Senator  Idris Umar  should be able to work with  the Presidency and the  National Assembly to have  the National Transport Commission (NTC). This will help NPA focus specifically on other statutory  functions that will  help the industry. A separate regulatory agency for the ports industry should  act  like  the Nigerian Communications  Commission (NCC). NCC hits any organisation or service provider that goes wrong, thus compelling them to do what is right at all times. It is absent in the  ports industry where the  concessionaires  and shipping companies  are not checked because the past CEOs of NPA are not obvious of the fact that many of them are  in romance with those at the corridor of power. The leadership of House Committee on Marine Transport and  its Senate counterpart should create every enabling environment to have a  regulator in the industry. It  will help  the country, and that will be  one legacy  that they should leave to Nigerians.  Their names  will be  written in  gold if they achieve this. The  new NPA MD is expected to use his industry connections  and goodwill to see that a regulator in the ports industry is in  place.

Pressure from Politicians
NPA is a very viable organisation with  close to N150bn annual budget.  This means that NPA is richer than many state governments. This has exposed the authority to many politicians, both low and higher. As CEO of NPA,  the pressure from these people  is very high. And this is what the new NPA boss must watch to save  himself of  having to face  the Economic and Financial Crime Commission (EFCC)  after leaving office.  He is expected to learn from  past experience of  those who  were there.  As a graduate of  Political Science, with Masters  Degree in Public Administration, Abdullahi is expected to be wary of politicians or highly placed individuals who will  try  to compel him to give contracts  without going through due process. Some are those  who will go to the extent of name-dropping, claiming  that  proceeds from such contracts are to be used in funding  political parties, all in a bid to  have their way. To live peacefully after leaving office, he should  as much as possible, stand up against any such coercion. Above all, he is expected to improve on the situation better than he met it.

Tags: Business, Featured, Nigeria, NPA

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