There are indications that the performance audit of the terminal operators whose concession agreements have expired will be submitted to the Federal Executive Council (FEC) before the approval for the renewal can be granted, BusinessDay has learned.
This is contrary to the insinuations that the recent ministerial directive to the Nigerian Shippers’ Council (NSC) to carry out the performance audit of the terminals will lead to starting the renewal process from the beginning.
According to a source close to the Federal Ministry of Transportation, who does not want his name mentioned, the management of the terminals needs not worry as the Minister has no intention of scuttling the process being carried by the Nigerian Ports Authority (NPA) with other government agencies.
The source further told BusinessDay that the Shippers’ Council with the support of the NPA will carry out the audit, which would be submitted seven days after the presidential election to FEC.
Transport Ministry, the source said, is not pushing to upturn the process, but rather, it is following the directive of the Federal Executive Council to carry out a performance audit on the terminal.
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He said the performance audit ordered by the minister is one of the conditions set by the Federal Executive Council for the renewal of the expired lease agreement of the terminal operators.
He added that the audit report is expected to be represented to FEC in two weeks after a clean bill of health, and the agreement will be renewed.
The terminal operators whose concession agreements have expired and are on the verge of being renewed are ENL Consortium, Ports and Cargo, Josepdam, and AMS in Warri, Delta state.
Mu’azu Jaji Sambo, the Minster of Transportation, recently spelled out conditions that must be met by respective terminal operators before their expired port concession agreements will be renewed.
Sambo said terminals seeking renewal of ports concession agreements must show satisfactory evidence of performance in terms of fulfilling the agreements, meeting key performance indicators and other obligations incumbent upon them.
