BY FRONTLINE REPORTERS

The Nigerian Ports Authority (NPA) has called on the Federal Government to review the current revenue deduction policy and adopt an 80–20 sharing formula that would allow the Authority to retain a larger share of revenue generated from port operations.

The NPA Managing Director, Abubakar Dantsoho, made the call at the quarterly meeting of the Nigerian Ports Consultative Council (NPCC) in Lagos. He was represented at the meeting by the Authority’s Principal Manager, Statistics, Mrs Okenwa Igwebuike.

The meeting, themed “Simplifying Cross-Border Trade and Enhancing Ease of Doing Business at Our Ports,” brought together key stakeholders in the maritime sector.

Speaking while presenting the NPA’s 2026 Port Performance Report, Dantsoho highlighted the funding challenges confronting the Authority, particularly the impact of the Federal Government’s revenue deduction policy.

He said the Federal Government currently deducts 50 per cent of revenue generated by the Authority at source through the Central Bank of Nigeria.

“The major challenge is; there is a policy now that the federal government, from whatever revenue we are getting from the port, said they will be taking 50% of whatever we have, from source, from the central bank.”

Dantsoho therefore urged the NPCC to support the NPA in seeking a review of the arrangement.

“The Council is invited to support the Authority in engaging the federal government towards reviewing the current direct deductions from the source at an arrangement of 80-20 revenue sharing in favour of Nigerian Ports Authority,” he said.

The call followed a Ministry of Finance circular dated December 28, 2023, which directed the automatic deduction of 50 per cent of total revenue generated by self-funded government agencies for payment into the Federation Account.

Before the policy took effect, self-funded agencies could retain up to 50 per cent of their revenue to finance operational expenses.

According to the NPA, the current arrangement has placed additional pressure on its ability to fund critical port infrastructure and operations from its internally generated revenue.

The Authority is responsible for capital-intensive activities including the dredging of port channels, maintenance of quay aprons and the upgrading of port terminals.

Dantsoho said the 50 per cent deduction had also constrained the Authority’s ability to respond effectively to operational emergencies.

He further stressed the importance of developing transit cargo to landlocked neighbouring countries as part of efforts to strengthen Nigeria’s position as a regional maritime hub.

The NPA boss called for sustained collaboration among stakeholders to support the reconstruction and modernisation of the nation’s ports, noting that adequate funding remains essential to improving efficiency and competitiveness.

Responding, the President of the NPCC, Bolaji Sunmola, assured the NPA that the Council would advocate for the Authority’s position.

Sunmola noted that the NPA has numerous responsibilities in developing and maintaining port infrastructure, which require adequate and sustainable funding.

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