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Why NPA generated $1b from joint venture in 15 years

The Nigerian Ports Authority (NPA) has generated over $1 billion from the 15- year-Joint Venture (JV) agreement it signed with Depasa Marine International Limited. The revenue generated, findings have shown, was derived by the NPA between 2005 and last year from the collection of ship dues in Lagos Port Complex (LPC) and the Tin-Can Island ports in Lagos. NPA entered into the JV with Depasa in June 2005 to boost its earnings.

Managing Director of NPA, Ms Hadiza Bala-Usman, it was gathered, is the Chairman of the company by virtue of her position and the provisions of the agreement it signed. NPA, investigation shew, holds 60 per cent equity participation in the JV Company named Lagos Channel Management Limited (LCM). LCM is responsible for the managing and maintaining the Lagos Channel. The amount, investigation has shown, is outside the yearly 5.5 per cent anticipated increase in vessels flow as projected by Haskoning’s Forecast of May 30, 2002. The agreement, it was learnt, was entered into, to enable NPA provides a highly efficient, reliable and cost-effective management and project implementation operators, to ensure that NPA meets and exceeds its daily commitments, as legally required, for the maintenance of channel depths and navigational aids in the ports and access channels.