The Nigerian Ports Authority (NPA) has secured necessary approvals for a 15 percent upward review of its tariffs, marking the first increase since 1993. The Managing Director of NPA, Dr. Abubakar Dantsoho, announced the adjustment in Lagos during a stakeholders’ engagement session on Thursday.
Dantsoho stated that the tariff increment was necessary to enhance port infrastructure and equipment, ensuring Nigerian ports remain competitive globally. He emphasized that port authorities worldwide depend on revenue from operations to fulfill their responsibilities, and Nigeria must modernize its ports to regain lost business.
Economic Implications of the Tariff Increase
While the NPA justifies the hike as a critical move for modernization, industry stakeholders have raised concerns about its potential impact on the cost of doing business.
- Mr. Ukochukwu Nnadi, Head of Shipping and Terminals at the National Association of Government Approved Freight Forwarders (NAGAFF), warned that the increase would eventually be transferred to consumers, leading to higher prices of commodities.
- Mr. Riwane Amuni, National Protocol Officer of the Association of Nigerian Licensed Customs Agents (ANLCA), acknowledged that although the increase was overdue, it would still add to the financial burden on businesses and the general public.
- Joshua Asanga, a stakeholder at the event, supported the increment, citing the rising costs of wages, fuel, and maintenance over the last three decades, which have outpaced NPA charges.
NPA’s Clarifications
Despite the tariff adjustment, the NPA assured stakeholders that the increase would not affect certain charges, including:
- Throughput and lease fees
- Rents on NPA landed properties
- MOWCA levy
- Service boat operations
- Hourly towage and mooring charges
The NPA also clarified that port costs should not be mistaken for NPA charges, as other government agencies contribute to port-related expenses.
Modernization Plans and Revenue Allocation
Dr. Dantsoho emphasized that the revenue from the tariff increase would:
- Fund the reconstruction and modernization of ports
- Support the implementation of the Port Community System (PCS)
- Enhance digital infrastructure for the National Single Window (NSW)
- Open up the Eastern Ports to increased vessel and cargo traffic
- Enable urgent maintenance of Escravos breakwaters, Rivers, Onne, and Calabar ports
He stressed that the move was a necessary step in Nigeria’s quest to regain cargo handling business lost to neighboring countries and create new job opportunities in the maritime sector.
As the new tariffs take effect, all eyes will be on how businesses adapt to the changes and whether the promised improvements in port efficiency materialize.