The Nigerian Ports Authority has raised tariffs by 15% for the first time since 1993, aiming to modernise port infrastructure and boost competitiveness

[dropcap]T[/dropcap]he Nigerian Ports Authority (NPA) has secured the necessary approvals for a 15% tariff increase, marking the first upward review since 1993.

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This decision aims to modernise port infrastructure and enhance Nigeria’s competitiveness in global maritime trade.

However, port operators and industry stakeholders have raised concerns that the hike will increase the cost of doing business and lead to higher commodity prices nationwide.

Speaking at a stakeholders’ engagement in Lagos, the Managing Director of NPA, Dr Abubakar Dantsoho, stated that the tariff adjustment was long overdue.

He stressed that Nigerian ports needed substantial investment in infrastructure and technology to compete with other West African maritime hubs.

Dantsoho explained that globally, port authorities generate revenue from operations to fund development projects, ensure efficient cargo handling, and improve operational standards.

He noted that the absence of a Port Community System (PCS) and a National Single Window (NSW) had contributed to inefficiencies, bureaucratic bottlenecks, and high unreceipted costs.

“This belated tariff review is a critical success factor in Nigeria’s quest to win back cargo handling business lost to maritime neighbours.

It will also provide the financial backing for the modernisation and reconstruction of key port facilities,” he stated.

Despite the NPA’s justification, stakeholders have warned that the 15% tariff hike will have far-reaching effects on businesses and consumers.

Mr Ukochukwu Nnadi, Head of Shipping and Terminals at the National Association of Government Approved Freight Forwarders (NAGAFF), said the increase would directly affect the cost of imports, which would ultimately be passed on to consumers.

“Every additional cost in the ports, no matter how small, will trickle down to consumers. Importers will factor in the higher tariff, and this will lead to an overall increase in commodity prices,” Nnadi said.

Similarly, Riwane Amuni, National Protocol Officer of the Association of Nigerian Licensed Customs Agents (ANLCA), acknowledged that while stakeholders had not strongly opposed the hike due to its long delay, the increase still amounts to an additional tax on businesses and consumers.

“People are not making much noise about it because the last increase was over 30 years ago. However, the reality is that businesses will have to adjust their pricing, and this will eventually affect consumers,” he explained.

In response to concerns, the NPA clarified that the upward review would not affect all charges at the ports. Exempted items include:

– Throughput and lease fees
– Rents on NPA landed properties
– MOWCA levy (Maritime Organisation of West and Central Africa)
– Service boat operations
– Hourly towage and mooring charges

Dantsoho reassured stakeholders that the tariff review would boost revenue generation, allowing the authority to fund crucial maintenance projects.

These include the reconstruction of collapsed Escravos breakwaters and improvements at Rivers, Onne, and Calabar ports, aimed at increasing vessel traffic and cargo handling capacity.

While industry players acknowledge the need for infrastructure upgrades, the immediate concern remains the impact on trade costs.