LCCI flays rising cost of doing business

The Director General of the Lagos Chamber of Commerce and Industry (LCCI), Dr Chinyere Almona, has expressed deep concern over increasing costs of doing business, saying the recent 15 per cent upward review in port tariffs by the Nigerian Ports Authority’s (NPA) will raise operational expenses.

Acknowledging that it is the first adjustment since 1993, Almona said the convergence of a high interest rate at 27.5 per cent, high inflationary pressure, a weak naira and a reduced per capita income at a low of $835 imposes a heavy burden on businesses.

“While the proposed tariff increase by the NPA aims to modernise port facilities, it carries significant economic implications that must be addressed. One major concern is the increased cost of doing business, as higher port charges will raise operational expenses for companies relying on imported raw materials and machinery. This, in turn, would lead to increased production costs, which could be passed on to consumers, driving inflation upward.

“While the NPA argues that Nigeria’s port tariffs remain among the lowest in the region, port competitiveness depends on more than just tariffs. Factors such as operational efficiency, number of procedures and unforeseen fees play a crucial role in determining the overall cost of using Nigerian ports.

“Continuous investment in infrastructure is essential to modernise equipment and facilities, ensuring smoother operations and attracting more transactions to our ports. Also, maintaining a transparent and predictable tariff structure allows businesses to plan effectively, fostering a more stable and competitive trading environment,” she said.

Urging the NPA to actively engage stakeholders, including the business community, to discuss potential impacts and explore solutions to mitigate negative effects; she said instead of focusing on tariffs, efforts should be made to enhance port efficiency, reduce avoidable process delays and eliminate unforeseen costs.

“The NPA should benchmark its operations against leading ports globally and adopt best practices that have been effective in reducing costs and improving service delivery. Deployment of technology to automate our port operations and transactions will reduce time loss and curb undesirable tendencies,” she said.