The Nigerian Ports Authority (NPA) has increased all port rates and dues from seven per cent to 15 per cent in its first tariff adjustment in 32 years.
The over 100 per cent increase will, in months ahead, increase the cost of port usage and possibly push more importers to other West African port facilities.
If the additional cost is fully or partly passed to consumers, prices of imported items may spike further, which will increase inflationary pressure.
Speaking in Lagos, yesterday, at a stakeholders’ engagement on the tariff raise, the Managing Director of NPA, Dr Abubakar Dantsoho, explained that the upward adjustment was necessitated by the urgent need to address the deteriorating state of port infrastructure, obsolete equipment and slow capacity expansion, which have diminished the performance and competitiveness of the ports.
He emphasised that, globally, port authorities rely on revenue from operations to fulfil their responsibilities, including the construction and maintenance of infrastructure, dredging of channels and provision of navigation aids.
Dantsoho, who was represented by NPA’s Executive Director of Marine and Operations, Olalekan Badmus, noted that international trade stakeholders assess port efficiency and competitiveness based on how well the responsibilities are discharged.
He stated that, given the current global economic challenges and increasing competition for maritime business, the long-overdue tariff review is essential for Nigeria’s efforts to regain lost cargo handling business and its associated benefits, including job creation.
Dantsoho dismissed the notion that NPA’s tariffs are higher than those of its regional counterparts, citing verifiable data that places Nigerian port charges among the lowest in West Africa.
Despite the delay in implementing the adjustment, Dantsoho highlighted the immediate benefits of the tariff review, including its potential to accelerate the commencement of port reconstruction and modernisation projects.
He also noted that the revised rates would enable the acquisition and deployment of an information communications technology (ICT) backbone for the Port Community System (PCS), a crucial step toward implementing the National Single Window (NSW).
Also, he stated that increased revenue from the tariff adjustment would bolster NPA’s capacity to undertake critical maintenance projects, such as the reconstruction of the collapsed Escravos Breakwaters and upgrades of the Rivers, Onne and Calabar ports to attract more vessel and cargo traffic.
Dantsoho explained that the decision to engage stakeholders was driven by the NPA’s commitment to transparency and inclusivity.
Responding to stakeholders’ concerns at the meeting, former NPA General Manager of Operations, Joshua Asanga, supported the tariff increase, arguing that inflation, currently at about 35 per cent, has significantly eroded the value of NPA’s previous rates.
Asanga pointed out that key operational costs, including wages, fuel and other expenses, have risen over the past three decades without a corresponding increase in NPA tariffs.
One of the stakeholders, Demian Ukagu, emphasised the need for NPA to allocate more funding to outer port facilities and jetties, such as the Kirikiri Lighter Terminal and to develop other critical port infrastructure, including access roads.
He noted that NPA rates should be structured to ensure a minimum return on investment while promoting sustainable trade.
