The Nigerian Ports Authority (NPA) has announced a 15% increase in port tariffs across all rates and dues, marking the first adjustment in 32 years. This move is expected to raise the cost of goods in Nigeria but is aimed at addressing infrastructure deficits and enhancing port competitiveness.
According to the NPA, the hike is necessary due to rising operational costs, including wages and fuel prices, amid economic challenges such as inflation. The additional revenue will be invested in modernizing port facilities, acquiring new equipment, and upgrading ICT systems.
While analysts warn that the increase could lead to higher consumer prices, some stakeholders support it as a necessary step to improve port efficiency and global competitiveness.
Globally, port authorities generate revenue for infrastructure development, channel dredging, provision of modern marine crafts, automation, security, and employee training.
Speaking at a stakeholders’ meeting in Lagos titled “Engagement for the Approved 15% Tariff,” NPA Managing Director Abubakar Dantsoho, represented by Executive Director of Marine and Operations Olalekan Badmus, emphasized that the revision was crucial to keeping Nigerian ports on par with international standards.
Dantsoho noted that the last tariff adjustment occurred in 1993 and that despite an approval for an upward review in 2023 by the Federal Ministry of Marine and Blue Economy, implementation was delayed to finalize internal processes and ensure a balanced approach.
Stakeholder Joshua Asanga supported the hike, citing inflation, which has risen to about 35%, and the need to align port management expenses with rising costs. He highlighted the necessity of funding improved port infrastructure, ICT systems, and essential operational equipment like tugboats.
Similarly, stakeholder Demian Ukagu called for increased NPA investment in outer port facilities and jetties, such as the Kirikiri Lighter Terminal, to enhance overall port operations. He stressed that revised tariffs should cover operational costs while ensuring sustainable trade.
Stakeholders agreed that maintaining outdated tariffs would result in poor service delivery, inadequate infrastructure, low remuneration, and obsolete equipment, further hampering port efficiency.