Higher Port Charges Ahead as NPA Implements 15% Tariff Review

The Nigerian Ports Authority (NPA) has announced a 15% increase in port tariffs, citing the need to modernize infrastructure and enhance competitiveness. The adjustment, which has received necessary approvals, marks the first tariff review since 1993.

Speaking in Lagos during a stakeholders’ meeting, NPA Managing Director Dr. Abubakar Dantsoho emphasized that the revision was overdue and essential for improving the country’s ports. He noted that port authorities worldwide rely on operational revenue to fulfill their responsibilities, adding that a competitive port system is crucial for attracting international trade.

Dantsoho stressed that the tariff hike would support the reconstruction and modernization of port facilities, including the deployment of information and communication technology for a more efficient port community system. He also highlighted the need to address longstanding issues such as bureaucratic bottlenecks and excessive human interference, which have contributed to inefficiencies and hidden costs.

Despite these justifications, industry stakeholders have raised concerns about the impact of the tariff increase on the cost of doing business. The Head of Shipping and Terminals at the National Association of Government Approved Freight Forwarders, Mr. Ukochukwu Nnadi, warned that the additional costs would ultimately be passed on to consumers. Similarly, Mr. Riwane Amuni of the Association of Nigerian Licensed Customs Agents noted that while the hike was expected due to the long delay in tariff adjustments, it still amounted to an extra burden on businesses and the general public.

Some stakeholders, however, have expressed support for the move. Joshua Asanga pointed out that inflation had significantly eroded the value of NPA’s existing tariffs, making an increase inevitable. He noted that port management costs, including wages and fuel, had risen over the years without a corresponding adjustment in charges.

The NPA clarified that the revised tariffs would not affect certain item rates, including throughput and lease fees, rents on landed properties, service boat operations, and towage and mooring charges. The agency also cautioned against conflating NPA charges with overall port costs, which include fees from other government agencies operating within the ports.