Fresh Inflation Concern as NPA Raises Port Charges by 15 percent.

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The Nigerian Ports Authority (NPA) has announced a significant increase in port rates and dues, rising from 7% to 15% in its first tariff adjustment in 32 years. This over 100% increase is expected to raise the cost of port usage, potentially driving importers to other West African port facilities.

According to Dr. Abubakar Dantsoho, Managing Director of NPA, “The upward adjustment was necessitated by the urgent need to address the deteriorating state of port infrastructure, obsolete equipment, and slow capacity expansion.” Dantsoho emphasised that globally, port authorities rely on revenue from operations to fulfil their responsibilities, including infrastructure construction and maintenance.

The NPA’s Executive Director of Marine and Operations, Olalekan Badmus, represented Dantsoho at a stakeholders’ engagement meeting in Lagos. Badmus noted that international trade stakeholders assess port efficiency and competitiveness based on how well responsibilities are discharged. Dantsoho stated, “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 concerns that NPA’s tariffs are higher than those of regional counterparts, citing data that places Nigerian port charges among the lowest in West Africa. The revised rates are expected to accelerate port reconstruction and modernisation projects, enable the acquisition and deployment of an information communications technology (ICT) backbone, and bolster NPA’s capacity to undertake critical maintenance projects.

Former NPA General Manager of Operations, Joshua Asanga, supported the tariff increase, saying, “Inflation, currently at about 35%, has significantly eroded the value of NPA’s previous rates.” Asanga pointed out that key operational costs have risen over the past three decades without a corresponding increase in NPA tariffs.

Stakeholder Demian Ukagu emphasised the need for NPA to allocate more funding to outer port facilities and jetties, such as the Kirikiri Lighter Terminal, and develop critical port infrastructure, including access roads. Ukagu noted that NPA rates should ensure a minimum return on investment while promoting sustainable trade.

Dantsoho assured stakeholders that the NPA would ensure transparency and accountability in the implementation of the new tariff regime. “We will work closely with our stakeholders to ensure that the benefits of this tariff adjustment are felt by all,” he said.

The NPA Managing Director also emphasised the need for stakeholders to support the Authority’s efforts to improve port infrastructure and services. “We cannot do it alone,” he said. “We need the support and cooperation of all stakeholders to achieve our goals.”

The stakeholders’ engagement meeting was attended by representatives of various maritime stakeholders, including shipping companies, terminal operators, and freight forwarders. The meeting provided a platform for stakeholders to express their concerns and suggestions on the new tariff regime.

In his closing remarks, Dantsoho thanked stakeholders for their participation and feedback. “We value your input and will take it into consideration as we move forward with the implementation of the new tariff regime,” he said.

The NPA’s tariff adjustment is expected to take effect soon, and stakeholders are eagerly awaiting the implementation details. As the maritime industry continues to evolve, the NPA’s efforts to improve port infrastructure and services are seen as a step in the right direction.

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