The Nigerian Ports Authority (NPA) has announced a 15% upward review of its port charges, citing the need for competitiveness and infrastructural development.
This marks the first tariff adjustment by the NPA since 1993.
The Managing Director of the NPA, Dr. Abubakar Dantsoho, made this disclosure during a maritime stakeholders’ meeting held in Lagos on Thursday.
He was represented by Mr. Olalekan Badmus, Executive Director, Marine and Operation, who explained the rationale behind the tariff adjustment.
“Though the NPA rates review has already been approved by the Federal Government, the management decided to meet with stakeholders on the issue out of the desire to carry everyone along,” Badmus stated.
He emphasized that the new rates were necessary to improve Nigeria’s ports, aligning them with global standards in terms of infrastructure and equipment.
“The 15% upward review which is to cut across all NPA rates and dues is premised on the urgent need to address the undesirable reality of aged and weak infrastructure,” he added.
Challenges facing Nigerian ports
Dantsoho further outlined the challenges that necessitated the tariff increase.
“We need to address obsolete equipment and slow port capacity expansion which has continued to diminish performance and, indeed, the competitiveness of Nigerian ports.
“Port authorities depend on revenue from operations to stay alive to their responsibilities which include construction and maintenance of port infrastructure.
“Other responsibilities are dredging of channels, provision of aids for safe navigation, provision of modern marine crafts for efficient harbour services, automation and digitisation of port transactions, port security, energy efficiency, and training and retraining of its employees,” he explained.
Stakeholders’ reactions
A maritime stakeholder, Mr. Joshua Asanga, expressed concerns over the increment but acknowledged that inflation had significantly eroded the value of NPA’s current tariff structure.
- He noted that inflation was currently at about 35%, while port management costs, including wages and fuel, had increased over the past 30 years without a corresponding adjustment in NPA’s charges.
- Asanga highlighted the need for the NPA to secure funding for improved port infrastructure, a robust Information and Communication Technology (ICT) system for the Port Community System, and the procurement of tugboats and other operational platforms to enhance efficiency.
Similarly, another stakeholder, Mr. Demian Ukagu, stressed the importance of directing more NPA funding towards outer port facilities and jetties, such as the Kirikiri Lighter Terminal, as well as developing other critical port facilities across the country.
He added that the NPA rates should be sufficient to cover these costs while ensuring a minimum return on investment and promoting sustainable trade.
Meeting resolution
Stakeholders at the meeting concluded that the existing tariffs had been set without factoring in capital costs, labour costs, consumables, and overhead expenditures required for port operations.
The meeting was attended by terminal operators, bonded terminal operators, and other port users, who deliberated on the implications of the new tariff structure and the way forward.
