The Sea Empowerment and Research Centre (SEREC) has called for a review of the recent tariff increase implemented by the Nigerian Ports Authority (NPA), warning that the development could worsen Nigeria’s already high port charges.
SEREC’s Head of Research, Eugene Nweke, made the call in a statement issued on Friday in Abuja.
The Federal Government had approved a 15% increase in port tariffs in February, a move aimed at improving port infrastructure and expanding capacity across Nigeria’s maritime sector.
What they are saying
Nweke said the tariff review had triggered rising operational costs among terminal operators and shipping lines, which are now being transferred to port users.
He warned that the development could deepen cost pressures in Nigeria’s maritime sector and affect the competitiveness of the country’s ports.
- “All port-related charges should undergo harmonisation and rationalisation to reduce systemic inefficiencies and excessive cost burdens on port users.
- “SEREC has observed with concern a systemic shift in Nigeria’s maritime governance environment where regulatory and technical agencies are driven by revenue benchmarks.
- “Particularly noteworthy is the recent tariff adjustment by the NPA which has triggered consequential increases by terminal operators and shipping lines.”
Nweke added that the trend of assigning revenue targets to regulatory agencies could undermine their statutory responsibilities and weaken institutional effectiveness.
Backstory
The NPA had earlier announced that beginning from March 1, U.S. dollar-denominated port charges would be adjusted every two years.
- The adjustments will be based on the Consumer Price Index for All Urban Consumers for the U.S. city average covering all items.
- The index uses 1982 as the base year for measuring price changes, calculated from the average of the previous two years.
- Naira-denominated rates will also be adjusted every three years in line with Nigeria’s Consumer Price Index.
The authority explained that the review mechanism is intended to ensure that port charges remain aligned with inflationary trends and operational realities.
More Insights
Nweke noted that the tariff increase has further escalated overall port costs and could place additional pressure on maritime trade activities in Nigeria.
- He also expressed concerns about the Nigeria Customs Service’s aggressive revenue targets, which he said often lead to operational bottlenecks.
- Revenue targets frequently trigger valuation disputes and reclassification controversies during cargo clearance.
- Importers are also faced with post-clearance demand notices that can delay cargo processing.
Operational delays caused by these processes increase logistics costs for businesses operating through Nigerian ports.
Trade facilitation tools such as the one-stop shop and Time Release Study should reduce cargo dwell time within customs zones.
He added that the Customs Service may perform better if given cargo throughput targets rather than strict revenue benchmarks.
What you should know
The Nigerian Ports Authority last year announced a 15% upward review of port charges as part of efforts to improve competitiveness and support infrastructure development within the country’s ports.
- The tariff adjustment is the first undertaken by the NPA since 1993.
- Authorities say the review will help fund port modernisation and improve operational efficiency.
- The move forms part of broader reforms aimed at strengthening Nigeria’s maritime sector.
However, stakeholders within the maritime industry continue to raise concerns about the potential impact of higher port charges on trade costs and cargo movement within the region.
