NPA Increases Tariff In First Time In 32 Years, Cites Infrastructure Decay
For the first time in over three decades, the Nigerian Ports Authority (NPA) has secured approvals to increase its tariffs by 15%, citing the urgent need to upgrade ageing infrastructure, modernise equipment, and enhance port efficiency.
This decision, which marks the first tariff adjustment since 1993, was revealed during a maritime stakeholders’ meeting in Lagos.
The Managing Director of NPA, Abubakar Dantsoho, represented by the Executive Director of Marine and Operations, Olalekan Badmus, stressed that the adjustment was long overdue to ensure Nigerian ports remain competitive in the face of global economic shifts.
According to Dantsoho, Nigerian ports have suffered years of neglect, leading to weakened infrastructure, obsolete equipment, and limited expansion capacity.
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He explained that port authorities worldwide depend on operational revenue to maintain infrastructure, dredge channels, provide modern marine crafts, and invest in technology.
The review, he noted, would fund the deployment of Information Communications Technology (ICT) infrastructure necessary for the Port Community System (PCS) and the National Single Window (NSW). Stakeholders, including former NPA General Manager Joshua Asanga, backed the move, noting that inflation had significantly eroded the value of existing tariffs, while operational costs such as fuel and wages had skyrocketed.
However, concerns have emerged over the potential impact of the tariff increase on importers and businesses relying on port operations.
Some stakeholders argued that while modernisation is necessary, the additional financial burden could disrupt trade and increase the cost of doing business.
Calls have been made for the Federal Government to implement supportive policies to cushion the effects.
Meanwhile, the Nigeria Customs Service (NCS) has also introduced a 4% charge on the Free-on-Board (FOB) value of imports, further compounding fears of higher trade costs.
Sodiq Lawal is a passionate and dedicated journalist with a knack for uncovering captivating stories in the bustling metropolis of Osun State and Nigeria at large. He has a versatile reporting style, covering a wide range of topics, from politics , campus, and social issues to arts and culture, seeking impact in all facets of the society.
