NPA increases tariffs by 15% after 32 years

The Nigerian Ports Authority ( NPA) has announced a 15% upward review of its tariffs, the first of such increase in 32 years.

The decision, the NPA says, is driven by the urgent need to modernize port infrastructure and equipment, and improve the competitiveness of Nigerian ports.

Speaking at a maritime stakeholders meeting in Lagos on Thursday, Managing Director, Nigerian Ports Authority ( NPA) Abubakar Dantsoho said the 15% upward increase, which is to cut across all NPA rates and dues has been approved by the federal government.

Represented by Olalekan Badmus, Executive Director Marine and Operation, Dantsoho said the management decision to meet stakeholders was borne out of desire to carry everyone along.

“The 15% upward increasie is premised on the urgent need to address the current challenges of aged and weak infrastructure, obsolete equipment, and slow port capacity expansion and which has continued to diminish the performance and indeed the competitiveness of Nigerian Ports, ” he said.

He noted that globally, port Authorities depend on revenue from operations to stay alive to their responsibilities which includes construction and maintenance of Port infrastructure, dredging of channels, provision of aids for safe navigation, provision of modern marine crafts for efficient harbour services, automation and digitization of port transactions, port security, energy efficiency and training and retraining of its employees.

“The global index of Port rating and competitiveness which the international trade community relies on for its choice of countries to do business with, derives its data from how well the aforementioned responsibilities are addressed.

“Coming at this period of global economic upheaval and scramble for markets, this belated Tariff review borne out of necessity constitutes a critical success factor in Nigeria’s quest to win back cargo handling business and it’s accompanying benefits including job opportunities it had lost to it’s maritime neighbors, ” he said.

Speaking at the meeting one of the stakeholders Joshua Asanga agreed with the increase adding that the value of NPA present tariff has since been suppressed by inflation which is at about 35% .
Asanga listed port management liabilities like wages, fuel and other areas of expenditure as having adjusted upwards without a commensurate rise in NPA charges for over thirty years.

He added that NPA needs funds for improved port infrastructure, robust ICT for Port Community System, procurement of tug boats and other operational platforms to achieve efficiency.

Another stakeholder, Demian Ukagu, who spoke at the event talked on the need to apply more NPA funding to outer port facilities and jetties like the Kirikiri Lighter Terminal and development of other critical port facilities across the country.

He added that NPA rates should be able to cover these cost that would guarantee minimum return on investment and promote sustainable trade.

The meeting agreed that existing tariffs were set devoid of capital cost, labour cost, consumables and overhead expenditures needed to run the ports.