NPA To Increase Tariffs by 15% After 32 Years
Kathy Kyari
For the first time since 1993, the Nigerian Ports Authority (NPA) has secured approval for a 15% tariff increase across all its rates and dues. This decision, according to the NPA, is driven by the urgent need to upgrade aging port infrastructure, replace obsolete equipment, and improve overall port capacity to remain competitive in the global maritime space.
Speaking at a stakeholders' meeting in Lagos, the NPA’s Managing Director, Abubakar Dantsoho, represented by Executive Director of Marine and Operations, Olalekan Badmus, emphasized the importance of this tariff review.
He noted that the move aligns with global best practices, as port authorities worldwide rely on operational revenue to fund essential infrastructure projects, channel dredging, navigation aids, modern marine crafts, port security, and workforce development.
"Globally, Port Authorities depend on revenue from operations to stay alive to their responsibilities which include 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 digitisation of port transactions, port security, energy efficiency and training and retraining of its employees," Badmus said.
He further explained that a port’s global rating and competitiveness depend largely on how well these responsibilities are fulfilled. According to him, the new tariff structure is a necessary step in Nigeria’s effort to reclaim lost cargo traffic and restore investor confidence in its ports.
"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 its accompanying benefits including job opportunities it had lost to its maritime neighbours."
Badmus also dispelled the notion that NPA tariffs are responsible for Nigeria’s high port costs, stating that, "Contrary to the popular but erroneous notion that attributes high Port costs to NPA relative to its peers, verifiable data shows NPA tariffs are amongst the lowest in the region."
He attributed the high cost of doing business at Nigerian ports to excessive human interface, bureaucratic bottlenecks, and the absence of a Port Community System (PCS) and National Single Window (NSW).
While acknowledging that the tariff adjustment is long overdue, he highlighted some immediate benefits for stakeholders.
"Although long overdue, a quick win benefits of the NPA Tariff review for stakeholders, is the immediate boost it gives to the Authority to fast track the commencement of actual works on its concluded Port reconstruction and modernisation plans."
"Secondly, the Tariff review provides the necessary guarantees to fund the acquisition and urgent deployment of the Information Communications Technology (ICT) backbone of the PCS which is the precursor to the implementation of the NSW."
Additionally, he noted that increased revenue would enhance NPA’s ability to undertake critical maintenance projects, including the reconstruction of the collapsed Escravos Breakwaters and improvements at the Rivers, Onne, and Calabar Ports.
Stakeholders at the meeting largely supported the tariff increase, acknowledging that inflation had long eroded the value of NPA’s charges.
Joshua Asanga, one of the stakeholders, agreed that the adjustment was necessary. "The value of NPA's present tariff has since been suppressed by inflation, which is at about 35%," he said.
He pointed out that while port management costs—including wages, fuel, and operational expenses—had risen significantly over the years, NPA tariffs had remained unchanged for over three decades. According to him, increased funding is needed for port infrastructure, ICT upgrades, and the procurement of essential equipment like tugboats.
Another stakeholder, Damian Ukagu, stressed the importance of channeling NPA funds into improving outer port facilities and jetties, including the Kirikiri Lighter Terminal. He argued that NPA rates should be structured to cover these costs while ensuring a reasonable return on investment and sustainable trade.
Discussions at the meeting revealed concerns that maintaining the outdated tariff system would only lead to further deterioration of port services, inadequate infrastructure, poor remuneration for port workers, and continued reliance on obsolete equipment.
With this long-awaited tariff adjustment, the NPA aims to position Nigeria’s ports for greater efficiency, improved service delivery, and increased competitiveness in the global maritime sector.
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