The Nigerian Ports Authority (NPA) has announced a 15% increase in port tariffs, marking the first adjustment since 1993. The move aims to enhance efficiency and boost Nigeria’s port competitiveness.
However, the decision has faced pushback from manufacturers, who argue that the higher charges will further escalate operational costs in an already struggling economy.
Speaking at a stakeholders’ meeting in Lagos, Olalekan Badmus, NPA’s Executive Director of Marine and Operations, who represented Managing Director Abubakar Dantsoho, emphasized the need to modernize port infrastructure and enhance efficiency. He noted that global ports rely on revenue from operational charges to fund critical infrastructure maintenance, security, digitalization, and workforce development.
“This long-overdue tariff review is essential for Nigeria to regain lost cargo traffic and secure the economic benefits that come with it,” Badmus stated.
Despite concerns over rising costs, Dantsoho argued that NPA’s tariffs remain among the lowest in the region and attributed port inefficiencies to bureaucratic bottlenecks, excessive human intervention, and the lack of a Port Community System (PCS).
Manufacturers Express Concerns Over Higher Costs
The Apapa Chapter of the Manufacturers Association of Nigeria (MAN) has strongly opposed the tariff increase, warning that it could have severe economic repercussions.
Chairman Cyprian Orakpo highlighted that port charges significantly impact manufacturers since most raw materials and industrial equipment are imported through the ports.
“Businesses are already struggling with rising operational costs, foreign exchange volatility, and high energy prices. Imposing additional financial burdens through increased port tariffs will only worsen the situation,” Orakpo stated.
MAN warned that the tariff hike could lead to:
- Higher product prices and inflation
- Reduced competitiveness of Nigerian manufacturers in local and global markets
- Increased smuggling, as businesses seek cheaper alternatives in neighboring ports
- Lower government revenue, due to a decline in cargo throughput and manufacturing output
Instead of raising tariffs, MAN has urged the NPA to engage in stakeholder dialogue to explore alternative strategies for improving port efficiency and reducing operational bottlenecks without harming the industrial sector.
