Nigerian Ports Authority to Hike Tariffs by 15%
The Nigerian Ports Authority (NPA) says it is reviewing its charges upward by 15 percent, citing a need for competitiveness and infrastructural upgrades. The Managing Director of the NPA, Dr Abubakar Dantsoho, made this known during a maritime stakeholders’ meeting held in Lagos on Thursday.
He said that this was the first time the Nigeria Ports Authority would be reviewing its rates since 1993. Dantsoho, who was represented by Mr. Olalekan Badmus, Executive Director, Marine and Operation, said the authority was compelled by the exigency of bringing Nigerian ports up to speed with those of its peers globally in terms of infrastructure and equipment.
He said: “Though the NPA rates review has already been approved by the Federal Government, but the management decided to meet with stakeholders on the issue out of the desire to carry everyone along.
“The 15 per cent upward review which is to cut across all NPA rates and dues, is premised on the urgent need to address the undesirable reality of aged and weak infrastructure.
“We need to address obsolete equipment and slow port capacity expansion, which has continued to diminish the performance and, indeed, competitiveness of Nigerian ports.
“Port authorities depend on revenue from operations to stay alive to their responsibilities, which include construction and maintenance of port infrastructure.
“Other responsibilities are 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,” Dantsoho said.
Also speaking, a Maritime Stakeholder, Mr Joshua Asanga, concerned about the increment, said that the value of NPA’s present tariff had been suppressed by inflation, which was at about 35 per cent.
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 30 years.
He noted that NPA needed funds for improved port infrastructure, robust information and communication technology (ICT) for the port community system, procurement of tugboats, and other operational platforms to achieve efficiency.
Another stakeholder, Mr Demian Ukagu, spoke on the need to apply more NPA funding to outer port facilities and jetties like the Kirikiri Lighter Terminal and the development of other critical port facilities across the country.
He noted that NPA rates should be able to cover these costs that would guarantee a 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.
The meeting was attended by terminal operators, bonded terminal operators, and other ports users. #Nigerian Ports Authority to Hike Tariffs by 15% 2025 Budget: Osun Govt Targets N109bn IGR
