Licensed customs agents in Nigeria are expressing their disapproval of the Nigerian Ports Authority’s decision to raise port charges by 15%. The NPA announced that the increased charges would take effect from March 1, 2025, marking the first review since 1993.
The NPA stated that the tariff adjustment is crucial to enhance the competitiveness of Nigerian ports by aligning them with global standards in infrastructure and equipment. However, certain rates such as throughput and lease fees, among others, will remain unaffected by the increase.
During a stakeholders’ engagement, the Managing Director of NPA emphasized the necessity of revenue generation for port operations. The General Manager of Corporate and Strategic Communications confirmed that the collection of the new charges would commence on March 1.
Industry operators are concerned that the tariff hike will raise the cost of doing business and lead to increased commodity prices nationwide. Various stakeholders criticized the government’s decision, citing potential negative impacts on businesses and consumers.
Manufacturers and industrialists warned that the port charge increase could escalate production costs, raise inflation, and reduce the competitiveness of local goods. They highlighted the risk of cargo diversion to neighboring countries with more cost-effective ports, leading to revenue loss and encouraging smuggling.
The potential implications of the tariff hike on consumers were also raised, with concerns about their ability to absorb increased costs amidst general inflation and rising utility expenses. Stakeholders emphasized the need for proper sensitization and urged the government to consider mitigating measures to alleviate the burden on businesses and consumers.