By Ed Malik, A | ed@ddnewsonline.com | posted 7th february, 2025
Nigeria’s Federal Government (FG) has announced a 15% increase in port tariffs, marking the first adjustment in 32 years. This decision was communicated by the Managing Director of the Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho, during a stakeholders’ meeting in Lagos.
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The increment will be applied across various services and operations within the ports.
Dr. Dantsoho, represented by the Executive Director of Marine and Operations, Mr. Olalekan Badmus, highlighted that the NPA had maintained the same rates for over three decades despite significant economic changes, including exchange rate fluctuations, rising wages, fuel and lubricant costs, and inflation. The tariff increase aims to address these economic realities and ensure the sustainability of port operations.
The decision has elicited mixed reactions from stakeholders in the shipping and logistics sectors. Some have expressed concerns about the potential impact on the cost of doing business in Nigeria, while others acknowledge the necessity of the move in light of the agency’s financial constraints and broader economic conditions.
The tariff increase is expected to take effect in the coming months. The NPA has assured stakeholders that it will collaborate closely with port operators, shipping companies, and other relevant parties to minimize any potential disruptions during the transition. Additionally, the NPA plans to utilize the additional revenue generated from the increase to fund improvements in port infrastructure, enhance terminal capacities, and improve services such as cargo handling, storage, and security.
This move aligns with the NPA’s commitment to reposition Nigerian ports for increased productivity and greater efficiency. Dr. Dantsoho has previously emphasized the importance of boosting the organization’s revenue generation and port efficiency.
Furthermore, the NPA has been urging terminal operators to increase investments in Nigerian ports to enhance efficiency and competitiveness. Dr. Dantsoho has encouraged operators to leverage the investor-friendly initiatives of President Bola Tinubu and increase their investments, noting that Nigeria’s large population warrants greater investment in its ports.
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The NPA is also finalizing the implementation of the Port Community System (PCS), a key linkage for the upcoming National Single Window project, which aims to integrate all terminals electronically and advance towards a more efficient and transparent port operation system.
These initiatives reflect the NPA’s strategic efforts to modernize port operations, improve service delivery, and ensure that Nigerian ports remain competitive in the global maritime industry.