The Manufacturers Association of Nigeria (MAN) opposes the proposed 15% increase in port charges, warning that it will raise production costs and drive inflation higher.
The Nigerian Ports Authority (NPA) announces the tariff hike, citing the need to boost competitiveness and improve infrastructure. However, MAN argues that this move comes at a difficult time, as businesses already struggle with high operational costs, fluctuating exchange rates, and soaring energy expenses.
MAN’s Director General, Segun Ajayi-Kadir, warns that the increased charges will put additional financial strain on manufacturers and the wider economy.
“At a time when businesses are dealing with rising costs, forex instability, and economic challenges, raising port tariffs will only make things worse. This will further strain the real sector and worsen inflation,” he says.
He also cautions that the increase could encourage smuggling and reduce government revenue instead of boosting it.
With 80% of Nigeria’s traded goods transported by sea and 70% of West and Central Africa’s imports and exports passing through the country, Nigerian ports play a key role in economic activities.
Ajayi-Kadir emphasizes that raising port charges will significantly impact production costs, making Nigerian-made goods less competitive.
“For manufacturers, port-related charges are a major indirect cost. Since most raw materials and industrial machinery come through the ports, any increase in tariffs will push up production costs, drive inflation, and weaken the competitiveness of local industries,” he explains.
Manufacturers operating within NPA facilities will also face higher rental costs, further compounding economic difficulties.
Addressing Revenue Challenges Without Raising Tariffs
While MAN acknowledges the need for the NPA to generate revenue, it argues that increasing port charges is not the right solution. Instead, the association suggests alternative ways to boost earnings:
- Tackling Port Congestion: Improving vessel turnaround time and streamlining cargo clearing processes will increase revenue.
- Reducing Demurrage Fees: Addressing bureaucratic delays in cargo clearance will improve efficiency and stabilize revenue collection.
- Infrastructure Development: Investing in modern port facilities will attract more trade and naturally grow earnings.
- Competitive Pricing: Keeping Nigerian port charges in line with global standards will encourage higher trade volumes and improve revenue over time.
MAN Calls for Immediate Suspension of Tariff Increase
MAN urges the NPA to halt the planned 15% tariff hike and engage with stakeholders to find ways to improve efficiency without harming industrial growth.
The association criticizes the NPA for announcing the increase before consulting stakeholders, calling it a move that lacks transparency.
It warns that if the hike is implemented, manufacturers will face severe economic setbacks, which could undermine government efforts to position Nigeria as a regional trade hub.
 opposes the proposed 15% increase in port charges, warning that it will raise production costs and drive inflation higher.){kind=link}