The Nigerian Ports Authority (NPA) increases port charges by 15%, citing the need for infrastructure upgrades and improved competitiveness. This marks the first tariff adjustment since 1993.
Speaking at a maritime stakeholders’ meeting in Lagos, NPA Managing Director, Dr. Abubakar Dantsoho, represented by Mr. Olalekan Badmus, Executive Director, Marine and Operations, states that the review is necessary to enhance port efficiency.
“Although the Federal Government has already approved the rate review, the NPA management engages stakeholders to ensure transparency and inclusivity,” Badmus says.
He emphasizes that the new rates aim to modernize Nigeria’s ports by upgrading infrastructure and aligning operations with global best practices.
Challenges Driving the Tariff Increase
Dantsoho highlights the aging port infrastructure, outdated equipment, and limited capacity expansion as key reasons for the adjustment.
“NPA depends on operational revenue to fulfill its responsibilities, which include port infrastructure development, dredging of channels, navigational aids, modernization of marine services, digitization of port transactions, security enhancements, energy efficiency initiatives, and workforce training,” he explains.
Stakeholders React
Industry players express mixed reactions to the increase.
Mr. Joshua Asanga, a maritime expert, acknowledges the need for a tariff review, noting that inflation—currently around 35%—significantly affects port management costs, including wages and fuel expenses.
He stresses the importance of securing funding for infrastructure upgrades, ICT advancements for a robust Port Community System, and procurement of essential operational equipment.
Similarly, Mr. Demian Ukagu, another stakeholder, urges NPA to allocate more resources to outer port facilities and jetties, such as the Kirikiri Lighter Terminal, and develop critical port infrastructure across Nigeria.
He adds that the revised tariff should ensure cost recovery, investment returns, and long-term trade sustainability.
Meeting Outcomes
Stakeholders at the meeting agree that previous tariffs fail to fully account for capital expenditures, labor costs, consumables, and overhead expenses required for efficient port operations.
The discussion, attended by terminal operators, bonded terminal operators, and other port users, focuses on the impact of the new tariff structure and the next steps for implementation.
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