The Nigerian Ports Authority (NPA) has announced a 15% tariff increase, the first such adjustment in 32 years. The decision was unveiled by NPA Managing Director, Abubakar Dantsoho, during a stakeholders’ engagement held on Thursday in Lagos. The tariff increase, which affects all port services, marks a significant shift in the agency’s pricing structure.
Represented by Olalekan Badmus, the Executive Director of Marine and Operations, Dantsoho explained that the agency had long maintained the same tariff rates despite numerous challenges, including exchange rate fluctuations, increasing operational costs, rising wages, and escalating prices for fuel and lubricants, all of which had a substantial impact on the cost of port operations. According to Dantsoho, the tariffs had remained unchanged for over three decades, a period during which the economic landscape evolved dramatically, placing a growing strain on the port authority’s financial sustainability.
He emphasized that the tariff review was necessary to ensure that the NPA could continue to provide efficient and competitive services to stakeholders while adapting to the changing economic environment. The increase aims to address the rising operational costs and enable the authority to reinvest in port infrastructure, enhance security, and improve overall services to keep pace with global shipping trends and modern port technologies.
The decision has been met with mixed reactions. While some stakeholders in the shipping and logistics sectors have expressed concerns about the impact of the tariff hike on the cost of doing business in Nigeria, others have acknowledged the necessity of the move in light of the agency’s financial constraints and the broader economic conditions.
The tariff increase is expected to take effect in the coming months, and the NPA has assured stakeholders that it will work closely with port operators, shipping companies, and other stakeholders to minimize any potential disruptions during the transition. Additionally, the NPA plans to use the additional revenue generated from the increase to fund improvements in port infrastructure, enhance the capacity of terminals, and improve services such as cargo handling, storage, and security.
The NPA has also reiterated its commitment to ensuring that Nigerian ports remain competitive and efficient, particularly as the country seeks to strengthen its position as a key player in international trade and maritime activities in West Africa. The tariff adjustment is seen as part of a broader strategy to modernize and upgrade Nigeria’s port facilities, making them more attractive to international shipping lines and fostering a more favorable business environment for both local and foreign investors.
