For the first tariff adjustment in more than thirty years, the Nigerian Ports Authority (NPA) has revealed plans to raise its fees by fifteen percent.
This was revealed by NPA Managing Director Dr. Abubakar Dantsoho on Thursday during a gathering of maritime stakeholders in Lagos. According to the News Agency of Nigeria, he said the rate revision was required to boost competitiveness and finance port infrastructure improvements.
Dr. Abubakar said, “This is the first time since 1993 that we are adjusting our tariffs. The review is aimed at improving service delivery and maintaining global standards in port operations.”
Speaking on behalf of Managing Director Mohammed Bello-Koko at a stakeholders’ meeting, Mr. Olalekan Badmus, Executive Director of Marine and Operations at NPA, indicated that the change was required to raise Nigerian ports to worldwide standards.
Badmus said, “Although the Federal Government has already approved the rate review, the NPA management felt it was important to engage stakeholders before implementation. NPA relies on revenue from port operations to fulfill its responsibilities, including infrastructure maintenance, dredging of channels, provision of navigation aids, acquisition of modern marine equipment, digitization of port processes, and ensuring security.”
The real value of NPA’s tariffs has been diminished by inflation, which is currently at about 35%, according to maritime expert Mr. Joshua Asanga, who acknowledged the worries about the rate increase.
He said, “For over 30 years, costs related to wages, fuel, and other operational expenses have increased without a corresponding adjustment in NPA charges.”.
In order to increase overall efficiency, Mr. Demian Ukagu asked NPA to devote more funds to the construction of jetties and outer port facilities, such as the Kirikiri Lighter Terminal. He maintained that in order to ensure sustainable trade, NPA rates ought to account for the expenses of maintaining these facilities.
Stakeholders agreed at the conclusion of the conference that important costs including capital investment, personnel costs, and operating overheads had not been taken into account by the current tariff system.