NPA Unveils Comprehensive Tariff Overhaul for Sustainable Growth

NPA Unveils Comprehensive Tariff Overhaul for Sustainable Growth

By prince Benson Davies

In a move poised to significantly impact Nigeria’s maritime landscape, the Nigerian Ports Authority (NPA) has announced a comprehensive review of its tariff structure, marking the first major overhaul in 32 years. This landmark development is expected to bring the NPA’s tariff in line with current economic realities, promote competitiveness, and stimulate growth in the maritime sector.
The review, which has been eagerly anticipated by stakeholders, aims to address the evolving needs of port users, shipping lines, and terminal operators. By adjusting its tariff structure, the NPA seeks to enhance the efficiency and sustainability of port operations, ultimately contributing to the country’s economic development.
The last tariff review was conducted in 1991, and since then, the maritime industry has undergone significant transformations. The NPA’s decision to review its tariff structure demonstrates its commitment to adapting to changing market conditions and improving the overall competitiveness of Nigerian ports. As the NPA embarks on this critical reform, stakeholders will be watching closely to see how the new tariff structure will impact their operations and the broader maritime ecosystem.

Addressing stakeholders in Lagos recently, the Managing Director Nigeria Ports Authority Dr. Abubakar Dantsoho said the authority was compelled by the exigency of bringing Nigerian ports up to speed with those of its peers in terms of infrastructure and equipment, to seek approval of the rates review, which has been approved by the Federal Government.

The MD ,Dr. Abubakar Dantsoho represented by Olalekan Badmus, Executive Director Marine and Operation,  said the management decision to meet with stakeholders on the issue of rates increase was borne out of desire to carry everyone along.

“The 15% upward increase which is to cut across all NPA rates and dues is premised on the urgent need to address the undesirable reality of aged and weak Infrastructure, obsolete equipment and slow Port capacity expansion which has continued to diminish the performance and indeed competitiveness of Nigerian Ports,” he said.

He pointed out that globally, port authorities depend on revenue from operations to stay alive to their responsibilities which includes construction and maintenance of port infrastructure, dredging of channels, provision of aids for safe navigation, provision of modern marine crafts for efficient harbour services, automation and digitization of port transactions, port security, energy efficiency, training and retraining of its employees.

A maritime stakeholder
Joshua Asanga, speaking at the meeting agreed with the increase adding that the value of NPA’s present tariff has since been suppressed by inflation which is at about 35%.

Asanga listed port management liabilities like wages, fuel and other areas of expenditure as having adjusted upwards without a commensurate rise in NPA charges for over thirty years

He noted that NPA needs funds for improved port infrastructure, robust ICT for Port Community System, procurement of tug boats and other operational platforms to achieve efficiency

Demian Ukagu stakeholder, spoke on the need to apply more NPA funding to outer port facilities and jetties like the Kirikiri Lighter Terminal and development of other critical port facilities across the country.

He added that NPA rates should be able to cover these cost that would guarantee minimum return on investment and promote sustainable trade.

The meeting resolved
that existing tariffs were set devoid of capital cost, labour cost, consumables and overhead expenditures needed to run the ports.

They feared that keeping the ports on the old tariff would promote consequences like poor service, inadequate infrastructure,poor remuneration, obsolete critical port facilities, equipment and infrastructure