Posted on February 11, 2025
LAGOS – The Nigerian Ports Authority (NPA) has secured approval for an upward review of its tariffs, which were last reviewed in 1993, in order to bring Nigerian ports up to par in terms of infrastructure and equipment.
According to the Authority, the 15% upward increase that will be applied to all NPA rates and dues is based 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 erode the performance and competitiveness of Nigerian ports.
Globally, it stated that port authorities rely on revenue from operations to meet their responsibilities, which include the construction and maintenance of port infrastructure, channel dredging, the provision of aids for safe navigation, the provision of modern marine crafts for efficient harbour services, the automation and digitisation of port transactions, port security, energy efficiency, and employee training and retraining.
During a stakeholders’ meeting in Lagos, NPA’s Managing Director, Abubakar Dantsoho, was represented by Olalekan Badmus, Executive Director Marine and Operations. Dantsoho stated that the decision to meet stakeholders was made to ensure everyone’s participation.
At the meeting, Joshua Asanga, a stakeholder, expressed support for the increase, noting that inflation has reduced the value of NPA’s current tariff by approximately 35%.
Advertisement
He added that NPA needed funds for improved port infrastructure, robust ICT for the Port Community System, and procurement of tug boats and other operational platforms to achieve efficiency.
Another stakeholder, Damian Ukagu, who spoke at the event, emphasised the importance of allocating more NPA funds to outer port facilities and jetties such as the Kirikiri Lighter Terminal, as well as the development of other critical port facilities throughout the country.
He added that NPA rates should be sufficient to cover these costs, ensuring a minimum return on investment and promoting sustainable trade.
The meeting agreed that existing tariffs were set devoid of capital and labour costs, consumables, and overhead expenditures required to run the ports.
They feared that keeping the ports on the old tariff would result in poor service, insufficient infrastructure, low pay, and obsolete critical port facilities, equipment, and infrastructure.
Although long overdue, one quick win benefit of the NPA Tariff review for stakeholders is the immediate boost it provides to the Authority in accelerating the start of actual work on its completed Port reconstruction and modernisation plans.
Secondly, the Tariff review provides the necessary guarantees to fund the acquisition and urgent deployment of the Information Communications Technology (ICT) backbone of the PCS which is the precursor to the implementation of the NSW.
