NPA: Why we are reviewing ports tariff by 15%

The Nigerian Ports Authority (NPA) on Thursday disclosed its decision to commence the review of its tariff across rates and dues in order to ensure it meets current demands in port operations and developmental goals.

The new revenue regime, the first to be carried out in 32 years, will enable the port management body to carry out construction and maintenance of the country’s ports infrastructure, dredging of channels, provision of safe navigation aids among others, it said.

Speaking at a one-day stakeholders’ engagement in Lagos with the theme ‘Engagement For The Approved 15% Tariff’, Managing Director of NPA, Abubakar Dantsoho affirmed that the review of the Tariff was to ensure competitiveness, infrastructure development, and renewal of obsolete equipment and increment in Port capacity expansion which diminished the performance and competitiveness of Nigerian Ports.

The MD, who was represented by the executive director of Marine and Operations, Olalekan Badmus disclosed that the agency to review the tariff by the exigency of bringing the ports up to speed with those of its peers in terms of infrastructure and equipment.

He added that authority secured necessary approvals for an upward review of its tariffs which was last reviewed in 1993. 

“The decision by NPA Management to embark on these sensitization activities was borne out of our desire to carry our valued stakeholders along so that at the end of the day, we will all have a better understanding of what informed the decision to review the tariff.

Although our tariff has gone through the processes of simplification and harmonization over the years as a result of Concession Agreements that took place in 2006 and the emergence of new operations in some port locations recently, it is pertinent to mention that the Authority is still operating in 1993 tariff regime thirty- two years after.

“Although the Federal Government through the Federal Ministry of Marine and Blue Economy hitherto known as Ministry of Transportation approved the upward review in the year 2023, it was not implemented then owing to certain reasons one of which was to enable us conclude on our internal processes and come out with the mode of implementation that will protect the interest of all parties.”

A stakeholder, Joshua Asanga, agreed with the tariff hike, adding that the value of NPA’s present tariff has been suppressed by Inflation, which is at about 35%.

He 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

According to him, NPA needs funds for improved port infrastructure, robust ICT for the Port Community System, procurement of tug boats and other operational platforms to achieve efficiency.

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

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

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