Organised private sector kicks as FG raises port tariffs by 15%

Manufacturers and businesses on Thursday expressed concerns over the hike in tariffs by the Nigeria Ports Authority (NPA) and the Nigeria Customs Service (NCS), warning that such a hike could further raise inflation. Barely 48 hours after the NCS commenced the implementation of a four per cent rise in the Comprehensive Import Supervision Scheme (CISS), […]

Manufacturers and businesses on Thursday expressed concerns over the hike in tariffs by the Nigeria Ports Authority (NPA) and the Nigeria Customs Service (NCS), warning that such a hike could further raise inflation.

Barely 48 hours after the NCS commenced the implementation of a four per cent rise in the Comprehensive Import Supervision Scheme (CISS), the federal government, through the NPA on Thursday slammed a 15-per cent hike in tariffs.

Following the announcement, the organised private sector, same day, expressed concern over the move, warning of the dire consequences at a time businesses were struggling.

The NCS had on Tuesday announced the introduction of the 4 per cent CISS charge which was rejected by freight forwarders.

Although the NCS later said it would carry out an extensive sensitisation of stakeholders, freight forwarders had vowed to protest the rise. 

• Tinubu sacks UNIABUJA VC, makes key changes across Federal Varsities
• FG re-awards link roads to second Niger Bridge

But about 48 hours after the NCS’ decision, the NPA, said it would slam another 15 percent tariff increment across the board.

Speaking yesterday in Lagos during stakeholders’ engagement in Lagos, the Managing Director of NPA, Dr Abubakar Dantsoho, revealed that the government will soon introduce a 15 per cent tariff increment across the board.

However, Dantsoho emphasised that the upward review will not affect item rates like throughput and lease fees, Rents on NPA Landed Properties, MOWCA levy, Service Boat operations, and Hourly towage and mooring charges.

He explained that port cost should not be taken for NPA charges as the port cost covers charges by other government agencies operating at the port.

The rise is coming 32 years after the nation’s seaports were concessioned. The NPA boss explained that the move was necessitated by the urgency of bringing Nigerian Ports up to speed with its peers in terms of infrastructure and equipment.

The federal government, through the Ministry of Marine and Blue Economy, had in 2023 approved the upward review of the port tariff.

It was however not implemented then owing to certain reasons, including the inability of the NPA to conclude the internal processes and come out with a mode of implementation that would protect the interest of all parties.

NPA said it has secured necessary approvals for an upward review in its tariff which was last reviewed in 1993.

Dantsoho stressed that the 15 per cent upward increase will cut across all NPA rates and dues.

“The 15 per cent upwards which 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,” Dantsoho said.

The NPA boss highlighted that globally, port authorities depend on revenue from operations to stay alive to their responsibilities.

Dantsoho said that the high incidence of unreceipted costs due to unduly high human interface, bureaucratic bottlenecks, and functional overlaps resulting from the absence of a Port Community System and its corollary, the National Single Window, is responsible for this contrived falsehood.

Hike will affect shippers

There are concerns that the proposed increment by NPA would affect shipping companies involved in goods and cargo handling as well as logistics.

Stakeholders say the increased cost might be transferred to the end users who are already burdened by the rising inflation.

Manufacturers bringing their machineries into the country would also be affected.

The Organized Private sector as well as the Lagos Chamber of Commerce and Industry (LCCI) and Freight Forwarders who reacted said the increment will further plunge Nigerians into deeper suffering.

LCCI reacts to customs charge

Dr Chinyere Almona, Director General of Lagos Chamber of Commerce & Industry, in a statement on Wednesday expressed deep concern over the abrupt implementation of the newly introduced 4 per cent Customs Processing Charge (CPC), which took effect on Tuesday 4th February 4, 2025. 

Almona called on the federal government and the Nigeria Customs Service (NCS) to suspend the enforcement of this charge and engage in a structured sensitisation process to ensure stakeholders are adequately informed and prepared before its implementation. 

However, investigations by our correspondent at the Lagos and Tin-Can Island Port Complexes revealed that the increase in tariff by NPA might not affect terminal operators directly but shipping firms that pay certain charges to government while doing business in the nation’s waters.

Also speaking, Dr Obiora Madu, Director General (DG) of African Centre for Supply Chain (ACSC) said the hike was coming at a time when major business owners are divesting to other countries because of the high cost of doing business in Nigeria.

In a chat with our correspondent, he stated that importers and exporters are suffering and finding it extremely difficult to survive the terrain.

Eugene Nweke, former National President of the National Association of Government Approved Freight Forwarders (NAGAFF) and the founder, Sea Empowerment and Research Center (SEREC), while reacting to the 4% CISS charge stressed the importance of transparency and accountability in the determination of these fees and regimes. 

He noted that the implications of these provisions are significant, as they affect the revenue generation and operations of the NCS, as well as the broader economy.

NPA’s present tariff has been overtaken by inflation – Stakeholders

However, a stakeholder, Joshua Asanga, agreed with the increase, adding that the value of NPA’s present tariff has since been suppressed by inflation, which is at about 35 per cent.

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

Another stakeholder, Demian Ukagu, talked about 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.