Shelve 15% tariff hike, MAN tells NPA

The Manufacturers Association of Nigeria (MAN) has urged the Nigerian Ports Authority (NPA) to reconsider its proposed 15% tariff increase, warning that it could be counterproductive to businesses and the economy. The NPA recently announced that it had secured the necessary approvals to raise port tariffs in a bid to upgrade infrastructure and enhance operational […]

The Manufacturers Association of Nigeria (MAN) has urged the Nigerian Ports Authority (NPA) to reconsider its proposed 15% tariff increase, warning that it could be counterproductive to businesses and the economy.

The NPA recently announced that it had secured the necessary approvals to raise port tariffs in a bid to upgrade infrastructure and enhance operational efficiency.

Speaking at a maritime stakeholders’ meeting in Lagos, NPA Managing Director Abubakar Dantsoho described the adjustment- the first since 1993-as essential for improving the competitiveness of Nigerian ports.

“The 15% upward increase, which applies to all NPA rates and dues, is necessary to address the challenges of ageing infrastructure, outdated equipment and slow port expansion, which have negatively impacted port performance,” Dantsoho said.

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However, in a statement over the weekend, MAN’s Director General, Segun Ajayi-Kadir, expressed “grave concern” over the proposed tariff hike.

He argued that businesses were already struggling with high operational costs, forex volatility, rising energy prices, and economic uncertainties.

Ajayi-Kadir warned that imposing additional financial burdens on manufacturers would only “exacerbate the challenges faced by the real sector.”

While acknowledging the NPA’s need for revenue generation, he stressed that a tariff hike could have long-term negative effects.

According to him, key issues affecting port revenue include congestion, inefficiencies, high demurrage charges and pricing strategies.

Rather than increasing tariffs, MAN urged the NPA to engage stakeholders in discussions on enhancing port efficiency, streamlining operations, and fostering a business-friendly environment.

MAN called for collaborative solutions that address systemic inefficiencies without imposing additional financial strain on businesses.