NPA Implements First Tariff Increase In 32 Years, Raises Rates By 15%

The Nigerian Ports Authority (NPA) has announced a 15% increase in tariffs, marking the first adjustment in over three decades.

Speaking at a stakeholders’ engagement in Lagos on Thursday, NPA Managing Director Abubakar Dantsoho, represented by Executive Director of Marine and Operations Olalekan Badmus, confirmed the increment.

Dantsoho explained that the agency had kept tariffs unchanged for 32 years despite major economic shifts, including fluctuations in exchange rates, rising wages, increased fuel and lubricant costs, and persistent inflation.

He noted that the decision was driven by the urgent need to rehabilitate decaying port infrastructure, modernize obsolete equipment, and expand capacity to enhance efficiency and competitiveness.

Dantsoho emphasized that globally, port authorities rely on revenue generated from operations to maintain infrastructure, dredge channels, procure modern marine vessels, digitize transactions, and ensure port security.

He added that the new rates would enable the NPA to invest in automation and workforce training while facilitating the adoption of the Port Community System (PCS) and the National Single Window (NSW) initiative.

Addressing concerns over rising costs, Dantsoho refuted claims that Nigerian port charges are higher than those in neighboring countries, stating that comparative data places Nigeria among the most affordable in West Africa.

He highlighted that the tariff adjustment would accelerate port reconstruction projects, including repairs to the collapsed Escravos Breakwaters and upgrades at Rivers, Onne, and Calabar Ports to attract more vessels and cargo.

Former NPA General Manager of Operations, Joshua Asanga, backed the increase, pointing out that inflation, currently at 35%, has significantly eroded the value of the existing tariffs.

He noted that operational costs, such as wages and fuel, have risen substantially over the years without a corresponding tariff adjustment.

Stakeholder Demian Ukagu urged the NPA to allocate more funds to outer port facilities like the Kirikiri Lighter Terminal and improve access roads.

He also stressed the need for a tariff structure that guarantees a reasonable return on investment while fostering sustainable trade.

During the meeting, stakeholders and the NPA acknowledged that the previous tariff system had failed to cover essential capital and operational costs, leading to inefficiencies, deteriorating infrastructure, and inadequate remuneration.

They agreed that updating the tariffs was necessary to enhance service delivery, modernize facilities, and sustain port operations effectively.