Nigerian Ports Authority (NPA) announced a 15% increase in port charges, marking the first price adjustment in three decades. The agency argues that this decision is necessary to finance infrastructure improvements, modernize equipment and improve efficiency in the country’s ports.
Dr. Abubakar Dantssoho, Director General of NPA, made this announcement at a meeting of maritime stakeholders held in Lagos. It was represented by Mr. Olalekan Badmus, executive director of Marine and Operations, who explained that if the new prices had already been approved by the federal government, the agency deemed it necessary to consult the stakeholders before the implementation.
According to Badmus, the upward journal was expected for a long time, because the current rates had been unchanged since 1993 despite significant economic changes over the years.
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“Although examination of the APN rates has already been approved by the federal government, management has decided to meet stakeholders on the issue of the desire to transport everyone,” said Badmus.
He also justified the decision, declaring that the increase in charges was necessary to solve critical problems such as aging port infrastructure, obsolete equipment and the slowness of expansion, which all embarrassed efficiency and reduced The competitiveness of Nigeria in the maritime sector.
However, the decision was picked with apprehension, in particular as it is at a time when Nigeria fights against record inflation, which considerably eroded the purchasing power of its citizens.
For months, Nigerians have struggled to increase costs, inflation currently oscillating approximately 35%. One of the main engines of these economic difficulties was the so -called cost of compensation for goods in the ports, a situation widely attributed to exorbitant costs billed by the Nigerian Customs Service (NCS).
Importers and business owners have long complained that excessive shipping costs, associated with delays and bureaucratic strangles, increase the prices of goods even before reaching the market. The latest increase in NPA, a lot of fear, will only make matters worse.
However, maritime expert Joshua Asanga has recognized that inflation has considerably eroded the value of the current NPA tariff structure in the past three decades. He noted that port operations – including labor costs, fuel and maintenance – have increased sharply, making an inevitable tariff exam. However, he also expressed his concerns as to whether additional income would be used effectively.
“We cannot deny that port operating costs have increased considerably over the years, but NPA prices have remained unchanged. But the question that the Nigerians arise is: will this increase result in better services, or is it just another burden of costs for businesses and consumers? Asanga pointed out.
Likewise, another player in the industry, Demian Ukagu, stressed the need for additional income to be channeled in tangible improvements. He pointed out that the Nigeria port system continues to be delayed on those of neighboring countries such as Ghana and the Republic of Benin, where faster recovery deadlines and better infrastructures have made them preferred alternatives for shipping international.
“The NPA should guarantee that this increase leads to real development of infrastructure. There should be investments in external port facilities such as the Kirikiri 11-Lighter terminal and critical maritime infrastructure across the country. Otherwise, we will only increase the costs without solving basic problems, ”warned Ukagu.
Despite attempts to justify the hike, the fear of Nigerians remains that this increase will worsen the difficulties already confronted with millions. Inflation already at a record level and the companies that have trouble managing costs, the last thing that many have been waiting for was a new financial burden in the ports.
Some argue that instead of focusing on the revenue generation, the government should seek means to reduce costs and ineffectiveness of the port system.
The announcement has rekindled wider concerns about Nigeria’s economic policies, many decision -makers accused of not approaching real problems affecting trade and trade. By shouting from the increase, many urge the government to increase charges without providing corresponding improvements in the provision of services, take significant measures to reduce administrative formalities, simplify customs procedures and improve operational efficiency.
While the Nigerians are preparing for the impact of the price hike, experts warn that without clear responsibility and strategic investments in port infrastructure, the NPA decision could do more harm than good in an economy that is already fighting under the weight of inflation and the increase in costs.
