NPA Makes 15% Upward Review Of Tariffs After 32 years

The Nigeria Ports Authority (NPA) has announced an upward review of 15% of its tarriff after 32 years in operation, citing needs for competitiveness and infrastructuaral upgrade.

The Managing Director of the Nigerian ports Authority Abubakar Dantsoho made this known during a stakeholders meeting held in Lagos, he said the authority was compelled by the exigency of bringing Nigerian ports up to speed with those of its peers in terms of infrastructure and equipment, to seek approval of the rates review, which has been approved by the Federal Government.

The MD, who was represented by Olalekan Badmus, Executive Director Marine and Operation,  said the management decision to meet with stakeholders on the issue of rates increase was borne out of desire to carry everyone along.

“The 15% upward increase which is to 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,” he said.

He noted that globally, port authorities depend on revenue from operations to stay alive to their responsibilities which includes construction and maintenance of port infrastructure, dredging of channels, provision of aids for safe navigation, provision of modern marine crafts for efficient harbour services, automation and digitization of port transactions, port security, energy efficiency, training and retraining of its employees.

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

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 for Port Community System, procurement of tug boats and other operational platforms to achieve efficiency

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

He went further to add that NPA rates should be able to cover these cost that would guarantee minimum return on investment and promote sustainable trade.

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

They feared that keeping the ports on the old tariff would promote consequences like poor service, inadequate infrastructure,poor remuneration, obsolete critical port facilities, equipment and infrastructure