In a historic move, the Nigerian Ports Authority (NPA) has announced an increase in port charges by 15%, marking the first significant hike in over three decades. This decision, effective immediately, is a response to the growing operational costs, infrastructural developments, and the need to maintain a competitive edge in the global maritime industry.
The NPA's adjustment to port charges—set at an average 15% increase—comes after a thorough review of the port sector’s economic dynamics. This hike is essential to ensure the sustainability of operations and further the NPA’s ongoing efforts to improve service delivery across the nation’s ports. The NPA, the central agency in managing Nigerian seaports, emphasized that despite the hike, the new charges will still maintain Nigeria's competitiveness in the global shipping industry.
“This increase in port charges is a necessary step to adapt to the realities of inflation, rising operational costs, and the need for infrastructure upgrades,” said Hadiza Bala Usman, Managing Director of the Nigerian Ports Authority. “We have not raised these charges in 32 years, and in that time, there has been a significant shift in the global shipping industry, necessitating this adjustment. Our goal is to ensure that the Nigerian ports remain viable and efficient for local and international trade.”
The funds raised from this increase will be reinvested into improving the country’s port infrastructure, enhancing cargo handling capabilities, and ensuring timely modernizations to support trade and commerce in Nigeria. Additionally, part of the funds will be directed towards providing modern facilities that ensure safe and secure port operations.
While the hike may result in higher costs for importers and exporters, the NPA assures stakeholders that the impact on overall trade operations will be minimal as a result of improved port services, reduced congestion, and the introduction of new technologies for streamlining operations. This charge increase is also expected to attract more investment into Nigeria’s ports, facilitating greater economic growth.