Nigerian Ports Authority reviews port tariff by 15% After 32-years

Nigerian Ports Authority (NPA) in its quest to boost its operations with infrastructure and equipment has secured necessary approvals for an upward review in its tariffs which was last reviewed in the year 1993.

According to the Authority, the 15 per cent 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.

Managing Director, Abubakar Dantsoho who was represented by the Authority’s Executive Director, Marine and Operations, Olalekan Badmus, disclosed this while speaking on Thursday at a stakeholders meeting held in Lagos, noting that the NPA decision to meet stakeholders over the increment was borne out of the desire to carry everyone along.

Dantsoho said  “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 and training and retraining of its employees.

“The global index of Port rating and competitiveness which the international trade community relies on for its choice of countries to do business with, derives its data from how well the aforementioned responsibilities are addressed.

“Coming at this period of global economic upheaval and scramble for markets, this belated Tariff review borne out of necessity constitutes a critical success factor in Nigeria’s quest to win back cargo handling business and its accompanying benefits including job opportunities it had lost to its maritime neighbours.

“Contrary to the popular but erroneous notion that attributes high Port costs to NPA relative to its peers, verifiable data shows NPA Tariffs are amongst the lowest in the region.

“The high incidence of unreceipted costs due to unduly high human interface, bureaucratic bottlenecks, functional overlaps resulting from the absence of a Port Community System (PCS) and its corollary the National Single Window (NSW) are responsible for this contrived falsehood.

“Although long overdue, a quick win benefit of the NPA Tariff review for stakeholders, is the immediate boost it gives to the Authority to fast track the commencement of actual works on its concluded Port reconstruction and modernization plans.

“Secondly, the Tariff review provides the necessary guarantees to fund the acquisition and urgent deployment of the Information Communications Technology (ICT) backbone of the PCS which is the precursor to the implementation of the NSW.

“Furthermore, the increased revenue generation arising from the review buoys the Authority’s capacity for critical maintenance works to open up the Eastern Ports for increased vessel and cargo traffic such as the reconstruction of collapsed Escravos Breakwaters and challenged aspects of Rivers, Onne and Calabar Ports respectively.”

Joshua Asanga, a stakeholder at the meeting agreed with the increase, adding that the value of NPA present tariff has since been suppressed by Inflation which is at about 35 percent.

Asanga affirmed that port management liabilities like wages, fuel and other areas of expenditure as having been adjusted upwards without a commensurate rise in NPA charges for over thirty years.

According to him, 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, harped on the need to apply more NPA funding to outer port facilities and jetties like the Kirikiri Lighter Terminal and the development of other critical port facilities across the country.

Ukagu stated that NPA rates should be able to cover these costs would guarantee minimum return on investment and promote sustainable trade.

The meeting acknowledged that existing tariffs were set devoid of capital cost, labour cost, consumables and overhead expenditures needed to run the ports, adding that keeping the ports on the old tariff would promote consequences like poor service, inadequate infrastructure, poor remuneration, obsolete port facilities, equipment and infrastructure.