The Nigerian Ports Authority (NPA) has received approval to increase Port tariffs by 15% after 32 yearsThe authority disclosed this via its social media handle on Thursday, February 6, 2025The NPA stated that the 15% tariff increase covers all NPA rates and dues and is based on the need to improve port infrastructure
Henzodaily.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian Ports Authority (NPA) has received approval to raise its tariffs by 15%, the first in 32 years.
The move aims to improve infrastructure and upgrade equipment in Nigeria’s ports.
Olayemi Cardoso-led the Central Bank of Nigeria (CBN) to coordinate NPA tariffs.
Credit: CBN/Novatis
Source: Getty Images
NPA reveals the reason for tariff increase
The authority disclosed this in a statement on its X page on Thursday, February 6, 2025.
The adjustment is the first since 1993 and is intended to boost the efficiency and competitiveness of Nigerian ports.
According to the statement, the 15% review covers all NPA rates and dues. It is based on the undesirable realities of ageing and weak infrastructure, obsolete equipment, and slow port capacity expansion.
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The agency said global port authorities depend on earnings from operations to stay viable and continue performing their duties, which include building and maintaining Port infrastructure, channel dredging, and providing aids for navigation and other equipment.
The statement said the global port index rating and competitiveness, which international trade communities rely on for their choice of countries to conduct business with, get their data from how well countries perform their duties.
Experts say new tariff could cause inflation
The new tariff review came out of necessity and is a critical success factor in Nigeria’s desire to get back the cargo handling business and its benefits.
The managing director of NPA, Abubakar Dantsoho disclosed that the management’s decision to meet stakeholders came from the desire for inclusiveness.
Experts have said that the new tariff might spark another round of inflation, which might have a ripple effect nationwide.
In 2023, the authority generated total revenue of N191.4 billion from its operations in the first half of 2023, remitting N55.712 billion to the Consolidated Revenue Fund (CRF) of the Federation.
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ThisDay reports that the disclosure is in a half-year 2023 performance report released by the ex-NPA Managing Director and Chief Executive Officer, Mohammed Bello Koko.
Speaking on the report, Bello-Koko said that the existential economic headwinds at the micro and macro levels and the operational statistics for the first six months are reassuring.
NPA secures $700m facility from Citibank
Henzodaily.ng earlier reported that the NPA secured a $700 million facility from Citibank funded by the UK Export Finance (UKEF) to rehabilitate the Apapa and Tin-Can Island ports in Lagos.
The NPA also opened talks with another agency to fund the upgrading of the Eastern Ports, including the Calabar, Warri, Onne, and Rivers Ports, and the reconstruction of the Escravos breakwater.
The managing director of the NPA, Mohammed Bello-Koko, said on Wednesday, April 17, 2024, during the signing of the mandate letter that the debt would forwarded to the Debt Management Office (DMO) for review and approval.
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Source: Henzodaily.ng