The Manufacturers Association of Nigeria (MAN) has implored the Nigerian Ports Authority (NPA) to pull the breaks on the proposed 15 per cent increase in port charges and instead, collaborate with stakeholders to explore sustainable alternatives for revenue generation.
MAN argued that increasing tariffs in the current economic climate will have dire consequences, including increased cost of production, leading to higher prices of goods and fanning inflation; and reduced competitiveness of Nigerian manufacturers in local and international markets.
The NPA had at a recent maritime stakeholders’ meeting in Lagos announced a 15 per cent upward review of its port charges, citing the need for competitiveness and infrastructural development. It was its first tariff adjustment since 1993.
NPA Managing Director Abubakar Dantsoho explained that the new rates were necessary to improve Nigeria’s ports, aligning them with global standards in terms of infrastructure and equipment.
However, the move did not go down well with MAN, with its Director General, Segun Ajayi-Kadir, expressing worries that the proposed 15 per cent tariff hike will increase smuggling, due to high costs at Nigerian ports compared to neighbouring countries and also force decline in government revenue due to lower cargo turn out and manufacturing downturn.
