The Nigeria Ports Authority (NPA) says it is reviewing its charges upward by 15 per cent, citing a need for competitiveness and infrastructural upgrades.
Managing Director of the NPA, Dr Abubakar Dantsoho, who disclosed the plan at a maritime stakeholders’ meeting held in Lagos on Thursday – yesterday, February 6 – explained that the last review was carried out in 1993.
Represented by Mr Olalekan Badmus, Executive Director, Marine and Operation, Dantsoho said the authority was compelled by the exigency of bringing Nigerian ports at par with its peers globally in terms of infrastructure and equipment.
He said: “Though the NPA rates review has already been approved by the Federal Government, the management decided to meet with stakeholders on the issue out of the desire to carry everyone along.
“The 15 per cent upward review 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.
“We need to address obsolete equipment and slow port capacity expansion which has continued to diminish performance and, indeed, competitiveness of Nigerian ports.
“Port authorities depend on revenue from operations to stay alive to their responsibilities which include construction and maintenance of port infrastructure.
“Other responsibilities are dredging of channels, provision of aids for safe navigation, provision of modern marine crafts for efficient harbour services, automation and digitisation of port transactions, port security, energy efficiency and training and retraining of its employees.”
Also speaking, a Maritime Stakeholder, Mr Joshua Asanga, concerned about the increment, noted that the value of NPA’s current tariff had been suppressed by inflation, now at about 35 per cent, listing port management liabilities such as wages, fuel and other areas of expenditure as having adjusted upwards without a commensurate rise in NPA charges for over 30 years.
According to him, NPA needs all the funds it can get for improved port infrastructure, robust Information and Communication Technology (ICT) for Port Community System, procurement of tug boats and other operational platforms to achieve efficiency.
Another stakeholder, Mr 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 noted that NPA rates should be able to cover these costs 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.
The meeting was attended by terminal operators, bonded terminal operators and other ports users.
