Nigerian Port Authority Increases Port Charges by 15%, Stirring Higher Inflation Concern

The Nigerian Ports Authority (NPA) has announced a 15% increase in port charges, marking the first tariff adjustment in three decades. The agency argues that the move is necessary to fund infrastructural improvements, modernize equipment, and enhance efficiency at the nation’s ports.

Dr. Abubakar Dantsoho, Managing Director of the NPA, made the announcement during a maritime stakeholders’ meeting held in Lagos. He was represented by Mr. Olalekan Badmus, the Executive Director of Marine and Operations, who explained that while the new rates had already been approved by the Federal Government, the agency deemed it necessary to consult stakeholders before implementation.

According to Badmus, the upward review was long overdue, as the current rates had remained unchanged since 1993 despite significant economic changes over the years.

“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,” Badmus said.

He further justified the decision, stating that the increased charges were needed to address critical issues such as aging port infrastructure, outdated equipment, and the slow pace of expansion, all of which have hindered efficiency and reduced Nigeria’s competitiveness in the maritime sector.

However, the decision has been met with apprehension, particularly as it comes at a time when Nigeria is battling record-high inflation, which has significantly eroded the purchasing power of its citizens.

For months, Nigerians have struggled under the weight of rising costs, with inflation currently hovering around 35%. One of the major drivers of this economic hardship has been the soaring cost of clearing goods at the ports, a situation largely attributed to exorbitant fees charged by the Nigerian Customs Service (NCS).

Importers and business owners have long complained that excessive port charges, coupled with delays and bureaucratic bottlenecks, drive up the prices of goods before they even reach the market. The latest increase by the NPA, many fear, will only make matters worse.

However, Maritime expert Joshua Asanga acknowledged that inflation has significantly eroded the value of NPA’s current tariff structure over the past three decades. He noted that port operations—including labor costs, fuel, and maintenance—have risen sharply, making a tariff review inevitable. However, he also expressed concerns about whether the additional revenue would be used effectively.

“We cannot deny that port operation costs have increased substantially over the years, yet the NPA tariffs have remained unchanged. But the question Nigerians are asking is: Will this increase translate to better services, or is it just another cost burden on businesses and consumers?” Asanga remarked.

Similarly, another industry player, Demian Ukagu, stressed the need for the additional revenue to be channeled into tangible improvements. He pointed out that Nigeria’s port system continues to lag behind those of neighboring countries such as Ghana and the Benin Republic, where faster turnaround times and better infrastructure have made them preferred alternatives for international shipping.

“The NPA should ensure that this increase leads to real infrastructural development. There should be investment in outer port facilities like the Kirikiri 11Lighter Terminal and critical maritime infrastructure across the country. Otherwise, we will only be increasing costs without solving the core problems,” Ukagu warned.

Despite the attempts to justify the hike, the fear among Nigerians remains that this increase will worsen the hardship already being faced by millions. With inflation already at a record high and businesses struggling to manage costs, the last thing many expected was a new financial burden at the ports.

Some argue that instead of focusing on revenue generation, the government should be looking for ways to reduce costs and inefficiencies in the port system.

The announcement has reignited broader concerns about Nigeria’s economic policies, with many accusing policymakers of failing to address the real issues affecting trade and commerce. Being critical of the increase, many urge the government to, instead of increasing charges without offering corresponding improvements in service delivery, take meaningful steps to reduce red tape, simplify customs procedures, and enhance operational efficiency.

While Nigerians brace for the impact of the tariff hike, experts warn that without clear accountability and strategic investments in port infrastructure, the NPA’s decision may do more harm than good in an economy already struggling under the weight of inflation and rising costs.