Dr. Abubakar Dantsoho
NPA increases tariffs 15% after 32 years
The Nigerian Ports Authority (NPA) has increased by 15% its tariff, the first since 32 years.
Abubakar Dantsoho, NPA Managing Director, stated this on Thursday in Lagos during the stakeholders’ engagement.
Dantsoho, who was represented by the Executive Director of Marine and Operations, Olalekan Badmus, recalled that the agency had maintained the same rates for over three decades despite significant economic changes, including exchange rate fluctuations, rising wages, fuel and lubricant costs, and inflation.
The managing director explained that the NPA is compelled by the exigency of bringing Nigerian ports up to speed with those of its peers in terms of infrastructure and equipment.
According to him, the NPA secured necessary approvals for an upward review in its tariffs which was last reviewed in the year 1993.
The 15% 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.
Indeed, throughout the world, 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.
Accordingly, 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.
The tariff review borne out of necessity constitutes a critical success factor in Nigeria’s quest to win back cargo handling business and it’s accompanying benefits including job opportunities it had lost to it’s maritime neighbors.
Verifiable data shows NPA Tariffs are amongst the lowest in the region, contrary to the belief in some quarters.
The high incidence of unreceipted costs due to unduly high human interface, bureaucratic bottlenecks, functional overlaps resulting from absence of a Port Community System (PCS) and its corollary the National Single Window (NSW) remain challenges in Nigerian port processes.
Although long overdue, a quick win benefits 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.
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