32 Years After, NPA Increases Port Tariff By 15%
By Frederick Wright
The Nigerian Ports Authority (NPA) has reviewed port tariff upward by 15%, after 32 years of operating stiff charges.
The tariff was last reviewed in 1993. The Authority said the 15% upward increase which was 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.
Speaking at the stakeholders meeting in Lagos, the Managing Director of NPA, Abubakar Dantsoho, said although long overdue, the tariff review will enable the Authority to fast track the commencement of actual works on its concluded port reconstruction and modernization plans.
Besides, the Tariff review, according to him, 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 National Single Window.
Dantsoho, who was represented at the programme by the Executive Director Marine and Operation, Olalekan Badmus, further said 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.
Speaking at the meeting, a stakeholder, Joshua Asanga, agreed with the increase, adding that the value of NPA present tariff has since been suppressed Inflation which is at about 35% .
He added that NPA needs funds for improved port infrastructure, robust ICT for Port Community System, procurement of tug boats and other operational platforms to achieve efficiency
Another stakeholder, Demian Ukagu, who spoke at the event talked 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.
The meeting agreed that existing tariffs were set devoid of capital cost, labour cost, consumables and overhead expenditures needed to run the ports
