LCCI Calls on NPA To Reconsider Hike in Port Tariffs, As It Could Worsen Inflation
- The Lagos Chamber of Commerce and Industry (LCCI) has spoken up on the recent hike in ports tariffs
- The chamber listed out the adverse impacts of the NPA's decision to hike tariffs, noting that the heat will be transferred to Nigerians
- LCCI DG, Dr Almona listed possible strategies the authority can explore to attract more business to the ports
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
The Lagos Chamber of Commerce and Industry (LCCI), has called on the Nigerian Ports Authority (NPA) to reconsider the recent hike in port tariffs.
LCCI Director General, Dr Chinyere Almona, noted that the 15% hike in tariffs will increase the cost of doing business, especially for manufacturers who have to import key production materials and equipment.
Almona noted that the rise in port tariffs will increase the cost of operations, leaving businesses with no option but to pass it on to the consumers.
Source: Getty Images
LCCI describes Hike as poorly timed
The increase in port tariffs is the most recent of several tariff hikes that have characterised President Bola Tinubu's administration.
Almona noted that the hike was necessary since port tariffs had not been increased since 1993, but added that it was coming when businesses already have to deal with other challenges like the naira devaluation, high inflation, and high benchmark interest rate of 27.5%.
Per capita income has also reduced to about $835, causing more woes for businesses.
Almona pointed out that all of these challenges compound the ease of doing business in Nigeria, the GUARDIAN reports.
She called for a review of the hiked charges, as it has major economic implications that cannot be ignored.
She said;
“higher port charges will raise operational expenses for companies relying on imported raw materials and machinery. This, in turn, would lead to increased production costs, which could be passed on to consumers, driving inflation upward.”
LCCI suggests ways to raise funds
Remember that the Central Bank of Nigeria (CBN) also increased the Customs exchange rate for cargo clearance, meaning even more charges for importers.
Source: Getty Images
Even though Nigeria’s port tariffs are still one of the lowest in Africa, Almona noted that more can be done to improve port competitiveness rather than just increasing tariffs.
She advised the Ports Authority to look into improving efficiency by reducing the number of procedures and unforeseen charges that ultimately affect the overall costs.
She advised;
“The NPA should benchmark its operations against leading ports globally and adopt best practices that have been effective in reducing costs and improving service delivery. Deployment of technology to automate our port operations and transactions will reduce time loss and curb undesirable tendencies.”
Almona observed that the NPA can also modernize equipment and facilities in the port to attract more business to the ports and maintain a predictable tariff system that cuts out unforeseen charges and allows businesses to plan well and stay competitive.
NPA Hikes Port Tariffs
In related news, the NPA received approval to increase Port tariffs by 15%, for the first time since 1993.
The authority disclosed this tariff increase via its social media handle on Thursday, February 6, 2025
NPA Managing Director Abubakar Dantsoho explained that the increase was necessary due to rising inflation and would help fund new technology for the port community system (PCS) and national single window (NSW).
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Source: Legit.ng
