NPA Reviews Tariffs for the First Time in 32 Years to Boost Port Infrastructure

Lagos, Nigeria – In a strategic move aimed at modernizing Nigeria’s ports and enhancing their global competitiveness, the Nigerian Ports Authority (NPA) has announced an upward tariff review—the first in 32 years.

The 15% increase, which will affect all NPA rates and dues, comes as part of an effort to address aging infrastructure, outdated equipment, and slow port expansion, which have significantly impacted the performance of Nigerian ports.

Why the Tariff Review is Necessary

The NPA, like other port authorities worldwide, depends on revenue from operations to fulfill its responsibilities, including:

Port infrastructure development and maintenance
Dredging of channels for safe navigation
Procurement of modern marine equipment
Digitization and automation of port transactions
Enhancing port security and energy efficiency
Training and retraining of personnel

Given the current global economic challenges and stiff competition for maritime business, the tariff adjustment is seen as a critical step in Nigeria’s bid to reclaim lost cargo traffic and associated economic benefits, including job creation.

Contrary to misconceptions about high port costs, verifiable data confirms that NPA tariffs remain among the lowest in the region. Experts attribute the perception of high costs to inefficiencies such as bureaucratic bottlenecks, excessive human interface, and the absence of a Port Community System (PCS) and National Single Window (NSW), which increase unreceipted costs.

Stakeholders Endorse the Tariff Review

At a stakeholders’ meeting in Lagos, the Managing Director of NPA, Abubakar Dantsoho, represented by Executive Director of Marine and Operations, Olalekan Badmus, explained that the decision to engage stakeholders stemmed from a commitment to transparency and inclusivity.

Stakeholder Joshua Asanga welcomed the review, emphasizing that the value of NPA’s current tariffs has been eroded by inflation, which is now at 35%. He noted that port management costs—including wages, fuel, and infrastructure maintenance—have risen significantly over the past three decades without a corresponding increase in tariffs.

“NPA needs adequate funding for improved port infrastructure, robust ICT for the Port Community System, procurement of tug boats, and other operational platforms to enhance efficiency,” Asanga stated.

Another industry expert, Damian Ukagu, advocated for greater investment in outer port facilities and jetties such as the Kirikiri Lighter Terminal, alongside the development of other critical port assets across Nigeria.

“NPA tariffs should be structured to cover essential operational costs, ensure a minimum return on investment, and promote sustainable trade,” Ukagu added.

The consensus at the meeting was that keeping ports under outdated tariffs could lead to deteriorating services, inadequate infrastructure, and obsolete critical equipment, ultimately weakening Nigeria’s maritime industry.

Immediate Benefits of the Tariff Review

The increased revenue from the tariff adjustment will enable NPA to:

Kickstart long-overdue port reconstruction and modernization projects.
Accelerate the deployment of the ICT backbone for the Port Community System (PCS), a key step toward implementing the National Single Window (NSW).
Fund critical maintenance work in Eastern ports, including the reconstruction of collapsed Escravos Breakwaters and repairs in Rivers, Onne, and Calabar ports.

With this long-overdue review, the NPA is positioning itself to enhance efficiency, attract more cargo traffic, and restore Nigeria’s ports as a preferred maritime destination in West Africa.

NPA Reviews Tariffs for the First Time in 32 Years to Boost Port Infrastructure