NPA Implements 15% Upwards Tariff Review

BY EGUONO ODJEGBA

After a long period of 32 years, the Nigerian Ports Authority (NPA) recently secured the approval of the federal government to carry out the implementation of a 15 percent tariff increase.

According to official explanations, the review is coming as part of measures to modernize the Nigeria’s port operations and to boost its efficiency and competitiveness, particularly within the sub region.

While the review cuts across all NPA Rates and Dues, it is designed to address weak and a huge infrastructural decay, obsolete equipment plus the disturbing reality of slow port capacity expansion which has continued to diminish the ports efficiencies and for a long time already, become an embarrassing decimal.

The Managing Director of NPA,   Dr. Abubakar Dantsoho who disclosed the development at a maritime stakeholders meeting in Lagos, said the management decision to meet stakeholders on the tariff increase  was borne out of the desire to carry port players along.

Represented by Olalekan Badmus, Executive Director Marine and Operation, Dantsoho noted that globally, port athorities depend on revenue from operations to carry out their responsibilities which include 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, training and retraining of its employees; amongst other tasks.

He explained that the global index for 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.

Despite coming late, Dantsoho expressed the belief that the reviewed rate will bridge the gap is closing some of the debilitating infrastructure collapse arising from the recent global economic recessions and upheaval that has led to a scrambling for new markets and new investments partnership.

According to the NPA boss, the new tariff regime will be instrumental in Nigeria’s quest to win back sizeable chunk of cargo traffic that has been lost to neighbouring ports; and help to raise our cargo handling businesses.

Also speaking at the event, a ministry official, Joshua Asanga listed port management liabilities like wages, fuel and other areas of expenditure as having increased without a commensurate rise in NPA charges for over thirty years, adding that the value of NPA present tariff has since been suppressed by inflationary curve of over 35percent. 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.

Also, Demian Ukagu a stakeholder at the meeting provided another perspective on the need for the NPA to pay attention to out-port facilities and jetties like the Kirikiri Lighter Terminal and the development of other critical port facilities across the country, to guarantee minimum return on investment and to promote sustainable trade.

The NPA in its bid to get the nation’s port system revamped and retooled to meet the global modernization in shipping has in the past couple of years explored different financial supermarkets aimed at securing the most attractive project financial windows with friendly interest rates and reassuring commitment for high integrity performance.