To Ensure Port Competitiveness and Development, NPA Reviews Tariff

Eromosele Abiodun

Compelled by the exigency of bringing Nigerian Ports up to speed with those of its peers in terms of infrastructure and equipment, the Nigerian Ports Authority (NPA) has secured necessary approvals for an upward review in its tariffs which was last reviewed in the year 1993. 

The 15 per cent 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. 

According to experts, globally, 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. 

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. 

Contrary to the popular but erroneous notion that attributes high Port costs to NPA relative to its peers, verifiable data shows NPA Tariffs are amongst the lowest in the region. 

An official of NPA told THISDAY that 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) are responsible for this contrived falsehood.

“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,” said the official who pleaded anonymity . 

At a stakeholders meeting in Lagos, yesterday, Managing Director of NPA,Abubakar Dantsoho represented by Olalekan Badmus, Executive Director Marine and Operation said the management decision to meet stakeholders was borne out of desire to carry everyone along

Speaking at the meeting ,Joshua Asanga a stakeholder agreed with the increase adding that the value of NPA present tariff has since been suppressed Inflation which is at about 35 per cent.

Asanga listed port management liabilities like wages, fuel and other areas of expenditure as having adjusted upwards without a commensurate rise in NPA charges for over thirty years.

Another stakeholder,Demian Ukagu, who spoke at the event talked on th 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.