Manufacturers oppose NPA’s planned 15% port tariff hike, warn of economic fallout
The Manufacturers Association of Nigeria (MAN) has rejected the Nigerian Ports Authority’s (NPA) proposed 15 per cent increase in port-related charges, warning that it could further strain businesses already grappling with economic challenges.
In a statement issued in Lagos, MAN’s director-general, Segun Ajayi-Kadir, urged the NPA to reconsider the hike, citing the fragile state of the manufacturing sector.
“While we recognise the need for revenue generation, increasing port tariffs at this time will be counterproductive,” Ajayi-Kadir said. “We urge the NPA to suspend the proposed hike and engage stakeholders on alternative ways to boost revenue without stifling businesses.”
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The NPA had announced plans to review its tariff structure for the first time since 1993, citing the need for infrastructural upgrades and global competitiveness. However, MAN argues that the timing is ill-advised, given the soaring costs of operations, rising inflation, and volatile foreign exchange rates.
Ajayi-Kadir stressed that Nigerian manufacturers rely heavily on imported raw materials and machinery, with port-related charges forming a significant part of their costs. He warned that any tariff increase would trigger higher production costs, fuel inflation, and weaken the competitiveness of local goods.
“With 80 per cent of Nigeria’s traded goods transported by sea and the country handling 70 per cent of West and Central Africa’s total imports and exports, an increase in port tariffs will have widespread economic implications,” he said.
He also cautioned that higher port charges could push traders to divert cargo to neighbouring countries with more cost-effective ports, further eroding Nigeria’s trade revenue and encouraging smuggling.
Instead of raising tariffs, MAN urged the NPA to focus on improving port efficiency by reducing vessel turnaround time, streamlining cargo clearance, and addressing infrastructure bottlenecks.
Ajayi-Kadir warned that without a more strategic approach, the proposed hike could undermine Nigeria’s ease of doing business efforts, reduce industrial capacity utilisation, and lead to job losses.
