Maritime stakeholders fear Port tariff hike would reduce cargo throughputs as NPA implements 15% increase

The implementation of a 15 per cent increase in port tariffs by the Nigerian Ports Authority (NPA) has triggered concerns among key stakeholders in the maritime industry, with experts warning that the move could render the nation’s ports uncompetitive compared to their counterparts across Africa and overseas.

The new tariffs which took effect on March 1, 2025 mark the first adjustment in port charges in 32 years.

The NPA argued that the increase was necessary to modernise infrastructure and equipment at the ports. However, industry operators are calling for a review, claiming the hike has severely impacted their operations and raised concerns about the nation’s ability to retain cargo traffic.

President of the Shipping Agencies, Clearing and Forwarding Employers Association (SSACFEA), Boma Alabi, speaking at a press conference in Lagos, criticised the tariff hike, describing it as excessive and implemented without adequate consultation with stakeholders.

According to Alabi, the charges on a 40-foot container have skyrocketed from N100,000 to N290,000, while charges on a 20-foot container increased from N55,000 to N145,000.

“We were not informed about the charges before the government implemented them. The government should try to make the ports competitive and attractive, which can be achieved through a reduction of port charges. If port charges are reduced, cargo throughput will increase, then the government will make more revenue, and there will be enough jobs available for the youth,” Alabi said.

Alabi highlighted that Nigerian ports are losing cargo traffic to neighboring countries with more competitive pricing. Citing figures, she noted that while it costs $15,000 for ships to call at other ports, the same operation in Nigeria costs $150,000.

This disparity, she said, becomes even more glaring when compared to costs in other countries like Singapore where berthing a ship cost $29,000 in Singapore, $60,000 in Abidjan, $35,000 in China, $26,000 in Lome, $27,000 in Cotonou, and a staggering $350,000 in Nigeria.

According to her, the prohibitive costs are pushing vessels away from Nigerian ports, with cargo increasingly diverted to neighboring countries, who then smuggle the goods into Nigeria through land borders.

“Neighbouring countries have hijacked Nigerian cargoes and they still find ways into the country through smuggling, which is dangerous to the economy,” she lamented.

The Deputy Managing Director of CMA CGM, a major shipping line, Ramesh Saraf, echoed Alabi’s concerns, pointing out that the high cost of operation at Lekki Deep Sea Port, which began operations in April 2023, has hindered its potential.

“Lekki Deep Sea Port started operation in April 2023 with less than half capacity of cargo, and now less operation is taking place at the port. The cost of operation in Lekki Deep Sea Port is triple the port charges in other ports across the world,” he stated.

Saraf added that while Meridian Ports Service Ltd., owners of Terminal C in Tema Port, recorded 1.9 million TEUs (20-foot equivalent units) in 2024, and Nigerian ports only handled 1.2 million TEUs within the same period.

According to him, reducing port charges would be key to attracting more cargo traffic to Nigerian ports. The NPA has maintained that the tariff hike is crucial for generating revenue needed to enhance port facilities.

An official from the NPA, who requested anonymity, explained, “This increment is long overdue. For over three decades, tariffs have remained stagnant despite inflation and increasing operational costs. The funds generated will be directed towards infrastructure upgrades to improve efficiency and service delivery.”

However, operators are urging the government to reconsider the approach, warning that failure to do so could drive more business to competing ports in neighboring countries. Alabi, on her part, appealed to the government to re-dollarise port charges for both import and export goods to make the nation’s ports attractive once again.

The concern is palpable as stakeholders fear the tariff hike could prove counterproductive unless a balanced approach is pursued to enhance Nigeria’s maritime sector competitiveness.