SEREC Calls for Review of NPA's 15% Port Tariff Increase

The Sea Empower Research Centre (SEREC), led by head of research Eugen Nweke, has urged a review of the Nigerian Port Authority's (NPA) recently approved 15% increase in port tariffs, which is set to take effect on March 1. This increase, approved by the federal government in February, aims to improve port infrastructure and expand capacity within Nigeria's maritime sector.

However, Nweke cautioned that the tariff hike could lead to a rise in operational costs for terminal operators and shipping lines, ultimately transferring these costs to port users. He warned that this development could deepen cost pressures in Nigeria's maritime sector and negatively impact the competitiveness of the country's ports compared to others in the region.

Nweke also highlighted that the trend of assigning revenue targets to regulatory agencies undermines their statutory responsibilities and weakens institutional effectiveness. The NPA's review mechanism intends to align port charges with inflationary trends and operational realities, but stakeholders in the maritime industry remain concerned about the potential impact on trade costs and cargo movement.