SEREC urges review of NPA tariff hike, warns of rising port costs

Business Pointers

By Seun Ibiyemi

The Sea Empowerment and Research Centre (SEREC) has called for a review of the recent tariff increase announced by the Nigerian Ports Authority (NPA), warning that the adjustment could further raise the cost of doing business at Nigerian seaports.

SEREC’s Head of Research, Eugene Nweke, made the call in a statement issued on Friday in Abuja, noting that the tariff revision had already triggered additional charges by terminal operators and shipping lines.

The NPA had earlier announced that, beginning from March 1, U.S. dollar-denominated port tariffs would be adjusted every two years based on the Consumer Price Index for All Urban Consumers for the United States city average.

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The index uses 1982 as its base year and calculates price changes based on the average of the preceding two years.

The authority also stated that tariffs denominated in naira would be reviewed every three years in line with Nigeria’s Consumer Price Index.

The Federal Government had approved a 15 per cent increase in port tariffs in February, a move aimed at improving port infrastructure and expanding capacity.

However, Nweke said the adjustment had led to increased operational costs for port users and warned that assigning revenue targets to regulatory agencies could undermine their statutory responsibilities.

“All port-related charges should undergo harmonisation and rationalisation to reduce systemic inefficiencies and excessive cost burdens on port users,” he said.

Nweke expressed concern about what he described as a growing trend in Nigeria’s maritime governance where regulatory and technical agencies are increasingly driven by revenue benchmarks.

According to him, the trend has spread beyond maritime institutions to agencies responsible for standards, product control, freight regulation and environmental enforcement within port corridors.

He also raised concerns about revenue targets set for the Nigeria Customs Service, noting that such targets often lead to valuation disputes, cargo reclassification issues, post-clearance demand notices and operational delays.

Nweke said trade facilitation initiatives such as the one-stop shop system and Time Release Study should instead focus on reducing cargo dwell time and improving efficiency within customs zones.

He suggested that the Customs Service would perform better if assessed based on cargo throughput rather than strict revenue targets.

“If unchecked, this revenue-first orientation will increase business costs, worsen inflation and encourage cargo diversion. It will also weaken institutions, encourage extortionary practices and undermine investor confidence in Nigeria’s maritime sector,” he warned.

Nweke called for urgent policy recalibration, urging the government to prioritise long-term maritime competitiveness over short-term revenue gains.

He also stressed the need for the full implementation of a National Single Window platform to streamline the operations of multiple agencies at the ports.

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According to him, the platform should eliminate overlapping responsibilities and operate as a genuine one-stop-shop system, while performance indicators for agencies should focus on operational efficiency and regulatory compliance rather than the size of revenue remittances.

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