World News

MAN Warns NPA: Drop 15% Port Tariff Hike or Risk Economic Fallout

The Manufacturers Association of Nigeria (MAN) has strongly opposed the Nigerian Ports Authority's (NPA) proposed 15% increase in port charges, asserting that such a move would be detrimental to the manufacturing sector and the broader economy.​

 

Segun Ajayi-Kadir, Director-General of MAN, emphasized that the timing of the tariff hike is ill-advised, especially as businesses grapple with escalating operational costs, high foreign exchange rates, and general economic uncertainties. He warned that increasing port tariffs would exacerbate these challenges, leading to higher production costs, inflationary pressures, and reduced competitiveness of locally manufactured goods .​

 

Ajayi-Kadir highlighted that many manufacturers rely heavily on imported raw materials and industrial machinery, making port-related charges a significant indirect cost. An increase in these charges could disrupt the already fragile manufacturing sector, potentially resulting in reduced capacity utilization and job losses.​

 

Furthermore, MAN cautioned that higher port tariffs could make Nigerian ports less attractive compared to neighboring countries with more efficient and cost-effective alternatives. This could lead to cargo diversion, reduced government revenue, and an uptick in smuggling and other illicit trade practices .​

 

In light of these concerns, MAN urged the NPA to reconsider the proposed tariff increase and instead engage stakeholders in dialogue to explore alternative strategies for revenue generation. Suggestions include enhancing port efficiency, reducing operational bottlenecks, and improving infrastructure to naturally boost revenue without imposing additional financial burdens on businesses .​