Nigerians to Pay More For Imported Goods as NPA Raises Tariffs by 15% after 32 Years

“ After 32 years, the NPA has been given permission to increase port tariffs by 15%.”

“ On Thursday, February 6, 2025, the authority made public this tariff increase through its social media handle”

“ According to the NPA, the increase covers all rates and dues and is based on the requirement to enhance port infrastructure”

The Olayemi Cardoso-led Central Bank of Nigeria (CBN) is coordinating NPA tariffs which have been recently increased. 

Credit: CBN/Novatis 

Source: Getty Images

The move aims to improve infrastructure and upgrade equipment in Nigerian ports.

This was revealed by the authority in a statement on its X page on Thursday, February 6, 2025. This adjustment is the first since 1993 and aims to enhance the efficiency and competitiveness of Nigerian ports.

All NPA rates and dues are covered by the 15% review, as stated in the statement. The unfavorable realities of aging and weak infrastructure, obsolete equipment, and slow expansion of port capacity are the basis for it.

In order to stay viable and continue performing their duties, global port authorities depend on operating earnings, as stated by the agency. It involves the construction and maintenance of port infrastructure, channel dredging, and the provision of navigation aids and other equipment.

The statement talks about the global port index rating and competitiveness which International trade communities rely on data on how well countries perform their duties to make their choices about which countries to conduct business with.

According to experts, the introduction of a new tariff could lead to inflation.

Nigeria's desire to recover the cargo handling business and its benefits has been aided by the new tariff review, which came out of necessity. Abubakar Dantsoho, the managing director of NPA, revealed that management decided to meet stakeholders because they wanted to be inclusive. 

According to experts, the new tariff could cause another round of inflation, which could have pronounced effects across the nation. The authority's operations in the first half of 2023 generated a total revenue of N191.4 billion, sending a sum of N57,121 billion to the Consolidated Revenue Fund (CRF) of the Federation. 

According to ThisDay, Mohammed Bello Koko, the former Managing Director and Chief Executive Officer of NPA, disclosed the matter in his half-year 2023 performance report. In regards to the report, Bello-Koko mentioned that the existential economic challenges at the micro and macro levels, as well as the operational data for the first six months, are reassuring.

Citibank provides NPA with a $700m facility. 

According to Legit.ng, the NPA was able to secure a $700 million facility from Citibank, which is being funded by the UK Export Finance (UKEF), to refurbish the Apapa and Tin-Can Island ports in Lagos.

Another agency has been contacted by the NPA to fund the upgrading of the Eastern Ports. Including the Calabar, Warri, Onne, and Rivers ports renovations, and rehabilitating the Escravos breakwater. The managing director of the NPA, During the signing of the mandate letter on April 17, 2024, Mohammed Bello-Koko stated that the debt will be sent to DMO for review and approval.