Tensions are rising among importers, clearing agents, and the business community over the Nigerian Ports Authority’s (NPA) planned 15% tariff increase, set to take effect on March 1. Stakeholders warn that the policy could lead to widespread disruptions at the ports, drive up import costs, and worsen inflation.
Economists and industry experts argue that the hike will significantly raise import duties and charges, with some estimating a 100% increase in total costs. They are urging the government to reconsider the policy, similar to the suspension of the Nigeria Customs Service (NCS) 4% Free on Board (FOB) fee, warning that the higher tariffs could further strain businesses and consumers.
Already, port operators have reported a decline in cargo volume, with officials from both the NPA and NCS confirming a slowdown in trade activity. Clinton Ikechukwu Okoro, CEO of Globe Joy Investment Nigeria Limited, voiced strong opposition to the plan, stating that the financial burden on importers would be unbearable. He projected that if implemented, duty costs on a 40-foot container could exceed ₦20 million.
“If you now add 15% to a 40-foot container that was previously taxed at 7%, the cost more than doubles. We were paying about ₦13 million in surface duty, which later increased to ₦16 million. With this new NPA fee structure, the cost could rise to about ₦20 million per container. How do we sustain our businesses under such conditions?” Okoro questioned.
He warned that if the tariff hike is enforced, clearing agents may be left with no choice but to withdraw their services in protest.
The National Public Relations Officer of the Association of Registered Freight Forwarders of Nigeria (AREFFN), Taiwo Fatomilola, described the increase as insensitive, cautioning that it would further fuel inflation and disrupt trade operations. He noted that Nigeria’s heavy reliance on imports means that any additional charges at the ports would have a ripple effect across multiple sectors, increasing costs for consumers.
According to Fatomilola, the tariff hike will slow down cargo clearance, increase demurrage charges, and reduce the volume of goods reaching the market. He explained that if an importer previously budgeted ₦3 million for clearing costs, the new policy would require additional funds, further straining businesses already grappling with economic hardship.
Dr. Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise (CPPE), criticized the timing of the policy, warning that it would escalate operational costs at the ports and drive up consumer prices.
“This is a time when we have been urging the government to take steps to lower prices. Instead, we are now dealing with this increase from the NPA. The additional charges will raise the cost of operations at ports, ultimately leading to higher prices in the market,” he stated.
Yusuf emphasized that the inflationary impact of the tariff hike cannot be overlooked, as businesses relying on imported goods would be forced to pass on the extra costs to consumers. He called on the government to prioritize policies that reduce costs for businesses instead of introducing measures that could stifle economic growth.
With growing dissatisfaction in the industry, all eyes are now on the government and the NPA to see whether they will reconsider the tariff hike or push ahead despite the strong opposition from stakeholders.
