There are growing tensions among importers, agents and the business community with a warning that the move to enforce the Nigerian Ports Authority (NPA) 15 per cent tariff increase scheduled to be implemented from March 1 could lead to widespread disruptions at the ports.
Economists had warned that the policy would further drive up the cost of doing business and worsen inflation, reports The Guardian.
They said there would be over 100 per cent increase in import duties and charges, which would significantly raise costs for importation.
Industry players are calling on the government and the NPA to urgently review the policy, as in the case of the suspended Nigeria Customs Service (NCS) four per cent FOB fee, emphasising that the increase could lead to higher costs of imported goods.
Already, the port industry is experiencing a decline in cargoes as confirmed by the NCS and NPA officials at the ports.
The Chief Executive Officer of Globe Joy Investment Nigeria Limited, Clinton Ikechukwu Okoro, was strongly opposed to the plan, citing a likely 100 per cent increase in import duties.
He argued that the financial burden on importers would be unbearable and worsen the situation if the NPA proceeded with the changes in addition to the current inflation and economic hardship. Okoro projected that if the NPA implements the 15 per cent increase, duty costs could skyrocket beyond N20 million per 40ft container.
“If you now talk about 15 per cent on a 40-foot container that was previously taxed at seven per cent, that is more than double the previous cost. Before, we were paying about N13 million in surface duty, which increased to N16 million.
“With this new NPA fee structure, the cost could rise to about N20 million per container. How do we sustain our businesses under such conditions?” he asked.
Okoro warned that should the proposed hike take effect, clearing agents might be forced to withdraw their services.
“If this tariff takes effect, businesses will struggle to cope and we may see a strong pushback from the industry. People will resist it. We might even withdraw our services in protest,” he warned.
The National Public Relations Officer for the Association of Registered Freight Forwarders of Nigeria (AREFFN), Taiwo Fatomilola, described the increase as insensitive, warning that it would exacerbate inflation and disrupt trade operations. He said the adjustment, which applies to port charges and other levies, is expected to drive up the cost of goods nationwide, noting that Nigeria, being an import-dependent economy, will feel the ripple effects of the hike.
According to Fatomilola, the increase will trigger a chain reaction, affecting various sectors beyond imports. He said local farmers and traders would also be affected, as they rely on imported inputs for their businesses.
Fatomilola explained that if an importer planned to spend N3 million on clearing costs, a 15 per cent increase means they would need extra funds, which would slow down clearance, increase demurrage and reduce the volume of goods moved to the market.
The Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, emphasised its potential to escalate operational costs at ports and trigger a ripple effect on consumer prices.
“This is a time when we have been urging the government to take measures to bring down prices, instead, we are facing this challenge from the NPA. The increase will exacerbate the cost of operations at ports, which will ultimately lead to a surge in market prices,” he stated.
According to Yusuf, the inflationary impact of the tariff hike cannot be ignored, as businesses relying on imports would have to factor in higher costs.
