February 13, 2025
Manufacturers Oppose Port Tariff Hike, Warn of Economic Fallout
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Manufacturers Oppose Port Tariff Hike, Warn of Economic Fallout

Manufacturers Oppose Port Tariff Hike, Warn of Economic Fallout

The Manufacturers Association of Nigeria, MAN, has strongly opposed the Nigerian Ports Authority’s, NPA, proposed 15% increase in port charges, warning that it will exacerbate the sector’s struggles.  

The NPA recently secured approval for the tariff adjustment, citing the need to enhance port competitiveness. However, MAN’s Director-General, Mr Segun Ajayi-Kadir, cautioned that the hike would drive up production costs, fuel inflation, and weaken the competitiveness of locally made goods.  

Also Read: Nigerian Ports Authority to Raise Tariffs by 15%

He further noted that manufacturers operating within NPA facilities would face higher tenancy costs, potentially stalling the sector’s fragile recovery. Mr Ajayi-Kadir highlighted critical issues undermining port revenue, including congestion, inefficiency, high demurrage fees, and inadequate infrastructure investment.  

While acknowledging the need for revenue generation, MAN warned that increasing tariffs could prove counterproductive, urging authorities to adopt more strategic, efficiency-driven reforms instead.

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