By Rotimi Asher, Lagos
Lagos Chamber of Commerce and Industry ,LCCI, has expressed concerns over the Nigerian Ports Authority’s ,NPA, recent 15% increase in port tariffs, warning of the potential economic impact on businesses and inflation.
The Chamber urged the NPA to consider a phased implementation of the tariff adjustment to mitigate adverse effects on the economy.
In reaction to the development, LCCI acknowledged that this is the first tariff adjustment since 1993 and that the NPA has justified the increase as necessary to align Nigeria’s port infrastructure with global standards.
However, the Chamber emphasized that the timing of the hike amid high interest rates of 27.5% , inflation exceeding 34%, a weakened currency exchange rate of approximately ₦1,500 per dollar, and low per capita income of $835—places a significant burden on businesses.
One of the key concerns raised by LCCI is the increased cost of doing business, as higher port charges will drive up operational expenses for companies reliant on imported raw materials and machinery.
This could, in turn, lead to higher production costs and inflationary pressures on consumers. The Chamber also highlighted that port competitiveness is influenced by more than just tariff rates, citing operational efficiency, procedural complexity, and unforeseen fees as crucial factors.
LCCI recommended that Nigeria draw lessons from countries with lower port charges by focusing on process efficiency and infrastructure optimization to reduce costs.
The Chamber stressed that investments in modernizing equipment and facilities are essential for smoother operations and increased port transactions. Additionally, ensuring a transparent and predictable tariff structure would allow businesses to plan effectively and create a more stable and competitive trade environment.
To address the concerns surrounding the tariff hike, LCCI urged the NPA to engage with key stakeholders, including the business community, to explore strategies that would minimize negative impacts.
Rather than relying solely on tariff increases, the Chamber suggested improving port efficiency by reducing procedural delays, eliminating hidden costs, and benchmarking operations against leading global ports. The adoption of technology to automate port transactions was also recommended as a means of reducing time loss and curbing inefficiencies.
While acknowledging the necessity of the tariff review after a 13-year freeze, LCCI proposed that the increment be phased over three years at a rate of 5 per cent per year. This approach, according to the Chamber, would help businesses absorb the additional costs more gradually and prevent excessive inflationary effects on the economy.
The Director-General of LCCI, Dr Chinyere Almona, reaffirmed the Chamber’s support for port modernization but insisted that the process must be balanced to safeguard economic stability.
She reiterated the need for comprehensive strategies that enhance port efficiency while maintaining Nigeria’s position as a competitive hub for maritime trade in the West African region.
