LCCI recommends 5% annual port tariff to reduce inflationary pressures
By Seun Ibiyemi
The Lagos Chamber of Commerce and Industry (LCCI) has proposed a phased port tariff increase of five percent annually over three years to ease the financial strain on businesses and minimise inflationary pressures on Nigerians.
This recommendation follows the Nigerian Ports Authority’s (NPA) recent announcement of a 15 percent tariff hike, marking the first adjustment since 1993.
According to the LCCI, implementing a gradual increase will help businesses adapt to additional charges over time.
The NPA justified the 15 percent increment by citing the need to modernise Nigeria’s port infrastructure and equipment to enhance global competitiveness.
“While the proposed tariff increase aims to upgrade port facilities, its economic impact must be carefully managed,” said Chinyere Almona, Director-General of the LCCI, in a statement.
She stressed the importance of distributing any additional financial burden over time to reduce its impact on businesses.
Almona highlighted the chamber’s primary concern: the rising cost of doing business. Higher port charges will increase operational expenses for companies reliant on imported raw materials and machinery.
“This, in turn, could lead to higher production costs, which may be passed on to consumers, exacerbating inflation,” she stated.
Although the NPA maintains that Nigeria’s port tariffs remain among the lowest in the region, Almona noted that port competitiveness is influenced by more than just tariff rates.
She emphasised that factors such as operational efficiency, the number of procedures involved, and unexpected fees significantly contribute to the overall cost of using Nigerian ports.
The LCCI also urged the NPA to engage stakeholders, including the business community, to assess the potential impact of the tariff increase and explore measures to mitigate any adverse effects.
“Beyond tariff adjustments, efforts should be directed towards improving port efficiency, minimising delays, and eliminating unnecessary costs that burden businesses,” the chamber advised.
It recommended that the NPA benchmark its operations against leading global ports and adopt best practices that enhance service delivery while reducing costs.
According to the chamber, deploying technology to automate port operations and transactions will help reduce delays and curb inefficiencies.
Almona reiterated that while the LCCI acknowledges the NPA’s rationale for the tariff increase, a balanced approach is essential to mitigate economic disruptions for businesses and consumers alike.
“By implementing comprehensive strategies to boost port efficiency and competitiveness, Nigeria can strengthen its position as a leading maritime trade hub in the West African sub-region,” she concluded.
