NEW NPA CHARGES: GROUP EXPRESSES CONCERN OVER POTENTIAL IMPLICATIONS
..says stakeholders were not carried along
By Mcanthony Onuoha
A maritime advocacy group, National Compliance Joint Taskforce of Licensed Clearing Agents- NCJTFLCA, has expressed concern over potential impact of the recent upward review of Nigerian Ports Authority charges on production.
Recall that the Nigeria Ports Authority, recently carried out an evaluation of Ports charges after 32 years. A press statement that was made available to the Media read in part: ” Compelled by the exigency of bringing Nigerian Ports up to speed with those of its peers in terms of infrastructure and equipment, the Nigeria Ports Authority (NPA) has secured necessary approvals for an upward review of its tariffs which was last reviewed in the year 1993.
” The 15% upward review which is to cut across all NPA rates and dues is premised on urgent need to address the undesirable reality of aged and weak infrastructure, obsolete equipment and slow capacity expansion which has continued to diminish the performance and indeed competitiveness of Nigerian Ports “.
In a statement issued by the National President of NCJTFLCA, High Chief, Dr. Basil Chudi Nwolisa, he expressed concern about potential impact of the review. According to Nwolisa ” the recent increment of charges by the Nigeria Ports Authority (NPA), without wide consultation across stakeholders may have far- reaching consequences on local manufacturing”.
He went ahead and listed some of the potential implications which includes Increased Overhead Costs, saying that the hike in port charges would add to the already high overhead costs faced by local manufacturers, making it challenging for them to remain competitive.
On Reduction of Profit, Nwolisa said that manufacturers may be forced to reduce their profit margins, which could affect their ability to invest in their businesses.
He also made mention of Decreased Competitiveness, saying that “the higher costs may make Nigerian products less competitive in the global market, potentially leading to a decline in exports”.
Furthermore, Nwolisa mentioned Job Losses, saying that, “if manufacturers are unable to absorb the increased costs, they may be forced to reduce their workforce, leading to job losses.”
He did not leave out Energy Challenges, in this area, the National President of NCJTFLCA opined that, “lack of reliable energy to power machines is already a significant challenge for local manufacturers. I am also concerned about Increased Energy Costs. The hike in port charges may force manufacturers to divert resources from energy generation to pay the increased Port fees.”
On way forward, Nwolisa canvased for stakeholders engagement, advising that “the Nigeria Ports Authority should engage with stakeholders, including local manufacturers, to understand the impact of the increased charges and explore ways to mitigate them. I would also like to suggest gradual implementation. The NPA could consider a gradual implementation of the increased charges to give manufacturers time to adjust.”
” Not only that, support for local manufacturers is very important. The government can provide support to local manufacturers, such as subsidies or tax breaks, to help them absorb the increased costs.”
“By engaging with stakeholders and exploring ways to mitigate the impact of the increased charges, the NPA and government can help reduce the burden on local manufacturers and support the growth of Nigerian economy.” Nwolisa stated.
