The Manufacturers Association of Nigeria (MAN) has expressed strong opposition to the Nigerian Ports Authority’s (NPA) proposed 15% increase in port-related charges.
The association argues that this hike will exacerbate the challenges faced by the manufacturing sector, which is already struggling with rising operational costs, foreign exchange volatility, and economic uncertainties.
According to MAN, the proposed increase will have a ripple effect, leading to higher production costs, increased inflationary pressures, and reduced competitiveness of locally manufactured goods.
The association also notes that many manufacturers operating as tenants in NPA facilities will face escalated costs, potentially disrupting the sector’s recent efforts to stabilize.
MAN Director General, Segun Ajayi-Kadir, emphasized that the timing of the proposed increase is ill-timed, given Nigeria’s current economic climate characterized by rising inflation, foreign exchange challenges, and declining industrial capacity utilization.
He warned that increasing port tariffs could signal a departure from the government’s efforts to improve the ease of doing business, leading to reduced capacity utilization and potential job losses.
Instead of raising tariffs, MAN proposes alternative approaches to revenue generation, including:
– Reducing Port Congestion and Inefficiency: Improving cargo clearing processes can significantly boost revenue.
– Addressing High Demurrage Charges: Streamlining bureaucratic bottlenecks can ensure faster throughput and more efficient revenue collection.
– Infrastructure Investment: Enhancing port infrastructure can attract more business, leading to natural revenue growth.
– Competitive Pricing Strategies: Aligning Nigerian port charges with global best practices can encourage more trade volume and increase overall earnings.
MAN urges the NPA to shelve the proposed tariff increase and engage in stakeholder dialogue to explore sustainable alternatives for revenue generation.
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