NPA’s 15% hike pushes berthing charges to $200,000
Shipping companies seek reduction in taxes
Following the recent 15 per cent increase by the Nigerian Ports Authority (NPA) in port and marine fees, berthing charges for vessels at Nigerian seaports have risen from $150,000 to approximately $200,000, according to the Shipping Agencies, Clearing and Forwarding Employers Association (SACFEA).
Addressing the challenges at Nigerian ports during a briefing in Lagos over the weekend, the SACFEA Chairman, Boma Alabi, compared vessel berthing charges across several ports.
She noted that berthing fees at Tema Port in Ghana stood at $15,000, Shanghai $21,000, Lome Port $26,000, Cotonou Port $27,000, Singapore $29,000 and Abidjan $60,000.
According to Alabi, Terminal 3 at Tema Port in Ghana is a well-structured facility, noting that its dedicated container terminal operates three berths and can accommodate ships up to 366 meters in length overall (LOA) with a 16-metre draught.
She referenced a 2024 report by NPS Meridian Port Services Limited, which revealed that Tema Port handles 1.9 million TEUs (Twenty-Foot Equivalent Units) yearly, whereas Nigerian ports process only 1.2 million TEUs per year.
Alabi explained that excessive berthing charges discourage customers and push them towards alternative ports like Cotonou and Lome, with relatively lower charges.
The high cost of doing business in Nigerian ports, she pointed out, makes them less competitive, allowing smaller countries to attract cargo that would have otherwise come to Nigeria.
She further highlighted the sharp increase in container costs, stating that a 20ft container, which previously cost N55,000 now costs N145,000, while a 40ft container, which was N100,000 costs N290,000, excluding port charges and logistics fees.
The SACFEA boss emphasised that the statistics indicate that Nigerian seaports were no longer attractive to investors, who preferred locations that offer better returns on investment (RoIs).
She warned that indirect taxation, imposed through various channels at the ports, make the business environment unfriendly, leading to a decline in manufacturing and a growing unemployment crisis.
Alabi urged the government to review port charges in line with rates in neighbouring countries and called on relevant agencies to engage stakeholders to restore Nigerian ports’ competitiveness.
“If port charges are reduced, cargo throughput will increase, leading to higher government revenue and more job opportunities for youths,” she stated.
Echoing similar concerns, the Deputy Managing Director of CMA CGM Nigeria, Ramesh Saraf, pointed out that despite significant international investment in the Lekki Port/Free Trade Zone, trans-shipment activities remained limited due to high costs.
“Lekki Deep Sea Port began operations in April 2023 at less than half its capacity, and, presently, even fewer activities are taking place. The cost of operations at Lekki Deep Sea Port is nearly three times higher than port charges in other countries,” Saraf said.
He further noted that the number of jobs created at Lekki Deep Sea Port remained far below expectations.
Saraf added that with the 15 per cent increase in port and marine fees, trans-shipment costs in Nigeria are now more than thrice higher than in competing ports.
As a result, Saraf lamented that many Nigerian importers and exporters were diverting their cargo to ports in Ghana and Cotonou, only to find alternative means of bringing their goods back into the country for sale.
