Connect with us

Business

MAN Opposes Proposed 15% Increase in Port Charges by Nigerian Ports Authority

Published

on

The Manufacturers Association of Nigeria (MAN) has expressed deep concern over the proposed 15% increase in port-related charges by the Nigerian Ports Authority (NPA).

Amid rising operational costs, high foreign exchange rates, and economic uncertainties, this increase would further burden manufacturers and exacerbate the challenges faced by the real sector.

Port Operations and Their Impact on ManufacturingPorts are vital for international trade and business efficiency.

According to the United Nations Conference on Trade and Development (UNCTAD), 80% of Nigeria’s traded goods are transported by sea, with 70% of imports and exports in West and Central Africa destined for Nigeria.

Increased port charges would significantly raise production costs, inflation, and reduce the competitiveness of locally manufactured goods.

For manufacturers, port-related charges constitute significant indirect costs, as most raw materials and industrial machinery are imported through these ports.

Any increase in charges will have a ripple effect, leading to higher production costs, increased inflationary pressures, and reduced competitiveness of locally manufactured goods.

Many manufacturers who operate as tenants in NPA facilities will also face escalated costs, which could significantly disrupt the slight moderation in the mounting challenges that has bedeviled the manufacturing sector in recent times.

The Economic Realities and Global Competitiveness:

Nigeria’s current economic climate is characterized by rising inflation, foreign exchange challenges, and declining industrial capacity utilization.

Many businesses are experiencing worrying downturn due to unsustainable operating costs.

Increasing port tariffs is therefore ill-timed and could signal a departure from government’s avowed efforts and commitment to the ease of doing business.

It is inevitable that this additional strain on industrial activities will ultimately lead to reduce capacity utilization and possibly job losses.

Furthermore, Nigeria must remain competitive in regional trade.

Neighboring countries with more efficient and cost-effective ports will become far more attractive alternatives, leading to increased cargo diversion.

This will not only reduce revenue for the Nigerian government but will encourage smuggling and other untoward trade practices that weaken our economy.

Alternative Approaches to Revenue Generation:

While we acknowledge the need for revenue generation, increasing port tariffs could be counterproductive in the long run.

The real issues affecting port revenue include:

Port congestion and inefficiency:

Reducing turnaround time for vessels and improving cargo clearing processes can significantly boost revenue.

High demurrage charges: Addressing bureaucratic bottlenecks that delay cargo clearance will ensure faster throughput and more efficient revenue collection.

Infrastructure investment: Improving port infrastructure will enhance operational efficiency and attract more business, leading to natural revenue growth.

Competitive pricing strategies: Instead of raising tariffs, aligning Nigerian port charges with global best practices will encourage more trade volume and increase overall earnings.

Our Appeal to the Nigerian Ports Authority

The Manufacturers Association of Nigeria’s implores the NPA to shelve the proposed 15% tariff increase and instead, collaborate with stakeholders to explore sustainable alternatives for revenue generation.

Increasing tariffs in the current economic climate will have dire consequences, including:

1. Increased cost of production, leading to higher prices of goods and fanning inflation.

2. Reduced competitiveness of Nigerian manufacturers in local and international markets.

3. Increased smuggling due to high costs at Nigerian ports compared to neighboring countries.

4. Decline in government revenue due to lower cargo turn out and manufacturing downturn.

Rather than imposing additional financial burdens on businesses, we propose a stakeholder dialogue to explore strategies for enhancing port efficiency, reducing operational bottlenecks, and creating a more business-friendly environment that will ultimately lead to increased revenue without undermining industrial growth and competitiveness.

We earnestly advocate for caution and deep reflection on the part of the NPA, as a key stakeholder in Nigeria’s economic development.

NPA’s consultation with key economic actors after it has decided on the increase is tantamount to putting the cart before the horse and does not demonstrate goodwill.

We call on NPA to rescind the planned increase in order to avert a monumental downturn in the fortunes of businesses in Nigeria.

The manufacturing sector can ill-afford such an increase at this time; it runs against the present administration’s efforts at making Nigeria a trading hub in the West African sub-region, and would definitely constitute a drag in the efforts of government to stabilize the economy in the year 2025.

Business

Senate Constitutes Abdullahi Yahaya Tax Harmonisation Committee

Altogether, the four Tax Reform bills were Executive Bills transmitted by President Bola Ahmed Tinubu to the two chambers of the National Assembly in November last year.

Published

on

By

The Senate on Thursday constituted a committee saddled with the responsibility of harmonizing its amendments to the tax reform bills with the House of Representatives version for final transmission to President Bola Ahmed Tinubu.

Senate President, Godswill Akpabio, announced this during plenary after the passage of the bills.

Akpabio named senator Abdullahi Yahaya (Kebbi North) as chairman of the committee.

The members of the committee as announced by the Senate President are Senate Minority Leader, Abba Moro (PDP, Benue South), Chief Whip, Tahir Mongumo (APC, Borno North), Enyinnaya Abaribe (Abia South), Abdulaziz Yari (Zamfara), and Solomon Adeola (APC, Ogun West).

Earlier, the remaining two Tax Reform Bills — the Nigeria Tax Bill 2025 and the Joint Revenue Board (Establishment) Bill, 2025.

This was in addition to passage of the Nigeria Revenue Service (Establishment) Bill, 2025, and the Nigerian Tax Administration Bill, 2025.

Altogether, the four Tax Reform bills were Executive Bills transmitted by President Bola Ahmed Tinubu to the two chambers of the National Assembly in November last year.

The passage of the bills was sequel to the consideration and adoption of a report of the Senate Committee on Finance presented by its Chairman, Senator Sani Musa (APC, Niger East).

Continue Reading

Business

Meta’s Exit to Throw 20 million Nigerian MSMEs Out of Business

The Global System for Mobile Communications Association reported that Nigerian MSMEs rely heavily on Facebook and Instagram for sales, customer engagement, and brand visibility.

Published

on

By

A Digital Marketing Consultant at EssenceMediacom, Olayinka Shobola, believes that a shutdown of Facebook and Instagram operations in Nigeria would deal a serious blow to Nigeria’s digital economy, especially millions of micro, small, and medium enterprises (MSMEs).

The Global System for Mobile Communications Association reported that Nigerian MSMEs rely heavily on Facebook and Instagram for sales, customer engagement, and brand visibility.

“Meta Platforms’ threat to halt operations in Nigeria could devastate 56 percent of the nation’s 39.6 players in the information technology space,” Shobola said, stressing that such an exit would erode tax revenues and force businesses to seek costly alternatives, as a $290 million fine dispute with regulators intensifies.

“Businesses that built their brands on Meta’s platforms would face immediate challenges.

The platforms have become essential tools for business survival and growth in Africa’s largest economy, where SMEs contribute nearly 50 per cent to GDP and represent more than 96 per cent of registered businesses.

“Most likely affected businesses will pivot to platforms like X or TikTok for short-term survival, but long-term, they’ll need to invest in standalone e-commerce or offline channels,” Shobola said.

“Jobs will take a hit; marketers, influencers, and agencies will lose contracts overnight.”

Statista forecasts a $148.2m social media ad market in 2025, with Facebook commanding up to $120m, driven by 38 million ad-reachable users.“My shop practically lives on these platforms, especially Instagram,” Lagos-based baker Fatima Tunde said. “If it’s gone, I’m out of business.”

Continue Reading

Business

UAE Invests in $25bn African- Atlantic Gas Pipeline

The gas pipeline will connect Nigeria’s gas network with Morocco’s southern city of Dakhla and then go northward toward Europe.

Published

on

By

Gas pipelines

Morocco’s Minister of Energy Transition and Sustainable Development, Leila Benali, said that the UAE is now one of the supporters of the Nigeria to Morocco gas pipeline project, which is estimated to cost $25 billion.

“The project now called the “African-Atlantic Gas Pipeline”, has won the support of IDB, OPEC Fund, EIB and the UAE,” Benali told Nigerian lawmakers, this week.

Benali also said that Morocco has finished all the feasibility and engineering studies needed for the pipeline.

Moroccan industry experts said that the project has already passed the feasibility study and Front End Engineering Design stages.

The gas pipeline will connect Nigeria’s gas network with Morocco’s southern city of Dakhla and then go northward toward Europe.

The line will pass through 15 African countries, boosting trade, development, and access to electricity in the region.

In Phase One, it will link Morocco to gas fields near Senegal and Mauritania, and connect Ghana to the Ivory Coast.

Phase Two will link Nigeria to Ghana, while Phase Three will connect the Ivory Coast to Senegal.

Continue Reading

Trending