Business

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

Published

1 year ago

February 9, 2025

324 Views

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.

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Dangote proposes to build refineries in East Africa if …

Dangote made the pledge at the infrastructure summit – the Africa We Build Summit 2026 – on Thursday in Nairobi, Kenya.

Published

8 hours ago

April 24, 2026

OCHEFA

28 Views

Africa’s leading industrialist and President of the Dangote Group, Aliko Dangote, has said the refinery in Lagos can be replicated in East Africa with the right support.

Dangote made the pledge at the infrastructure summit – the Africa We Build Summit 2026 – on Thursday in Nairobi, Kenya.

The proposed refinery Dangote was referring to would be built in Tanga, Tanzania. A pipeline would be linked to Kenya’s Mombasa port to serve the entire East African region. Kenya, Uganda, and neighbouring eastern African countries would benefit

Dangote said: “I can give commitment to the two presidents that were here; if they will support the refinery, we’ll build the identical one that we have in Nigeria – 650,000 barrels per day.”

The presidents he was referring to are Kenya’s President William Ruto and Uganda’s President Yoweri Museveni.

The proposed refinery Dangote was referring to would be built in Tanga, Tanzania. A pipeline would be linked to Kenya’s Mombasa port to serve the entire East African region. Kenya, Uganda, and neighbouring eastern African countries would benefit.

On the readiness, Dangote said: “There is nothing that can stop it. We have done the one in Nigeria and that’s why we are taking the bold move which was started already. Piling has started, while building to a scale – 1.4 million barrels per day will give us the largest refinery – world number two.

“It is 10% of entire United States of America’s refining capacity.
And this is coming with lot of, you know, petrochemicals. If we look at it today in Nigeria, if not because we have polypropylene, all the plants, all businesses would collapse.

“Cement is packed in polypropylene, flour, rice, grains, everything. So nothing… and the cost now has shot up between just 45 days – from $900 to 3$3,000. There is no way you can afford that. You can’t afford it.

“So, that is why we must learn how to build self-sufficiency. Right now, we have big financial institutions that are very hungry for big ticket items. And we’re also big in terms of our own vision.

“So, it is possible. Africans can do it. Let us not be scared. No. Let us not come and be convinced, as I know somebody needs to carry our own material to go and produce and bring the items here.

“I must really thank the President of Uganda for taking this bold move: stopping the export.

They will be forced. They would come (and) produce. Why do you have to take your material (away), then you’ll bring it back? We have educated people. We have big financial institutions. It’s not like before. Things have changed.”

Business

CBN increases ATM card issuance fee by 50% to N1,500

CBN disclosed this in its Exposure draft of the Guide to Charges by Banks and Other Financial Institutions, OFIs, in Nigeria 2026.

Published

8 hours ago

April 24, 2026

OCHEFA

30 Views

The Central Bank of Nigeria, CBN, has increased the fee for issuance and replacement of Automated Terminal Machine (ATM) debit/ credit cards by 50 percent to N1,500 from N1,000.

The apex bank also scrapped the N50 monthly charges for Naira Debit/ Credit Card maintenance which usually includes 7.5 percent Value Added Tax but said customers with Foreign Currency denominated debit/credit cards will continue to pay maintenance fee of $10 per annum.

CBN disclosed this in its Exposure draft of the Guide to Charges by Banks and Other Financial Institutions, OFIs, in Nigeria 2026.

The apex bank also reiterated among other things that the cost of ATM transactions on Merchants PoS will be borne by the Merchant and not the customers.

CBN said: “ATM card Issuance/Replacement charges for regular/basic debit/credit card is N1, 500. “Charges for Premium Debit/Credit/Hybrid Card are negotiable Virtual cards at no charge. “Merchant Service Charge (MSC) (charge to be borne by the merchant).

There shall be no charge to the cardholder paying the merchant.

“All card transactions done by cardholders at a merchant location shall be free of charge to the cardholder, i.e. the MSC shall be borne by the merchant.

The MSC payable by a merchant (0.5 percent) subject to a cap of N10,000 shall be the same irrespective of the technology or payment methods.”

In a circular to Banks, Other Financial Institutions and the Public signed by the Director Financial Policy and Regulation Department, CBN, Dr. Rita Sike, CBN said that the review of the guide to charges by banks and OFIs and non bank Financial Institutions was to fulfill its mandate to promote a safe and sound financial system in Nigeria accelerate the adoption of innovative financial services, financial inclusion and micropayments/transaction.

(Vanguard)

Business

FG Launches Energise Commercialisation Now (ECoN) To Boost Industrial Productivity

The Minister of Innovation, Science and Technology, Dr. Kingsley Tochukwu-Udeh, described ECoN as a national framework designed to bridge the gap between research and the marketplace.

Published

9 hours ago

April 24, 2026

OCHEFA

34 Views

• Kano ECoN launch by First Lady, Senator Oluremi Tinubu, Thursday 23,2026.

The federal government has launched the Energise Commercialisation Now (ECoN) an initiative of the Ministry of Innovation, Science and Technology.

Nigeria’s First Lady, Senator Oluremi Tinubu, launched the programme in Kano, yesterday, and calling for a shift from ideas to industrial productivity.

The First Lady said that Nigeria must move beyond generating ideas to building industries that create jobs and drive economic growth.

She noted that although innovative concepts continue to emerge from universities, technology hubs and young entrepreneurs, many do not translate into real-world solutions.

“This initiative represents a decisive effort to close that gap by creating an environment where ideas can grow, attract support and scale into real solutions,” she said.

The Minister of Innovation, Science and Technology, Dr. Kingsley Tochukwu-Udeh, described ECoN as a national framework designed to bridge the gap between research and the marketplace.

He said that the initiative aims to transform research outputs into revenue-generating ventures while promoting inclusive economic growth.