15% port tariff hike: LCCI calls for phased increase

The Lagos Chamber of Commerce and Industry (LCCI) has called for a phased increase in port tariffs by the Nigerian Ports Authority (NPA) to reduce the burden on businesses and mitigate inflationary pressures in the economy. The LCCI suggests that the increment be spread over three years, with a 5 percent increase each year. This recommendation comes in response to the recent 15 percent upward review in port tariffs by the NPA, which is set to take effect soon. Chinyere Almona, Director General of LCCI, emphasized the need to ease the pressure on businesses in Nigeria, especially amid rising costs and inflation. She highlighted the importance of maintaining the competitiveness of Nigerian businesses and preventing further increases in the cost of doing business, which could ultimately lead to higher prices for consumers. Almona stressed the significance of providing adequate support at the ports to ensure a better experience for businesses operating in Nigeria. The NPA has defended the tariff hike, stating that it aims to enhance its services and boost the economy by upgrading infrastructure, processes, and technology. The organization believes that increased revenue from the tariff adjustment will enable it to make necessary improvements. However, the LCCI argues that the focus should be on facilitating trade and enhancing efficiency through technology, rather than solely generating revenue. Almona expressed concerns about the potential negative impact of the 15 percent tariff increase on businesses. She highlighted the importance of leveraging technology to improve services and efficiency at the ports. The LCCI recommended a phased increase of 5 percent annually over three years, as opposed to a sudden 15 percent hike, to ensure that businesses can adapt and thrive without being burdened by excessive costs. While the LCCI has publicly shared its recommendations, Almona mentioned the importance of formal dialogue with the NPA and the federal government to discuss and implement these proposals. The chamber is advocating for policies that support businesses, promote competitiveness, and create an enabling environment for economic growth. In conclusion, the LCCI's call for a phased increase in port tariffs reflects its commitment to easing the burden on businesses and fostering a conducive environment for trade and investment. By advocating for a gradual adjustment over three years, the chamber aims to strike a balance between the NPA's need for revenue and businesses' ability to remain competitive and sustainable.