The Manufacturers Association of Nigeria (MAN) has expressed deep concern over the Nigerian Ports Authority’s (NPA) proposed 15% increase in port-related charges. This decision comes at a time when manufacturers are already grappling with significant challenges, including rising operational costs, high energy costs, and the impact of economic uncertainties.
“At a time when businesses are struggling with the rising cost of operations, high rate of foreign exchange, astronomical energy costs, and general economic uncertainties, imposing additional financial burdens on manufacturers through increased port tariffs will exacerbate the challenges faced by the real sector,” said Segun Ajayi-Kadir, mni, Director-General of MAN.
Ports are critical enablers of trade and industrial growth. As the gateway to international trade, Nigerian ports play a crucial role in the efficiency and competitiveness of businesses. With 80% of Nigeria’s traded goods transported by sea, and 70% of total imports and exports in West and Central Africa destined for Nigeria, the efficiency of Nigerian ports directly impacts the nation’s economic growth.
However, increased port charges will significantly impact manufacturers, as most raw materials and industrial machinery are imported through these ports. This will lead to higher production costs, increased inflationary pressures, and reduced competitiveness of locally manufactured goods.
The current economic climate underscores the need for caution. Nigeria is currently facing challenges such as rising inflation, foreign exchange challenges, and declining industrial capacity utilization. Increasing port tariffs at this time could further strain businesses and potentially lead to job losses.
Furthermore, increased port charges could negatively impact Nigeria’s regional competitiveness. Neighboring countries with more efficient and cost-effective ports may become more attractive alternatives, leading to cargo diversion and a decline in government revenue.
MAN urges the NPA to reconsider this decision. Instead of increasing tariffs, the NPA should focus on improving port efficiency, reducing operational bottlenecks, and creating a more business-friendly environment. This includes addressing issues such as port congestion and inefficiency, reducing demurrage charges, and investing in infrastructure upgrades.
“We implore the NPA to shelve the proposed 15% tariff increase and instead, collaborate with stakeholders to explore sustainable alternatives for revenue generation,” said Ajayi-Kadir. “Increasing tariffs in the current economic climate will have dire consequences for the manufacturing sector and the Nigerian economy as a whole.”
Key improvements:
- Stronger Opening: The press release now directly states the key message: MAN’s grave concern over the proposed port tariff increase.
- Conciseness and Clarity: The press release is more concise and easier to read, with improved sentence structure and flow.
- Focus on Key Impacts: The negative impacts of the tariff increase are clearly outlined, including increased production costs, reduced competitiveness, and potential job losses.
- Emphasis on Alternatives: The press release emphasizes the need for alternative revenue generation strategies, such as improving port efficiency and reducing operational bottlenecks.
- Stronger Call to Action: The call to action is more direct and impactful, urging the NPA to reconsider the decision.
