Tension is rising among importers, clearing agents, and business owners over the 15% tariff increase set to take effect at Nigerian ports on March 1, with stakeholders warning of severe disruptions and a potential industry-wide protest.
Industry Concerns
- Skyrocketing Import Costs: Experts estimate that import duties and charges could increase by over 100%, further driving up the cost of doing business and worsening inflation.
- Declining Cargo Traffic: Nigerian Customs Service (NCS) and Nigerian Ports Authority (NPA) officials report a drop in cargo volumes, raising concerns about economic implications.
- Threat of Service Withdrawal: Clearing agents have threatened to withdraw their services, which could paralyze operations at the ports.
Stakeholders React
Importers: “Costs Will Be Unbearable”
The CEO of Globe Joy Investment Nigeria Ltd., Clinton Ikechukwu Okoro, strongly opposes the increase, warning that the financial burden on importers would be unsustainable.
“Before, we paid around N13 million in surface duty per 40ft container, which later increased to N16 million. With this 15% hike, costs could soar beyond N20 million per container. How do we sustain our businesses?” he lamented.
Freight Forwarders: “This Policy is Insensitive”
The Association of Registered Freight Forwarders of Nigeria (AREFFN), through its National Public Relations Officer Taiwo Fatomilola, described the hike as insensitive, warning that it would fuel inflation and disrupt trade.
“Nigeria is an import-dependent economy. This increase will have a ripple effect, making goods more expensive for consumers and businesses alike.”
Economic Experts: “Consumer Prices Will Surge”
The Centre for the Promotion of Private Enterprise (CPPE), represented by Dr. Muda Yusuf, emphasized the potential inflationary impact of the tariff hike.
“At a time when businesses need relief, the NPA is imposing additional costs that will escalate operational expenses at ports and ultimately lead to a spike in market prices.”
What’s Next?
With just days to implementation, stakeholders are calling on the government and NPA to reconsider the increase, similar to the suspension of the Nigeria Customs Service’s (NCS) proposed 4% FOB fee. If not reviewed, widespread resistance and potential port disruptions loom.
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