The Sea Empowerment Research Center (SEREC) has voiced strong opposition to CMA CGM Nigeria’s recent decision to raise local charges, linking this increase to adjustments made by the Nigeria Ports Authority (NPA) in Port & Marine Fees. SEREC warns that such hikes could significantly impact trade, port efficiency, and Nigeria’s overall economic competitiveness.
In a press statement from Mr. Eugene Nweke, the Head of Research at SEREC, the organization highlighted ongoing concerns regarding Nigerian ports, particularly the stalled implementation of a $700 million rehabilitation budget aimed at enhancing infrastructure and operations. SEREC argues that the lack of progress in port rehabilitation is exacerbating congestion, reducing berth productivity, and prolonging ship turnaround times.
To address these issues, SEREC has put forward several key recommendations for port reforms, emphasizing the urgent need to initiate the rehabilitation project. They advocate for the establishment of a transparent project monitoring system, ensuring regular updates and open lines of communication with stakeholders to prevent fund mismanagement.
The organization also calls for prioritizing essential infrastructure improvements, such as quay walls, cranes, and cargo-handling equipment, to boost efficiency. Additionally, SEREC underscores the necessity of ongoing dialogue with port operators, shipping lines, and other industry stakeholders to adequately address their concerns.
A significant issue raised by SEREC is the NPA’s decision to implement a 15% increase in port charges without a thorough assessment of the economic, commercial, and operational repercussions. The organization points to a history of mismanagement of port revenues that led to the government’s concession of Nigerian ports in 2006. They caution that the recent charge hikes, lacking justification or enhancements in service delivery, may impose additional financial burdens on importers and exporters, potentially diminishing Nigeria’s competitive edge in global trade as businesses may seek alternative shipping routes.
Another critical concern is the NPA’s failure to obtain regulatory approval from the Nigerian Shippers’ Council (NSC) prior to the tariff increase. SEREC insists that as a public entity, the NPA should demonstrate accountability by publishing performance reports on the concessioned ports. This transparency would offer stakeholders insights into port efficiency and substantiate any proposed fee adjustments.
SEREC warns that the increase in charges could lead to heightened costs for businesses, trade disruptions, and regulatory conflicts, all of which pose risks to Nigeria’s maritime industry. To mitigate further instability, the organization calls for a cooperative approach involving the Federal Ministry of Marine and Blue Economy, the NSC, and the NPA. They stress that stakeholder interests must be prioritized, and any policy changes should be implemented transparently and with industry-wide consultation.
In conclusion, SEREC asserts that a sustainable and efficient maritime industry can only be achieved through responsible policymaking, active stakeholder engagement, and the elimination of bureaucratic inefficiencies. The organization urges the NPA and NSC to take immediate corrective actions to safeguard Nigeria’s trade environment and maritime sector
