- Adjustments aligns with prevailing economic conditions – SAN
- It’s a moderated and sustainable review—PTML
Shipping Companies and Terminal Operators operating in Nigeria’s ports have defended the recent tariff adjustment recently approved by the Nigerian Shippers’ Council (NSC), describing it as a necessary alignment with current economic realities rather than a fresh increase in port charges.
The development comes amid concerns from some cargo owners and freight stakeholders over the adjustment of terminal and shipping-related charges across Nigerian ports. However, industry operators insist that the decision followed nearly two years of negotiations and extensive consultations between regulators, shipping companies, terminal operators and other stakeholders in the maritime value chain.
Shipping Position Daily recalls that the Executive Secretary of the Nigerian Shippers’ Council, Dr. Pius Akutah, had earlier urged shipping companies and cargo owners to resolve concerns through constructive dialogue, stressing that both parties are critical stakeholders in sustaining trade through Nigerian ports.
Dr. Akutah emphasized that disagreements over tariffs and port charges should be addressed through engagement and consultation rather than confrontation, noting that continuous dialogue among stakeholders remains essential to maintaining stability in the maritime sector.
The NSC boss further reiterated the Council’s readiness to intervene more decisively if the disagreement persists, warning that the matter could be escalated to the Federal Government if both parties fail to reach a consensus.
But, responding to the controversy, the Chairman of the Shipping Association of Nigeria (SAN), Mrs Boma Alabi, clarified that the adjustment should not be misconstrued as a real increase in tariffs, but rather an alignment with Nigeria’s prevailing inflationary environment.
According to her, the review followed nearly two years of engagement between operators and regulators. Alabi explained that during the negotiation period, members of SAN and other industry operators participated in several consultative sessions with regulators and stakeholders, including meetings held at different venues in Lagos.
“We are not, in practical terms, implementing a real increase in tariffs. With the rise in inflation currently at approximately 30 percent, the adjustment offered to us by the Nigerian Shippers’ Council merely aligns with prevailing economic conditions.
“This outcome follows nearly two years of sustained negotiations, and even now, the adjustment remains below the actual rate of inflation. Throughout this period, we have maintained active engagement with all relevant stakeholders. Our members have participated in multiple consultative meetings, including sessions held at Rockview and other venues,” Alabi said.
The SAN Chairman, however, acknowledged that resistance from port users whenever cost adjustments are introduced is not unusual. “However, it is important to note that tenants commonly resist any form of rent increase or adjustment, regardless of how reasonable or justified the landlord’s position may be,” she added.
Also speaking on the development, General Manager of Ports and Terminal Multiservices Limited (PTML), Mr. Babatunde Keshinro, said terminal operators had absorbed rising operational costs for several years before the latest adjustment was approved.
Keshinro explained that the shift in Nigeria’s economic environment since 2023—particularly exchange rate volatility and rising inflation—has significantly increased the cost of running port operations.
According to him, the Shippers’ Council had previously delayed approvals for tariff adjustments, compelling private terminal operators to bear mounting operational costs while striving to sustain services. He noted that the rising cost of goods and services across the country has also affected port operations.
“Since 2023, the economic situation in Nigeria has changed dramatically. During that period, the Council held back approvals for increases, meaning that private terminal operators in the seaport terminals had to absorb rising costs while trying to sustain operations.
“Even basic items have changed in price. The cost of providing services is directly related to these realities. Terminal operators have tried to absorb the greater part of the cost as part of contributing to the economic dynamics of the country,” he said.
Keshinro further explained that the current adjustment does not fully reflect the accumulated cost increases over the past three years, describing it as a moderated and sustainable review. He noted that operators have continued to maintain engagement with their customers and industry groups to ensure transparency and understanding around the adjustment.
The PTML boss emphasized that maintaining service quality remains the primary concern of terminal operators, noting that efficient cargo handling, security and reduced cargo damage all require sustained investment. He also pointed out that several operational expenses within the logistics chain—such as insurance, infrastructure security and inventory management—are often overlooked by critics of tariff adjustments. Keshinro stressed that the ultimate objective for operators is to sustain stability and efficiency in the nation’s port system.
“If for over three years we have not had any provision for tariff review, there is no way operators can immediately move to the full cost level. What we have now is still within a reasonable realm. This is a competitive business. You cannot remain in business if your customers are not supporting you. We have different categories of customers, and we meet with them through various platforms and associations to ensure engagement.
“What customers ultimately want is reliable service at a fair price. Good cargo handling, minimal damage, safe and secure environments and efficient turnaround times all come with operational costs. There are many costs involved in trade that people do not always see, such as insurance implications and the security of cargo handling areas. All these factors contribute to the total cost of maintaining efficient port operations.
“What is most important is the stability of trade. The ports are functioning better now, and all stakeholders are adjusting to ensure the system continues to work efficiently,” he concluded.
