Clearing agents threaten to withdraw services

There are growing tensions among importers, agents and the business community with a warning that the move to enforce the Nigerian Ports Authority (NPA) 15 per cent tariff increase scheduled to be implemented from March 1 could lead to widespread disruptions at the ports.

Economists had warned that the policy would further drive up the cost of doing business and worsen inflation. They said there would be over 100 per cent increase in import duties and charges, which would significantly raise costs for importation.

Industry players are calling on the government and the NPA to urgently review the policy, as in the case of the suspended Nigeria Customs Service (NCS) four per cent FOB fee, emphasising that the increase could lead to higher costs of imported goods.

Already, the port industry is experiencing a decline in cargoes as confirmed by the NCS and NPA officials at the ports. The Chief Executive Officer of Globe Joy Investment Nigeria Limited, Clinton Ikechukwu Okoro, was strongly opposed to the plan, citing a likely 100 per cent increase in import duties.

He argued that the financial burden on importers would be unbearable and worsen the situation if the NPA proceeded with the changes in addition to the current inflation and economic hardship. Okoro projected that if the NPA implements the 15 per cent increase, duty costs could skyrocket beyond N20 million per 40ft container.

“If you now talk about 15 per cent on a 40-foot container that was previously taxed at seven per cent, that is more than double the previous cost. Before, we were paying about N13 million in surface duty, which increased to N16 million.

“With this new NPA fee structure, the cost could rise to about N20 million per container. How do we sustain our businesses under such conditions?” he asked.
Okoro warned that should the proposed hike take effect, clearing agents might be forced to withdraw their services.
https://guardian.ng/business-services/business/importers-warn-of-possible-port-disruption-as-new-npa-tariff-begins-march-1/