The National Compliance Joint Taskforce of Licensed Clearing Agents in Nigeria, NCJTFCLA has warned that the recent increment in charges by the Nigerian Ports Authority, NPA without wide consultation across stakeholders may have far-reaching consequences for local manufacturers.
Giving reasons for his position, the National President of the group, High Chief Dr. Basil Nwolisa who spoke in a statement in Lagos on Tuesday said that the hike in port charges would add to the already high overhead costs faced by local manufacturers, making it challenging for them to remain competitive.
Nwolisa also posited that with increased costs, manufacturers may be forced to suffer loss in profit margins, which could affect their ability to invest in their businesses.
According to him, the higher costs may make Nigerian products less competitive in the global market, potentially leading to a decline in exports, while maintaining that if manufacturers were unable to absorb the increased costs, they may be forced to reduce their workforce, leading to job losses.
Speaking on the energy challenge facing manufacturers, the NCJTFCLA boss opined that the lack of reliable energy to power machines was already a significant challenge for local manufacturers adding that “The hike in port charges may force manufacturers to divert resources from energy generation to paying the increased port fees.”
On way forward, Dr. Nwolisa advised that the NPA should engage stakeholders, including local manufacturers to understand the impact of the increased charges and explore ways to mitigate them even as he insisted that the Agency could consider a gradual implementation of the increased charges to give manufacturers time to adjust.
While urging government support to local manufacturers in form of subsidies or tax breaks to help them absorb the increased costs, he said, “By engaging with stakeholders and exploring ways to mitigate the impact of the increased charges, the NPA and the government can help reduce the burden on local manufacturers and support the growth of the Nigerian economy.”
Photo: High Chief Dr. Basil Nwolisa, National President, NCJTFCLA.
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