LCCI Expresses Concerns Over Rising Cost Of Doing Business

LAGOS – The Director General of the Lagos Chamber of Commerce and Indus­try (LCCI), Dr Chinyere Almona, has expressed deep concern over increasing costs of doing business, saying the recent 15 per cent upward review in port tariffs by the Nigeri­an Ports Authority’s (NPA) will raise operational expenses.

Acknowledging that it is the first adjustment since 1993, Almona said the convergence of a high interest rate at 27.5 per cent, high inflation­ary pressure, a weak naira and a reduced per capita income at a low of $835 imposes a heavy burden on businesses.

“While the proposed tariff in­crease by the NPA aims to modernise port facilities, it carries significant economic implications that must be addressed. One major concern is the increased cost of doing business, as higher port charges will raise oper­ational expenses for companies rely­ing on imported raw materials and machinery. This, in turn, would lead to increased production costs, which could be passed on to consumers, driving inflation upward.

“While the NPA argues that Nige­ria’s port tariffs remain among the lowest in the region, port competi­tiveness depends on more than just tariffs. Factors such as operational efficiency, number of procedures and unforeseen fees play a crucial role in determining the overall cost of using Nigerian ports.

“Continuous investment in infra­structure is essential to modernise equipment and facilities, ensuring smoother operations and attracting more transactions to our ports. Also, maintaining a transparent and pre­dictable tariff structure allows busi­nesses to plan effectively, fostering a more stable and competitive trading environment,” she said

Urging the NPA to actively en­gage stakeholders, including the business community, to discuss potential impacts and explore solutions to mitigate negative ef­fects; she said instead of focusing on tariffs, efforts should be made to enhance port efficiency, reduce avoidable process delays and elim­inate unforeseen costs.

“The NPA should benchmark its operations against leading ports globally and adopt best practices that have been effective in reducing costs and improving service deliv­ery. Deployment of technology to automate our port operations and transactions will reduce time loss and curb undesirable tendencies,” she said.

Justus Adejumoh is an IT / Telecom Reporter who has been covering the ICT sector for over a decade. He is currently the IT / Telecom Editor of Independent Newspapers Limited. With a knack for the industry’s issues and trends, he has given impetus to the industry through agenda-setting reports, analysis of issues and interfacing with industry stakeholders.

A graduate of Nigerian Institute of Journalism (NIJ), he also attended Delta State University, Abraka, Delta State for his first degree and Master from University of Lagos. Also, he has attended several training courses and workshops on media and other fields. They include CNN / MultiChoice Media Training, CSR Training- Pan-Atlantic University (Lagos Business School), and Microsoft Advanced Media Training, among others.

He is currently the General Secretary of Nigeria Information Technology Reporters’ Association (NITRA) and a Senior Member of Chartered Institute of Public Diplomacy and Management (CIPDM).