The Nigeria Shippers Council (NSC) was a child of necessity. Before its establishment in 1978 through the Nigerian Shippers’ Council Act, activities at the nation’s ports were characterised by the deteriorating quality of shipping services and unmitigated increases in ocean freight rates by foreign ship owners who operated scheduled liner services to Nigerian ports.
This huge foreign exchange outflows, arising from the carriage of the nation’s sea-borne trade by foreign shipping lines, continued to impoverish the Nigerian economy with attendant adverse consequences on the balance of payment in favour of developed countries.
The Nigerian Shippers Council’s function, as prescribed by the 1978 Act, includes ensuring the efficient and timely delivery of shipping services to importers and exporters by shipping services providers under the most economical arrangements, the moderation and stabilisation of costs (freight rates, port charges, local shipping charges, haulage charges), creation of adequate understanding and know-how amongst the various practitioners in international trade both at the macro and the micro levels, and provision of regular and reliable advice to the Federal Government on matters affecting the shipment of goods to and from Nigeria.
However, as time went by the functions of the agency was strengthened with the 1997 ACT, which empowers the Council to regulate local shipping charges on import and export and to negotiate the charges in the interest of operators.
Other services of the NSC under the 1997 ACT include: stakeholders support services, stakeholders’ representation services, advisory services, complaints handling advocacy services, research services, and information and enlightenment services.
But over the years, the prevailing unhealthy activities at the nation’s ports which prompted the establishment of the NSC are not only still there but have deepened to the extent that the nation’s maritime sector which remains the second highest revenue earner for the federation after crude oil has been losing patronage because of high charges, inefficiency and the lack of transparency by terminal operators.
It is also worthy of note that these teething problems have, over the years, made the nation’s ports unattractive to importers, who rather prefer to patronise ports of neighbouring West African countries. It is also worthy of note that these issue prompted the 2006 port reforms that heralded the concession of the Nigerian sea ports to private terminal operators.
The fresh mandate given to the Nigeria Shippers Council as economic regulator of the ports was to provide market rules, ensure the reduction of tariffs, quality service, access to facilities and to provide incentives to port operators. The regulator was also given the responsibility of providing a level playing ground for competition, providing entry rules, reducing the cost of doing business and enhancing infrastructural development to create efficiency in port operations.
Many maritime stakeholders still recall the assurance the executive secretary of the Nigeria Shippers Council, Dr. Hassan Bello gave on assumption of the new role as the regulator of the ports that the Council was equal to the task of living up to its assigned responsibilities. He told maritime stakeholders that the NSC had signed Memoranda of Understanding with TTP companies to bring about competition in the ports, instill transparency in clearing processes and reduced huge tariffs for effective and efficient service delivery.
However two years after the NSC assumed the role of an ombudsman at the port, the prevailing trends at the ports have shown that the agency is far from living up to its role of sanitising the ports, encouraging competition, and making the ports friendly for operators in terms of the costs of doing business to stem the tide of the diversion of imports to ports of neighbouring countries
The feeling among shipping companies is that the NSC, which was created to provide a forum for the protection of the interest of local shippers against foreign domination, has not achieved that objective.
For instance, Bello had promised that the Inland Container Ports which is a veritable platform to decongest the ports would soon be in operation. But experience at the ports in recent times have shown that the Council is yet to address the problem of congestion, which still remains the bane of Nigeria ports.
Stakeholders have, at various times, voiced this out as a failure on the part of NSC that is supposed to act as an adviser to the Federal Government on measures to take to ensure the efficiency of the ports and to protect the interest of various operators with regards to tariffs and the quality of service rendered by providers, in order to make the operational environment friendly and attractive.
The Manufacturers Association of Nigeria (MAN) also has an issue with the Nigerian Shippers Council, with their bone of contention being the endeavour by the regulator to reintroduce the Cargo Tracking Note (CTN) that was discarded by the Federal Government on the request of the operators within the Nigerian manufacturing sector in 2013. Their opposition is based on the fact that its re-introduction will further drive up the cost of cargo clearance at the ports, with a trickle-down effect on businesses. They also argue that such an action, without adequate consultation with relevant stakeholders, negates the role upon which the agency was appointed as regulator.
Another issue which NSC is accused of not effectively addressing is the Cargo Defence Fund which was aimed at defending the interest of shippers, especially in litigations abroad between importers and their clients. Although the Executive Secretary of the NSC said the agency has been performing this role of a mediator but findings reveal that its efforts in helping importers and exporters that are in conflict with clients abroad that often led to their ships and cargoes being impounded have only being like drops of dew in an ocean.
But the major issue that is still generating rancour and a source of concern to port users and other maritime stakeholders is the high cost of port charges that have heightened after the operators took over the terminals from the Nigerian Ports Authority.
For instance, investigation shows that before the ports were concessioned, the first six days of demurrage attracted a fee of N95 per day for a 20 feet container but this has been increased to N900 per day. Again when the demurrage enters the second phase of six days, under the NPA the importer was to pay N250 daily but the amount has shot up to N4,200 per day under the terminal operators. Apart from the demurrage, findings also reveal that the personnel of the terminal operators often fleeced importers of amount ranging from N30,000 to N50,000 as gratification to get their containers positioned upfront for express examination to avoid paying additional fees. Another area the high port charges manifest, which operators frown at, is in the area of storage facility charges. Clearing agents have accused terminal operators of increasing storage facilities from N4,000 to N8,000 per day for a 20 feet container, and from N8,000 to N12,000 daily for 40 feet containers.
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