Our Challenges as Ports Economic Regulator, By NSC Boss, Akutah

• Identifies prospects for NSC, says New Act will empower council
*Organises training for maritime journalists
By Francis Ugwoke
The Nigerian Shippers’ Council (NSC) on Wednesday identified some of the challenges facing the Council as Ports Economic Regulator, pointing out the issues of resistance and compliance among the providers and consumers of shipping services.
The Executive Secretary of the NSC, Barr Pius Akutah, who spoke on the occasion of the 2024 annual seminar for maritime journalists with the theme, ‘The NSC in Transition , Issues, Prospects and Challenges’ said one of the biggest challenges for the Council “is compliance with its regulatory mandates”.
Akutah who was represented on the occasion by the Director Special Duties of the NSC, Mr. Mustapha Zubairu Magaji, recalled that at the initial stage of implementing her regulatory functions, “the Council encountered some sorts of resistance, particularly from providers of shipping and port services”.
He also added that some government agencies were not left out.
But he said that the narrative continued to change with time, adding that “regulated services providers overtime is coming to terms with the functions of the council as the industry economic regulator”.
Akutah told journalists:
“The gap created by non-regulating the commercial components of port concession.
“The non appointment of Port economic regulator since 2006-2014 when the Private sector took over the operations of terminals had left the Ports without a regulator. The various service providers namely: NPA, Private terminal Operators (Seaport and off-dock bonded terminals), Shipping Companies, Freight Forwarders, Truck haulers and Groupage operators all set their tariffs and also determined their standard of service deliveries regardless of whether it meets the industry quality standard or not. The tasks of correcting the service providers to comply with the standard rules has become an issue which NSC is still battling with up till now”.
Akutah said that while the federal government made the NSC the port economic regulator in 2015, there is still the need for the status to be formalized through legislation.
“Therefore, the need for a strong legal framework for the Council as the nation’s Port Economic Regulator is required. There is an urgent need for the passage of the Nigerian Shipping and Port Economic Regulatory Agency Bill 2023 which seek to repeal the Nigerian Shippers’ Council Act and establish a regulatory agency for the Nigerian ports”.
He continued: “Nigerian ports are plagued by poor infrastructure, including outdated cargo handling equipment, inadequate road networks, and insufficient storage facilities. While the NSC can regulate economic activities, it has limited control over the physical infrastructure, which is largely under the purview of other government regulatory agencies, including Nigerian Ports Authority (NPA), Federal Ministry of Works, Nigeria Railways service and private investors. The NSC’s ability to drive reforms and improve port operations is therefore constrained by the broader infrastructural deficiencies within the port system.
“Lack of Coordination Among Stakeholders
• Effective port regulation requires close coordination between the NSC, the NPA, customs, terminal operators, shipping companies, and other stakeholders. However, there is often a lack of synchronization among these entities, leading to inefficiencies, conflicting policies, and a fragmented regulatory environment. There is a need to foster better collaboration and communication between all stakeholders to ensure smoother port operations.
“Political Interference and Bureaucracy
Changes in government, shifting political priorities, and bureaucratic hurdles delays/disrupt the implementation of policies meant to improve port operations.
i. High Cost of Doing Business
• High tariffs, port charges, and inefficiencies at the ports increase the cost of doing business in Nigeria. While the NSC is responsible for overseeing tariff structures and pricing, it faces the challenge of balancing the interests of port operators, shippers, and the government while trying to make the ports competitive. Reducing costs for importers and exporters while ensuring sustainable revenue generation for port authorities remains a delicate balancing act.
ii. Port Congestion and Inefficiency
• Nigerian ports continue to struggle with congestion and inefficiency, despite efforts to streamline operations. Although the NSC is not directly responsible for managing traffic, it is charged with improving port competitiveness, which includes addressing delays, demurrage charges, and other inefficiencies that arise from congestion. The Council is working closely with terminal operators and other agencies to mitigate these issues.

“Limited Private Sector Participation
• While the NSC has the mandate to regulate and foster private sector involvement, there remains limited participation from private investors due to regulatory uncertainty, inadequate infrastructure, and challenges related to port security and safety. Encouraging more private sector investment in port operations and infrastructure development is crucial for improving efficiency, but it requires overcoming barriers that limit investor confidence.
“Technological Limitations
• The adoption of modern technology in port operations is still relatively low, hindering operational efficiency and transparency. The NSC is tasked with promoting the digitalization of port processes, but challenges such as inadequate internet infrastructure, resistance to change among stakeholders, and a lack of skilled personnel in the tech field hamper progress in this area.
“ Security and Corruption Issues
• Security challenges, including cargo theft, piracy, and general lawlessness, persist at Nigerian ports. These security risks negatively affect port operations and increase the cost of shipping. Additionally, corruption among port officials and stakeholders remains a problem, with illegal fees, bribery, and rent-seeking behavior complicating the NSC’s regulatory functions and undermining reforms”.
The NSC boss however said that despite these challenges, there are several promising prospects for the Nigerian Shippers’ Council, many of which stem from the ongoing transition in the maritime and logistics sectors.
“These opportunities, if leveraged effectively, could significantly enhance the role of the NSC in Nigeria’s economic growth”.

He said that “the Port Economic Regulatory Agency Bill if passed, will empower the NSC to take on a more significant regulatory role in Nigeria’s ports, overseeing tariffs, service standards, and port efficiency”.
“This would enhance the governance of port operations, improve infrastructure development, and ensure fair competition among stakeholders.
The NSC would also play a central role in making Nigerian ports more globally competitive by aligning them with international standards. Overall, the bill would position the NSC to contribute significantly to improving the performance and economic outlook of Nigeria’s port sector”.
The Chief Executive Officer of the First Mediacon Network Ltd, Mr Sesan Onilemo, who facilitated the training programme said “the Annual Seminar for Maritime Journalists” has become one of the Key Performance Indicators (KPI) of the PR Department of the NSC, as an organisation.
“ When the idea of a gathering that will be specifically convened for maritime journalists for this purpose, was first mooted about 9 years ago, it sounded very nice. Essentially because there had been no such thoughts in the past. And if there were, they were never activated.
“ Today, we remember with deep appreciation, the-then Executive Secretary of the Nigerian Shippers’ Council; Barrister Hassan Bello and his Management, for believing in the need for capacity building and manpower development for maritime journalists.
“I recall with happiness, that my organisation had to defend the proposal. It was approved, and since then “The Annual Seminar for Maritime Journalists” has been warehoused in the NSC. And I have been the facilitator.
“It noteworthy that “the Annual Seminar for Maritime Journalists” has become one of the Key Performance Indicators (KPI) of the PR Department of the NSC, as an organisation. We are deeply grateful to successive heads of the PR Department of the Council.
“ So, every year, in the last 9 years, we gather like this to deliberate on a particular issue that is central or germane to the Nigerian maritime industry.




“ We hereby register our thanks to the current management of NSC under Barrister Pius Ukeyimah Akutah for not scuttling the project”.

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