NSC: Targeting Standard Regulatory Framework for Ports Efficiency
Dr. Akutah
By Francis Ugwoke
For every shipper, the Nigerian Shippers’ Council (NSC) occupies a special position in the nation’s shipping industry. It is held in high esteem as the only hope of the oppressed shipper. And this is for clear reasons. The Council has done well in protecting the interest of shippers, saving them in many ways from illegal charges, oppressive tendencies and economic manipulations of providers of shipping services, including liner conferences from different continents. The global shipping sector is regarded as a mafia industry where the weak suffers colossal economic oppression in the hands of some providers of shipping services. For the oppressed shippers, it is the Council that has been their hope of protection. Established in 1978, the Council has always protected the interest of shippers (importers and exporters). This was even before earning the status of ports economic regulator. As the regulator, a status it officially earned about 11 years ago, the Council has since become the umpire of the ports system. This time, it is for all the stakeholders, including the providers and consumers of shipping services. It protects the interests of all. After decades of its statutory obligations, the Council is currently repositioning for greater roles, to be more empowered as a leading body promoting global standard in the ports sector. The Council believes that it will do better in its mandate with more regulatory powers. This will only come with the assent of the Nigerian Port Economic Regulatory Agency (NPERA) bill already passed by the National Assembly.
With the assent, the Council will be faced with the task of enforcing efficiency, effectiveness, and competition in the nation’s ports industry. The bill is all about creating a better and more enforced regulatory framework for port operations in the country.
Why New Act is Needed
For observers, it has not have been easy for the NSC over the decades to perform its roles in the ports industry because of inadequacy of regulatory powers. Even after being made the ports economic regulator in 2014 with all the hype, the Council faced some resistance from providers of shipping services for insisting that the right thing be done. It was simply that new shipping charges must be negotiated and approved before it is introduced. The providers of shipping services took the Council to court where they lost when the Lagos High Court ruled that they refund N1trillion to be paid to the Ports Economic Regulator. The judgement against the service providers was for collecting illegal Shipping Line Agency Charges (SLAC) and other arbitrary port charges. The court issued a directive that the shipping companies stop collecting such charges. The Court equally ordered that the shipping companies give account of all the monies collected since 2006.
The multinational shipping companies had gone to the Appeal Court where they also lost. They then headed to the Supreme Court where the case was for years, before deciding on out of court reconciliation. The details of the out of court settlement have not been made very clear. However, in effect, observers hold the strong views that the assent of the NSC New Act will benefit the nation’s sector immensely. It will further strengthen the Council to give the ports industry and indeed the country the desired efficiency as can be found in other climes. Above all, it will check the type of resistance from service providers that is anti-economic regulation.
Transforming Ports Sector with New Act
For the Executive Secretary, NSC, Dr. Pius Ukeyima Akutah, the new bill remains a clear reflection on President Ahmed Tinubu administration’s efforts to achieve an efficient port regulatory system. Akutah points out that the administration places much emphasis on the importance of the maritime industry to the country’s economic development. Noting that the President Tinubu’s commitment to enhancing the Blue Economy is accentuated by the establishment of the Ministry of Marine and Blue Economy, led by Chief Oyetola Adegboyega, the NSC CEO assures of the Council’s preparedness for the national assignment of achieving more effective regulation in the industry. Akutah believes strongly that the bill when assented by the President will bring about a lot transformation to the industry.
Speaking to journalists during a training programme where he was represented by the Director of Special Duty, Mustapha Zubairu, the ES said the Council as presently structured lacks the required legal frame work to discharge its mandates as ports services regulator effectively. He disclosed that even though the NSC was appointed as port economic regulator 11 years ago, the agency is not sufficiently empowered to enforce some compliance. He revealed subtle and open resistance by various port players and terminal operators.
He said, “The Federal Government made the Nigerian Shippers Council the Nigerian Port economic regulator in 2015, but this status need 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.
“One of the biggest challenges for the NSC is compliance with its regulatory mandates. At the initial stage of implementing her regulatory functions, the Council encountered some sorts of resistance, particularly from providers of shipping and port services, likewise some Government agencies were not left out.”
He added that all other service providers, including terminal operators, shipping Companies, freight forwarders, truck haulers and groupage operators “all set their standard of service deliveries, regardless of whether it meets industry quality standard or not”
Observers believe that the task of making the service providers to comply with the standard rules lies on the constitutional powers of enforcement that can be enjoyed by the Council with the new law.
Industry stakeholders believe that the ports sector will gain so much from the assent of the bill by the President. Apart from checking arbitrariness in the ports system in terms of illegal charges, there will be promotion of efficiency and orderliness as is the case in other climes. Observers believe that providers of shipping services will be more efficient and everyone will avoid cutting of corners. Speaking at a retreat held for the staff of the NSC recently, former NIMASA Director-General, Mrs. Mfon Usoro, while expressing confidence in NIPERA’s potential to provide effective regulation, said there is the need for an economic regulator to manage fiscal matters.
Observers also believe that the NSC will play a big role in the shipping industry once the bill is signed into law by focusing on regulatory advancements as well as leadership development for sustainable growth.
NSC’s Achievements So Far
Even with challenges in funding, among others, the NSC has been able to achieve so much over the years, and since Akutah assumed office. NSC is currently expecting an improvement in funding arrangement. To observers, NSC has been able to perform its statutory obligations of enforcing orderliness in the sector even with its limited powers and resources. It has been able to check service providers from imposing illegal charges on the consumers. On several occasions, the agency was able to get refund for shippers who were overcharged by shipping companies. Some shippers who failed to refund had their premises sealed in collaboration with Federal Competition and Consumer Protection Commission (FCCPC), relying on its full power of enforcement in some instances. The Council had also promoted automation among service providers, including freight forwarders. At a retreat few months ago, the Executive Secretary, Akutah disclosed that the Council saved over N31bn for the federal government. This, he said, was between January and June 2024 through automation of demurrage, freight rate, and charter party verification. Other achievements include the “commissioning of the Funtua Inland Dry Port, top-ranking performance in the 2024 ICPC Ethics and Integrity Scorecard, the launch of online registration portals for port users and service providers and the development of the Trade and Transport Data Bank now nearing completion”.
During a recent courtesy visit to the Ministry of Foreign Affairs, Akutah spoke for Nigerian shippers in foreign countries, calling for better treatment of the importers and exporters, particularly in China.
He visited to foster collaboration, deepening of institutional partnerships between the Ministry and the Council. He wants a better treatment of Nigerian shippers in China. Akutah during the occasion requested for the establishment of liaison desks in Nigerian embassies to support Shippers and help them address constraints they face abroad. This was an initiative that was welcomed by the Minister. Similarly, as part of the efforts to promote trade facilitation and ensure that shippers are protected, the NSC and the Nigeria Police Force, Maritime Command facilitated the release of 36 containers to different consignees. The Police had after investigation released the containers to the Council who in turn invited the consignees to claim them.
The Council as the ports economic regulator is opposed to unauthorized container seizures. Among items in the released containers, according to the NSC inhouse magazine, were cargoes, such as “supermarket items, used car engines, vehicles, motorcycles, spare parts and many others”.
To ensure best practices in the system, the NSC has threatened to seal up off-dock terminals which fail to keep the regulations on storage charges and handling equipment.
In August last year, the NSC said the sum of of N6.1bn was saved and recovered through complaints handling between 2019 and 2023. Director of Strategic Planning and Research of the NSC, Oluwarotimi Anifowose, who represented the ES/CEO in a seminar in Lagos, while speaking on the achievements of the Council disclosed that this was based on complaints received by the Council on arbitrary charges, container deposit refunds, import and export fraud. He had also disclosed that another “sum of N153bn was recovered from the impact of the tariff negotiation on the economy within the period under review”
With the NSC’s role as the lead agency in the ports in the Nigerian Ports Process Manual, it has been able to sanitise the activities in the joint boarding of ships by different security agencies in the ports. With the intervention of the Ports Standing Task Team led by the Council, there is now increase in the number cargoes examined daily in the ports, he said““.
According to him, “The number has increased from 120 boxes daily per terminal to an average of 250 boxes daily per terminal”.
Apparently satisfied with the performance of the Executive Secretary, the Minister of Marine and Blue Economy, Chief Adegboyega Oyetola, and Secretary to the Government of the Federation, Senator George Akume, had on one of those engagements commended Akutah for doing well since he assumed office. This was on the occasion of a reception organised for Akutah by Benue Professionals in Lagos, last late last year. According to Akume, who was represented by his Chief of Staff, Dr Chris Takar, the NSC boss has been working with the vision of changing the narrative in the shipping industry. Akume said, “ Akutah carries his responsibilities with brilliance, excellence, humility and the zeal to serve, which are rare qualities in men. If we look from where he took off to where he has come, we will recall the milestones he has reached, and every one of them is laudable.
“It is good that in the midst of greatness, in the midst of mighty men, he is a shining star. Let this just be the beginning of celebrations, because I believe you still have a lot to offer this nation; milestones to go in your community and personal lives.”
Oyetola also described Akutah as a competent expert appointed by President Bola Tinubu to execute the mandate of the Marine and Blue Economy in his agency.
Our Resolve on Standard Regulatory Framework, by Akukah
At a recent media event in Lagos, the Chief Executive Officer of NSC, Akuktah unveiled the agency’s strategic plans to have a robust, standard regulatory framework in the nation’s maritime industry. The strategy is on reducing logistics costs, harmonizing ports operations in Nigeria in what will be in line with global best practices.
In a paper titled “Ensuring Standard Regulatory Framework: What Strategies and Options?”, presented at a seminar organised by the Association of Maritime Journalist Association of Nigeria (AMJON), Akutah expressed concerns over the country’s continued poor ranking in efficiency, infrastructure, and timeliness, adding that this situation calls for urgency in reform efforts. He emphasized that the nation’s port system should be in line with the United Nations Conference on Trade and Development (UNCTAD) in which “standard regulatory framework is not just a technical necessity but an economic imperative”. Akutah who was represented on the occasion by the Deputy Director, Regulatory Services, Ibrahim Mohammed, noted the issue of overlapping functions among the 8 agencies of government in their regulatory functions at ports. This has led to compliance challenges leading to 49 percent of port delays as a result of multiple inspections as well as lack of agency coordination.
Noting that the Council and some other agencies have started digitalizing their operations, he said the majority still operate on manual processes, adding that this increases risk of corruption and delays.
To achieve effective reform of the sector, Akutah disclosed that the NSC has already drawn a frame work which is based on “predictability, transparency, efficiency, inclusiveness, and technology-driven systems”. He identified the features of the reform as “codified regulations, regularly updated and published; transparent tariffs and sanctions; single-window digital platforms to reduce redundancy; active stakeholder participation, from importers to terminal operators, and the adoption of blockchain and APIs to centralize compliance monitoring”. Akutah said the reform initiative was in line with the World Trade Organization’s (WTO) Trade Facilitation Agreement (TFA), in terms of advocacy for transparency and predictability in port regulation in order to reduce trade costs.
He disclosed that the NSC has proposed to harmonise roles among major port agencies, such as Customs, NPA, and itself.
Akutah made reference to Singapore, Ghana, Morocco, and Kenya as among the countries that have so far carried out successful maritime reform through regulatory clarity and digitalization. He added that this shows that Nigeria can adopt the same digital harmonization, legislative clarity, and performance tracking to achieve effective reform in Nigeria. He maintains that the Council has clear vision for a “modern, transparent, and efficient maritime regulatory environment” in its roadmap, adding that with institutional realignment, technological investment, and inclusive governance, it is possible to unlock the nation’s ports full economic potential
According to him, “with the right strategies, harmonized policies, digitization, stakeholder inclusiveness, and performance-driven regulation, the NSC can lead the transformation of Nigeria’s maritime regulatory architecture.”
As the NSC awaits presidential assent for the Nigerian Port Economic Regulatory Agency Bill, stakeholders believe that when signed into law, the new agency will be in a better position to achieve a robust ports regulatory framework for the shipping sector. Among the benefits, according to stakeholders, will be in terms of improved efficiency with streamlining of port operations in terms of clear regulatory guidelines for providers and consumers of shipping services.
For every shipper, the Nigerian Shippers’ Council (NSC) occupies a special position in the nation’s shipping industry. It is held in high esteem as the only hope of the oppressed shipper. And this is for clear reasons. The Council has done well in protecting the interest of shippers, saving them in many ways from illegal charges, oppressive tendencies and economic manipulations of providers of shipping services, including liner conferences from different continents. The global shipping sector is regarded as a mafia industry where the weak suffers colossal economic oppression in the hands of some providers of shipping services. For the oppressed shippers, it is the Council that has been their hope of protection. Established in 1978, the Council has always protected the interest of shippers (importers and exporters). This was even before earning the status of ports economic regulator. As the regulator, a status it officially earned about 11 years ago, the Council has since become the umpire of the ports system. This time, it is for all the stakeholders, including the providers and consumers of shipping services. It protects the interests of all. After decades of its statutory obligations, the Council is currently repositioning for greater roles, to be more empowered as a leading body promoting global standard in the ports sector. The Council believes that it will do better in its mandate with more regulatory powers. This will only come with the assent of the Nigerian Port Economic Regulatory Agency (NPERA) bill already passed by the National Assembly.
With the assent, the Council will be faced with the task of enforcing efficiency, effectiveness, and competition in the nation’s ports industry. The bill is all about creating a better and more enforced regulatory framework for port operations in the country.
Why New Act is Needed
For observers, it has not have been easy for the NSC over the decades to perform its roles in the ports industry because of inadequacy of regulatory powers. Even after being made the ports economic regulator in 2014 with all the hype, the Council faced some resistance from providers of shipping services for insisting that the right thing be done. It was simply that new shipping charges must be negotiated and approved before it is introduced. The providers of shipping services took the Council to court where they lost when the Lagos High Court ruled that they refund N1trillion to be paid to the Ports Economic Regulator. The judgement against the service providers was for collecting illegal Shipping Line Agency Charges (SLAC) and other arbitrary port charges. The court issued a directive that the shipping companies stop collecting such charges. The Court equally ordered that the shipping companies give account of all the monies collected since 2006.
The multinational shipping companies had gone to the Appeal Court where they also lost. They then headed to the Supreme Court where the case was for years, before deciding on out of court reconciliation. The details of the out of court settlement have not been made very clear. However, in effect, observers hold the strong views that the assent of the NSC New Act will benefit the nation’s sector immensely. It will further strengthen the Council to give the ports industry and indeed the country the desired efficiency as can be found in other climes. Above all, it will check the type of resistance from service providers that is anti-economic regulation.
Transforming Ports Sector with New Act
For the Executive Secretary, NSC, Dr. Pius Ukeyima Akutah, the new bill remains a clear reflection on President Ahmed Tinubu administration’s efforts to achieve an efficient port regulatory system. Akutah points out that the administration places much emphasis on the importance of the maritime industry to the country’s economic development. Noting that the President Tinubu’s commitment to enhancing the Blue Economy is accentuated by the establishment of the Ministry of Marine and Blue Economy, led by Chief Oyetola Adegboyega, the NSC CEO assures of the Council’s preparedness for the national assignment of achieving more effective regulation in the industry. Akutah believes strongly that the bill when assented by the President will bring about a lot transformation to the industry.
Speaking to journalists during a training programme where he was represented by the Director of Special Duty, Mustapha Zubairu, the ES said the Council as presently structured lacks the required legal frame work to discharge its mandates as ports services regulator effectively. He disclosed that even though the NSC was appointed as port economic regulator 11 years ago, the agency is not sufficiently empowered to enforce some compliance. He revealed subtle and open resistance by various port players and terminal operators.
He said, “The Federal Government made the Nigerian Shippers Council the Nigerian Port economic regulator in 2015, but this status need 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.
“One of the biggest challenges for the NSC is compliance with its regulatory mandates. At the initial stage of implementing her regulatory functions, the Council encountered some sorts of resistance, particularly from providers of shipping and port services, likewise some Government agencies were not left out.”
He added that all other service providers, including terminal operators, shipping Companies, freight forwarders, truck haulers and groupage operators “all set their standard of service deliveries, regardless of whether it meets industry quality standard or not”
Observers believe that the task of making the service providers to comply with the standard rules lies on the constitutional powers of enforcement that can be enjoyed by the Council with the new law.
Industry stakeholders believe that the ports sector will gain so much from the assent of the bill by the President. Apart from checking arbitrariness in the ports system in terms of illegal charges, there will be promotion of efficiency and orderliness as is the case in other climes. Observers believe that providers of shipping services will be more efficient and everyone will avoid cutting of corners. Speaking at a retreat held for the staff of the NSC recently, former NIMASA Director-General, Mrs. Mfon Usoro, while expressing confidence in NIPERA’s potential to provide effective regulation, said there is the need for an economic regulator to manage fiscal matters.
Observers also believe that the NSC will play a big role in the shipping industry once the bill is signed into law by focusing on regulatory advancements as well as leadership development for sustainable growth.
NSC’s Achievements So Far
Even with challenges in funding, among others, the NSC has been able to achieve so much over the years, and since Akutah assumed office. NSC is currently expecting an improvement in funding arrangement. To observers, NSC has been able to perform its statutory obligations of enforcing orderliness in the sector even with its limited powers and resources. It has been able to check service providers from imposing illegal charges on the consumers. On several occasions, the agency was able to get refund for shippers who were overcharged by shipping companies. Some shippers who failed to refund had their premises sealed in collaboration with Federal Competition and Consumer Protection Commission (FCCPC), relying on its full power of enforcement in some instances. The Council had also promoted automation among service providers, including freight forwarders. At a retreat few months ago, the Executive Secretary, Akutah disclosed that the Council saved over N31bn for the federal government. This, he said, was between January and June 2024 through automation of demurrage, freight rate, and charter party verification. Other achievements include the “commissioning of the Funtua Inland Dry Port, top-ranking performance in the 2024 ICPC Ethics and Integrity Scorecard, the launch of online registration portals for port users and service providers and the development of the Trade and Transport Data Bank now nearing completion”.
During a recent courtesy visit to the Ministry of Foreign Affairs, Akutah spoke for Nigerian shippers in foreign countries, calling for better treatment of the importers and exporters, particularly in China.
He visited to foster collaboration, deepening of institutional partnerships between the Ministry and the Council. He wants a better treatment of Nigerian shippers in China. Akutah during the occasion requested for the establishment of liaison desks in Nigerian embassies to support Shippers and help them address constraints they face abroad. This was an initiative that was welcomed by the Minister. Similarly, as part of the efforts to promote trade facilitation and ensure that shippers are protected, the NSC and the Nigeria Police Force, Maritime Command facilitated the release of 36 containers to different consignees. The Police had after investigation released the containers to the Council who in turn invited the consignees to claim them.
The Council as the ports economic regulator is opposed to unauthorized container seizures. Among items in the released containers, according to the NSC inhouse magazine, were cargoes, such as “supermarket items, used car engines, vehicles, motorcycles, spare parts and many others”.
To ensure best practices in the system, the NSC has threatened to seal up off-dock terminals which fail to keep the regulations on storage charges and handling equipment.
In August last year, the NSC said the sum of of N6.1bn was saved and recovered through complaints handling between 2019 and 2023. Director of Strategic Planning and Research of the NSC, Oluwarotimi Anifowose, who represented the ES/CEO in a seminar in Lagos, while speaking on the achievements of the Council disclosed that this was based on complaints received by the Council on arbitrary charges, container deposit refunds, import and export fraud. He had also disclosed that another “sum of N153bn was recovered from the impact of the tariff negotiation on the economy within the period under review”
With the NSC’s role as the lead agency in the ports in the Nigerian Ports Process Manual, it has been able to sanitise the activities in the joint boarding of ships by different security agencies in the ports. With the intervention of the Ports Standing Task Team led by the Council, there is now increase in the number cargoes examined daily in the ports, he said““.
According to him, “The number has increased from 120 boxes daily per terminal to an average of 250 boxes daily per terminal”.
Apparently satisfied with the performance of the Executive Secretary, the Minister of Marine and Blue Economy, Chief Adegboyega Oyetola, and Secretary to the Government of the Federation, Senator George Akume, had on one of those engagements commended Akutah for doing well since he assumed office. This was on the occasion of a reception organised for Akutah by Benue Professionals in Lagos, last late last year. According to Akume, who was represented by his Chief of Staff, Dr Chris Takar, the NSC boss has been working with the vision of changing the narrative in the shipping industry. Akume said, “ Akutah carries his responsibilities with brilliance, excellence, humility and the zeal to serve, which are rare qualities in men. If we look from where he took off to where he has come, we will recall the milestones he has reached, and every one of them is laudable.
“It is good that in the midst of greatness, in the midst of mighty men, he is a shining star. Let this just be the beginning of celebrations, because I believe you still have a lot to offer this nation; milestones to go in your community and personal lives.”
Oyetola also described Akutah as a competent expert appointed by President Bola Tinubu to execute the mandate of the Marine and Blue Economy in his agency.
Our Resolve on Standard Regulatory Framework, by Akukah
At a recent media event in Lagos, the Chief Executive Officer of NSC, Akuktah unveiled the agency’s strategic plans to have a robust, standard regulatory framework in the nation’s maritime industry. The strategy is on reducing logistics costs, harmonizing ports operations in Nigeria in what will be in line with global best practices.
In a paper titled “Ensuring Standard Regulatory Framework: What Strategies and Options?”, presented at a seminar organised by the Association of Maritime Journalist Association of Nigeria (AMJON), Akutah expressed concerns over the country’s continued poor ranking in efficiency, infrastructure, and timeliness, adding that this situation calls for urgency in reform efforts. He emphasized that the nation’s port system should be in line with the United Nations Conference on Trade and Development (UNCTAD) in which “standard regulatory framework is not just a technical necessity but an economic imperative”. Akutah who was represented on the occasion by the Deputy Director, Regulatory Services, Ibrahim Mohammed, noted the issue of overlapping functions among the 8 agencies of government in their regulatory functions at ports. This has led to compliance challenges leading to 49 percent of port delays as a result of multiple inspections as well as lack of agency coordination.
Noting that the Council and some other agencies have started digitalizing their operations, he said the majority still operate on manual processes, adding that this increases risk of corruption and delays.
To achieve effective reform of the sector, Akutah disclosed that the NSC has already drawn a frame work which is based on “predictability, transparency, efficiency, inclusiveness, and technology-driven systems”. He identified the features of the reform as “codified regulations, regularly updated and published; transparent tariffs and sanctions; single-window digital platforms to reduce redundancy; active stakeholder participation, from importers to terminal operators, and the adoption of blockchain and APIs to centralize compliance monitoring”. Akutah said the reform initiative was in line with the World Trade Organization’s (WTO) Trade Facilitation Agreement (TFA), in terms of advocacy for transparency and predictability in port regulation in order to reduce trade costs.
He disclosed that the NSC has proposed to harmonise roles among major port agencies, such as Customs, NPA, and itself.
Akutah made reference to Singapore, Ghana, Morocco, and Kenya as among the countries that have so far carried out successful maritime reform through regulatory clarity and digitalization. He added that this shows that Nigeria can adopt the same digital harmonization, legislative clarity, and performance tracking to achieve effective reform in Nigeria. He maintains that the Council has clear vision for a “modern, transparent, and efficient maritime regulatory environment” in its roadmap, adding that with institutional realignment, technological investment, and inclusive governance, it is possible to unlock the nation’s ports full economic potential
According to him, “with the right strategies, harmonized policies, digitization, stakeholder inclusiveness, and performance-driven regulation, the NSC can lead the transformation of Nigeria’s maritime regulatory architecture.”
As the NSC awaits presidential assent for the Nigerian Port Economic Regulatory Agency Bill, stakeholders believe that when signed into law, the new agency will be in a better position to achieve a robust ports regulatory framework for the shipping sector. Among the benefits, according to stakeholders, will be in terms of improved efficiency with streamlining of port operations in terms of clear regulatory guidelines for providers and consumers of shipping services.
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