Review of Local Shipping Charges and Expected Role of NSC as an Arbiter
NSC Headquarters, Apapa
By Eugene Nweke
The Sea Empowerment and Research Center (SEREC), having critically reviewed recent industry concerns raised by a prominent maritime stakeholder on the proposed review of Local Shipping Charges (LSC), thus, considers it imperative to issue a candid, balanced and industry-driven position in the overriding interest of port stability, investor confidence and sustainable maritime trade facilitation.
SEREC acknowledges and respects the concerns raised over the procedural application of the existing Memorandum of Understanding (MoU) governing Local Shipping Charges and agrees that due consultation and institutional engagement remain essential in preserving transparency, predictability and stakeholder confidence within the maritime sector.
However, SEREC wishes to clearly state that the MoU in question is fundamentally a business and operational framework designed to guide engagement between service providers, regulators and users within a dynamic commercial environment. It was never intended to become an instrument capable of stifling legitimate commercial realities, operational sustainability or investor protection in a rapidly changing global shipping ecosystem.
The global maritime industry has, over the last few years, witnessed unprecedented operational cost escalations arising from:
* Volatile foreign exchange fluctuations;
* Rising global freight and vessel operational costs;
* High energy and bunker fuel prices;
* Inflationary pressures on port and logistics services;
* Increased cost of marine insurance and compliance obligations;
* Global supply chain disruptions and equipment imbalances.
*Nigeria cannot reasonably isolate itself from these prevailing international commercial realities.*
SEREC therefore believes that the Nigerian Shippers’ Council, as the nation’s Port Economic Regulator, must be seen not only as a protector of cargo interests, but equally as a strategic stabilizer of maritime investments and commercial sustainability across the port value chain.
While procedural compliance under the MoU remains important, industry regulation must also reflect present-day economic realities, especially in balancing:
* Service sustainability;
* Investment protection;
* Port competitiveness;
* Ease of doing business;
* Operational efficiency;
* Consumer protection.
SEREC further notes that excessive rigidity in the interpretation of legacy agreements without accommodating evolving economic indices may unintentionally discourage investment inflows into the Nigerian maritime sector, especially at a time when Nigeria seeks to position itself as a leading maritime and logistics hub in West and Central Africa.
The Council must therefore strike a careful equilibrium between protecting cargo owners from arbitrary charges and ensuring that shipping companies, terminal operators and other port service providers remain commercially viable under prevailing macroeconomic realities.
It is equally important to emphasize that shipping business operations are dollar-denominated globally, whereas most local operational obligations within Nigeria are significantly impacted by the continuous depreciation and volatility of the naira exchange rate. This reality inevitably exerts pressure on operational costs and pricing structures across the maritime logistics chain.
Consequently, SEREC advises that rather than escalating the matter into adversarial regulatory confrontation, stakeholders should prioritize constructive engagement through the existing Technical Standing Committee framework to achieve:
* Transparent cost justification;
* Stakeholder consultation;
* Data-driven negotiations;
* Gradual and balanced implementation mechanisms where necessary.
SEREC also encourages the Nigerian Shippers’ Council to improve industry communication and stakeholder sensitization whenever such reviews are being contemplated, in order to avoid perceptions of opacity, unilateralism or regulatory exclusion.
*The maritime industry at this critical period requires collaboration, not polarization.*
SEREC therefore calls on all parties, including shipping companies, freight forwarders, customs agents, terminal operators, manufacturers, importers and regulators, to embrace dialogue anchored on national economic interest, port competitiveness and long-term sectoral sustainability.
Nigeria’s maritime sector cannot afford regulatory uncertainty, investor anxiety or avoidable industry distrust at a time the nation urgently requires stronger trade efficiency, increased non-oil revenue generation and improved global shipping confidence.
Ultimately, SEREC maintains that the future stability of Nigeria’s port economy depends on a balanced regulatory ecosystem that protects both service users and service providers without undermining commercial realities or discouraging strategic maritime investments.
Signed:
Fwdr Eugene Nweke Rff.
For: Sea Empowerment and Research Center (SEREC)
Research & Industry Monitoring Unit.
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