Shippers’ Council lifts suspension on shipping firms’ charge hike approval

By Joy Enamuna

The Nigerian Shippers’ Council has lifted its earlier suspension on the approval granted to shipping companies to increase charges, following renewed engagement with industry stakeholders.

The Executive Secretary of the council, Pius Ukeyima Akutah, disclosed this on Tuesday after a stakeholders’ meeting held at the council’s training facility, where he emphasised the need for dialogue before implementation of any tariff adjustment.

Akutah explained that the initial approval was suspended because shipping firms failed to consult relevant stakeholders as directed, stressing that the condition remains binding despite the reinstatement.

He said, “When we approved the increase, it was with a clear instruction that stakeholders must be engaged. That directive was ignored, which led to the suspension. Now that the suspension has been lifted, consultations must still take place before implementation.”

Earlier, the Director of Consumer Affairs at the council, Ify Okolue, justified the need for tariff review, noting that adjustments must be economically reasonable, fair to port users, reflective of market realities and supportive of operational sustainability.

She added that the council only granted approval after ensuring that the request met regulatory requirements and was not arbitrary, stressing that tariff decisions must balance operators’ viability with national economic interests.

In his keynote address, Akutah maintained that the council’s role is not to obstruct business operations but to ensure that all tariff decisions are evidence-based and aligned with broader economic goals.

He said, “The sustainability of the port system depends on collaboration among stakeholders. No operator functions in isolation, and only through mutual respect and adherence to due process can we build a competitive and efficient port environment.”

Stakeholders at the meeting expressed divergent views on the proposed increase, with representatives of shipping companies defending the adjustment as necessary due to rising operational costs, while freight forwarders and importers raised concerns over transparency and compliance with due process.

A representative of the Shipping Association of Nigeria, Mrs Boma Alabi, described recent protests against shipping firms as unjustified, insisting that cost increases across sectors had made the review inevitable.

However, the General Secretary of the National Association of Government Approved Freight Forwarders, Godfrey Nwosu, criticised shipping companies for what he described as a pattern of unilateral actions, noting that the meeting was the first formal engagement on the issue.

Other stakeholders, including members of the Association of Nigerian Licensed Customs Agents, called for broader consultations, alleging operational inefficiencies and practices that increase logistics costs at the ports.

Importers also highlighted multiple challenges within the port system, ranging from policy inconsistencies and alleged extortion to high transportation costs and delays caused by cargo examination procedures.

Responding, Akutah said the council had not approved any tariff increase in the past two years, adding that the recent 30 per cent ceiling was determined after careful consideration of prevailing economic conditions.

He reiterated, “Shipping companies must engage stakeholders before implementing the increase. That is non-negotiable.”

Industry players expressed hope that sustained dialogue would help resolve lingering disputes, even as concerns were raised over technical issues associated with the newly introduced National Single Window platform and the demurrage costs incurred as a result.