By Joshua Yousouph
There is a growing uncertainty over the faith of the highly-controversial National Transport Commission (NTC) Bill. This is because of the recent passage of the less-known Nigerian Shipping and Port Economic Regulatory Agency Bill at the House of Representatives
The Nigerian Shipping and Port Economic Regulatory Agency Bill 2023 successfully passed the statutory Second Reading at the House of Representatives, a development which has heightened speculations that the NTC Bill may be dead.
Following the passage, stakeholders are now actively pushing for the merger of this legislation with the National Transport Commission Bill.
The NTC Bill seeks to establish the National Transport Commission as an economic regulator of all activities undertaken in Nigeria’s transport sector. The NTC, which is set to replace the Nigerian Shippers’ Council, would operate as an independent regulator to promote multimodal transport and boost private sector participation in the provision of transport services. Among other things, the NTC would be responsible for creating equitable access to transport services; and regulating the tariffs, rates and charges paid by transport service users.
Shipping Position Daily recalls that, in late 2018, former President Muhammadu Buhari had declined to assent to the National Transport Commission (NTC) Bill (which the Senate had passed in March 2018).
President Buhari had refused to assent the NTC Bill on three grounds including the removal of safety issues because the bill is purely economic regulations.
Secondly, the President also said that the royalty to be paid to the commission as source of funds which was pegged at 10 percent should be reduced to five percent.
Thirdly, Buhari also asked the National Assembly to look at the freight stabilisation fee, which was put at three percent to be reduced to one percent just like it is in the Nigerian Shippers’ Council (NSC) Act.
Thereafter, the last time the National Transport Commission (NTC) Bill was heard of was in January 2022, when it again resurfaced at the Upper Chamber of the National Assembly, through a motion for its re-committal to the Committee of the Whole was sponsored by the Senate Leader, Yahaya Abdullahi (APC-Kebbi) at plenary.
Re-presenting the bill, Abdullahi reminded the lawmakers that it was originally passed by the Senate and the House of Representatives and sent to the President, but assent was denied.
“After critical examination of the observations by the Technical Team of the National Assembly and critical stakeholders, it was imperative to address these observations and make necessary amendments in order to rejig the transportation sector of the economy,” he said.
Sen. James Manager (PDP-Delta) advised his colleagues that the motion for re-committal of the bill be stepped down until when details of the observations raised by the President were made available.
However, the 2023 Nigerian Shipping and Port Economic Regulatory Agency Bill is aimed at repealing the Nigerian Shippers’ Council (NSC) Act Cap N133 Laws of the Federation of Nigeria (LFN) and introducing the Nigerian Shipping and Port Economic Regulatory Agency Act to fully empower the Council for its regulatory role.
Chairman of the House Committee on Shipping Services, Hon. Abdussamad Dasuki, presented the bill at the House on February 14, 2024 highlighting the historical context and emphasizing that the government designated the Nigerian Shippers’ Council as the Port Economic Regulator in 2015.
Dasuki had shared insights from the government’s gazette in 2015, emphasizing the objectives of creating an effective regulatory regime for Nigerian ports following their concession. The scope of the regulation covered all port stakeholders, controlling tariffs, rates, charges, and other related economic services.
Speaking with Shipping Position Daily last week, a maritime lawyer and Chairman of Institute of Chartered Shipbrokers (ICS), Dr Chris Ebare expressed optimism about the potential passage of the Nigerian Shipping and Port Economic Regulatory Agency bill, seeing it as a welcome development.
Beyond passage of the bill, Dr Ebare highlighted the critical aspect of the implementation of the law. He supported the idea of granting enough autonomy to the Shippers’ Council, foreseeing enhanced revenue generation for the federal government.
However, Ebare went further to suggest that the Shippers Council and NTC Bill should be merged, considering the apparent duplication of functions. He expressed concerns about the possible effects on port operations and efficiency, emphasizing the need to place the right individuals in key positions.
“Well, as far as I am concerned, I think if the National Assembly decides to pass the bill, it will be a welcome development. One thing you should know is that it’s not passing the bill that is the matter, but implementation of the import of the law. That is what really matters.
“I support enough autonomy for the Shippers Council. If it’s done at the end of the day, it will enhance revenue generation for the federal government. But my worry is that, how is the implementation going to be carried out? Will it affect the efficiency in the operation in the port with the right people being put in the right position? I mean in terms of those who would be driving the system.
“If you look at it, there is really no difference. It is like duplication. I would advocate that it should be merged. I think this was not done before Buhari left because I don’t really see the essence. I think it is high time we did the right thing”, Ebare advised.
Reacting to interagency rivalry between the NSC and Nigerian Ports Authority (NPA) stemming from regulatory rights from the bills, Ebare urged NPA to focus on port development and rehabilitation while calling for a clear delineation of functions to eliminate revenue leakages. He emphasized the need for a unified approach to reforms, urging NPA to “mind their own business.”
“What kind of rivalry is NPA having with the Shippers’ Council? NPA should mind their business. NPA has a lot more than he can chew. They should leave the Shippers Council alone and face the development and rehabilitation of the ports. There should be a clear statement of functions and block all leakages so that all the revenue will be accrued to the federal government. We should think on how to do things right and not the other way around. So I am totally in support of that reform. Everybody should mind their own business” Ebare noted.
When contacted, the NSC Director, Consumer Affairs Department; Chief Cajetan Agu expressed uncertainties over the potential impact of the Nigerian Shipping and Port Economic Regulatory Agency Bill on the NTC Bill.
Chief Agu noted that the government, particularly the President, would decide the fate of both bills, and that advisers would guide him in making the final decision.
The NSC Director clarified that the Nigerian Shippers’ Council was not the sponsor of the Nigerian Shipping and Port Economic Regulatory Agency bill, emphasizing that the bill might have been sponsored by the members of the House of Representatives.
“Well, nobody knows if it will affect or truncate the National Transport Commission Bill. It is all about the government. It is the government that will decide. It is the President that will assent to the bill. If both bills get to the President, his advisers will guide him on which one to sign.
“I’m not aware that we (Shippers’ Council) are sponsoring such a bill. You need to make an inquiry and know who the sponsor of the bill is. The Shippers’ Council is not the sponsor of the bill. I believe it is a bill from one of the members of the house. We are not the ones sponsoring the bill”, Agu clarified.
