In this interview, the Executive Secretary/Chief Executive Officer, Nigerian Shippers’ Council (NSC); Barrister Pius Akutah opens up on critical issues about the agency and how it is tackling them.
What challenges does the Nigerian Shippers’ Council face in its role as an economic regulator?
The challenges are multifaceted. Key among them is regulatory resistance from some service providers and stakeholders who initially resisted our mandates. Infrastructure deficiencies at Nigerian ports, such as outdated equipment and inadequate road networks, further complicate our efforts to enforce efficiency. Additionally, legal gaps remain a concern, as our regulatory role requires stronger legislative backing through the proposed Nigerian Port Economic Regulatory Agency Bill. Political interference, lack of stakeholder coordination, and high costs of doing business also hinder progress. Addressing these issues requires robust collaboration and decisive policy implementation.
Can you elaborate on the prospects for the Nigerian Shippers’ Council to overcome these challenges?
The proposed Nigerian Port Economic Regulatory Agency Bill is a significant prospect. Once passed, it will empower us to enforce tariffs, regulate services, and enhance port competitiveness. We are also focusing on implementing the International Cargo Tracking Note (ICTN), which will boost transparency, security, and revenue generation. Other initiatives include promoting digital transformation through the National Single Window and Enterprise Content Management systems, fostering public-private partnerships, and exploring sustainability through green shipping practices. These initiatives aim to reposition Nigerian ports as globally competitive hubs.
How is the Nigerian Shippers’ Council engaging stakeholders to ensure alignment with its goals?
Engagement with stakeholders is a priority for us. We regularly collaborate with industry players, including the Nigerian Ports Authority, shipping companies, and freight forwarders. Recently, we facilitated an agreement between the Maritime Workers Union of Nigeria and the Shipping Agencies, Clearing and Forwarding Employers Association to ensure labour stability in the shipping sector. Through these partnerships, we aim to streamline processes, address congestion, and improve overall port efficiency.
There are some of the countries where they have Shippers’ Council that are governed by the shippers themselves, not by any public authority. How does the government regulate them?
The establishment of shippers’ council across the developing countries was initiated by UNCTAD; the United Nations Conference on Trade and Development, and it was basically because of the impact of the level of development of these countries, because most of the shippers were weak, unorganized and fragmented, and therefore there was a need for public authority to actually assist them in controlling the exploitative nature of the providers of shipping services. So, the fact is that shippers have associations, which in Nigeria is being supported by the Shippers’ Council itself, that they can participate in their activities. Whereas other developed countries, they have shippers’ associations that are actually being manned by the shippers themselves, without any regulation by the government. So, there are two things here.
So, for any regulation to be effective there must be public authority. So, you could have shippers’ associations where you have only the government and they have developed to such a level that they don’t need government intervention. But at the same time, the existence of regulation is of paramount importance, and there must be public authority. So, you can have an association. Just like in Nigeria, we have the Nigerian Medical Association, as a body of practitioners of medicine, and they are governed by certain regulations, or their own self-regulation, like ethics and so on and so forth. And at the same time, we have the Medical and Dental Council, that regulates the medical practice in Nigeria. We have the Nigerian Society of Engineers, and at the same time, we have the Council for the Regulation of Engineering of Nigeria. So, that is the way it is.
What challenges hinder the Inland Dry Ports’ operations, and how can these be addressed?
For inland dry ports to function effectively, issues such as bad roads, insecurity, and the absence of liability frameworks must be addressed. Most shipping companies are hesitant to consign goods to these inland dry ports as port of destinations due to these challenges. To mitigate this, the Nigerian Shippers’ Council has proposed legislation on the carriage of goods via land, rail, and roads, which has been sent to the National Assembly. So, once that is done, it will certainly cure that hesitancy for shipping companies to consign cargo to the dry port as port of origin and destination. Rail infrastructure is also crucial for the success of these ports.
Concession agreements for port operators remain overdue for renewal. What is the current stance of the government on this issue?
In 2016, some agreements were due for review and that proposal was passed in the ministry. A committee was constituted. At the initial stage, the shipper’s council was not part of the committee, but later they involved the shipper’s council and we made our input. So, what we know is that the matter dragged up to 2017-2018. But what NPA did there was that they were reviewing the concession and they were giving them five years’ review as against the long-term review that some of them proposed. And I think that is what subsists till now. To my knowledge, nothing suggests that the government is unwilling to extend or review these agreements.
The implementation of the International Cargo Tracking Note (ICTN) has faced significant delays. What are the reasons, and how can they be resolved?
There have been some challenges in the implementation of the International Cargo Tracking Note. This is something that started about one or two decades ago, and up till now, it’s yet to come on stream. There are a lot of challenges here and there. There was a time this thing was approved by the Federal Executive Council, but there was some kind of legal hindrance. Some parties to the agreement and procurement process were aggrieved and they took the matter to court and I think this matter has been investigated. So we do hope that this will be resolved as soon as possible. And that’s why I did call on the maritime journalists to actually advocate moving it to another level to ensure that this international cargo tracking note comes on screen.
Shipping companies’ reluctance to release container deposits and containers to consignees outside Lagos is a recurring issue. What are the contributing factors, and what solutions are being considered?
We must tell ourselves what we do; most shipping companies have suffered a lot of container losses in the recent past. Of course, they have been updating the shipper’s council with a lot of complaints about that. But we found out that the industry we are practicing in is full of so many shady deals, especially our freight forwarders. They are not helping matters. You have a situation where a shipper will deposit his money for containers and when he returns the container, his money will be refunded to him later. In the recent past, most of those monies do not go back to the owner of the money. And as time goes on, when the money is not refunded back, then the shipping line will say, you didn’t return my container, I’m going to refund your money. And that is how it has been that they are not being paid the container deposit that was deposited with the shipping company and the consignees are not returning the containers.
Many shipping companies have suffered container losses, with numerous containers converted into shops or other structures. For instance, someone in Amuwo in Lagos used containers to build a storey building. That is happening right here in Lagos. You don’t know what will be happening up north yet. And that is why most of these companies are always not encouraged to want to release their containers. That is not to say that the Shippers’ Council is folding its arms. In fact, there is an initiative by somebody, through an insurance company. They want to underwrite the refund of containers, such that these N200,000, N400,000 that the consignees deposited with the shipping companies before those containers could be released to them; they want to underwrite it in such a way that the consignee, once you bring in your cargo, you just pay a little service charge to that company. And it becomes a problem for that company to ensure that the containers are released to you. And once the containers are released to you, you take it to wherever you want to take it to within a certain time frame. And they will be at your trail till you bring it back to the yard of the shipping company. So in that case, you avoid paying the container deposit for which you always give an excuse that the shipping companies do not refund. And then the shipping companies too will be guaranteed the return of their containers for which they also seize the refundable deposit of the consignees. So we are looking into that idea and concept in the Shippers’ Council. Very soon, stakeholders will be engaged to refine and implement this concept.
Once the new Bill at the National Assembly is passed, the Nigerian Shippers’ Council will be expected to regulate economic activities within the industry. Does the Council have the capacity to handle this, especially given anticipated opposition from stakeholders?
Yes, the Nigerian Shippers’ Council is well-prepared to perform this regulatory role. In fact, even at the moment, the Council is performing this role effectively. The main difference is that we are awaiting the legal backing of the bill to enhance our authority. Once the law is passed, we’ll have more clout to sanction and fully-enforce regulations. When the port economic regulation came on board in 2014, we carried out a skills gap analysis, identified deficiencies, and addressed them. The passage of the bill will require only structural adjustments to align with the provisions of the law. I assure you that we have the capacity to carry out our regulatory functions efficiently.
What is your vision for the NSC in the next few years?
My vision is for the NSC to be a world-class regulator that drives Nigeria’s maritime and logistics sectors to align with global standards. By leveraging technology, fostering sustainability, and advocating for policy reforms, we hope to enhance the competitiveness of Nigerian players and contribute significantly to economic development. Collaboration, innovation, and commitment to excellence will be our guiding principles, moving forward.
