The Nigerian Shippers’ Council (NSC) on Wednesday emphasized the need to amend the 1978 Act under which the agency currently operates, describing it as outdated and misaligned with modern developments in the maritime sector.
During a courtesy visit by the Nigerian Maritime Law Association (NMLA) at the Council’s headquarters, the Executive Secretary of NSC, Barrister Pius Akutah, highlighted the necessity of legislative updates to keep pace with the evolving industry.
Akutah noted that the creation of the Ministry of Marine and Blue Economy represents a strategic shift by the Nigerian government to diversify the economy beyond oil dependence, focusing more on non-oil sectors. “With this kind of approach, it is important for us to collaborate with very critical stakeholders like yours to be able to move not only the ministry forward, but also to promote the development of the maritime sector and the blue economy in Nigeria,” he remarked.
The Executive Secretary pointed out that the NSC has been operating under the legislative framework established in 1978, which he described as outdated. “By 2024, we should all know that the law is obsolete and it’s not going to adequately provide for what the sector stands for at the moment. So, there is a need for us to look into that law and see what we can do to change the law and empower the agency to do more of what is required of it in this 21st century,” he stated.
To address this, the NSC has introduced a Bill before the National Assembly, seeking to transform the Council into a statutory regulatory agency. While the agency currently functions as the Port Economic Regulator, empowered through a presidential directive, Akutah emphasized that this directive lacks the detailed legislative backing needed to fully outline the regulator’s responsibilities. “The nitty-gritty of what the Port Economic Regulator would do is not provided in that presidential order and the guidelines. So, there is a need for us to have a legislation,” he added. The House of Representatives has already passed the Bill, and it is now pending before the Senate.
Akutah also underscored the importance of collaboration with the NMLA, especially once the new law is enacted. He pointed to the Council’s efforts in alternative dispute resolution (ADR) as an example of initiatives that have yielded positive results, particularly in reducing the potential negative impact of prolonged litigations on the maritime sector. “Like you said, we have an internal mechanism for alternative dispute resolution, which, in effect, will look at the quantum of investments that is done in this sector. And for us to allow litigation to clamp down on investments, it will not all go well with the sector and ultimately with the economy,” Akutah explained.
He highlighted the economic benefits of the ADR approach, revealing that the Council’s use of ADR through its compliance unit has saved Nigeria over N6 billion this year alone. “We believe that with adequate training and capacity building, we may even do much more than that in the coming years,” he added, emphasizing the potential for growth in the Council’s ADR capabilities.
Speaking earlier, Mrs Funke Agbor, President of the NMLA, expressed appreciation for the ongoing support provided by the NSC. She noted that the Council’s backing has been instrumental in the association’s activities over the years. “The key reason why we have come to the Shippers Council on this courtesy call is just to acknowledge and appreciate the Nigerian Shippers’ Council for the excellent support they have always given to this association,” Agbor said.
Agbor commended the leadership of the NSC for its vital role in supporting the NMLA’s objectives, highlighting the agency’s position as a pivotal partner in the maritime industry. “The leadership of the Nigerian Shippers Council is actually one of the greatest supporters of our association, given the role of the Shippers Council in the Nigerian economy and its growing role as the economic regulator of the industry,” she noted. Agbor further emphasized the depth of the relationship between the NMLA and the NSC, noting that a representative from the NSC serves on the association’s executive committee.
She acknowledged the Council’s efforts in advancing trade facilitation, protecting the interests of shippers, and promoting efficiency within the maritime logistics chain. “Your commitment to ensuring fair competition, streamlining port operations, and promoting alternative dispute resolution mechanisms has had a transformative impact on the industry,” Agbor stated.
The NMLA President emphasized the alignment between the NSC’s regulatory mission and the association’s goals, which include fostering the development of maritime law and policy, promoting fairness in maritime commerce, and supporting best practices across the industry. She highlighted that the collaborative relationship between the two entities has resulted in substantial progress but also noted opportunities for further partnership. “Together, we can address key legal and regulatory challenges impacting maritime commerce, particularly in the areas of trade facilitation, dispute resolution, port governance, and compliance with the Nigerian Shippers Association rules,” Agbor concluded.
