Nigerian Shippers under the aegis of the Shippers Association of Lagos State (SALS) have kicked against their exclusion from the proposed board that will oversee the N28 billion Cargo Defence Fund (CDF), describing the move as unjust despite their role as the claimant in the legal process that led to the recovery of the funds.
The Cargo Defence Fund (CDF) is a financial fund created to protect and defend the interests of Nigerian shippers (importers and exporters) when they face unfair charges, disputes, or exploitation by shipping companies and other service providers in the maritime sector. It is managed
The fund is expected to be managed by a governing board comprising representatives of key maritime stakeholders under the supervision of the Nigerian Shippers’ Council (NSC), which serves as Nigeria’s port economic regulator.
Checks by Shipping Position Daily reveal that the Cargo Defence Fund largely comes from charges imposed by shipping companies on Nigerian cargo, particularly controversial fees that were challenged in court by stakeholders, including the Shippers Association of Lagos State (SALS).
Following court rulings and regulatory interventions, some shipping companies were directed to refund or remit these charges, which were then paid into the fund. According to disclosures by the Nigerian Shippers’ Council, about ₦28 billion has already been recovered and lodged with the Central Bank of Nigeria, while additional payments are still being expected as some cases remain in court.
Shipping Position Daily recalls that the NSC Executive Secretary; Dr. Akutah Pius, had disclosed that the Council is working to reform and strengthen the ₦28 billion Cargo Defence Fund to enhance transparency, sustainability, and support for Nigerian shippers, particularly small and medium-sized enterprises.
According to him, the Council has engaged a consultant to develop a Standard Operating Procedure (SOP) to ensure transparent management of the fund in line with court directives that it must be used for projects benefiting Nigerian shippers. Dr. Akutah stressed that the fund will not be accessed or disbursed until a clear accountability structure is established.
However, speaking in an exclusive chat with our correspondent last week, the President of SALS, Rev. Nicodemus Odolo, protested the exclusion of the association from the proposed board that will oversee the Cargo Defence Fund, insisting that the group deserves representation as the claimant in the legal process that led to the recovery of the funds.
Odolo disclosed that the NSC recently released SOP detailing how the board for the Cargo Defence Fund would operate. However, he noted that SALS was neither consulted during the drafting of the document nor allocated a slot on the proposed board.
According to him, the association had earlier requested that stakeholders be invited to contribute to the development of the SOP, but the document was eventually presented without their input. He clarified that while the governing board of the Nigerian Shippers’ Council has already been inaugurated, the board specifically meant to manage the Cargo Defence Fund is yet to be constituted.
Odolo explained that SALS, through its trustees, approached the court to pursue the recovery of the funds, and therefore it would be unjust for the association not to be represented on the board responsible for managing the recovered money.
The SALS leader further revealed that N28 billion had been recovered and deposited with the Central Bank of Nigeria (CBN), while additional payments are still expected as some matters remain pending before the Supreme Court and others are being resolved through out-of-court settlements.
He urged the Council to reconsider the arrangement and include SALS in the board structure. He stressed that the association acted with integrity by pursuing the legal process rather than accepting settlement offers that could have halted the case.
“We were the ones who went to court to make the claim, yet the proposed board did not allocate any slot for the Shippers Association of Lagos State. That is totally wrong. From the beginning, we asked to be involved in the development of the Standard Operating Procedure, but we were not invited to contribute. The SOP was eventually given to us, without our input.”
“The Cargo Defence Fund board has not been inaugurated yet. About N28 billion is already in the account with the Central Bank of Nigeria, and more payments are still expected as some cases are ongoing in court. It is unjust that those who took the risk to pursue the matter in court and recover the money are not being considered for representation on the board.” Odolo noted.
