FG reaffirms Shippers’ Council as port economic regulator, calls for stakeholders’ cooperation
The Federal Ministry of Transportation has reaffirmed the Nigerian Shippers’ Council (NSC) as the port economic regulator urging industry stakeholders to give the Council the needed support and cooperation in its regulatory mandate.
Speaking at a one-day sensitisation meeting organised by the Federal Ministry of Transportation and the NSC, with the theme: “Promoting Competitiveness and Compliance in Nigerian Maritime Industry: Mandate of the NSC in Focus,” in Lagos on Friday, the Minister of Transportation, Muazu Sambo said the Council remained the port economic regulator pending the establishment and operationalization of the National Transport Commission (NTC), as an independent regulatory authority in the transport sector.
Represented by the Permanent Secretary, FMoT, Dr Madgalene Ajani, the Minister explained that the need to address the challenges facing the port and regulation of charges and tariff after the port concession agreement gave rise to the appointment of the Shippers Council as interim port economic regulator in 2014.
“The Nigerian Shippers’ Council was appointed interim port economic regulator in 2014 as a government response to fill the vacuum and address the challenges bedeviling the port system.
“The major objective of the government in appointing the Nigerian Shippers’ Council as the interim port economic regulator was to create an effective regulatory regime at the port for the control of tariffs, rates, charges, and other related economic services by virtue of economic regulatory order No 34 of 2015 issued by the President in pursuant to section 5 and 145 of the 1999 constitution as gazetted.
“I want to reiterate the position of the government that the Nigerian Shippers’ Council is the port economic regulator. This is pending the establishment and operationalisation of the national transport commission as an independent regulatory authority in the transport sector and we enjoin stakeholders and the maritime industry to give the council the needed corporation and support in the execution of these regulations,” he said.
Sambo noted that while the Nigerian Ports Authority (NPA) is the technical regulator of the port, the Council port economic regulatory mandate and rules should be reflected in the port concession agreement under review and other subsequent agreements.
He said the ministry is aware that the Council had faced resistance from some stakeholders in the earlier stages of implementation of its regulation urging shipping companies and terminal operators to end the legal tussle instituted the Council.
The Minister assured that the ministry is working on stakeholders’ concerns and implementation of some of the suggestions they have made in the past in order to bring out the best options in collaborating actively with further agencies outside the Federal Ministry of Transportation.
“I want us to note that while the Shippers Council is the port economic regulator, the Nigerian Ports Authority remains the technical and operational regulator.
“This is very key so that we understand the distinct role between the two agencies. Having realised that these two agencies are working within the mandate of the law of Nigeria, we, therefore advise all those in court to have a rethink for us to enable a good progression in the marine ecosystem and deliver the Nigerian economy of our dream,” he said.
Earlier in his welcome address, the Executive Secretary of the Nigerian Shippers Council, Emmanuel Jime stated that with the concession of the ports in 2006, cargo throughput substantially increased. According to him, about 70 per cent of export cargoes are primary commodities while the majority of imports are consumer goods. While stressing the need to develop the nation’s industrial base in balancing trade and boosting the nation’s economy, Jime noted that the port has a critical infrastructure that needs to be made competitive, guard against monopoly and free for numerous players. Jime informed that the aim of NSC is to create an effective regulatory regime at Nigerian ports for the control of tariffs, rates, charges and other related economic services. He added that the Council has been able to moderate costs, provide guidelines for setting tariffs, rates and charges to guard against arbitrariness amongst others.
“The goal is to provide effective regulation that would make the transportation sector efficient and contribute positively to the development of the nation’s economy. We can only achieve this, with the support and collaboration of all players in the industry,” he said.
