Port tariff hike: Stakeholders kick as NSC orders companies to submit tariffs for review
A proposed tariff increment by shipping companies operating at Nigerian seaports has hit a brick wall, following fierce opposition from the Organised Private Sector (OPS), importers, and freight forwarders.
The resistance forced the Nigerian Shippers’ Council (NSC) to officially suspend any implementation pending exhaustive consultations.
The showdown occurred on Wednesday at the NSC headquarters in Lagos during a high-stakes stakeholders’ meeting on tariff review.
The gathering, which was intended to bridge gaps between service providers and port users, turned into a referendum on the operational efficiency of shipping lines, with stakeholders unanimously rejecting the price hike.
Speaking on behalf of the NSC Executive Secretary, Dr. Pius Akutah, the Director of Consumer Affairs, Mrs. Ify Okolue, laid down the regulatory position, emphasizing that stakeholder engagement is not optional but a prerequisite for maintaining order in the port system.
She warned that the Council would not countenance arbitrary charges that fail to meet the test of economic justifiability or global best practices.
“The Council’s mandate is to promote fairness, efficiency, and balance within the port system. Our role is not only to ensure that service providers operate within an economically justifiable framework but also to protect port users from arbitrary, unjustified, or anti-competitive charges,” the NSC stated, reiterating that transparency and due process must guide any review.
The President of the Association of Nigerian Licensed Customs Agents (ANLCA), Chief Emenike Nwokeoji, speaking through the National Public Relations Officer, Mr. Emmanuel Onyeme, disclosed that the meeting resolved to suspend all increments immediately.
He described the proposed hike as devoid of merit, noting that freight forwarders were unconvinced that shipping lines specifically citing the Mediterranean Shipping Company (MSC) deserved an upward review given current service levels.
The ANLCA President criticized the procedural error of shipping companies engaging the regulator before the trading public, arguing that a collective stakeholder approach would have prevented the dispute.
“Everybody rejected the increment because it lacks justification. We insisted they go back to the drawing board,” he said.
Tensions flared when specific operational grievances were raised. Prince Olawale Cole, the ANLCA Tincan Chapter Chairman, lambasted the billing practices of certain shipping lines.
He accused them of extortionary practices, such as charging demurrage for weekends and holidays when they do not work, and collecting detention fees for 14 to 21 days while failing to provide holding bays for empty containers.
“They use trucks as holding bays just to extort money from us, and nobody is questioning them. At the meeting today, they boldly said that Nigeria’s Container Insurance Law doesn’t stop them from collecting container deposits. Who does that?” Cole queried.
Aligning with the rejection, the Importers Association of Nigeria (IMAN), led by its National Vice President, Chief Ndubuisi George, proposed a six-month grace period for the clearance of backlog consignments currently being processed by overseas suppliers.
He argued that any immediate tariff change would disrupt trade and cause investment losses.
George advocated for the creation of an inclusive tariff review forum and the adoption of an internationally benchmarked framework.
He commended the NSC for stepping in to withdraw the controversial approvals, a move he noted has restored a measure of confidence and stability to the port system.
The meeting was attended by a broad coalition of industry heavyweights, including representatives from the Lagos Chamber of Commerce and Industry (LCCI), the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the National Association of Government Approved Freight Forwarders (NAGAFF), the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), and the Africa Association of Professional Freight Forwarders and Logistics (APFFLON).
The stakeholders collectively resolved that until a proper, transparent engagement takes place that addresses the operational inefficiencies and cost burdens already borne by Nigerian importers, the tariff increment remains null and void.