Group backs proposed amendment of NSC Act to curb exploitation of Nigerian shippers

Maritime stakeholders under the aegis of the Marine and Blue Economy Integrity Group, has expressed strong support for the proposed amendment to the Nigerian Shippers’ Council (NSC) Act, describing it as a vital step towards curbing the exploitation of Nigerian shippers by foreign interests.

The amendment, which seeks to give the Council the requisite legal and administrative instruments to effectively become an economic regulator in the maritime and transport industry is scheduled to be discussed at a Public Hearing by the House of Representatives Committee on Shipping, on Monday, May 27th, 2024.

The group, in a statement signed by its National Coordinator, Elder Asu Beks,
highlighted the significant losses suffered by Nigeria due to the unfair practices of ship owners, including the unilateral imposition of surcharges, high container deposits, and unapproved levies.

They noted that the Council’s efforts to contest these impositions have been limited by the absence of a legal and administrative framework.

According to the group, with the proposed amendment, the Council will be a more responsible and responsive organization, better equipped to advance and protect national interests
through curbing the rip-off of Nigerian shippers by entrenched foreign interests.

The statement reads in part, “Although the Nigerian Shippers’ Council was given the responsibility to protect the interest of Nigerian shippers by promoting fair trade practices and ensuring shipping companies comply with approved standard operating procedures, its capacity to diligently undertake such crucial responsibility has been hamstrung by the limited legal and administrative instruments available to it.

“Stakeholders in the maritime industry have been unanimous in their verdict that the core task of protecting the indigenous shipping community is still a long shot despite the best efforts of chief executives and officials of the Council.

“In 2018, it was established that Nigeria loses $9.1 billion yearly to the nation’s failure to effectively harness the immense opportunities in shipping industry as attested to by Mr. Hassan Bello, Executive Secretary of the Council at the time. Unfortunately, a significant portion of the annual loss is accounted for by the unfair practices of ship owners through unilateral imposition of surcharges, high container deposits and unapproved levies by shipowners and carrier companies.

“Although the Council had always contested such impositions, its success has been limited by the absence of the legal and administrative framework for the challenges to be wholesome and effective. While this has been going on, there has been several half-hearted efforts to remedy the situation.

“As longstanding operators in the shipping industry and with the commendable focus of the administration of His Excellency, Asiwaju Bola Ahmed Tinubu to revving up the blue economy, we, Marine and Blue Economy Integrity Group,are convinced that this public hearing offers a veritable opportunity to truly address this regulatory shortcoming that has held the indigenous shipping community hostage.”

The group outlined some of the benefits of the proposed amendments and reclassification of the functions of the Council to include establishment of a regulatory framework for the effective and efficient economic regulation of regulated services and related activities, for the control of tariffs, rates, and charges to guard against arbitrariness; promotion of the implementation of government policies as they relate to the mandate of the Agency; and monitoring of compliance of regulated service providers and users.

Others are creating an enabling environment for private sector participation in the provision of regulated services in Nigeria; promoting the implementation of relevant trade facilitation instruments to ensure seamless movement of cargo across trade corridors; and promoting the automation and digitalisation of all cargo reception and handling processes and procedures.

The group, however, noted that due to the interests at stake, some entrenched groups benefitting from the exploitation of the indigenous shipping community have also activated their machinery to frustrate the proposed amendment.

They urged the House of Representatives Committee on Shipping to ignore these reactionary forces and thread the path of righting the years of monumental exploitation of the national economy through the willful exploitation of shippers.

“We are aware that due to the interests at stake, the entrenched groups benefitting from the rape of the indigenous shipping community have also activated their machinery to frustrate the proposed amendments.

“Using local surrogates, they have been making spurious and unfounded claims on how the proposed amendments will not serve the desired interest.

“One of such groups actually recommended that the Nigerian Shippers Council should rather engage in “cargo sharing” without explaining the nature of cargo to be shared to whom or how.
The group falsely claimed that the proposed amendments proposed repeal of the NSC Act will lead to “collateral damages inimical to shipping, import and export, and the allied logistics value chain” without any explanation. It is clear that they are either ignorant, mischievous or both and should be ignored.

“The challenge in the task of shielding Nigerian shippers from undue exploitation is that despite its touted job as the port economic regulator in the maritime and transport industry, the Nigerian Shippers Council presently does not have the legal framework to enforce the measures needed to sanitise the ppropriating and fair costing of shipping services and handling of cargo for shippers.

“We of the Marine and Blue Economy Integrity Group earnestly plead with the Honourable members of the committee to thread the path of righting the years of monumental exploitation of the national economy through the willful exploitation of shippers,” the group said.