The Nigerian Shippers’ Council (NSC) has revealed that its 2025 budget will be anchored on the 1% freight stabilization fee based on the provisions of the Council’s Act.
Executive Secretary of the NSC, Dr. Pius Akutah, who disclosed this on Wednesday during the Council’s ongoing five -day 2025 -2029 Strategic Management Retreat held in Ibadan said the collection of the fee will commence upon Presidential assent to the Nigerian Port Economic Regulatory Agency (NPERA) Bill.
Akutah also announced plans by the Council to commence the implementation of the International Cargo Tracking Note (ICTN) by the second quarter of 2025.
He said the move is expected to enhance the council’s revenue generation and operational oversight in the maritime sector.
Speaking on the 1% freight stabilization fee, Akutah explained that the fee will help address paucity of fund, enabling the NSC to carry out its regulatory functions effectively.
Speaking, he said, “Under the guidance of the Federal Ministry of Marine and Blue Economy, the International Cargo Tracking Note (ICTN) is scheduled for implementation in the second quarter of this year, setting the stage for enhanced revenue generation and operational oversight.
“Looking ahead, the Council’s 2025 budget is strategically anchored on the1% freight stabilization fee, with plans to commence its collection upon Presidential assent to the NPERA Bill.
“The Nigerian Shippers Council Act, CAP N133, laws of the Federation 2004, which is the 1978 law that established the Nigerian Shippers Council, made provision for the implementation of the 1% freight fee as a source of funding for the Nigerian Shippers Council.
“Over the years that has not been implemented and that is why the Nigerian Shippers Council has been grappling around looking for where to fund its activities. Since it is a provision of the law that is subsisting in Nigeria as of today, we have decided that this provision of the law should also be implemented.
“Beside that, the idea or the arguments that when you implement that 1% freight fee, it will amount to additional cost of doing business in the sector, is not actually the case because we have done an analysis of the cost benefits of implementing the 1% and the benefits far outweigh the cost that it brings into the sector.
“So in this 2025 budget, we have that as a stream of income for the council so that the council can be better positioned, especially even when it becomes the Nigerian Port Economic Regulatory Agency, ” he said.
Akutah said the retreat will provide opportunity for the management to reflect on the Council’s achievements in the past year and plan for greater accomplishments in the new year.
According to him, the NSC’s focus during the retreat will revolve around four strategic priorities which include: Strengthening stakeholder engagement to foster inclusivity and collaboration and pomoting transparency through predictable regulatory policies.
Other areas of focus he said include enhancing operational efficiency to prepare for a seamless transition to NPERA and driving sustainability by aligning economic growth with environmental responsibility.
“This retreat is not merely a planning session but a collaborative platform for crafting actionable solutions and building a solid framework for regulatory excellence. By uniting our expertise, creativity, and dedication, we can lay the foundation for a more competitive, inclusive, and sustainable maritime sector.
“As the program outlines, each Directorate has a clearly defined role, emphasizing the hands-on approach required to implement NPERA successfully, ” he said.
Akutah while highlighting the achievements of the Council in the past year said the NSC has recorded several achievements, including the signing of the Minimum Standards of Conditions of Service for Workers in the Shipping Industry, launching the Operational Manual for Inland Dry Ports, and hosting the 17th International Maritime Seminar for Judges.
He said the Council has also rolled out the Online Registration Portal for regulated port service providers and users, developed the E-Regulatory Process Portal (ERPP) and the Confirmation of Reasonableness of Demurrage, Freight Rate, and Charter Party Fees (CRD) Portal, and recovered billions of naira through robust complaints handling mechanisms.
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