Shippers’ Council saves economy N6bn through ADR in 2024- Akutah

The Nigerian Shippers’ Council (NSC) said on Wednesday that it has saved the nation’s economy from losses exceeding N6billion this year alone through the use of Alternative Dispute Resolution mechanism of its complaints unit.

Executive Secretary of the Council, Barr. Pius Akutah disclosed this when the leadership of the Nigerian Maritime Law Association (NMLA) paid a courtesy visit to the council headquarters in Lagos.

Akutah expressed the Council’s readiness to partner with NMLA for further training and capacity building of NSC staff to engage properly in ADR procedures in resolving maritime dispute.

He said, “This year alone, with the use of ADR on our complaints unit, we have served this country over 6 billion naira.

“If we allow litigation to clamp down on investments, it will not all go well with the sector and ultimately with the economy. You can imagine when a ship is grounded for two months, you know what kind of damage it will cause to the economy.

“We believe that with adequate training and capacity building, we may even do much more than that in the coming years, ”

Akutah also noted that the NSC currently operates under a 1978 law, which he said is obsolete and inadequate for the Council’s new role as port economic regulator.

He stressed the need for a legislation that will empower the council carry out its mandate effectively.

“The Nigerian Shippers’ Council, which you know has a mandate to take care of the interests of shippers over the years, is operating under a 1978 law which set it up. You will agree with me that by 2024 we should all know that that law is obsolete and is not going to adequately provide for what the sector stands for at the moment.

“So there is a need for us to look into that law and see what we can do to change the law and empower the agency to do more of what is required of it in this 21st century.

“Now, the Nigerian Shippers’ Council has a bid before the National Assembly seeking to transmute into a regulatory agency by law. You are also aware that the agency at the moment is empowered by a presidential directive and a regulation for it to assume the duties of the Port Economic Regulator, which the agency has been carrying out.

“But a nitty-gritty of what the Port Economic Regulator will do is not provided in that presidential order and the guidelines. So there is a need for us to have a legislation. We have that legislation ongoing for some time now.

” Luckily for us, the National Assembly, the House of Reps has passed it. It’s before the Senate now. So many areas of collaboration with the Nigerian Maritime Law Association will be very necessary and needed as soon as that law is passed into law and assented to by Mr. President, ” he said.

Akutah also emphasized the importance of collaboration with NMLA to promote the development of the maritime sector and the blue economy in Nigeria.

He said the council is exploring investment opportunities in the blue economy sector including partnership with the Canadian government to benefit from training and investment.

Akutah maintained that the African Continental Free Trade Area (AfCFTA) agreement provides an opportunity for Nigeria to push towards becoming the logistics hub in the region but noted that proactive measures must be put in place to protect the country from becoming a dumping ground.

“I attended a business and investment forum in Canada, where we are trying to also woo the government of Canada to go into investment in the blue economy sector of Nigeria.

“Canada has a very mature blue economy, which is working for them and we realize that if we have that kind of partnership with the Canadian government to benefit from training, for instance, and some other modes of investment in the blue economy sector, it will also help us to move faster as we establish ourselves in the blue economy.

“Today, we are under the African Free Continental Trade Area Agreement, which means that Nigerian borders are open to the rest of Africa for trade and commerce. So what do we do if we fold our arms and just sit and watch? The whole of Africa will flood our markets with their goods, and it’s important for us to see what we can do.

“So this partnership, beyond the issue of training, capacity building, regulations, and all of that, it will be very important to us if we can also look at areas of investment to woo other sectors to come into Nigeria to invest in this sector, ” he said.

Earlier, the President of NMLA, Mrs. Funke Agbor (SAN) noted that the Council’s commitment to ensuring fair competition, streamlining port operations, and promoting alternative dispute resolution mechanisms has had a transformative impact on the industry.

According to her, the Shippers’ Council’s work aligns closely with the mission of the Nigerian Maritime Law Association to foster the development of maritime law and policy, promote fairness in maritime commerce, and support best practices in the industry.

“We have collaborated at many levels, and we can see that there are still numerous opportunities to strengthen our collaboration with the Nigerian Shubas Council. Together, we can address key legal and regulatory challenges impacting maritime commerce, particularly in the areas of trade facilitation, dispute resolution, port governance, and compliance with international conventions.

“Some specific areas which we hope to further continue this collaboration is Alternative Dispute Resolution, ADR. Building on the Council’s progress in ADR, we know that you have this in-house facility. We propose to work closely with you to enhance mediation and arbitration services for maritime disputes, ensuring faster resolution of conflicts in ways that protect commercial interests,” she said.