Story by Dili Utomi
These are not the best of times for stakeholders in the Maritime sector of the Nigerian economy as rash increases, delay in general business operations and mainly corrupt practices that have resulted in weak regulatory regime by the economic regulator have all tolled on their overall performances.
In recent times, various charges have been arbitrarily hiked while the requisite modern tools for providing the necessary expedited services have not been acquired by the relevant shipping companies and terminal operators. These are some of the complaints against the various shipping companies and terminal operators.
Mediterranean Shipping Company (MSC) revised charges has shown an increase in Import Documentation Fee for 20ft containers from N45,000 to N58,500 while 40ft levies for the same service increased from N72,000 to N93,600. Meanwhile, Port Additional Charges for 20ft hiked from N50,000 to N80,000 and 40ft container cost moved from N100,000 to N160,000. MSC indicated in the document that the new charges will be implemented from January 1st, 2026.
Various freight forwarding associations have on Monday embarked on the disruption of activities at the MSC’s administrative office for arbitrary increases in some of their charges. The Africa Association of Professional Freight Forwarding and Logistics of Nigeria (APFFLON) is one of those freight forwarding associations that are protesting the hikes.
The association also wrote a letter to the president of Nigeria regarding the increase, part of which reads:
“On behalf of the Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), and in my capacity as its National President, I respectfully write to draw the attention of the Federal Government to the growing concern within the maritime and logistics sector over the frequent approvals of increased charges by shipping companies and terminal operators, as endorsed by the Executive Secretary of the Nigeria Shippers’ Council (NSC)”.
“Your Excellency, these approvals are being granted without adequate consideration of their far-reaching implications on the national economy, trade competitiveness, inflationary pressures, and the cost of doing business in Nigeria”.
“This development clearly runs contrary to the avowed agenda of the Federal Government to reduce the cost of port operations, enhance ease of doing business, and position Nigerian ports as competitive hubs within the sub-region”.
The letter also carries a list of recommended steps to be taken to avert further disruptions within the Maritime environment and to further enhance operations.
It goes on to say “Regulatory decisions must be transparent, consultative, data-driven, and aligned with national economic objectives.
In light of the foregoing, we respectfully appeal to the Federal Government to:
1. Review and halt the indiscriminate approval of shipping and terminal charges.
2. Direct a comprehensive audit of all recently approved port charges and their economic impact.
3. Strengthen the regulatory independence and capacity of the Nigeria Shippers’ Council in line with its statutory mandate.
4. Reaffirm the Federal Government’s commitment to reducing port costs and restoring stakeholder confidence in the maritime sector”.
“Your Excellency’s timely intervention will go a long way in safeguarding the national economy, supporting local industries, and ensuring that Nigeria’s ports remain competitive and investor-friendly.
APFFLON also had a press briefing this afternoon to review the on-going strike action at the MSC office in Apapa as well as revealing the contents of their letter to the president of Nigeria.
The president of APFFLON, Otunba Frank Ogunojemite used the opportunity to lambast the economic regulator of the maritime industry, the NSC. He regretted that ” this particular Executive Secretary of the Nigeria Shippers’ Council, Pius Ukeyima Akutah has incessantly approved increases in shipping charges”.
Otunba Ogunojemite declared that ” APFFLON is not opposed to or aversed to any increase in charges in the sector, but that consideration must be given to the cost of doing business and the general prevailing economic conditions in the country”.
He wondered whether “the ES of the NSC has not turned himself to Mr. Increase and as one who is at the beck and call of the shipping companies and terminal operators. He pointedly says that a professional should be given the chance to run the NSC ”
He noted that the Mediterranean Shipping Company (SC) and the West African Container Terminal (WACT) have had various increases in charges over the past two years with the tacit approval of the economic regulator, the NSC. The APFFLON president urges the federal government to make an urgent review of all the charges by these companies.
The APFFLON president lamented that most of the people leading the NSC now seem to be more interested in personal aggrandisement and not for the advancement of the principles upon which the NSC was set up. He advocated that there needs to be professionals running the regulatory agency as he noted that “the present executive secretary is incompetent and not readily available to listen to complaints”.
His words ” The lackadaisical attitude of the executive secretary and his team is driving the cost of doing business up resulting in cargo diversion to neighbouring countries”.
He advocates for a constant stakeholders engagement and reasonable evidence as to why there should be an increase in charges, the purpose of the increase must be clearly stated also as most increases in charges drive inflation up.
It was also noted that the Container Insurance Policy is supposed to take care of container deposit, but that the deposit still subsists making nonsense of the insurance policy to the advantage and benefit of the shipping companies.
Otunba Ogunojemite categorically noted that ” this is the worst performing executive secretary of the economic regulator of the industry since inception”.
As the press briefing was on-going at APFFLON, a press statement released by Rebecca Adamu, head public relations of the Nigerian Shippers’ Council which is also entitled “Nigerian Shippers’ Council (NSC) Directs Shipping Companies to Suspend Charges Review, Engage Stakeholders” reads partly:
“Nigeria’s Port Economic Regulator, the Nigerian Shippers’ Council (NSC), has directed all shipping companies, shipping agents, and terminals operating within Nigerian ports to suspend and refrain from implementing any review or upward adjustment of their charges until they have fully engaged their stakeholders”.
The statement in a face saving move says that “The Council wishes to clarify that the recent adjustment was approved strictly in accordance with its statutory mandate as the Port Economic Regulator. The Council affirms that all tariff reviews were conducted in a transparent, structured, and well-defined regulatory process. These processes included detailed technical and consultative engagement with affected service providers, aimed at examining the cost drivers, operational realities, investment obligations, and regulatory compliance”.
Now, the question is if all the procedures for the approval by the NSC followed “well-defined regulatory process” why has the the agency not stood its ground and allowed the increase by the shipping company to persist?
The lame excuses and buck passing by the Nigeria Shippers’ Council should stop forthwith and it is either that there occurs a change in the mantle of leadership at the Council or that the current head and his team stop sitting on their hands and do their job .
The maritime sector has suffered so much set back because of incompetence and lack of political will to confront the problems and it is time that the various anomalies are definely tackled and a fresh breath of air given the sector.
Aside the Nigeria Customs Service and to a small extent, one other agency, the sector has hardly scratched the surface of its potentials, what with the estimated 90 trillion naira realisable annual revenue having only about 8 trillion realised in 2024.
The leaders of the nation should stop making appointments based only on political expediency and consider technical ability more as a factor in appointment or else we may not get to that national economic Eldorado as the country hopes to get.
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