Following new requests for higher fees from shipping companies, new negotiations between the Federal Government and major stakeholders in the maritime industry over a proposed rise in shipping tariffs have come to a standstill.
The House of Representatives Committee on Shipping Services called the talks in Lagos with the goal of settling unresolved issues following the Nigerian Shippers’ Council’s (NSC) decision to forego a 30% tariff increase in favor of more extensive stakeholder engagements.
The companies stated that the present tariff structure is unsustainable due to global shipping constraints, rising inflation, increased operational expenses, and foreign exchange volatility.
Following a closed-door meeting, Committee Chairman Abdusamad Dasuki revealed that a new round of stakeholder engagement has been planned for the next two weeks in order to address unsolved issues.
He clarified that the Committee has set deadlines for future interactions and instructed the NSC, shipping companies, and other stakeholders to find and address gray areas.
“We anticipate that at the next meeting, there will be a clear framework to guide the process towards implementation, including timelines and regulatory representatives’ participation,” Dasuki stated.
He noted that following the conclusion of consultations, a new implementation date for any agreed-upon tariff modification would be notified.
Pius Akutah, the NSC’s Executive Secretary, had stated that despite the Council’s approval of a 30% increase, it was put on hold due to opposition from stakeholders.
Akutah insisted that the modification is still required, pointing out that the industry hasn’t seen a tariff increase in more than two years.
He continued by saying that the Council had suggested a phased implementation strategy, with the 30% upper limit.
He claimed that while the majority of stakeholders agreed that a tariff review was necessary, shipping companies disagreed, claiming that the proposed rate is lower than current levels of inflation.
Speaking as well, Boma Alabi, the chairman of the Shipping Association of Nigeria (SAN), voiced his displeasure with the results of the negotiations, claiming that no significant advancements had been made.
Alabi demanded the creation of a clear and uniform tariff assessment process, akin to those found in other regulated industries like energy and telecommunications.
She pointed out that the negotiation process had been hindered by what she called “mixed signals” from the NSC, especially with regard to individual price approvals given to certain operators.
The impasse demonstrates the persistent conflicts in Nigeria’s marine sector as operators and authorities attempt to strike a balance between the need to maintain competitive and effective port services and economic realities.
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