The impact of Nigerian Shippers’ Council on Nigerian economy

Abiola  Seun writes.

The transmutation  of the Nigerian Shippers’ Council (NSC) to Economic Regulator in  2014 and the subsequent gazette affirming its appointment in that capacity by the Federal Government in 2015 will continue to lend credence to the acknowledgement of its capacity and immense contributions to the development of the maritime sector.

Since then, the Council is generally believed to have continued to impact the economy, consistently due to its series of robust activities and  policies.

Just as its activities have covered all stakeholders in the seaport sector, the providers and consumers of shipping services, it has also been able to fulfill its economic regulator purpose of achieving international standard in port service delivery as well as an affordable cost of doing business at the nation’s seaports .

According to the executive secretary, Barr. Hassan Bello, the role the Shippers’ Council, has been discharging on behalf of the Federal Government is that of co-coordinating the various interests that make-up the port sector, ensuring a level playing field and fair trade practices among the various stakeholders with a view to facilitating trade in the maritime industry.
Experts are of the view that the activities of  the council particularly as a regulator  have led to improved revenue generation for the stakeholders  and  enhanced  infrastructural development at the seaports.

Also, reduction of cost of doing business, improvement of the nation’s global competitive index as well as consequent  attraction of foreign direct investment for those in the transport and logistics chain.

Thus, the general belief is that the  Council has been able to positively affect  the cross section of stakeholders in the seaport sector differently, in many ways, namely in the areas of  improved delivery of marine and terminal handling services, reduced turnaround time of vessels as well as lower  cost of vessel operations, for the shipping companies .On the part of the Customs,  the notion is that it has led to improvement in the level of transparency, efficiency,  effectiveness and a boost in its image while for NPA it has translated to enthronement of clearer  standard operating procedure derived from international law and practice.

Speaking  on the activities of the council, a former president of the Nigerian Bar Association (NBA) , Chief Olisa Agbakoba said that the role of the Nigerian Shippers’ Council ought to have been upgraded to that of the economic regulation of the maritime sector instead of just the port industry because of its achievements so far.

The feat it has recorded, is also believed to have  influenced its being considered  for the position of the National Transport Commission (NTC) , which bill has already been passed by the Eight National Assembly through which it is expected to  affect the transport sector positively.

Lending credence to the positive activities of the Council, the Chairman of the Nigerian Port Consultative Council (NPCC), Otunba Kunle Folarin has  said   that the Shippers’ Council  has   added tremendous value to the  operations of the seaport sector including its stakeholders .

He stated further that the council tremendous success in the area of checking the skyrocketing haulage rates of goods and thus reduce the high cost of doing business at the seaports, as it has just  completed the negotiations of a uniform rates for truckers, the new list of  charges which it would soon publish, once it is  approved  by the Transportation Ministry.

It is also working at securing loan facilities for truckers, to enable them purchase new trucks  as well as discussing ways to reduce the tariff in the seaport sector, to between 30 and 40 per cent through its proposed introduction of a standard tariff system.
The Council has likewise been attracting patronage to Nigeria Ports, through the various reforms it has undertaken, which has made the seaports to perform better and contribute  more positively to economic development.

The NSC has also began the process of checking arbitrary charges in the seaport sector in the exercise of its power as an Economic Regulator in October 29, 2014, when it reversed the progressive storage charges of the terminal operators  and   also directed shipping companies to reduce their shipping line agency charges from N26, 500 to N23, 850 per TEU (20-foot containers) and from N48, 000 to N40, 000 per FEU (40-foot containers).

It has also reduced the various charges  of the shipping companies from 16 to five, while it has likewise been reviewing downwards, the sub headings of their  tariff as the need arises .This is why the  Council’s CEO, has said that imposition of arbitrary charges no longer exist.To  buttress Bello’s view, Honourable Tony Nwabunike , the current  President of the Association of Nigerian Licensed Customs Agents (ANLCA) and his Vice , Mr Kayode Farinto were in agreement  that   the Council  has discharged its functions  in a professional and very efficient manner  while it has thus  checked arbitrary and illegal increase in charges and sanitized the seaport sector.

It is also trying to ensure transparency in the activities of stakeholders in the sector through the institutionalization and entrenchment of a  Port  Order  principle on  which it has almost concluded  work.

In recognition of its expertise, the immediate past President of ANLCA, Prince Olayiwola Shittu has also   lauded  the Council , for having acted the role of an expert, creditably, by offering useful suggestions towards a permanent solution to the persistent gridlock on the access road to the Lagos seaports as well as providing technical advice for government , the Ministry of Transportation and representing it locally and globally  on maritime functions .For instance , the Council functioned efficiently as a  member of the Presidential Task Team  on Port Decongestion .The Council has also contributed greatly  at ensuring that agencies and stakeholders in the sector such as Nigerian Ports Authority (NPA), Nigerian Drug Law Enforcement Agency (NDLEA), the National Agency for Food Drugs Administration and Control (NAFDAC), providers and consumers of shipping services embrace automation and fast clearing of cargoes.
In its move to put an end to the hardship the shippers have been experiencing in the area of container deposit, it is thus working relentlessly to abolish the deposits paid to shipping companies  while in the long run it wants the containers to be owned by the shippers themselves.

Also, by virtue of the fact that the Council is now involved in the cargo examination and clearing process,  its activities have led to efficiency of the ports system, and faster clearing of cargo as its monitoring role has made it possible for the different stakeholders, namely, Nigerian Customs Service, National Drug Law Enforcement Agency(NDLEA) and others  to be present and prompt at the inspection points at the ports.
The Council has also moved to  give legal protection to those  carrying goods by land  as it sets to embark on a  very serious legislation which has to do with  Carriage of goods by land while it has engaged  with stakeholders on this, with a view to providing a kind of insurance for those transporting cargoes on land.