The Executive Secretary/CEO of the Nigerian Shippers’ Council (NSC), Barrister Pius Akutah, on Wednesday decried the persistence of security challenges, including cargo theft and general lawlessness, at Nigerian ports.
Speaking at the 2024 Annual Seminar for Maritime Journalists held in Lagos, the NSC boss, who was represented by the agency’s Director of Special Duties, Mustapha Zubairu, said these security risks negatively affect port operations and increase the cost of shipping.
“The Federal Government made the Nigerian Shippers’ Council the Nigerian port economic regulator in 2015, but this status needs to be formalised through legislation. Therefore, a strong legal framework for the Council as the nation’s Port Economic Regulator is required.
“There is an urgent need for the passage of the Nigerian Shipping and Port Economic Regulatory Agency Bill 2023, which seeks to repeal the Nigerian Shippers’ Council Act and establish a regulatory agency for the Nigerian ports.
“In the area of infrastructure deficiencies, Nigerian ports are plagued by poor infrastructure, including outdated cargo-handling equipment, inadequate road networks, and insufficient storage facilities.
“While the NSC can regulate economic activities, it has limited control over physical infrastructure, which is largely under the purview of other government regulatory agencies,” he explained.
According to him, the NSC’s ability to drive reforms and improve port operations is constrained by the broader infrastructural deficiencies within the port system.
In the area of collaboration, he stated that effective port regulation requires close coordination between the NSC, the NPA, Customs, terminal operators, shipping companies, and other stakeholders.
“However, there is often a lack of synchronisation among these entities, leading to inefficiencies, conflicting policies, and a fragmented regulatory environment. There is a need to foster better collaboration and communication between all stakeholders to ensure smoother port operations.
“High tariffs, port charges, and inefficiencies at the ports increase the cost of doing business in Nigeria. While the NSC is responsible for overseeing tariff structures and pricing, it faces the challenge of balancing the interests of port operators, shippers, and the government while trying to make the ports competitive.
“Reducing costs for importers and exporters while ensuring sustainable revenue generation for port authorities remains a delicate balancing act,” he pointed out.
He said Nigerian ports continue to struggle with congestion and inefficiency despite efforts to streamline operations. Although the NSC is not directly responsible for managing traffic, it is charged with improving port competitiveness, which includes addressing delays, demurrage charges, and other inefficiencies arising from congestion.
The NSC boss also revealed that the adoption of modern technology in port operations is still very low.
“The adoption of modern technology in port operations is still relatively low, hindering operational efficiency and transparency. The NSC is tasked with promoting the digitalisation of port processes, but challenges such as inadequate internet infrastructure, resistance to change among stakeholders, and a lack of skilled personnel in the tech field hamper progress in this area.
“Security challenges, including cargo theft, piracy, and general lawlessness, persist at Nigerian ports. These security risks negatively affect port operations and increase the cost of shipping.
“Additionally, corruption among port officials and stakeholders remains a problem, with illegal fees, bribery, and rent-seeking behaviour complicating the NSC’s regulatory functions and undermining reforms,” Akutah explained.
In his own presentation, the convener of the programme and Chief Executive Officer of First Mediation Network Ltd, Mr Sesan Onileimo, explained that the theme of the event, ”The Nigerian Shippers’ Council in Transition: Issues, Prospects, Challenges”, was deliberately chosen to offer a dual opportunity for maritime journalists and content owners to acquire knowledge about the emerging dispensation at the NSC.
“When the idea of a gathering specifically convened for maritime journalists for this purpose was first mooted about nine years ago, it sounded very nice, essentially because there had been no such thoughts in the past. And if there were, they were never activated.
“Today, we remember with deep appreciation the then-Executive Secretary of the Nigerian Shippers’ Council, Barrister Hassan Bello, and his management for believing in the need for capacity building and manpower development for maritime journalists.
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“I recall with happiness that my organisation had to defend the proposal. It was approved, and since then, ‘The Annual Seminar for Maritime Journalists’ has been warehoused in the NSC. I have been the facilitator,” he said.
According to him, it is noteworthy that the Annual Seminar for Maritime Journalists has become one of the key performance indicators (KPIs) of the PR Department of the NSC as an organisation.
“So, every year, in the last nine years, we gather like this to deliberate on a particular issue that is central or germane to the Nigerian maritime industry.
“This year, we deliberately narrowed our focus to a topic that offers a dual opportunity for maritime journalists and content owners to acquire knowledge about the emerging dispensation at the NSC and also understand the apprehension of direct stakeholders about the Nigerian Shipping and Port Economic Regulatory Agency Bill 2023, which is in the final stage of being enacted.
“We commend the determination of the management of the NSC for giving the Bill all that is required to come to life. The bold move to regenerate the NSC is the motive behind the zeal,” he said.
However, he added, there is no doubt the Bill is envisaged to be a game-changer in Nigerian shipping and port-related businesses.
“Currently, the rating of ease of doing business in the ports is low. It is anticipated that the new law will ensure fairness and competition in the pricing of services while providers and users enjoy a new experience.
“Certainly, its passage and eventual signing into law by the President will usher in a new dispensation that is yet being imagined,” he added.
