NSC Defends Tariff Adjustments, ICTN Delay, Cites Legal Mandate

ZAINAB JUNAID

The Nigerian Shippers’ Council (NSC) has defended its recent tariff adjustments, regulatory actions, and the delayed rollout of the International Cargo Tracking Note (ICTN), insisting that its decisions are firmly rooted in legal provisions, due process, and stakeholder consultations.

Executive Secretary and Chief Executive Officer of the Nigerian Shippers’ Council, Barr. Akutah Pius Ukeyima, stated this during an interview, dismissing claims that the Council’s actions were influenced by external pressure or policy inconsistency.

Akutah explained that tariff regulation remains a core statutory responsibility of the Council under Sections 5 and 6 of the Port Economic Regulations 2025. He noted that the agency acted within its mandate in approving adjustments after prolonged demands from service providers, who had cited rising operational costs.

According to the ES, tariff reviews had been delayed for over two and a half years despite inflationary pressures and repeated requests from operators, some of whom proposed increases ranging from 150 to 300 percent. He said the Council moderated these demands to prevent economic disruption.

He stressed that tariff setting in the maritime sector is not profit-driven but tied to broader economic considerations, including inflation, GDP performance, and trade sustainability. With over 80 percent of Nigeria’s trade dependent on maritime transport, he warned that excessive increases could trigger adverse ripple effects across the economy.

On allegations of exploitative charges by shipping companies, Akutah clarified that the Council approved a structured adjustment framework of about 35 percent, designed as a flexible band rather than a fixed rate. Operators, he said, were allowed to implement increases within an approved range, typically between 10 and 20 percent, based on operational realities.

Addressing recent tensions within the sector, he described them as isolated incidents rather than systemic failures. He cited a dispute involving Mediterranean Shipping Company, noting that the disagreement stemmed from a breakdown in stakeholder consultations rather than regulatory shortcomings.

Akutah informed that he personally intervened during a protest at the company’s premises to de-escalate tensions and encourage dialogue, emphasizing that engagement remains the preferred mechanism for resolving industry disputes.

He also cautioned against regulatory capture, warning that undue external influence on statutory regulators could undermine transparency and disrupt the balance required to protect both shippers and service providers. According to him, the Council’s role is to maintain equilibrium across the maritime value chain.

On the delayed implementation of ICTN, Akutah attributed the setback to ongoing legal disputes and historical inconsistencies surrounding the project. He revealed that the Council is working with the Ministry of Justice to resolve pending litigation before proceeding with full implementation.

While reaffirming the importance of ICTN in enhancing cargo security, tracking efficiency, and revenue protection, he stressed the need to clear all legal hurdles to ensure a smooth and sustainable rollout.