Shippers’ Council Launches Digital Platform, ERPP to Enhance Port Efficiency, Save Nigeria from 80% Capital Flight

By DAPO OLAWUNI

The Nigerian Shippers’ Council (NSC) has unveiled its innovative Electronic Regulatory Process Portal (ERPP), a digital platform designed to enhance regulatory functions and promote efficiency in the port sector.

This groundbreaking initiative is expected to save the Nigerian economy 80% of foreign exchange outflows in substantial amounts, and also minimize capital flight by blocking financial leakages and preventing over-invoicing.

Speaking at the signing ceremony of the Minimum Standard for workers in the shipping sector in Lagos on Friday, the Executive Secretary and CEO of the NSC, Barr Pius Ukeyima Akutah said the ERPP represents a significant step forward in the council’s efforts to modernize and streamline its regulatory processes.

While demonstrating the application to the Minister of Marine and Blue Economy, Adegboyega Oyetola and other stakeholders gathered, Barr Akutah said the ERPP application is home grown and developed by the agency’s staff.

“The ERPP is a game-changer in our regulatory landscape. It serves as a comprehensive platform for submission, centralization, and electronic monitoring of operational key performance indicators (KPIs) for all regulated service providers in Nigeria,” the CEO stated.

He emphasized that the ERPP is not just a digital tool but a transformative approach to handling the complexities of the port sector. “Through this platform, stakeholders in the port sector can file annual tariffs, manage voyages, submit airfreight cargo throughput data, and request reviews of tariffs, rates, and charges. It’s all about enhancing accessibility, efficiency, and transparency,” he added.

Streamlining the Process of Demurrage and Freight Rate Confirmation

The ERPP also integrates a gateway to other crucial applications, such as the Confirmation of Reasonableness of Demurrage, Freight Rates, and Charter Party Payments. This integration supports the Central Bank of Nigeria’s (CBN) revised Foreign Exchange (FOREX) manual of 2018, which mandates the NSC to confirm the reasonableness of such fees as a prerequisite for foreign exchange approvals.

“We’ve developed a web-based, multi-functional application that eliminates the manual labor involved in calculating and confirming demurrage charges, freight rates, and charter party fees. Now, everything is submitted, processed, and approved online. This is a leap towards reducing delays and ensuring accurate financial transactions,” the CEO explained.

Significant Savings and Improved Efficiency

The impact of these digital advancements is already evident. Between January and June 2024, the NSC conducted a quality assurance test to verify the accuracy of demurrage applications.

The results were striking: out of a total requested amount of N50,822,051,243, a sum of N19,682,846,342 was validated as reasonable for payment. This led to substantial savings of N31,139,204,901 over the six-month period.

“This represents a remarkable 400% improvement in savings compared to the previous year. In 2023, our total savings amounted to just N6,766,452,835. This achievement is a direct result of the innovative automation solutions we have developed, which have greatly improved operational efficiency and cost optimization,” the CEO highlighted.

Projected Outcomes and Future Goals

The ERPP is expected to yield significant outcomes for the Nigerian economy. As outlined by the NSC, the platform aims to:

• Save approximately 80% of outflows from the Nigerian economy.

• Block financial leakages and prevent over-invoicing.

• Minimize capital flight.

“By leveraging technology, we are not just enhancing our regulatory functions but also contributing to the overall growth and development of the Nigerian economy. This is about creating a transparent, efficient, and accountable port sector that can drive national progress,” the CEO asserted.

The launch of the ERPP marks a pivotal moment for the NSC and the Nigerian maritime industry. As the Council continues to innovate and adapt, the sector is poised to become more competitive and resilient in the face of global challenges. “We are committed to maintaining this momentum and ensuring that our regulatory processes are second to none,” concluded the CEO.