Reps Wade Into Shipping Tariff Debacle As Agents, Shipping Lines Reject 30% Hike

Fresh talks between the Federal Government and key players in the maritime sector over a proposed increase in shipping tariffs have ended in a deadlock, after shipping companies pushed for charges beyond the ceiling on offer while licensed customs agents insisted the 30 per cent increment proposed by the Nigerian Shippers Council cannot apply uniformly across all shipping lines.

The negotiations, convened in Lagos on Monday by the House of Representatives Committee on Shipping Services, were aimed at resolving a lingering dispute after the Nigerian Shippers’ Council (NSC) suspended its earlier plan to implement a 30 per cent tariff hike and opted for broader stakeholder consultations.

Discussions stalled on two fronts: shipping firms rejected the 30 per cent ceiling, insisting on higher adjustments, while freight forwarders and licensed agents remained equally opposed to the same figure, though for different reasons.

The shipping companies cited rising inflation, mounting operational costs, foreign exchange volatility, and global shipping pressures as reasons the current tariff regime is no longer sustainable.

Speaking after a closed-door session, Chairman of the House Committee, Abdusamad Dasuki, disclosed that a fresh round of stakeholder engagement has been scheduled within the next two weeks to address unresolved issues. He said the Committee had directed the NSC, shipping firms, and other stakeholders to identify grey areas and establish timelines for further engagements.

“We expect that at the next meeting, there will be a clear framework, including timelines and participation of regulatory representatives, to guide the process towards implementation,” Dasuki said.

He added that a new implementation date for any agreed tariff adjustment would be announced only after consultations are concluded.

Earlier, NSC Executive Secretary, Dr Pius Akutah noted that although the Council had approved a 30 per cent increase, it was suspended following resistance from stakeholders. He maintained that the adjustment remains necessary, pointing out that the sector has not seen a tariff increment in over two years.

Akutah said the Council had proposed a phased implementation approach, with the 30 per cent figure serving as an upper limit rather than a fixed rate.

He noted that most stakeholders acknowledged the need for a tariff review but differed on the scale, with shipping companies arguing that the proposed rate falls below prevailing inflation levels.

National Vice President of the Association of Nigerian Licensed Customs Agents (ANLCA), Prince Segun Oduntan, who led other members of the association to the meeting, was emphatic that a blanket increment would not be acceptable.

He accused several shipping companies of running substandard operations in Nigeria while repatriating profits abroad, and said the lines had undermined the NSC’s authority as an economic regulator by failing to formally write to freight forwarding associations as directed by the Council before commencing any increment.

“We would not allow all the shipping companies to get a flat rate increment of 30%, they should have written to us, not all of them can carry out that increment, many of them are still operating on a ramshackle level.

“I also have a shipping license granted to me by the Nigerian Ports Authority, Shippers Council should allow us to deal directly with the shipping companies and reach an agreement on the percentage of increment that befits each shipping company, we know ourselves and the services they are rendering, so the Shippers Council should not be the one that would speak for them. We are not going to accept the proposed flat rate of 30% increment, we say No,” Oduntan stated.

Chairman of the Shipping Association of Nigeria (SAN), Boma Alabi, also expressed dissatisfaction with the outcome of the talks, saying no meaningful progress had been made. She called for the establishment of a transparent and consistent mechanism for tariff review, similar to frameworks operating in regulated sectors such as telecommunications and energy.

Alabi criticised what she described as “mixed signals” from the NSC, particularly individual tariff approvals reportedly granted to some operators, noting that such inconsistencies had complicated the negotiation process.

Following the deadlock, the House Committee Chairman directed the NSC to convene another meeting with stakeholders and reach a final agreement on the increment.

Dr Akutah, on his part, indicated that the two sides were already in talks and that the Council would wait for them to conclude their negotiations before calling a final stakeholders’ meeting next week.