NSAN Rejects Arbitrary Hike in Port Charges, Seeks Immediate Suspension

NSAN

Bennett Oghifo

The National Shippers’ Association of Nigeria (NSAN) has formally rejected the recent upward review of port service charges approved for shipping companies and terminal operators, describing the increase as arbitrary, procedurally defective and inimical to the federal government’s Ease of Doing Business agenda.

In a detailed position paper, jointly signed by the Chairman of the Board of Trustees of NSAN, Alhaji Ali S. Madugu, and the Secretary General, Mrs. Ijeoma Ezeasor that was submitted to the Nigerian Shippers’ Council (NSC), the umbrella body for Nigerian shippers urged the Council to immediately halt the implementation of the new charges and initiate a broad-based consultative process that reflects the interests of all stakeholders in the maritime value chain.

The association, in a letter addressed to the Executive Secretary of the NSC and endorsed by its National Executive Committee (NEC), expressed strong displeasure over what it termed the “systematic exclusion” of shippers from discussions leading to the approval of the tariff increase.

According to NSAN, the process adopted by the Council runs contrary to the spirit and letter of the Nigerian Shippers’ Council Act (Cap N133, Laws of the Federation of Nigeria 2004), which mandates the regulator to protect the interests of shippers.

NSAN argued that the exclusion of its members from such a critical decision amounts to a serious breach of regulatory trust. It warned that the development raises fundamental questions about the Council’s commitment to its statutory responsibilities.

“This is not merely a procedural lapse; it represents a failure of regulation,” the association stated. “The Council appears to have shifted focus from safeguarding the interests of Nigerian shippers to advancing the commercial objectives of terminal operators, with grave consequences for the national economy.”

Beyond issues of process, the association raised concerns over the broader economic implications of the new port charges, particularly at a time when businesses and households are grappling with rising costs and persistent macroeconomic pressures.

NSAN warned that the hike would inevitably translate into higher landing costs for imports, thereby exerting additional pressure on consumer prices and worsening inflation, which currently hovers around 30 per cent. According to the association, any increase in port charges is quickly passed down the value chain, affecting manufacturers, traders and, ultimately, consumers.

The association also questioned the justification for the increment, arguing that there has been no corresponding improvement in port efficiency, infrastructure or service delivery to warrant higher tariffs. It maintained that Nigerian ports continue to suffer from operational inefficiencies, delays and high transaction costs, making them uncompetitive compared to other ports in the region.

Furthermore, NSAN cautioned that the absence of a transparent, data-driven framework for reviewing port tariffs creates uncertainty and instability for businesses. It noted that unpredictable pricing regimes undermine planning, discourage investment and erode confidence in the regulatory environment.

In response to the development, the association issued a set of clear demands to the Nigerian Shippers’ Council. Top on the list is an immediate suspension of the new charges, pending a comprehensive review process. NSAN also called for the urgent convening of a stakeholders’ meeting within 14 days to agree on an inclusive and transparent framework for any future tariff adjustments.

Commenting on the matter, the Acting National President of NSAN, Alhaji Jamilu M. Goma, expressed confidence that the Council would reconsider its position in the interest of fairness and national economic stability.

“We trust that the Nigerian Shippers’ Council will act with the integrity and balance envisaged in its enabling Act,” he said.

The association disclosed that copies of its formal objection had been forwarded to the Honourable Minister of Marine and Blue Economy, the leadership of the National Assembly, and key private sector organisations, including the Manufacturers Association of Nigeria (MAN), the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), and the Nigeria Employers’ Consultative Association (NECA).