Market News

By Anozie Egole

There are indications that fresh talks between the Federal Government and the shipping companies over a proposed increase in shipping tariffs have ended in a deadlock, following fresh demands by shipping companies for additional charges.

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

The document also indicated that discussions stalled as shipping firms rejected the 30 per cent increase proposed by the NSC, insisting on higher adjustments.

The shipping companies cited rising inflation, “increasing 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 Committee, Abdusamad Dasuki, disclosed that a fresh round of stakeholder engagement has been scheduled within the next two weeks to address unresolved issues.

He explained that the committee has directed the NSC, shipping firms, and other stakeholders to identify and resolve grey areas while also establishing 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 after consultations are concluded.

Earlier, the Executive Secretary of the NSC, Pius Akutah, noted that although the Council had approved a 30 per cent increase, it was suspended following resistance from stakeholders.

Akutah maintained that the adjustment remains necessary.

He noted that there has been no tariff increment in the sector for over two years.

The NSC boss added that the Council had proposed a phased implementation approach, with the 30 per cent serving as an upper limit.

According to him, “most stakeholders agreed on the need for a tariff review but differed on the scale, with shipping companies arguing that the proposed rate falls below prevailing inflation levels.”

Also speaking, Chairman of the Shipping Association of Nigeria, Boma Alabi, a Senior Advocate of Nigeria, expressed dissatisfaction with the outcome of the talks, stating that “no meaningful progress had been made”.

Alabi called for the establishment of a transparent and consistent mechanism for tariff review, similar to frameworks used in other regulated sectors such as telecommunications and energy.

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

Industry operators warned that without significant tariff reviews, service delivery and operational efficiency could deteriorate.

Some stakeholders reportedly pushed for increases far above the threshold earlier considered by the regulator.

The deadlock shows the ongoing tensions within Nigeria’s maritime industry, as regulators and operators struggle to balance economic realities with the need to maintain competitive and efficient port services.

In March, The PUNCH reported that freight forwarders across Lagos ports have vowed to resist any increase in charges by shipping companies. This is even as the aggrieved agents staged a coordinated protest at the offices of major shipping lines in Apapa, Lagos, rejecting the recent increment in shipping charges.

The protest, which began at MSC Shipping’s office along Commercial Road, Apapa, was also held at Lagos and Niger Shipping Company and Pacific International Lines, leading to a total shutdown of business operations at the respective shipping companies.

Meanwhile, earlier in April, the Nigerian Shippers’ Council met with maritime stakeholders, including shipping companies, freight forwarders, importers, and exporters, insisting on comprehensive stakeholder engagement before the implementation of the proposed tariff hike.