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By Steve Agbota
Nigeria’s N28bn Cargo Defence Fund (CDF) has come under fresh scrutiny as Lagos shippers claim they were sidelined from the fund’s proposed governing board. The Shippers Association of Lagos State (SALS), which has been at the forefront of legal battles to recover and manage the fund, says the exclusion undermines the initiative’s purpose.
Stakeholders have criticized the fund’s long dormancy, lack of proper legal backing and poor management, calling for a reorganisation to ensure small-scale importers and exporters can access much-needed financial and legal support.
Without reforms, the fund risks remaining inactive despite its critical role in protecting shippers.
The CDF, managed by the Nigerian Shippers’ Council, was created to provide legal and financial assistance to shippers who face challenges like cargo abandonment or disputes with shipping companies. Over the years, several court cases have been filed by shippers against shipping lines to enforce the proper use of the fund, highlighting ongoing struggles to make the system work as intended.
With small importers depending on timely access to these resources, industry insiders say reforming the fund’s structure and ensuring shippers have a voice on the board is critical to restore trust and make the CDF functional. The Cargo Defence Fund largely comes from charges imposed by shipping companies on Nigerian cargo, particularly controversial fees that were challenged in court by stakeholders, including the Shippers Association of Lagos State (SALS).
Following court rulings and regulatory interventions, some shipping companies were directed to refund or remit these charges, which were then paid into the fund.
According to disclosures by the Nigerian Shippers’ Council, about N28 billion has already been recovered and lodged with the Central Bank of Nigeria, while additional payments are still being expected as some cases remain in court.
Recently, the NSC Executive Secretary, Dr Akutah Pius, disclosed that the Council is working to reform and strengthen the N28 billion Cargo Defence Fund to enhance transparency, sustainability, and support for Nigerian shippers, particularly small and medium-sized enterprises.
According to him, the Council has engaged a consultant to develop a Standard Operating Procedure (SOP) to ensure transparent management of the fund in line with court directives that it must be used for projects benefiting Nigerian shippers. Dr Akutah stressed that the fund will not be accessed or disbursed until a clear accountability structure is established.
Daily Sun learnt that there might be a fresh controversy surrounding the fund as the shippers are excluded from a proposed governing board, which will be responsible for the management of the N28 billion recovered so far. This development has been stoking fire among the shippers in the maritime sector.
To this end, Nigerian Shippers under the aegis of the Shippers Association of Lagos State (SALS) have kicked against their exclusion from the proposed board that will oversee the N28 billion Cargo Defence Fund (CDF).
The shippers described the move as unjust despite their role as the claimant in the legal process that led to the recovery of the funds.
Meanwhile, the President of SALS, Rev. Nicodemus Odolo, lamented the exclusion of the association from the proposed board that will oversee the Cargo Defence Fund, saying that the group deserves representation as the claimant in the legal process that led to the recovery of the funds.
“The NSC recently released SOP detailing how the board for the Cargo Defence Fund would operate. However, SALS was neither consulted during the drafting of the document nor allocated a slot on the proposed board,” he stated.
He added that the association had earlier requested that stakeholders be invited to contribute to the development of the SOP, but the document was eventually presented without their input.
He clarified that while the governing board of the Nigerian Shippers’ Council has already been inaugurated, the board specifically meant to manage the Cargo Defence Fund is yet to be constituted.
Odolo explained that SALS, through its trustees, approached the court to pursue the recovery of the funds, and therefore it would be unjust for the association not to be represented on the board responsible for managing the recovered money.
Conversely, he revealed that N28 billion had been recovered and deposited with the Central Bank of Nigeria (CBN), while additional payments are still expected as some matters remain pending before the Supreme Court and others are being resolved through out-of-court settlements.
He urged the Council to reconsider the arrangement and include SALS in the board structure, saying that the association acted with integrity by pursuing the legal process rather than accepting settlement offers that could have halted the case.
“We were the ones who went to court to make the claim, yet the proposed board did not allocate any slot for the Shippers Association of Lagos State. That is totally wrong. From the beginning, we asked to be involved in the development of the Standard Operating Procedure, but we were not invited to contribute. The SOP was eventually given to us, without our input.”
“The Cargo Defence Fund board has not been inaugurated yet. About N28 billion is already in the account with the Central Bank of Nigeria, and more payments are still expected as some cases are ongoing in court. It is unjust that those who took the risk to pursue the matter in court and recover the money are not being considered for representation on the board,” he said.
Speaking with Daily Sun, the former President of SAL, Rev. Jonathan Nicole, said that shippers have the right to be among the governing board of the Cargo Defence Fund.
“Well, they have just written an SOP, which we are aware of, even though they did not allow us to make our input, but we’ve just gotten the SOP, and they said we should go through it, and any grey area we see that we don’t like, we should let them know.
“So, we cannot completely rule that SOP out, until we make our input and they reject it, that is when we will now begin to cry, because without SALS there will be no SOP, walkable SOP we used to have before, but it’s gone moribund, but we said alright, for shippers to contribute and build an institution for shippers, let us fight and get this cargo defence fund on board,” he said.
He said that it is a fund everybody should be happy about, including those who wrote the SOP, saying SALS is not ruling the SOP out completely.
“We are to make our input, and there are areas that we don’t like. Of course, we have the right to say we don’t like this area, so they will amend it. That is where we are now.
The former spokesperson for SALS, Dr Kayode Farinto, said that the issue of the cargo defence fund is the advantage of associating.
“When the shippers’ association were calling for people to come and associate, very few of them were interested. Many showed a lackadaisical attitude. Now that the fund is ready, those who did not participate in the war against the shipping agent and the various shipping companies, when they were surcharging Nigerians, look at us as an avenue to make money.
“And the fund is not for making money. It’s for a physical project to assist Nigerian shippers. So, whoever feels alienated or not carried along should go and join the association, maybe the Lagos Shippers Association,” he said.
He said they should join those relevant associations that have been prominent in fighting for the cause of Nigerian shippers.
