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The Ndigboamaka Progressive Markets Association (NPMA), the Umbrella body of major/international Markets in Lagos State representing over 23 million traders, has voiced strong opposition to the recently passed “Nigeria Shipping and Port Economic Regulatory Bill” by the House of Representatives.
The NPMA argues that the bill, which seeks to reform the Nigeria Shippers Council, prioritizes revenue generation over the protection of shippers’ interests. The President General of NPMA, Chinedu Ukatu, in a press release issued on Wednesday, condemned the bill as a trillion-dollar boondoggle that threatens the interests of Nigerian shippers. According to him, “This proposed bill glarely jettison’s the original intents of protecting the Shipping Interests of the Nigeria Shippers (as listed in the NSC Act 133 2004).”
He criticized the Nigeria Shippers Council for its focus on financial gains at the expense of shippers’ welfare. “Our primary concern is that the bill shifts the focus from protecting shippers to creating a revenue-generating body. The proposed Nigeria Shipping and Port Economic Regulatory Agency is intended to oversee the shipping and port sector, but its core objectives, as outlined in the bill, seem to prioritize financial gains over the welfare of shippers,” he lamented.
Ukatu pointed out that the NPMA had previously requested clarifications on critical issues from the Nigeria Shippers Council, but their concerns were not accorded the deserved attention.
“We suddenly discovered that, the body language and activities of the Nigeria Shippers Council seemed a council, that has lesser interests at protecting the shippers, especially, so in the face of its quest to metamorphose into shipping and economic regulator, with much emphasis on revenue interests, and the enthusiasm and zeal with which the process was fast forwarded, made us to contemplate the adverse effects of government resources, as a boondoggle.
“We contemplate so with the hindsight that, the intents of the new proposed bill is to repeal shippers’ protection interests and, in its place, be replaced for an industry economic regulator body, which targets is mostly driven by revenue objectives, with additional charges and levies imposition, being targeted at the Nigeria shippers directly and indirectly.”
He cited provisions of the Bill that were particularly troubling for the trading community, noting, “Section 26 of the bill establishes a fund for the new Agency, funded by fees imposed on shipping companies and service providers. Specifically, Subsection 26(2c) mandates a three per cent charge on carriage, contract, or charter fees collected by shipping entities and a two per cent levy on gross tariff earnings of service providers. These additional costs will inevitably be passed down to the shippers, further burdening an already strained sector,” Ukatu explained.
“With this, the Nigeria Shippers Council will now join the leagues of shippers exploiters, better said, as one of stakeholders in the international trade supply chain, milking the shippers dry, especially within the shipping and port value adding supply chain,” he added.
In addition to these financial concerns, Ukatu expressed dissatisfaction with the Council’s handling of existing issues within the maritime industry. “We are deeply troubled by the imposition of international war risk insurance charges despite claims of reduced piracy attacks. Furthermore, the Council’s failure to address double handling and unexplained charges reflects a broader problem of exploitation and mismanagement within the sector.”
Ukatu revealed that the NPMA has announced plans to hold a joint world press conference with affiliate partners to further discuss these concerns. “We are committed to advocating for an independent shipper’s protection commission. Our goal is to ensure that shippers are safeguarded from exploitation and unfair practices and that their voices are heard in regulatory matters.”
He reaffirmed the NPMA’s dedication to reform and protection inspired by the spirit of historical reformers. “We would support any positive steps that will engender the enthronement of an independent industry economic regulatory regime, enabled by legislative enactments, provided such enactments will not be at the detriments of the Nigeria Shippers. We will continue to fight for a fair and equitable system. Through legislative action and public advocacy, we can achieve a regulatory framework that truly serves the interests of the community.”
