NSC proposes 30% cap on tariff increase, opens wider stakeholder consultations
The Nigerian Shippers’ Council (NSC) has proposed a tariff increase capped at 30 per cent, a move designed to balance the sustainability of the maritime industry with broader economic stability.
The Nigerian Shippers’ Council (NSC) has proposed a tariff increase capped at 30 per cent, a move designed to balance the sustainability of the maritime industry with broader economic stability.
At a one-day stakeholders’ forum held in Lagos, the Council clarified that implementing the revised tariff structure—earlier scheduled for March 2026 but now suspended—will only proceed after extensive consultations across the shipping value chain.
The engagement brought together shipping lines, manufacturers, freight forwarders, importers, and exporters, reflecting a shift toward a more inclusive and market-responsive pricing framework in the maritime sector.
Executive Secretary of the NSC, Dr. Pius Akutah, said the suspension was a deliberate step to deepen industry dialogue and prevent market disruptions, adding that economic stability remains a key priority.
“Today’s engagement was productive. The suspension of the tariff implementation last month created room for us to interact with stakeholders and address key concerns. The 30 per cent increase is the upper limit; shipping companies may implement 10 or 20 per cent depending on the outcome of their consultations. It will be gradual,” he said.
Akutah disclosed that shipping operators had initially sought increases between 150 and 200 per cent, citing inflationary pressures and rising operational costs. However, he said the regulator adopted a significantly lower ceiling to avoid excessive burden on manufacturers, traders, and consumers.
He noted that the approved increase is not a fixed blanket adjustment but a flexible cap, allowing operators to adopt phased implementation based on negotiations with customers. According to him, this approach intends to introduce a gradual, demand-sensitive pricing model aligned with prevailing economic realities.
Akutah also stated that some shipping companies had already begun consultations and partial adjustments, indicating a gradual market response to the new framework. He added that earlier tensions around the review process were partly influenced by the actions of a particular operator, without naming the company.
He emphasised that the tariff adjustment is not intended to generate excessive profit but to ensure operational continuity in a sector facing rising costs, including wage pressures.
“We need shipping companies to operate efficiently, but we cannot allow increases that could strain the entire system. The goal is to maintain balance,” he said.
Some stakeholders, however, maintained that transparency and proper consultation remain essential to the success of any tariff reform, noting that earlier communication gaps contributed to industry concerns, even as they acknowledged the need for adjustments under current economic conditions.
President of the National Shippers’ Association of Nigeria (NSAN), Dr. Jamilu Umar, said stakeholders were aligned with the need for an increase but rejected the approach taken.
“We are not against the increase, but due process must be followed. There must be proper consultation, and all stakeholders must be carried along,” he said.
The Manufacturers Association of Nigeria (MAN) echoed similar concerns, warning that abrupt cost adjustments could further strain an already pressured manufacturing sector, and called for mandatory stakeholder consultations before implementation.
On the operators’ side, President of the Shipping Association of Nigeria (SAN), Boma Alabi, framed the tariff review within the context of mounting industry costs, including labour.
“The 30 per cent approved is not entirely commercial. We initially proposed over 100 per cent, but this reflects current realities. Shipping companies are also contending with rising costs, including a minimum wage of N200,000 in the subsector,” she said.
Alabi added that sustained collaboration across the maritime ecosystem would be critical to building a more competitive and value-driven industry, particularly as Nigeria seeks to optimise its trade logistics chain.
The meeting drew participation from key industry groups, including the Association of Nigerian Licensed Customs Agents (ANLCA), National Association of Government Approved Freight Forwarders (NAGAFF), Association of Registered Freight Forwarders of Nigeria (AREFFN), Ndigbo Amaka Progressives Market Association, National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Africa Association of Professional Freight Forwarders and Logistics (APFFLON), and the West Africa Exporters Association.
With consultations now underway, the eventual rollout of the tariff regime is expected to reflect a negotiated balance between commercial viability for shipping firms and cost containment for businesses operating within the country’s import-export ecosystem.
