Reps give three-week deadline to resolve maritime tariff dispute

The House of Representatives has issued a three-week ultimatum to regulators and operators in the maritime sector to resolve a prolonged tariff dispute that has stalled the implementation of a proposed 30 per cent increase and fuelled uncertainty across the value chain.

The directive was issued by the House Committee on Shipping Services, which urged the Nigerian Shippers’ Council (NSC), Nigerian Ports Authority (NPA), Nigeria Customs Service (NCS), shipping lines and other stakeholders to conclude negotiations and agree on a clear framework for implementation.

The committee said the move had become necessary amid growing concerns over the impact of tariff instability on trade flows, port efficiency and inflationary pressures.

Chairman of the committee, Abdussamad Dasuki, who presided over a stakeholders’ meeting in Lagos, said the intervention was aimed at breaking a deadlock that has persisted despite months of consultations.

He explained that the proposed adjustment, approved earlier by the NSC and capped at 30 per cent, was intended to reflect rising operational costs, inflation and foreign exchange volatility, but implementation was suspended following opposition from freight forwarders and importers.

Shipping companies, however, have also rejected the ceiling, arguing that it does not reflect current global shipping costs, further deepening the impasse.

Dasuki expressed optimism that the dispute would be resolved within the stipulated timeframe.

“Within three weeks, we should be able to conclude and implement whatever decision is agreed upon by the majority of stakeholders,” he said, noting that the process, which began late last year, should be finalised between April and early May.

He also directed that a fresh round of engagements be convened within one week to address outstanding issues and produce a harmonised position ahead of a wider stakeholders’ meeting.

“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,” he added.

Providing regulatory context, the Executive Secretary of the NSC, Dr Pius Akutah, defended the Council’s handling of the tariff review, stressing that it acted within its statutory mandate while prioritising broad-based consultations.

“As the regulator, we exercised our authority in line with the enabling laws and directed shipping companies to engage with their stakeholders. Some have done so, but all affected parties must conclude these engagements before the final meeting,” Akutah said.

He emphasised that the final stakeholders’ meeting would consolidate feedback from across the industry and produce a binding resolution on tariff adjustments.

“We are not going to truncate the meetings already scheduled by shipping companies and their stakeholders. They must complete those discussions and report back to us. From there, we will take a final decision and settle the matter,” he added.

In a significant policy shift, Akutah disclosed that the Council is advancing an automatic tariff adjustment mechanism aimed at eliminating the cyclical disputes associated with manual reviews and aligning port charges with economic realities.

“The second point would be the aspect of the automatic system for tariff adjustment, which the Nigerian Shippers’ Council is promoting.

“So rather than always having a manual process for tariff adjustment, let us have an automatic system whereby, when the indices arising from volatility in exchange rates, general operational costs, like inflation and all of those would occur at higher margins, the adjustment can go up. And when they come down, the tariff should automatically adjust itself downwards,” Akutah explained.

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He revealed that the technology-driven model would soon be presented to stakeholders, positioning it as a long-term stabilisation tool for Nigeria’s port pricing regime.

Akutah reiterated that the Council adopted the 30 per cent cap as a balancing measure to prevent cost escalation across the economy, even as it acknowledged that most stakeholders agree on the need for a tariff review but remain divided on the scale.

On the operators’ side, Chairman of the Shipping Association of Nigeria, Boma Alabi, expressed dissatisfaction with the outcome of the negotiations, noting that discussions had yet to yield meaningful progress.

She called for a predictable and transparent tariff-setting framework, comparable to those in other regulated sectors such as telecommunications and energy, to eliminate recurring disputes.

Alabi also criticised what she described as “mixed signals” from the regulator, particularly the approval of individual tariffs for some operators, which she said has complicated negotiations and weakened confidence in the process.

With ports serving as critical gateways for imports and revenue generation, the outcome of the current negotiations is expected to shape cargo costs, supply chain efficiency, and the broader competitiveness of the country’s maritime economy.