Reps set 3-week target to resolve port tariff dispute
The House of Representatives has set a three-week timeline for regulators and operators to resolve a protracted tariff dispute that has stalled implementation of a proposed 30 per cent increase
The House of Representatives has set a three-week timeline for regulators and operators to resolve a protracted tariff dispute that has stalled implementation of a proposed 30 per cent increase and heightened cost uncertainty across the maritime value chain.
The directive, issued by the House Committee on Shipping Services, calls on the Nigerian Shippers’ Council (NSC), Nigerian Ports Authority (NPA), and Nigeria Customs Service (NCS), alongside shipping lines and other operators, to conclude negotiations and establish a clear implementation framework, amid mounting concerns over the impact of tariff instability on trade flows, port efficiency, and inflation.
Chairman of the Committee, Abdussamad Dasuki, who convened the high-level stakeholder session in Lagos, said the intervention was designed to unlock a deadlock that has persisted despite months of consultations.
“We came here to resolve some of the issues within the maritime sector, which has to do with the increase in tariffs. There is a need for a slight adjustment, and the regulator is working with all relevant stakeholders to reach a consensus,” Dasuki said.
The current impasse stems from the NSC’s earlier approval of a tariff increase capped at 30 per cent—its first in over two years—introduced to reflect rising operational costs, inflationary pressures, and foreign exchange volatility. However, implementation was suspended following strong resistance from freight forwarders and importers, while shipping companies have rejected the ceiling as commercially unviable.
Industry negotiations subsequently broke down, with operators insisting that the proposed adjustment falls below prevailing inflation levels and does not adequately capture escalating global shipping costs.
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Despite the stalemate, Dasuki maintained that the process remains active and close to resolution.
“Within three weeks, we should be able to conclude and implement whatever decision is agreed upon by the majority of stakeholders,” he stated, adding that the process, which began late last year, is expected to be finalised between April and early May.
He further directed that a new round of engagements be held within a week to resolve outstanding grey areas and produce a harmonised position for adoption at an enlarged 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.
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“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.
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.
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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.
