Stakeholders question FCCPC’s effectiveness
Shippers, Customs agents, freight forwarders and other stakeholders in the maritime sector have warned that the Nigerian Shippers’ Council’s (NSC) recent approval granting shipping companies and terminal operators permission to increase tariffs will push the cost of doing business in Nigerian ports to about 55 per cent higher than in other West African countries, up from the earlier estimated 40 per cent gap.
Recall that the Minister of Marine and Blue Economy, Adegboyega Oyetola, had earlier confirmed that the cost of doing business in Nigerian ports is 40 per cent more expensive than in other West African ports.
According to the stakeholders, the approved tariff increase contradicts the Federal Government’s target of reducing the cost by at least 25 per cent to enhance competitiveness, ease of doing business and trade facilitation.
They also questioned the effectiveness of the Federal Competition and Consumer Protection Commission (FCCPC) partnership with the Nigerian Shippers’ Council in regulating prices and protecting port users, insisting that regulators should protect shippers and not strangle them.
Former President, Shippers’ Association of Lagos State (SALS), Jonathan Nicol, lamented that the government appeared to be approving fresh hikes across port-related services without considering the current economic realities.
Confronting shippers or relief and incentives to ease the financial burden.
According to him, shippers are already battling a 400 per cent increase in terminal and shipping charges implemented earlier, which has made storage and terminal-related charges now accounting for an estimated 500 per cent increase on clearing costs alone.
He added that shipping line fees remain unclear and may still contain disputed components, noting that delays such as documentation bottlenecks can lead to additional charges of over N300,000, further escalating clearing costs.
Nicol argued that freight forwarders, truckers and other port service providers were also compelled to increase their charges to survive, adding that the cost of doing business in Nigeria had become unsustainable and is forcing many importers out of business.
He warned that the persistent increase had made business projections impossible, adding that office rents that once averaged N4 million to N5 million per annum now cost about N9 million to N10 million.
According to the President, Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), Frank Ogunojemite, said the NSC’s tariff hike approval contradicts the Act that established the Council as a trade regulator and protector of port users’ interests.
Ogunojemite stressed that increasing tariffs at this critical time will further escalate the cost of doing business at Nigerian ports, fuel inflation, encourage cargo diversion to neighbouring countries, and weaken the country’s position as a regional maritime hub.
The Chief Executive Officer of Globe Joy Investment Nigeria Limited, Mr Clinton Okoro, lamented that the industry players are yet to recover from the previous increment of about 400 per cent.
Okoro criticised the unilateral decisions by service providers to implement an increase in services rendered, recalling that the last upward review sparked widespread controversy before stakeholders reluctantly accepted it after several appeals and explanations.
Okoro warned that shippers, customs agents and freight forwarders may shut down the ports if terminal operators and shipping companies proceed with another round of tariff increase without proper consultation with industry stakeholders.
