The Nigerian Shippers’ Council (NSC) has raised the alarm over its dwindling financial capacity, appealing to the Senate Committee on Marine Transport to accelerate legislative action to endorse the implementation of the one per cent Freight Stabilisation Fee that has remained dormant since it was introduced in 1978.

Speaking, yesterday, during an oversight visit by the Committee at the Council’s headquarters in Apapa, the Executive Secretary, NSC, Dr. Pius Akutah, said the agency currently survives on just the two per cent of gets from the seven per cent Port Development Levy (PDL) for funding, a share he described as inadequate and lacking firm legal backing.

He warned that with several calls to remove the PDL and the new tax law, the Council will be unable to operate without sustainable funding, and undermine its mandate as the nation’s port economic regulator.

Akutah stressed that the fee, unlike a tax, is designed to sustain regulatory oversight, lower logistics costs, and enhance competitiveness at Nigerian ports.

“The non-implementation of the Freight Stabilization Fee has left us underfunded for decades. Meanwhile, our responsibilities keep expanding in the area of regulating tariffs, resolving disputes, monitoring shipping line practices, and supporting inland dry port development. Without sustainable financing, these functions are at risk,” he warned.

Akutah further lamented that the Council’s dispute resolution initiative, which has been repatriating accumulated demurrage and excessive charges imposed by foreign companies through the Central Bank of Nigeria (CBN), is taking a financial toll on the NSC, as the technology used in the operations and the staff providing the service are not being funded.

The NSC boss emphasised that the funding model aligns with global best practices and does not conflict with the Nigerian Tax Administration Act (NTA) 2025.

Akutah urged the lawmakers to fast-track the passage of the Nigerian Port Economic Regulation Act (NPERA) Bill to provide legal and financial stability for the Council towards the exploitative practices of foreign shipping companies and terminal operators at the ports.

Responding, the Chairman of the Senate Committee, Wasiu Eshinlokun, assured the Council of the National Assembly’s commitment to prioritise budgetary allocation and fast-track legislative actions on the implementation of the long-standing one per cent freight stabilization fee to enhance their operations.

Eshinlokun emphasised that while existing legislation had been designed to support agencies within the sector, challenges in drafting and implementation had slowed down its effectiveness.

He assured the country that corrections would be made at the National Assembly to ensure smooth execution, noting that some agencies need intervention funds, particularly for infrastructure rehabilitation and running their operations smoothly.

The Chairman assured that the Senate would work closely with the Minister of Marine and Blue Economy to ensure budgetary prioritisation, phased project implementation, and coordination among agencies to avoid duplication and rivalry.

“The challenge is for the ministry to present proposals that reflect their most urgent needs. Once brought to the council and approved, we in the National Assembly will provide the necessary legislative backing,” he added.