HomeNewsFearing inflation, Nigerian shippers reject an increase in port fees.

Fearing inflation, Nigerian shippers reject an increase in port fees.

Written by Tunde Oso

The recent hikes in port service fees authorized by the Nigerian Shippers’ Council (NSC) have been criticized by the National Shippers Association of Nigeria (NSAN), which warned that the action could increase trade costs and exacerbate inflation.

Speaking to reporters on Wednesday following a meeting of maritime stakeholders, the association claimed that the upward review was faulty and that shippers and other marine industry segments were left out of the consultations mandated by the Nigerian Shippers’ Council Act.

Rebecca Adamu, the NSC Head of Public Relations, clarified that the latest modifications were only permitted in accordance with the Council’s statutory authority as the Port Economic Regulator.

NSAN issued a warning that the increased fees might raise import landing costs, exacerbate inflationary pressures, and cause uncertainty for companies already struggling with high operating expenses.

The group demanded that the additional fees be put on hold while an inclusive stakeholder meeting was held to decide on a framework for tariff reviews.

Alhaji Jamilu M. Goma, Acting National President of NSAN, stated, “We trust that the Nigerian Shippers’ Council will act with fairness envisioned in its enabling Act.”

Alhaji Ali Madugu, Chairman of the NSAN Board of Trustees, stated that the shipping lines’ decision to arbitrarily raise prices by nearly 60% was made without consulting NSAN or other pertinent shipping industry stakeholders.

“We reject the recent tariff increase by service providers in the shipping industry, the shipping line. They arbitrarily woke up and increased their tariffs without really consulting with us, the cargo owners,” Madugu continued.

All shipping firms, agents, and terminal operators at Nigerian ports were instructed by the NSC to refrain from raising or changing tariffs until they had thoroughly conferred with all relevant parties.

The NSC emphasized that a clear, organized, and transparent regulatory process is used for all tariff evaluations.

Nevertheless, until they have properly discussed and included their stakeholders, shipping companies, agents, and port operators are hereby instructed to halt any planned reassessment of charges. The NSC would use its power as the Port Economic Regulator to stop any port service providers from interfering with port operations, it continued.

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