Nigerian forwarders threaten port closures

Earlier this year, the Nigerian Shippers Council (NSC) was appointed as ports regulator and almost immediately tried to bring the Progressive Storage Charge back to the pre-May 2009 rates agreed by the Ministry of Transport. Previously, the terminal operators had ignored this, replacing it with their own rates.

However, terminal owners and shipping companies disrupted the NSC initiative, taking out a temporary injunction at the Lagos High Court. The regulator also introduced other measures, which took effect as of November 3. These were to bring fair pricing and efficiency back to the industry.

However, forwarders remain unconvinced and are now threatening to close down ports as a continuation of their battle, claiming that port service providers have twisted the regulator’s arm in order to get their own way.

Umar Omeiza Jimoh, deputy president-general of the Senior Staff Association of Communications, Transport and Corporations (SSACTAC) and also an executive officer at the Nigerian Ports Authority (NPA) labelled the concession process implemented at national ports as a “sad” development. Although the idea was a good one, he said the process was undertaken “with impunity”, lasting no more than a week.