Senate backs shippers’ council call for new funding model

Wasiu Eshinlokun, chairman of the senate committee on marine transport, says the national assembly will prioritise the financial needs of the Nigerian Shippers’ Council (NSC) and fast-track legislative action on its long-standing request for a one percent freight stabilisation levy.

Eshinlokun spoke on Thursday during an oversight visit to the council’s headquarters in Apapa, Lagos.

He said while existing laws had been designed to support agencies in the sector, gaps in drafting and implementation had slowed down impact.

“The challenge is for the ministry to present proposals that reflect their most urgent needs,” he said.

“Once brought to the council and approved, we in the national assembly will provide the necessary legislative backing.”

He added that the senate will work closely with the ministry of marine and blue economy to ensure phased project execution, proper budgetary allocation, and coordination among agencies to avoid duplication and rivalry.

Earlier, Pius Akutah, executive secretary of the NSC, appealed to lawmakers to implement the levy introduced in 1978 but left dormant for decades.

He said the council currently survives on just two percent of the seven percent port development levy (PDL) — a share he described as “grossly inadequate” and without a strong legal foundation.

Akutah warned that with calls to scrap the PDL and the enactment of a new tax law, the council may be unable to carry out its mandate as the nation’s port economic regulator.

“Our responsibilities keep expanding in tariff regulation, dispute resolution, monitoring shipping line practices, and inland dry port development,” he said.

“The non-implementation of the freight stabilisation fee has left us underfunded for decades. Without sustainable financing, these functions are at risk.”

He added that the council’s dispute resolution initiative, which recovers excessive charges and demurrage imposed by foreign shipping companies, is already draining the agency’s resources.

Akutah urged lawmakers to also pass the Nigerian Port Economic Regulation Act (NPERA) bill to provide a stronger legal and financial foundation for the council.