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IMPACT OF NIGERIAN SHIPPERS COUNCIL AS THE PORT ECONOMIC REGULATOR

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

In line with the Federal Government port reform agenda, the Nigerian Shippers’ Council was appointed the Port Economic Regulator in February 2014, to create effective regulatory regime at the Nigerian ports for the control of tariff, rates, charges and other economic services.

We address the negative impact of port concession activities on the economy due to the absence of an economic regulator and to realize the optimal benefits of the Federal Government of Nigeria’s port reform processes.

Services

Shippers’ Registration Form

Regulated Service Providers Registration Guidelines

Daily Shipping Position

Industry Operators’ Standard Operating Procedure (SOP)

Prohibition List

Port Tariff

Freight & Haulage Rates

Import Guidelines, Procedure & Documentation  

Nigerian Shippers’ Council is an agency of the Federal Government of Nigeria. The council is responsible for protecting exporters and importers in Nigeria as well as its goods. The Agency is an affiliation of Nigerian Ports Authority and were under the supervision of Ministry of Transportation (Nigeria). The council focus on importing and exporting of cargo with regards to port-to-port shipment through the chain of transportation. Its mandate is to establish an effective environment for all Nigerian stakeholders by putting sufficient and good economic regulatory system in Nigerian Port transportation sector.[

The Nigerian Shippers’ Council was established in the year 1978, with the help of UNCTAD, by the law of Nigerian Shippers’ Council Act Cap. N133 LFN 2004.

Regulations

The council works based on The Federal Government Port Reform Agenda and it is under Port Economic Regulator of February 2014 and was affirmed by the Ministerial Regulation: Nigerian Shippers’ Council (Port Economic) Regulations 2015; and the Presidential Order: Nigerian Shippers’ Council (Port Economic Regulator) Order, 2015.

The period before the creation of Nigerian Shippers’ Council in 1978 was characterized by deteriorating quality of shipping services and unmitigated increases in Ocean freight rates by foreign ship owners who operated scheduled liner services to Nigerian ports.

Acting under a powerful cartel of Conference Lines arrangement, shipping companies unilaterally imposed freight rate increases, which averaged between twenty five per cent (25%) and thirty per cent (30%) per annum along three notable shipping ranges:

United Kingdom West African Line (UKWAL),

Continental West African Lines Conference (COWAC),

American West Africa Freight Conference (AWAFC),

etc.

These increases were in addition to stifling port surcharges that the conferences equally imposed on the nation’s economy.

This huge foreign exchange outflows arising from the carriage of our sea-borne trade by foreign shipping lines continued to impoverish the Nigerian and other developing countries’ economies, with attendant adverse consequences on balance of payment in favour of developed countries who are also the major maritime nations. The outcry arising from this adverse situation led the United Nations Conference on Trade and Development (UNCTAD) – a specialized agency of the United Nations, to commence actions towards the resolution of the disturbing national economic situation.

1.2 Statement of the problem

Arising from UNCTAD’s intervention, there emerged a New World Maritime Order in 1965 encapsulated in a document that came to be popularly known as the UN CODE FOR LINER CONFERENCES. This Code strongly recommended the formation of National Shippers’ Councils in developing countries (also referred to as Group of 77) to act as a countervailing force against the excesses of foreign ship owners and other shipping services providers. UNCTAD confirmed this new order by endorsing the formation of Shippers’ Councils in its 1968 meeting in New Delhi, India. Thereafter, Shippers’ Councils sprang up in various parts of the world including the developed countries. The first Shippers’ Council in Africa was set up in 1968 in Cote D’Ivoire.

1.3 Objectives of the study

1. To understand the impact of Nigerian shippers council on economic development of Nigeria

2. To understand the relationship between Nigerian shippers council as the port economic regulator and maritime economy development

1.4 Research Hypothesis

1. What is the impact of Nigerian shippers council on economic development of Nigeria

2. What is the relationship between Nigerian shippers council as the port economic regulator and maritime economy development

1.5 Research Hypothesis

H0: There is no relationship between Nigerian shippers council as the port economic regulator and maritime economy development

H1: There is a relationship between Nigerian shippers council as the port economic regulator and maritime economy development

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