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Shippers’ Council Insists On Stakeholders’ Engagement Before New Tariff Implementation

Yusuf Babalola by Yusuf Babalola
2 months ago
in Business
Shippers Council
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The Nigerian Shippers’ Council (NSC) on Tuesday met with shipping companies, freight forwarders, importers and exporters, insisting on comprehensive stakeholder engagement before the implementation of the proposed tariff hike.

Speaking at a one-day stakeholders’ forum on the planned increment, the executive secretary of the Council, Dr Akutah Pius, said the earlier suspension of the tariff implementation in March, 2026 was a deliberate move to allow for broader consultations across the maritime value chain.

He stressed that implementation of the new tariff would only commence after shipping companies conclude engagements with importers, shippers, clearing agents and other critical stakeholders.

Akutah assured that the approved 30 per cent tariff increase would not destabilise the economy, explaining that it represents a ceiling rather than a fixed rate.

“Today’s engagement was productive. The suspension of the tariff implementation last month gave us the opportunity to engage with stakeholders and address key concerns.

The 30 per cent increase is the upper limit; shipping companies may implement 10 or 20 per cent depending on the outcome of their consultations. It will be gradual,” he said.

He emphasised that the adjustment would not come as a shock to the economy, noting that some shipping companies had already commenced consultations and partial implementation.

The NSC boss also disclosed that earlier tensions were partly linked to the actions of a particular operator.

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He further explained that while shipping companies had proposed increases ranging between 150 and 200 per cent, the Council settled for 30 per cent to strike a balance between industry sustainability and economic stability.

“Shipping companies argued that 30 per cent is too low given inflation and rising operational costs, but we determined it was sufficient to avoid overburdening the economy,” he said.

According to him, the Council considered prevailing economic realities, including recent wage adjustments in the sector, before approving the increment.

He reiterated that tariff adjustments are not intended for excessive profit-making but to ensure the sector’s sustainability without placing undue pressure on the wider economy.

“We need shipping companies to operate efficiently, but we cannot allow increases that could strain the entire system. The goal is to maintain balance,” he added.

Stakeholders at the meeting reiterated the need for proper consultation before any tariff adjustments are implemented. While acknowledging the necessity of the increase due to current economic realities, they criticised the lack of prior engagement.

President of the National Shippers’ Association of Nigeria (NSAN), Dr Jamilu Umar, said stakeholders were not opposed to the increment itself but to the process.

“We are not against the increase, but due process must be followed. There must be proper consultation, and all stakeholders must be carried along,” he said.

The Manufacturers Association of Nigeria (MAN) echoed similar concerns, urging that shipping companies be mandated to consult stakeholders before implementing any adjustments.

Also speaking, President of the Shipping Association of Nigeria (SAN), Boma Alabi, attributed the tariff hike to prevailing economic challenges, noting that the approved 30 per cent increase fell short of industry expectations.

The 30 per cent approved is not entirely commercial. We initially proposed over 100 per cent, but this reflects current realities. Shipping companies are also contending with rising costs, including a minimum wage of N200,000 in the subsector,” she said.

Alabi called for sustained collaboration among stakeholders to build a more competitive and value-driven maritime industry.

Stakeholders present at the meeting included the Association of Nigerian Licensed Customs Agents (ANLCA), National Association of Government Approved Freight Forwarders (NAGAFF), Association of Registered Freight Forwarders of Nigeria (AREFFN), Ndigbo Amaka Progressives Market Association, Manufacturers Association of Nigeria (MAN), National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Africa Association of Professional Freight Forwarders and Logistics (APFFLON), and the West Africa Exporters Association, among others.

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Yusuf Babalola

Yusuf Babalola

Yusuf Babalola is a Senior Correspondent with Leadership Newspaper, specialising in maritime, aviation, transport, and economic reporting in Nigeria. He is recognised for well-researched stories that illuminate policy developments, industry challenges, and stakeholder perspectives across Nigeria's logistics, shipping, and aviation sectors. His reporting is noted for its clarity, balance, and commitment to professional journalistic standards.

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