Worried by the rising cost of doing business in the nation’s seaports, the Nigerian Shippers Council (NSC) said it has estimated that the planned 35 percent reduction in charges by shipping companies will save about N480 billion annually for shippers.
The Council, which is perfecting plans to sign Memorandum of Understanding (MOU) with shipping companies in no distant time, said it is currently moving strongly to ensure that government agencies under the Ministry of Transportation are also put under economic regulation.
This would ensure that such agencies do not introduce any charges without first seeking negotiation with the Council.
BusinessDay discovers that the Council has approached the Ministry of Transport to ensure that agencies like the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), come under economic regulation.
Speaking on the issue, Hassan Bello, executive secretary of NSC, said that having succeeded in getting the shipping companies to reduce charges, it will now focus attention on the government agencies by ensuring that they come to the Council for negotiation before their new charges are introduced.
According to him, it has become very important for these agencies to come to the negotiation table before introducing new charges because having arbitrary charges could jeopardise the gains of the agreement, the Council plans to sign with shipping companies to reduce charges by 35 percent.
Bello said it was better to discuss charges before they are introduced because of the consequences it would have on the shippers and the economy.
Bello further cited example of the Oil and Gas Free Zone Authority (OGFZA), which had introduced a charge, and had to come for negotiation with the Council.
“So, if we can have such cooperation from an organisation outside the Ministry of Transport, why can’t we have with people inside,” he said.
Bello said that it has observed that agencies like NPA and NIMASA, which charge environmental fees, duplicates charges that can impact negatively on shippers.
He said the Council is getting support from the Ministry of Transportation to correct all the wrongs in the system. “We are doing a lot of things with NIMASA. We think that coming together with NIMASA is very important as far as these charges are concerned.”
He however, said that the implementation of new charges will begin once the MoU with shipping companies as agreed by the Ministry of Transportation comes into effect.
AMAKA ANAGOR-EWUZIE
