The Nigerian Shippers Council (NSC) has issued a stern warning to terminal operators and shipping companies over failure to adhere to its regulatory directives by facing severe consequences including restrictions on repatriating funds back to their home countries.
The Council has emphasised that operators setting tariffs without its approval will be required to account for all charges levied on port users, as these would be considered unauthorised collections.
During a recent stakeholder sensitisation meeting on the registration of regulated port service providers in Apapa, Lagos, the Deputy Director of Stakeholder Services at the Council, Celestine Akujobi, highlighted the enforcement measures.
Akujobi said there are applicable sanctions for non-compliance with the registration process, noting that penalties include the withdrawal of NSC services such as demurrage confirmation and freight rate validations.
Akujobi further explained the Council’s role in overseeing financial transactions.
“Many are unaware that when shipping companies wish to transfer funds from Nigeria, the Central Bank of Nigeria (CBN) alerts the Shippers Council to verify if the funds were legitimately earned. We have stopped several attempts to repatriate funds that were converted to dollars without proper registration,” he stated.
The Deputy Director also addressed the requirement for service providers to have their rates approved by the NSC. According to him, some operators arbitrarily set their fees, but those who comply, seek approval from the Shippers Council. He warned that unapproved tariffs could be deemed illegal, and offenders might be compelled to refund such collections.
Akujobi underscored the NSC’s authority to halt operations at Nigerian ports for non-registered entities, stressing the importance of compliance with the compulsory registration law for service providers and users of Nigerian ports. He said despite being lenient so far, the Shippers’ Council plans to tighten enforcement.
“The law provides for sanctions, which we have hesitated to apply as we aim to ensure adequate sensitisation,” he remarked. Akujobi announced that starting in the fourth quarter of 2024 the NSC would intensify enforcement actions and publish a list of authorised operators.
He said those not on the list will be barred from port operations, while registered shipping companies will face penalties for engaging with unauthorised service providers.
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