Pius Akutah, executive secretary of the Nigerian Shippers Council (NSC) has raised concerns over the impact of poor infrastructure on efficient port operations in Nigeria.
Akutah said in Lagos on Wednesday during the 2024 Annual Seminar for Maritime Journalists, that Nigerian ports are plagued by poor infrastructure including outdated cargo handling equipment, inadequate road networks, and insufficient storage facilities.
Represented by Mustapha Zubairu, director of Special Duties at NSC, Akutah said the Council as an economic regulator for the port, has limited control over the physical infrastructure, which is largely under the purview of other government agencies.
“The NSC’s ability to drive reforms and improve port operations is therefore constrained by the broader infrastructural deficiencies within the port system,” he said.
He expressed worries that high tariffs, port charges, and inefficiencies at the ports increase the cost of doing business in Nigeria.
“While the NSC is responsible for overseeing tariff structures and pricing, it faces the challenge of balancing the interests of port operators, shippers, and the government while trying to make the ports competitive,” he said.
According to him, the ports have continued to struggle with congestion and inefficiency, despite efforts to streamline operations.
“Although the NSC is not directly responsible for managing traffic, it is charged with improving port competitiveness, which includes addressing delays, demurrage charges, and other inefficiencies that arise from congestion,” he said.
The Shippers’ Council boss said that security challenges including cargo theft and lawlessness are persisting at Nigerian ports.
According to him, these security risks negatively affect port operations and increase the cost of shipping.
On other challenges affecting the Council, he said the Federal Government made the Nigerian Shippers’ Council the Nigerian port economic regulator in 2015 without formalising the status through legislation.
Calling for a strong legal framework to back the Council as the nation’s Port Economic Regulator, Akutah said there is an urgent need for the passage of the Nigerian Shipping and Port Economic Regulatory Agency Bill 2023, which seeks to repeal the Nigerian Shippers’ Council Act and establish a regulatory agency for the Nigerian ports.
The NSC boss said that the adoption of modern technology in port operations is still very low and that is also hindering operational efficiency and transparency.
“The NSC is tasked with promoting the digitalisation of port processes, but challenges such as inadequate internet infrastructure, resistance to change among stakeholders, and a lack of skilled personnel in the tech field hamper progress in this area.
Earlier in his presentation, Sesan Onileimo, CEO of First Medicaon Network Ltd, said the theme ‘The Nigerian Shippers’ Council in Transition: Issues, Prospects, Challenges,’ was chosen to offer an opportunity to maritime journalists and content owners to acquire knowledge about the emerging dispensation at the NSC.
He said the training enables journalists to understand the apprehension of stakeholders about the Nigerian Shipping and Port Economic Regulatory Agency Bill 2023, which is in the last stage of being enacted.
He said the Bill is envisaged to be a game-changer in the Nigerian shipping and port-related businesses.
“Currently the rating of ease of doing business in the ports is low and the new law will ensure that there is fairness and competition in pricing of services.
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