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Nigerian Shippers’ Council lacks powers to reverse shipping charges- Ilogu

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LAGOS-The Federal High Court sitting in Ikoyi, Lagos on Tuesday fixed December 17 for judgment in the suit filed by the Association of Shipping Line Agencies (ASLA) against the Nigerian Shippers Council over reversal of shipping11 vessels arrive in Lagos ports with petroleum products charges.

The presiding judge, Justice Ibrahim Buba had adjourned the case for ruling after the parties including the Shippers Association of Lagos State (SALS) presented and concluded their arguments.

In his submission, Counsel to ASLA, Mr. Chidi Ilogu argued that no powers been conferred statutorily on the NSC as an interim port regulator to reverse port charges.

He said that the Council cannot justify its action on the purported directive by the Minister of Transport to act in full capacity as an economic regulator.

According to him, there is no amendment to the NSC act till date, hence it cannot enforce and does not have the power to review port charges.

He also pointed out that the defendant also failed to consult and conclude ongoing negotiations with the plaintiff before coming up with the notice it published on Wednesday 28th October to reverse shipping agencies charges.

He said, “They should go and complete the ongoing negotiations. They can’t come and publish something in the press without completing the exercise. That is the law.”

He therefore prayed that the court disregard the notice and declare it null and void.

But counsel to the NSC, Emeka Akabogu urged the court to discountenance the claim of the plaintiffs that the NSC does not have the powers to reverse port charges.

He said the NSC as an agency of government is subject to the Ministry of Transport hence the presidential directive through the ministry that the NSC performs the statutorily regulatory role at the port in the interim is sufficient for the council to issue the notice it filed and has the full capacity to act as an economic regulator.

He said the NSC issuing the notice acted validly in line with the powers conferred on it.

He also noted that based on the 2001 memorandum of understanding between the NSC, Nigerian Port Authority (NPA), shipping companies and shippers , there is no charge known as shipping line agencies charges hence its introduction thereafter by the shipping agencies is illegal.

He said according to the MOU, the parties are not allowed to introduce any other type of charges outside those agreed by the parties involved.

“To the extent that the plaintiffs without concrete agreement by the first, second defendants or any of the other parties went ahead to introduce shipping line agencies charges means they are in breach of that agreement hence that type of charge is illegal,” he said.

He therefore urged the court to strike out in its entirety the case of the plaintiff.

On his part, Counsel to SALS, OsualaNwagbara also argued that the shipping line agencies charges are illegal. He said that the shippers’ association did not at any point in time agree to have shipping line agencies charges introduced within the Nigerian shipping community.

“Any such introduction is not only illegal but unacceptable. No importer should be asked to pay for services which the agent is supposed to collect from his principal and which in fact have been paid.

“We are saying that it is not a charge known anywhere in the world because the principal is supposed to pay his agents. It is not for a third party who uses the services of the principal to pay the services of the agent rendered to the principal except there is a clear agreement to that effect between the third party and the principal.

“So, once freight is paid by an importer to an ocean transporter, included in that are picking up the cargo from the port of loading, discharging it at the point of discharge and releasing the cargo which is what the agent does on behalf of the principal,” he said.

He prayed that the court adopt all the processes filed by the second defendant and dismiss the originating summon of the plaintiffs.

Maritime

NIMASA Makes Dockworkers Registration Compulsory

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The management of the Nigerian Maritime Administration and Safety Agency (NIMASA) has advised International Oil Companies, terminal and jetty operators, and all other companies involved in stevedoring in the country to refrain from engaging unregistered dockworkers.

The information was contained in a statement made available to Biztellers by the Head, Public Relations, NIMASA, Osagie Edward.

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According to the statement, all stakeholders, including dock labour employers and stevedoring companies, are encouraged to apply for new operating licenses or renew expired ones within a 30-day moratorium period.

“This requirement,” it added, “is stipulated by the NIMASA Act of 2007 and outlined in the NIMASA Stevedoring Regulations of 2014, which mandates strict compliance from all maritime operators.”

Osagie cited the Director General, NIMASA, Dr. Dayo Mobereola as laying emphasis on the need for stakeholders to comply with extant laws and regulations.

Dr Mobereola said, “No terminal or company shall continue to engage the services of unregistered dockworkers for cargo handling at their work locations.

“This move is part of our broader effort to ensure safe and regulated operations within Nigeria’s maritime industry. Compliance with these regulations will enhance our ability to maintain an up-to-date database of dockworkers operating in the country. It also improves our planning processes, as we are committed to developing their capacity to meet globally accepted standards for dockworkers in Nigeria. We intend to enforce full compliance after the moratorium period.”

It was gathered that the NIMASA Act, 2007, Part IX, Section 27, addressed the registration of Dockworkers with focus on Maritime Labour.

“It ensures the Registration, Regulation, and control of Maritime Labour, including dockworkers. The Act assigns the Agency the responsibility of maintaining standards in accordance with international best practices,” Osagie added.

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Maritime Diplomacy: Nigeria Seeks Election Into IMO Council

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Nigeria has expressed a strong desire to seek election into Category “C” of the International Maritime Organization (IMO) Council.

The Honorable Minister of Marine and Blue Economy, Adegboyega Oyetola, made the disclosure at the 2024 World Maritime Day parallel event in Barcelona, Spain.

Oyetola noted that Nigeria has put in place the basic needs for the development of her maritime industry in line with recognized global best practices.

In his words, “our active participation in upholding key conventions, such as the Safety of Life at Sea (SOLAS) and the International Ship and Port Facility Security (ISPS) Code, reflects our dedication to ensuring the safety of international shipping.

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There have been no incidents of piracy in the last three years, as confirmed by the International Maritime Bureau (IMB). By deploying resources to provide maritime security assets, Nigeria has solidified its role as a key guardian of maritime security in the Gulf of Guinea.

Nigeria remains a valuable source of manpower for the industry. I therefore urge our partners to explore this potential and assist where possible in the best interest of all. Our Maritime Academy has adequate resources and facilities to support this development.

“I am pleased to announce Nigeria’s resolve to seek a Category “C” membership on the Council.

On his part, the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola, assured that no stone will be left unturned to ensure success in the quest for IMO Category C membership at the next elections.

According to him, “We at NIMASA have met with the IMO technical team and have commenced work on all identified grey areas so that Nigeria can address the gaps identified during the last audit by the IMO.

”We have also commenced the process of effective communication with other member states using the IMO GSIS platform, among others. While we at NIMASA focus on the technical aspects of the preparations, our supervising Ministry will provide the political will to guide Nigeria back to the Council at the IMO.”

Oyetola, who held engagement sessions with the IMO Secretary General Arsenio Dominguez and other diplomats, was accompanied on the working tour by the Ministry’s Permanent Secretary, Mr. Olufemi Oloruntola; the Director General of the NIMASA; the Managing Director of the Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho; the Managing Director of NIWA, Mr. Bola Oyebamiji; and the Director of Maritime Safety and Security Services, Mr. Babatunde Bombata.

This year’s parallel event with the theme: Navigating the Future: Safety First, brought together international maritime leaders and experts to discuss future challenges and opportunities, with the aim of ensuring that safety is prioritized in the day-to-day operations of the global maritime sector.

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Maritime

Why PPP Is Necessity For Nigeria’s Maritime Infrastructural Dev’t – Mobereola 

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The adoption of the Public Private Partnership (PPP) model is essential for the infrastructural development of Nigeria’s maritime sector.

This is the view of the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola.

The DG, shared his views while hosting the Director General of the Infrastructure Concession Regulatory Commission (ICRC), Dr. Jobson Oseodion Ewalefoh.

He emphasized the importance of the Commission’s increased involvement in attracting private investors to develop infrastructural capacity in Nigeria’s maritime sector.

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Dr. Mobereola said, “We appreciate the Management of the ICRC for being responsive. However, you know that the maritime sector is capital intensive and government funds cannot solely put in place the required infrastructure. We need the ICRC to develop PPP based business models that will be attractive to the private sector both from within and outside the country.

“There is the need to streamline processes by the use of technology, as we will continue to count on the support of ICRC to help drive the Agency’s PPP projects for effective and efficient service delivery to our stakeholders”.

Lending support to Dr. Mobereola’s views, Dr. Ewalefoh, underscored the significance of the maritime sector to Nigeria’s economy.

He noted that the PPP model would facilitate increased funding and expertise from the private sector, thereby accelerating the growth and development of the Nigerian maritime sector. Additionally, he stated that the ICRC is prepared to engage with the Agency on its projects and ensure timely execution.

“There is no time to waste; our country needs lots of funding for infrastructure and we need to create an enabling environment for activities to thrive. First, is service delivery, not revenue generation, and people will be willing to pay if they get the right services”, the ICRC boss noted.

The PPP model has proven to be the most viable approach worldwide for driving government policies that promote development and economic growth.

Biztellers reports that as a regulatory agency and Nigeria’s Maritime Administrator, the NIMASA has consistently embraced collaboration and partnership through the PPP initiative to ensure the growth and development of the maritime sector.

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