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Shippers’ Council opts for alternative dispute resolutions
The Nigerian Shippers’ Council (NSC) has saved maritime sector stakeholders over N10 billion in dispute resolution costs in the past two years while advancing 14 vehicle transit parks nationwide, as part of sweeping reforms to position Nigeria as Africa’s premier maritime hub under the African Continental Free Trade Area (AfCFTA).
Executive Secretary and Chief Executive Officer, Nigerian Shippers’ Council (NSC), Dr Pius Akutah, at a media parley, said that the council’s Alternative Dispute Resolution (ADR) mechanism handled between 300 and 400 cases this year alone, saving stakeholders more than N4 billion.
This, he said, adds to the N6 billion saved in 2024, demonstrating the economic impact of efficient conflict management in a sector that accounts for over 80 percent of global trade.
He said: “Last year, our interventions saved stakeholders over N6 billion in costs that would have been incurred had these disputes gone to court. This year, as at the last review, we have already saved more than N4 billion, and that figure has continued to grow”.
The revelation comes as the Council identifies the Nigerian Port Economic Regulatory Agency Bill—currently awaiting presidential assent—as its most significant achievement in two years. The legislation, sponsored by Speaker Tajudeen Abbas, will replace the 1978 decree that has governed the sector for nearly five decades.
The NSC is developing 14 vehicle transit parks at various stages of completion across Nigeria, strategically distributed to tackle driver fatigue-related accidents while creating economic hubs for the logistics sector. Dr Akutah explained that the initiative responds to observations that many fatal road accidents result from drivers traveling long hours without adequate rest.
“One of the major issues is that we observed many road accidents are caused by driver fatigue. Drivers travel long hours without rest, leading to fatal accidents. To address this, we began promoting the establishment of Vehicle Transit Parks,” he stated.
These facilities will serve dual purposes beyond rest stops. “They will also serve as economic hubs where drivers can relax, refresh, and secure their cargo. Rather than parking in unsafe roadside areas where goods can be stolen or damaged, drivers will have safe, secure, and well-equipped facilities,” the NSC chief added.
The Council, he said, has ensured even geographical spread of the 14 parks, with mapping clearly showing their distribution across the country to maximise impact on the logistics value chain.
On inland dry ports, Akutah revealed that President Bola Ahmed Tinubu pushed for completion of the nearly finished Funtua Inland Dry Port upon assuming office. Currently, operational dry ports, he said, are concentrated in the northwestern region—Kano, Kaduna, and Katsina—while the Council works with state governments to accelerate completion of others across the country.
“Regarding inland dry ports, we have several legacy projects. When the President assumed office, he pushed for the completion of the nearly finished Funtua Inland Dry Port,” Akutah said, adding that these facilities will support transit cargo movement from hinterlands to seaports and bring shipping services closer to shippers nationwide.
In Borno State, according to him, a privately developed inland dry port is being fast-tracked for commissioning during the second half of President Tinubu’s tenure.
“We are now engaging stakeholders to fast-track its completion so it can be commissioned during the second half of the President’s tenure. The Governor of Borno State is particularly committed to achieving this,” the ES disclosed.
He commended the administration for completing the Lagos-Kano rail corridor while expressing optimism about the eastern rail line development. He emphasised that despite being capital-intensive, rail infrastructure remains the cheapest and safest means of moving cargo across Nigeria.
“Rail infrastructure is capital-intensive, but it remains the cheapest and safest means of moving cargo across the country. Once fully optimised, these systems will significantly ease the movement of cargo for shippers and enhance overall national logistics efficiency,” he explained.
According to him, the NSC has established Border Information Centres (BICs) to capture substantial informal trade occurring in border communities, addressing a critical gap in Nigeria’s national trade database. He noted that many border communities interact as though within a single country, conducting significant trade that historically went unrecorded.
“Many of our border communities live directly along the border lines, yet they interact as though they are within a single country. They trade freely among themselves, and while much of this trade is informal, it is still significant. If we fail to capture these activities, our national trade database will remain incomplete,” he said.
The centres, Akutah said, monitor informal trade activities at crossing points, document transactions, and promote formalisation processes. “Their purpose is to monitor the informal trade activities taking place in border towns and crossing points, document them, and ultimately promote processes that will formalise these activities,” he explained.
Beyond data collection, Akutah said the BICs serve as platforms for engaging neighboring countries on smuggling issues, ensuring legitimate trade while protecting the economy from illicit activities.
He candidly acknowledged Nigeria’s strategic error in delaying signature of the AfCFTA agreement, resulting in lost opportunities that should naturally have belonged to Africa’s largest economy.
“First, I must admit that Nigeria made a mistake by not signing the agreement immediately when it was negotiated. Nigeria was an active part of the negotiation process, and it all began in Abuja. We should have signed at the same time others were signing, so we could take advantage of the opportunities available at the onset,” he stated.
The delay, he noted, cost the country the AfCFTA secretariat, now hosted in Ghana, along with the Secretary General position and several strategic roles that Nigerians could have secured. “Because we delayed, we lost many key opportunities to the secretariat in Ghana, opportunities that should naturally have been ours. Nigeria ought to have hosted the secretariat, but that chance is gone,” Dr Akutah lamented.
However, he emphasised that Nigeria must now focus on maximising benefits within the agreement, with connectivity emerging as an immediate priority. “Nigeria must work towards becoming a maritime hub not just for West Africa but for the entire continent, so we can ease the connectivity challenges across Africa, which remain a major obstacle to intra-African trade,” he declared.
According to Akutah, yhe NSC has developed two comprehensive maps, one covering the entire African continent, highlighting critical maritime infrastructure distribution linked to logistics. He identified maritime logistics as one of AfCFTA’s biggest challenges, citing inefficient vessel routing as a major obstacle.
“Under the African Continental Free Trade Area (AfCFTA), it is evident that one of the biggest challenges will be maritime logistics. Connecting African countries remains extremely difficult. For example, a vessel carrying cargo from Nigeria to Ghana may first go to Europe before returning to Ghana. This is inefficient and time-consuming, underscoring the urgent need for proper African connectivity,” he explained.
The fundamental problem, according to Akutah, lies in vessel ownership. “A key challenge is that most African countries are not ship-owning nations. They lease vessels, and these vessels operate on predetermined routes that cannot easily be altered to create direct African shipping lanes. That is the crux of the problem,” he noted.
The Council examined logistics supporting infrastructure and concluded it must promote development of inland dry ports, transit parks, border facilities, and similar structures to address these gaps.
Akutah reported high compliance rates with regulatory mandates, attributing this success to transparent stakeholder communication and the sector’s maturity. He noted that investors who have committed substantial capital naturally seek regulatory certainty.
“Stakeholders in this sector have invested significantly, many of them committing very substantial capital and naturally, they want to recoup their investments and make profits. No investor wants to operate in a sector clouded by uncertainty or inefficiencies that could hinder the smooth running of operations or delay returns on investment,” he said.
“Any regulatory mandate that has been properly communicated to stakeholders has been met with cooperation. For the modest reforms introduced, we have received tremendous support, and many stakeholders have openly aligned themselves with these reforms because they understand that a better, more efficient sector benefits everyone,” he added.
The voluntary registration of service providers demonstrated this compliance culture. “When we commenced the registration of service providers across the sector, a large number voluntarily came forward to register without coercion or the need for heavy enforcement,” he revealed.
The NSC’s Compliance Unit has become a preferred platform for resolving maritime conflicts, with Akutah emphasising the Council’s strong promotion of ADR to avoid costly litigation.
“These disputes are often extremely costly to resolve, especially when they end up in court. The delays associated with litigation lead to demurrage and other financial implications that we are keen to avoid,” he explained.
“This is why, as a Council, we strongly promote alternative dispute resolution (ADR). Our Compliance Unit is specifically mandated to handle maritime conflicts promptly, so they do not escalate into lengthy court cases that waste investors’ time and erode the value of their investments,” Akutah said.
The unit’s effectiveness, he underscored, has attracted direct stakeholder engagement. “The unit has become a dependable platform, and many stakeholders now approach us directly to help resolve their disputes. Most of these cases are settled amicably, allowing the parties involved to return to their businesses and even continue their partnerships seamlessly,” he noted.
Akutah identified the Nigerian Port Economic Regulatory Agency Bill as the Council’s most significant achievement in two years. The legislation, which has passed both chambers of the National Assembly, is undergoing final refinements by the National Assembly after vetting by the Attorney-General’s Office before proceeding to the President for assent.
“Two years have indeed come and gone, and within that period, a great deal has happened in the Council. I will highlight the most significant achievement we have recorded, which is the Nigerian Port Economic Regulatory Agency Bill,” Akutah stated.
The bill will replace the 1978 decree, now codified as CAP N133 LFN 2004. “This development is particularly important because the Council has long operated under a 1978 decree, now codified as CAP N133 LFN 2004. The Nigerian Shippers’ Council Act is an outdated law that no longer reflects the realities or reform direction of the maritime sector under the administration of President Bola Ahmed Tinubu,” he explained.
Akutah reiterated that Nigeria, as Africa’s most populous nation, faces mounting expectations to lead continental maritime infrastructure development, even as other African nations advance their capabilities.
“As the most populous nation on the continent, Nigeria remains a country that the rest of Africa looks up to, even though it is not waiting for us. Several African nations are already making deliberate efforts to develop their maritime infrastructure, especially in the area of logistics,” he observed.
“Nigeria is not entirely behind, but we are behind to an extent, particularly because Africa expects us to take the lead in developing logistics infrastructure,” Akutah added, calling for urgent action to strengthen institutions and establish proper legal frameworks.
“Many countries are building their economies around this sector. They are investing heavily in infrastructure, strengthening institutions and granting them the authority needed to compete with similar institutions globally. We cannot afford to delay. We must build our institutions, strengthen them and establish proper legal frameworks,” he concluded.
With the regulatory bill awaiting presidential assent and infrastructure projects advancing nationwide, the NSC’s reforms, industry players say, signals the country’s determination to reclaim leadership in African maritime logistics and maximise benefits under the continental free trade framework.
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