The Executive Secretary and Chief Executive Officer of the Nigerian Shippers Council, Dr. Pius Akutah, has stated that the two of seven per cent port development levy, which comes to the NSC at the end of every quarter, is grossly inadequate to run its activities.
Speaking recently with The PUNCH, Akutah added that the council was projecting the collection of the one per cent freight stabilisation fee and implementation of the International Cargo Tracking Note as an alternative source of revenue for the agency.
Akutah said the agency’s budget is based on three sources of revenue for 2025, added that the implementation of the ICTN has a huge benefit for the sector as it will ensure cargo security.
“Our budget is based on three streams of revenue, one of which is the two of seven per cent port development levy, which comes to us at the end of every quarter, which is grossly inadequate to run the activities of the council. We are now projecting the International Cargo Tracking Note, which, as I said earlier, the Minister of Marine and Blue Economy, Adegboyega Oyetola, has been pushing forward for its implementation because every stakeholder is yearning for it due to the economic value it will bring to the country in terms of revenue generation and also the security of cargoes that comes with it,” Akutah stated.
According to him, Section 27 1C of the Nigerian Shippers Council Act CAP N133 Laws of the Federation 2004, which is the 1978 Law that established the council, made provision for the implementation of the one percent fright fee as a source of funding for the council.
He, however, lamented that the lack of implementation of the fee is the reason the council is suffering from poor funding.
“Over the years, the fund has not been implemented, and that is why the council has been grappling around looking for ways to fund its activities,” he said.
The ES mentioned that since it is a provision of the law that is subsistent in Nigeria as of today, they have decided that those provisions should also be implemented.
He mentioned that a careful analysis shows that the benefits of implementing the one percent freight stabilisation fee outweigh the cost it will bring into the sector.
“So, in this 2025 budget, we have that as a stream of income for the council so that the council can be better positioned, especially when it becomes the Nigerian Ports Economic Regulatory Agency. Because we are looking at having strong regulations that will impact the economic policies of the president to drive trade facilitation in the sector and grow the economy in the sector as it has been the case as we witnessed in 2024,” Akutah explained.