Shippers’ council demands 1% freight stabilisation fee

The Nigerian Shippers Council (NSC) is seeking for financial independence through the 1 per cent Freight Stabilisation Fee, insisting that the two per cent funding from the seven per cent Port Development Levy (PDL) is no longer adequate to meet the Council’s statutory responsibilities. The Executive Secretary of the Council, Dr. Pius Akutah, dropped this […]

The Nigerian Shippers Council (NSC) is seeking for financial independence through the 1 per cent Freight Stabilisation Fee, insisting that the two per cent funding from the seven per cent Port Development Levy (PDL) is no longer adequate to meet the Council’s statutory responsibilities.

The Executive Secretary of the Council, Dr. Pius Akutah, dropped this hint while playing host to visiting members of the Senate Committee on Marine Transport on Thursday.

Akutah explained that the current two per cent funding from the seven per cent Port Development Levy (PDL) is no longer adequate to meet the Council’s statutory responsibilities. 

Akutah who urged the Senate Committee to accelerate the enactment of the Nigerian Port Economic Regulation Act (NIPERA) Bill 2025 into law, and also championed the Council’s financial independence through the 1 per cent Freight Stabilisation Fee, stated that the PDL lacks firm legislative backing, leaving the Council’s financial base unstable.

The Shippers’ Council boss further stated that the enactment of the NIPERA bill into law will consolidate the Council’s mandate, strengthen investor confidence, and ensure effective enforcement of economic regulation.

“At present, the Council relies largely on the 2 per cent from the 7 per cent PDL as its main source of funding. This levy is not only inadequate to meet the scale of our statutory responsibilities but also lacks a firm legislative backing, leaving the Council’s financial base unstable.  

“To address this, we respectfully seek your urgent support in two critical areas which are to accelerate the enactment of the NIPERA Bill into law to consolidate the Council’s mandate, strengthen investor confidence, and ensure effective enforcement of economic regulation; and champion the Council’s financial independence through the 1 per cent Freight Stabilisation Fee. 

“This fee, established under Section I. (3) of 1995 and Section 7(2)(c) of the NSC Act, is not a tax but a statutory service charge for regulatory functions such as tariff monitoring, cost regulation, cargo protection, dispute resolution, and trade facilitation.”

He further explained that the 1 per cent Freight Stabilisation Fee does not conflict with the Nigerian Tax Administration Act (NTA) 2025.

“Let me stress that the fee does not conflict with the Nigerian Tax Administration Act (NTA) 2025. The Act harmonises collection, but it does not abolish legally established service-based revenue streams. 

“On the contrary, this fee complements the unified collection framework, ensuring the Council has sustainable funding while all revenues are duly collected through the Nigeria Revenue Service and remitted into the Consolidated Revenue Fund.

“This model is consistent with global best practice, from Ghana to Kenya to South Africa, and aligns with the WTO Trade Facilitation Agreement, which allows charges proportionate to services rendered. Without this dedicated stream, the Council and NIPERA, when fully operational, risk financial incapacitation, jeopardising both our reform gains and Nigeria’s readiness under AfCFTA.”