The Nigerian Shippers’ Council says by May 2024 it will begin collection of a 1% Freight Stabilisation Fee at all Nigerian ports towards self-funding.
This is in line with the recommendation of the Steve Oronsaye Panel Report on Restructuring and Rationalisation of Federal Agencies, Parastatals and Commissions which was recently sanctioned for implementation by President Bola Tinubu.
The Executive Secretary of the Council, Barrister Pius Ukeyima Akutah stated this at the 2024 Strategic Management Retreat with the theme Unlocking the Potentials of the Marine and Blue Economy for Rapid National Economic Development in Abeokuta, Ogun State.
Akutah said the Oronsaye report has directed the Nigerian Shippers Council to be self-funding and not be given any subvention.
The Shippers Council boss stated that collection of the 1% freight stabilisation fee is statutory in the Council’s Act, and that collection would begin from May 2024.
According to him, the Shippers Council is currently running on a handout of 2% from the 7% port development levy, adding that this fund is grossly inadequate to plan the finances of the Council.
Akutah also assured that the 1% freight stabilisation fee would not add to the cost of doing business at the ports.
According to Akutah, “The Oronsaye Panel Report is very clear on what Shippers Council should do, as much as other agencies have been merged, some were completely disbanded, but the Nigerian Shippers Council under that report is supposed to generate its revenue and be self-funding. It is now, more than ever before that the Council needs to raise its revenue profile.
“The 1% freight stabilisation fee is a statutory funding for the agency, it is in our Act, but over time, the agency has not been able to implement that fee, now is the best time for us to go ahead and implement that.
“The 2% of 7% Port Development Levy which we have been using as a source of funding for the Council, we can then leave that, because according to Oronsaye Panel, we are not supposed to be given any subvention.
“Once we achieve our 1% freight stabilisation fee which is statutory, we are not going to be asking for the 2% port development levy anymore, then we can start looking also for other sources of funding which we have responsibilities to fund the national budget and contribute to the national GDP.
“What the Shippers Council would be doing, going forward is to ensure we raise our revenue. Our regulations would be very friendly, they would be economically driven to ensure that we take up the role of a revenue-generating agency and ensure that people profit from their investments.
“The Honourable Minister had given us a time frame of two weeks which has expired and we are working hard on it, we are developing a cost-benefit analysis so that we can be able to manage our case very well when we talk about this fund, people might think that it would add to the cost of doing business, but, if you look at the cost-benefit analysis, you would know that it doesn’t add up to the cost of doing business.
“If we can achieve our 1% freight stabilisation fee and we begin to have the collection daily, we would not be waiting for someone at the end of the month to give us a handout to run the Council” Barr Akutah assured.
The Shippers Council Executive Secretary assured that the International Cargo Tracking Note (ICTN) is another source of income for the Council and Nigeria.
“When we have the ICTN implemented, it would be a major source of revenue, not only for the Council, but for Nigeria, it would grow our economy, and with that, we would contribute to the national GDP”
As part of the Council’s 3-year Strategic Plan commencing 2024 to 2027 which the Retreat is designed to come up with, Barr Akutah said the Shippers Council would be embarking on promotion of staff, even as he lamented that there is a more senior staff in the agency than the junior staff.
“Promotion is a key element in driving productivity in any establishment, so we would consider the issue of promotion. However, it would also be by a system that ensures that there is growth and also recognises the contribution of individuals, it would be a reward system for people who put in their best.
“We have seen that the Council is in dare need of more staff, we have seen a situation where the top is heavy, while the middle and down is very lean, and we have a top which I believe that in the next one year, so many of our Directors exiting the system, so what do we do to replace them, we need to act very fast,” he said
Barr Akutah also assured that by August 2024, the agency will go paperless with all its operations, adding that the Council is embracing digital solutions to reduce bureaucracy.
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