Why shipping, the Port Economic Regulation Agency Act may suffer

By Steve Agbota

AND A Lagos-based group, the Nigerian Maritime Renaissance Network (NMRN), has said the new Nigeria Shipping and Ports Regulatory Agency Bill, 2023, which is currently pending before the House of Representatives, is likely to fail like the previous ones because is not clear in terms of its primary purpose and how it will add value to port operations in the country.

NMRN president Temple Isomah said his group watched with discomfort as the hearing before the House of Representatives Committee on Shipping Services and Related Affairs strayed from achieving the president’s policy on reducing management costs toward overburdening the new agency emerging from the bill with functions of other agencies and not only.

“The first impact of the Act is the evolution of a mega-agency that will be embroiled in agency takeovers due to the powers granted to it to supervise the activities of other agencies in the sector. This situation will trigger dirty competition and politicking that will weaken the development of the industry.

“In its current form, the bill will create a port economic regulator that is more powerful than even the Federal Ministry of Maritime Affairs and the Blue Economy, in the same way that we have a state-owned oil company that is richer and more powerful than its parent ministry and industry regulator. This should be avoided,” he said.

He also noted that the Orosanye report, which the Federal Government approved for implementation, recommended merging of agencies and parastatals with overlapping and duplicative functions.

In his opinion, the bill should strike a delicate balance between reforms and creating a level playing field that will ensure competitiveness and unlock significant opportunities for the country.

He ordered the National Assembly to explore further dialogue between agencies in the industry to provide clearer guidance on the appropriate definition of their roles, which will be included in the bill before its adoption.

Isomah explained that the speed with which the bill’s sponsors are pushing for its passage suggests that some individuals and groups seek to put their interests above those of the nation.

Similarly, Chairman of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, said the bill would exacerbate conflict and create obstacles to implementation, adding that existing legislation should not be duplicated or replaced by legislation.

“The Act contains clauses that contradict other agencies, especially the Nigeria Ports Authority, by usurping the power to issue licenses for port services and facilities,” he said.

He said the power to issue licenses must rest with the Nigeria Ports Authority (NPA), which owns the port.

Recall that on Monday, May 27, 2024, the House of Representatives Committee on Shipping Services and Allied Affairs held a public hearing on the repeal of the Nigerian Shippers Council (NSC) Act (Cap N133, LFN 2004) to pave the way for the passage of the Nigerian Shipping Act and a draft bill on the Port Economic Regulatory Agency to provide legal support for the NSC’s role as the port’s economic regulator.