Shipping due to the fault of maritime operators, port regulation act

Announcement

The Nigerian Maritime Renaissance Network (NMRN) has accused the proposed Nigeria Shipping and Ports Regulatory Agency Bill, 2023, currently pending in the House of Representatives, of duplicating functions of other maritime agencies.

A press statement from the group’s chairman, Temple Isomah, said previous versions of the bill may fail due to inconsistent wording.

According to NMRN, the bill, which passed its second reading in the House, is full of ambiguities that can only create confusion and duplicate functions of maritime regulatory agencies.

A statement by the Lagos-based organization said that many areas of the Act lack the transparency that is necessary to achieve its core objective and ensure added value to port activities in the country.
Isomah, said the group watched with discomfort as the one-day hearing before the House of Representatives Committee on Shipping Services and Related Affairs strayed from achieving the president’s policy on lowering management costs and amounted to overloading the new agency under the Act with the functions of other agencies and not Just.

He said: “The first impact of the Bill is the evolution of a mega agency that will be embroiled in agency takeover in light of the powers given to it to oversee 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 even more powerful than 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”
The Court also noted that the Oronsaye Report, which the Federal Government approved for implementation, expressly recommended the merging of agencies and parastatals with overlapping and duplicative functions.

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

According to NMRN, the solution is to explore further dialogue between agencies in the industry in an unfettered atmosphere to provide clearer guidance on the appropriate definition of their roles, which would be included in the bill before its adoption by the National Assembly.

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, he added.

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

His words: “The Act contains clauses contrary to other agencies, especially NPA 42-(a), usurping the powers of licensing of port services and facilities vested in the Landlord who owns the Land which it leases/, i.e. the Nigerian Port Authority and partial owner of leased/concession premises, Clause 2(d)(e)(g) 4-(h),(o)(p)4-(2) Clause 28-(c) (d)(e) Clause 38-( 1)(a)(b)(c)(d)

“Usurpation of power and conflict will create obstacles to implementation, existing legislation should not be duplicated or replaced by regulations. Clause 70 provides an interpretation of various terms Prescribed service means a person, body or agency defined in this Act as such; or supply of specified services in Nigeria within the meaning of section 38 of this Act and includes: Nigerian Railways Corporation; Nigerian Ports Authority; National Inland Navigation Authority and other agencies providing regulated services of any kind in the regulated sector in Nigeria.

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 Freight Forwarders’ Council Act (Cap N133, LFN 2004) to pave the way for the enactment of the Nigerian Shipping and Ports Act Economic Act on the regulatory agency from which the port’s economic regulator will emerge.