Senate steps down Nigerian Port Economic Regulatory Agency bill, another, passed by House of Reps

The Senate has stepped down two concurrence bills seeking the establishment of the Nigerian Forest Security Service, and the Nigerian Port Economic Regulatory Agency, which has scaled second reading in the House of representatives.

In his lead debate on the bills, Senator Michael Opeyemi, Leader of the senate stated that the establishment of the Security Agency seeks to prevent and combat crimes in the Nigeria forest while the Port Regulatory Agency seeks to provide economic regulation of port services.

Not satisfied with the objectives of the bill, lawmakers stated that it will be a duplication of other security agencies.

The House of Representatives Committee on Shipping Services and Related Matters had in May 27, 2024 held a one-day hearing to gauge public feedback and input on repealing the Nigerian Shippers Council (NSC) Act (Cap N133, LFN 2004) as prelude to enacting the Nigerian Shipping and Port Economic Regulatory Agency Bill.

The Nigerian Shipping and Port Economic Regulatory Agency Bill 2023, with the Speaker of the House of Representatives, Tajudeen Abass, as lead sponsor, passed its second reading in March 2024.

One of the bill’s sponsors and Chairman, House Committee on Shipping Services and Related Matters, Hon. Abdussamad Dasuki, quoting a gazette, said the Nigerian Shippers’ Council was made the Port Economic Regulator in 2015 by the federal government, a status that needs formalising through legislation.

“The federal government noted that the objective of the regulation is to create an effective regulatory regime for the Nigerian ports after the concession of the ports. Port does not mean the Nigerian Ports Authority alone. It also means all the stakeholders in the ports, for the control of tariffs, rates, charges and other related economic services” Dasuki said on Wednesday 14th February 2024, while presenting the Bill to the House of Representatives.

Specifically, he added: “The shippers’ council’s gazette is being implemented today as a regulation and not as an Act. The Regulations provided that the Nigerian Shippers’ Council shall perform the role of interim Port Economic Regulator with the administrative backing of the federal government.”

Repealing the existing Nigerian Shippers’ Council Act, he concluded, is to empower the NSC to discharge its mandate as the Port Economic Regulator, adding that collation of memoranda from various stakeholders is ongoing prior to tabling a report before the House of Representatives for Third Reading.

There are however contrary positions in various quarters against misrepresentation of the agency to be created from the bill in terms of its functions and jurisdiction vis-à-vis other agencies in the maritime sector.

Nigerian Port Economic Regulatory Agency Bill has suffered multiple setbacks over the years. Eromosele Abiodun posits that the Nigeria Shipping and Port Economic Regulatory Agency Bill, in its present form, is a contradiction of the presidential policy specifically aimed at reducing cost of governance and implementation of the Oronsaye Report.

They argued for instance that the powers and functions of the Nigerian Maritime Administration and Safety Agency (NIMASA) have been duplicated, considering that such functions as shipping regulation, issuance of certificates, licenses, fees, charges, and levies fall within the exclusive jurisdiction of the Nigerian Maritime Administration and Safety Agency. The bill failed to indicate how this will be remedied.

NIMASA is not alone as other agencies under the Ministry of Marine and Blue Economy are also demanding for ‘revision of the existing approach of operation guiding the agencies over the years.’

The Nigerian Ports Authority (NPA), while not opposed to the bill, has highlighted the confusion that may ensue due to the combination of “Ports” and “Shipping” in a regulatory agency, and demanded for proper phrasing of the roles of the agencies to avoid encroachment and infringement. It also emphasised the need for the agency, which should be named the, “Nigeria Port Economic Regulatory Agency,” for clarity to avoid duplicating the functions of other players in the sector.

In addition, the NPA, as landlord agency, is saddled with granting of concessions to the concessionaire, under the statutory regulation and monitoring of the Infrastructure Concession and Regulatory Commission, meaning that the review of concessions, and indeed collection of all or part of the concession fees as in Section 28 of the bill cannot be the business of the proposed new Ports Economic Regulator.

A position paper presented by the agency said, “The intent and import of the Nigeria Shipping and Port Economic Regulatory Agency Bill is POLICY. It therefore MUST be driven by the sector policy arm of the executive – the Federal Ministry of Marine and Blue Economy. The function of parliament here is to facilitate seamless implementation of established policy by enacting the intent of the operators.”