NSC headquarters, Apapa, Lagos

The Nigerian Ports Authority NPA, the ports’ landlord and the Nigerian Shippers’ Council NSC, economic regulator may come heavily on the Port Harcourt-based Port and Terminal Operators Limited, PTOL over arbitrary imposition of charges on hapless port stakeholders. PTOL had hiked its tariffs by 15 per cent, without necessary consultation and approvals, which gave rise to a public outcry.

The NSC and NPA have therefore directed the management of PTOL to revert to the old rates, insisting that the arbitrary increase of tariffs without consultation with its landlord, the NPA and the Port Economic Regulator, the NSC is at variance with its lease agreement and government regulations.

In a recent meeting convened by the acting Executive Secretary/CEO of the NSC, Ms. Ifeoma Ezedinma between the council, NPA and management of PTOL at the NSC headquarters in Apapa, both regulatory agencies warned that no arbitrary imposition of levies would be tolerated.

Speaking at the meeting, the new NSC-boss, said that such acts will attract severe sanctions as the council has consistently through public notices, visits and correspondences advised regulated service providers on the need to obey the law.

Meanwhile, NPA’s General Manager (Monitoring and Regulatory Services), Mrs. Ugo Madubuike, who also condemned the imposition, citing Clause 5:5 of the lease agreement between NPA and PTOL, said the increase in charges was in contradiction of the contractual agreement signed by both parties.

“Clause 5:5 stipulates that the lessee shall not make any increase in the operation rate unless agreed to in writing by the parties and any required persons or governmental authority has been obtained”.  

NSC and NPA advised PTOL to present their proposed increases for negotiation through official channels as soon as possible.

PTOL’s General Manager Macpherson Nwaukoni, apologised for the oversight while explaining that the action was taken due to losses the company has incurred in the course operations. These losses, according to him occurred as a result of the import ban on certain items resulting in the company’s inability to meet its obligations to the lessor, particularly the rental debt they owe to NPA. He also said the comparison of their rates with other terminals revealed that their own charges are much lower. All these, he said, made operations difficult leading them to increase their tariffs from 15per cent to 30per cent.

He appealed for leniency, explaining that PTOL had not increased charges in the last 16 years when it took over the terminal after the port concession and was currently running at a huge loss.

Reacting to the development, Director, Legal Services Department of the NSC Mr. Tahir Idris advised PTOL to obtain documents on NSC’s Legal Framework in order to acquaint itself with the regulatory procedures of tariff increase and to also be guided to ensure they follow right channel.

Also, Shippers Council’s Director, Consumer Affairs, Chief Cajetan Agu insisted that PTOL despite the apologies must revert back to the old rates until due process was followed.

 He stressed that their action contravened the contracts they signed upon the lease, and as such violated the lessor’s contract terms and the NSC Act.