Private Terminal Operators took over the terminal operation of Nigerian ports from Nigerian Ports Authority (NPA) between 2006 and 2007. Since then, some modest achievements have been recorded especially in the areas of operational efficiency, infrastructural development in the ports, increased throughput, increased safety of cargo, etc. However, the operational efficiencies achieved from the concession exercise is being eroded by excessive and high charges, abuse of concession agreements, arbitrary introduction of, and increase in charges and undue delays in cargo clearance and general oppressive policies and practices in the ports .
The unwholesome practices by the Concessionaires and inefficiency of other service providers as well as some government agencies are responsible for the poor performance of Nigerian ports.
After a critical review of the sector by stakeholders it was observed that the absence of an Economic Regulator was mainly responsible for some of the identified problems.
In an effort to remedy this worrisome situation the Federal Government On 20th February 2014 appointed the Nigerian Shippers’ Council (NSC) as the Interim Economic Regulator for Nigerian Seaports with the following objectives:
- To institute an effective regulatory regime at Nigerian ports for enhanced efficiency; and
- To address the negative impact of port concession activities on the economy due to the absence of an economic regulator and to realize the optimal benefits of the Federal Government of Nigeria’s port reform process