The Nigerian Shippers’ Council (NSC), on Monday, 22 December 2025, convened a tripartite dispute resolution meeting to address a complaint bordering on arbitrary and unapproved groupage (LCL) deconsolidation charges imposed by Shotto Logistics Ltd against Kabiu Ventures Ltd, a Nigerian importer and manufacturer. The meeting was held at the Complaints Unit Meeting Room, 1st Floor, B-Wing, Nigerian Shippers’ Council Headquarters, No. 4 Otunba Ayodele Soyode, Parklane, Apapa GRA, Lagos.
Following introductions, the Head, Complaints Unit, Dr. Bashir Ambi Mohammed, acting on behalf of the Executive Secretary/CEO of the Nigerian Shippers’ Council, Akutah Pius Ukeyima, Esq., MON, FCILT, FCIOTA, PhD, formally welcomed all parties.
Dr. Ambi emphasized that while the Complaints Unit is not a court of law, the Council is statutorily empowered under its enabling laws to intervene in commercial shipping, maritime, and port economic regulatory infractions within the Marine and Blue Economy sector. Criminal matters, he noted, are referred to courts of competent jurisdiction.
He further stated that: Resolutions reached at the Council’s dispute resolution table are binding on all parties; Non-compliance attracts regulatory enforcement actions; Parties must avoid interruptions and the use of inappropriate language.
The Council’s guiding principles remain justice, fairness, transparency, and the preservation of business relationships.
He commended Shotto Logistics Ltd for honouring the invitation via a phone call without waiting for a formal letter, noting that the core grievance related to tariff nomenclatures not approved or regulated by the Council. Dr. Ambi nominated Mr. Yahaya Abdullahi Wachiko to preside over the session.
The presiding officer invited the Case Handler, Mr. Mubarak Abubakar, to present an overview of the matter. He informed the meeting that the Council received a complaint from Kabiu Ventures Ltd, alleging the imposition of arbitrary, and unjustified groupage (LCL) deconsolidation charges by Shotto Logistics Ltd on a consignment of Steel Coils. The complainant further alleged lack of transparency, absence of cost breakdown, and the use of unapproved foreign-currency charges for local port services, contrary to regulatory provisions.
Shipment Details
- Vessel: MV DALIAN
- Voyage No.: 2542W
- B/L No : FTLAPPL44991
- Cargo Description: 2 Coils STC Galvanized Steel Strips
- Cont No: ONEU0190144
- Gross Weight: 5,026.00 KGS
- Volume: 5.033 CBM
- Invoice No : INVSLN2025-003
- Invoice Date: 05 December 2025
- Cargo Type: Groupage (LCL)
- HS Code: 72123090
- Delivery Term : CFS
Represented by Mr. Uche Amudu, Kabiu Ventures Ltd confirmed the facts of the complaint and requested the Council’s intervention to facilitate a downward review of the charges to enable cargo release.
He stated that the invoice issued by Shotto Logistics Ltd was presented as a lump sum without itemized cost components, lacked transparency, and failed to conform to the Nigerian Shippers’ Council’s approved tariff nomenclatures for deconsolidators.
Mr. Adewole Rotimi, Operations Manager of Shotto Logistics Ltd, explained that the shipment was routed via transshipment from China through Colombo under Global Link Marine.
He stated that the charges, denominated in USD, included:
- Low Sulphur Surcharge (LSS)
- China Import Service Fee (CISF)
- Equipment Imbalance Surcharge (EIS)
- Overweight Charges
According to him, these charges originated from the Port of Loading and were known to the Shipper and Consignee prior to cargo arrival. He further noted that Shotto Logistics Ltd is relatively new in the Nigerian market, with its headquarters in Ghana, and is still familiarizing itself with Nigeria’s regulatory framework.
In response, the presiding officer, Mr. Yahaya Abdullahi Wachiko, faulted the invoicing of local port and shipping services in foreign currency, citing Section 20(1) of the Central Bank of Nigeria (CBN) Act, 2007, which prohibits the use of foreign currency for domestic transactions within Nigeria. He clarified that the Council-approved tariff nomenclatures for deconsolidators (groupage operators) under the Nigerian Port Economic Regulatory Framework are limited to:
- Storage
- Documentation
- Handling
- Stamp Duty
While acknowledging that cargo characteristics may influence handling costs, the Council found that the total charge of ₦1,970,797.99 for approximately 1.4 CBM was arbitrary, and unjustified.
Accordingly, the Council directed that all unapproved, alien, and foreign-currency-based charges be immediately expunged and discontinued, as they are not recognized under the Council’s approved tariff structure.
The Council further directed Shotto Logistics Ltd to register with the Nigerian Shippers’ Council and obtain the approved tariff nomenclature required for lawful deconsolidation operations in Nigeria.
Resolutions Reached
After extensive deliberations and a comprehensive review of all submitted documents, the following resolutions were unanimously reached that:
- The Nigerian Shippers’ Council confirmed that the shipment under review was a Groupage (LCL) consignment between Kabiu Ventures Ltd and Shotto Logistics Ltd.
- The Council condemned and ordered the immediate and permanent cessation of invoicing or charging for local shipping and port services in foreign currency by Shotto Logistics Ltd in Nigeria, as this contravenes Section 20(1) of the CBN Act, 2007. Non-compliance shall attract regulatory sanctions, including closure and licence revocation.
- All unapproved and non-recognized tariff nomenclatures, including LSS, EIS, CISF, and Overweight Charges, be expunged and discontinued with immediate effect.
- Shotto Logistics Ltd was directed to register with the Nigerian Shippers’ Council before 2026 and obtain the Council’s approved tariff structure for deconsolidators.
- Kabiu Ventures Ltd was directed to pay the sum of ₦1,000,000.00 (One Million Naira only) to facilitate the release and delivery of the cargo on or before the end of December 2025.
- Shotto Logistics Ltd was advised to properly sensitize its foreign partners and ensure that a duly executed Customer consent letter is obtained in instances involving foreign remittance arrangements.
- Both parties were advised to maintain cordial business relations, ensure mutual cooperation, and comply fully with all applicable regulatory requirements going forward.
Both parties expressed appreciation to the Nigerian Shippers’ Council for providing a neutral, transparent, and professionally guided dispute resolution platform, and for ensuring a fair regulatory balance between service providers and cargo owners within Nigeria’s maritime and port economic environment.
