…Resolved outstanding demurrage worth over a billion, Prevents Blacklisting TCN Future Shipments
…. Shippers’ Council’s Intervention Commendable — ED-Finance, TCN
….” There is Hope for our Business. We Are Grateful — Shipping Companies”
In a landmark intervention, the Nigerian Shippers’ Council (NSC) recently, resolved a major dispute that had lingered for over half a decade between several international Shipping Companies in Nigeria and Transmission Company of Nigeria (TCN), the intervention prevented the possible blacklisting of the national power firm’s shipments from their Ports of Origin due to huge accrued demurrage, and missing containers.
The dispute involved massive demurrage charges on imported containers of power equipment, tied to various national power projects across Nigeria and valued at over 2 Billion Naira only.
The mediation process involved five separate meetings, brought together critical Stakeholders (a Special Committee) from TCN, headed by its Executive Director Finance, MSC, CMA-CGM, PIL, and COSCO Shipping Nigeria, resulting in significant progress of an amicable resolutions.
Dr. Bashir Ambi Mohammed, Head, Complaints Unit, welcomed Stakeholders on behalf of the Executive Secretary/CEO of the Nigerian Shippers’ Council, Akutah Pius Ukeyima, Esq, MON, FCILT, Ph.D. He emphasized that Council’s objective is to foster healthy business relationships and provide fair and meaningful mediation using internationally recognized principles of Alternative Dispute Resolution (ADR)
In their written complaints to the NSC, the Shipping Companies alleged that TCN had failed to take timely delivery of imported containers, leading to significant demurrage and detention charges due to long standing delays at various Ports.
The Shipping Companies also lamented that ‘the same abandoned containers turned to be auctioned to the importer (TCN’s contractors) where the Shipping Companies will be paid N250, 000 only (25%) ignoring outstanding hundred of Millions indebted to the carriers, an act that could send Shipping Companies leaving the Country for survival. But most Shipping Companies agreed to blacklisted ALL TCN’s containers from origin. ” We have reported this to the NSC for over 8 years, but we are grateful, it is now the top Management of the TCN sitting in Shippers’ Council to resolve the complaint. There is now hope for our business in Nigeria.”
However, CMA-CGM Nigeria was represented at the mediation by Uche C. Amogu (Head, Credit Control Unit) and Uzzi Ogbo (Commercial Manager), where the Shipping Company reported that 35 of its containers were left idle at different Lagos Ports, detained for periods ranging from 179 to 500 days. CMA-CGM said the accrued demurrage charges was ₦56,463,556.27 and there was an additional USD 8,428.50. CMA-CGM further highlighted issues such as Unreturned containers by TCN, Improper use of auctioning for cargo delivery, delays in invoice payments, and Idle containers at the Ports.The Shipping Company requested the NSC to intervene and advised TCN to review its Service Level AGREEMENTS (SLA) with contractors, enhance contract management, and ensure proper monitoring of Consignment, and due process be observed post clearance of cargo.
Also lamenting, the PIL Nigeria represented by its General Manager Finance, Dhanesh Nair and Oprah Vincent (Credit Control Manager), stated that TCN failed to clear over 90 containers (Lagos & Onne Ports) in 14 Bills of Lading within the agreed timeframe. This led to accumulated demurrage of over ₦212 Million.
Another similar complain against the TCN was received from Mediterranean Shipping Company (MSC) Nigeria represented By its Deputy Managing Director, Jacob Iusso and Mary Nneka E. (Sales and Marketing/Project Cargo Manager), the Company revealed that TCN left 105 containers uncleared across more than 50 Bills of Lading. Of these, 40 had been pending for over 400 days, with many already auctioned, painfully to the importer/contractors. They detailed total charges as follows:
₦398,679,493 in demurrage, ₦81,871,620.82 for unreturned/late-returned containers, ₦187,947,396 for auctioned containers, and ₦130 million on newly arrived consignment. The Shipping Company also emphasized that while they may consider waivers due to the ” NSC’s commendable interventions, blacklisting TCN remained a commercial option for their international principals. They flagged auctioning of containers as a “red line,” citing it as a major breach of trust.”
The TCN delegation, led by Executive Director (Finance), Mr. Ochije O.C., ”thanked the NSC for its professionalism in handling the mediation. He informed the meeting that the Management is willing to resolve all the outstanding complaints lingering for over a decade. This is standing Committee inaugurated by the MD. As the Chairman, I have a mandate to find out the true status in conjuction with the Shippers’ Council and amicably resolve it. The TCN’s Executive Director Finance was accompanied to the meeting by other members of the committee, namely, the General Manager Projects & Upgrade Engr. M.A. Tahir, Hajiya Bintu Mustapha, Legal Department, Hajiya Lubabatu from the Audit Division, Aminu Samaila Abarshi, Assistant General Manager (Projects), Mr. Joshua from Account/desk officer and Mr. Dare from the Lagos Office.
Mr. Ochije acknowledged the challenges and expressed regret over the infractions, stating that: “If an infraction is committed by one contractor, the entire TCN should not be penalized. We appreciate the Council’s effort in creating a neutral platform for resolution. “He further noted that TCN would no longer allow contractors to abandon consignments at the Ports. He clarified that, as earlier stated by the chairman of this tripartite meeting, the mediation was not only to resolve existing issues but also to listen to the core concerns of the Shipping Companies. He added: “We are not interested in allowing any business to incur losses unnecessarily. We will never use Government might on any Service Provider. However, there have been instances where payments were made to Shipping Companies, but TCN or its contractors received no value in return. What the Shipping Companies are requesting is fair value before containers were auctioned.”
Engr. M.A. Tahir of TCN also explained that external policy changes, such as the increase in Cost Insurance & Freight (CIF) from 1% to 4%, have had significant financial implications. He clarified that TCN did not initiate or approve the auction of its containers and appealed for NSC’s assistance in future oversight.
After extensive deliberations, document reviews, and reconciliation of financial records with the Shipping Companies, the following resolutions were reached that:
1) The Nigerian Shippers’ Counci affirmed there was lien placed on shipments consigned to Transmission Company of Nigeria (TCN) through its contractors by the MSC, CMA-CGM, PIL, and COSCO Shipping Companies in Nigeria.
2) Following a thorough review of all relevant documents and in conformity with its Port Economic Regulatory Act 2015, the meeting resolved that all legitimate financial liabilities owed to MSC, CMA-CGM, PIL and COSCO Shipping by TCN have been duly Reconciled and Resolved.
3) All reconciled payments should be PAID on or before 10th, September 2025, in case of any unforeseen circumstances the TCN Special Committee Chairman and NSC will issue a formal communication to that effect.
4) As the Nation’s Port Economic Regulator, the NSC appeals to all concerned Shipping Companies in Nigeria to formally communicate with their international Principals to promptly remove TCN’s name from any blacklists for current and future shipments. This action will help restore country’s image, as the dispute has been resolved and payments are being done. A copy of this communication should be shared with the Nigerian Shippers’ Council.
5) The meeting agreed that auctioning of TCN shipments will no longer be encouraged. If any Shipping Company notices a TCN contractor deliberately delaying cargo clearance, the issue should be flagged and escalated to the Committee’s Platform for documentation, prompt action, and sanctions. Additionally, all accrued demurrage prior to a Nigeria Customs Service Auction be waived.
6) NSC urged TCN to keep the Council informed of any challenges within the industry and to ensure its vendors follow proper cargo clearance procedures at the Ports.
7) The NSC assured all the Shipping Companies that they are not alone and should channel all their grievances to the Council, as it is the only agency statutorily empowered to intervene in legitimate Commercial Maritime Shipping Disputes in Nigeria.
8) All parties are advised to strictly adhere to these restrictions to add value to the Federal Government’s Policy on Trade Facilitation and Ease of Doing Business.
9) NSC also advised all the Parties including TCN Vendors to register with the Council to streamline future interventions.
NSC urged all Parties to maintain business relationship.
