‘Five Shipping Firms Opt for Out-of-Court Settlement Over Illegal Charges Dispute’ – Akutah

BY FUNMI ALUKO

After more than a decade of legal battles over the collection of unauthorised port charges, no fewer than five shipping companies and terminal operators have begun settling out of court with the Nigerian Shippers’ Council (NSC), marking a significant turning point in one of Nigeria’s most protracted maritime disputes.

The development comes about 12 years after the NSC, acting as the nation’s Ports Economic Regulator, challenged the imposition of controversial charges by terminal operators and multinational shipping lines, including the Progressive Storage Charge and the Shipping Line Agency Charge (SLAC), which were imposed on cargo owners without regulatory approval.

The Council had, in 2014, directed the affected operators to discontinue the charges and refund the excess collections to shippers. The directive was immediately challenged in court by the shipping companies and terminal operators, who questioned both the Council’s powers to issue the refund notice and its authority as the nation’s ports economic regulator.

The legal contest travelled through the Federal High Court in Lagos, where judgment was delivered in favour of the NSC. The court upheld the Council’s regulatory powers and ordered the affected companies to refund about N1 trillion to shippers for the illegal charges collected over the years.

Dissatisfied with the judgment, the companies proceeded to the Court of Appeal, where they again lost before escalating the matter to the Supreme Court, where the case has remained pending.

Speaking during a courtesy visit by members of the League of Maritime Editors, the Executive Secretary and Chief Executive Officer of the NSC, Dr. Pius Akutah, disclosed that the litigation has entered a new phase, with several defendants now choosing negotiation over prolonged court proceedings.

According to him, five companies have already concluded out-of-court settlement agreements with the Council and have paid agreed sums into the Cargo Defence Fund domiciled in the Federal Government’s Single Treasury Account (TSA).

Although Akutah did not disclose the amount paid by the companies, it remains unclear how the settlements compare with the approximately N1 trillion awarded by the courts against the affected operators.

He explained that while some firms have withdrawn from the litigation after reaching settlement agreements, others are still contesting the matter before the Supreme Court.

“The case actually arose from the notice issued by the Council directing shipping companies and terminal operators to refund excess charges imposed on shippers without approval within a stipulated period. Rather than comply, they challenged both the Council’s powers to issue the notice and its appointment as the Ports Economic Regulator,” Akutah said.

“As at today, the matter is still before the Supreme Court. However, at some point, the parties agreed to explore settlement. Some have concluded negotiations, signed agreements and paid the agreed sums into the Cargo Defence Fund in the Single Treasury Account.”

He revealed that the Supreme Court has fixed September 29, 2026, for the next hearing in the matter, expressing optimism that more companies may embrace settlement before or after the next court sitting.

“Some of those that negotiated settlement, signed the agreements and paid have already filed notices withdrawing from the case. A few have paid, while others are still pursuing the litigation. We are hopeful that after the next hearing, more parties may return to the negotiation table,” he added.

Akutah assured stakeholders that all monies received under the settlement arrangements remain secure, stressing that the funds are protected within the Treasury Single Account and are subject to strict governance mechanisms.

He disclosed that the Council has introduced a comprehensive Standard Operating Procedure (SOP) to regulate the management and utilisation of the Cargo Defence Fund.

According to him, the SOP was jointly developed with shippers and their legal representatives to ensure transparency, accountability and collective decision-making.

“The amount paid so far is safe, and the shippers are fully aware because they have been carried along throughout the process. Whenever a settlement is reached, both parties sign the agreement and the shippers are informed.

“We introduced the SOP to establish a structured corporate governance framework around the fund so that decisions are not made unilaterally through internal approvals or memos.

“The SOP clearly defines the purposes for which the money can be utilised, and every approved application must be in the overall interest of shippers.”

Akutah further disclosed that the Council is concluding arrangements to establish a Board of Trustees for the Cargo Defence Fund to strengthen institutional oversight.

“Now that the Council has a governing board, we also want the Cargo Defence Fund to have its own Board of Trustees. This will ensure that no single individual determines how the money is utilised. Decisions will be guided by sound corporate governance involving different stakeholders.

“The shippers participated fully in drafting every aspect of the SOP alongside their legal counsel before it was approved. That process has laid the foundation for a transparent governance structure.

“So far, five companies, comprising both shipping lines and terminal operators, have paid agreed sums under the out-of-court settlement arrangements.”

The latest development is expected to encourage further negotiations between the NSC and the remaining defendants, potentially bringing to a close one of the maritime industry’s longest-running legal disputes over port charges and strengthening confidence in regulatory enforcement within Nigeria’s port sector.