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FG moves to separate port regulations from operations

  • NPA takes over dry ports, NSC transits to NPERA

The Federal Government has moved to overhaul the institutional architecture of Nigeria’s port sector, separating economic regulation from port development, operations and promotion, with the Nigerian Ports Authority (NPA) assuming responsibility for inland dry ports while the Nigerian Shippers’ Council (NSC) transits into the newly established Nigeria Ports Economic Regulatory Agency (NPERA).

The Minister of Marine and Blue Economy, Dr. Adegboyega Oyetola, directed the transfer of the Inland Dry Port (IDP) functions currently performed by the NSC to the NPA, describing the move as part of efforts to eliminate overlapping mandates and establish clearer lines of responsibility among agencies under the ministry.

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Oyetola also ordered the immediate constitution of a ministerial committee to supervise the transition of the NSC into NPERA following President Bola Ahmed Tinubu’s assent to the NPERA Act, 2026.

The directives, contained in a statement issued in Abuja by the Minister’s Special Adviser, Dr. Bolaji Akinola, are designed to give effect to the Federal Government’s new port economic regulatory framework and ensure that agencies operate within clearly defined mandates.

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The NPERA Act, signed by President Tinubu in August, establishes a substantive statutory economic regulator for Nigeria’s port sector, ending what the government described as a two-decade wait for a dedicated port economic regulator.

The legislation also formally transforms the NSC, which has functioned as Nigeria’s interim port economic regulator since 2014, into NPERA.

Under the new arrangement, NPERA will concentrate on economic regulation, including the regulation of port tariffs and charges, promotion of competition, licensing, enforcement of service standards, commercial dispute resolution and protection of port users.

The NPA, meanwhile, will assume responsibility for the development, integration and operational oversight of inland dry ports, removing those functions from the NSC as the latter transitions into a dedicated economic regulatory institution.

Oyetola said the restructuring was necessary to prevent conflicts of interest and strengthen the credibility of the country’s port regulatory system.

“We must get the transition right. The establishment of NPERA is a landmark reform, and the process of moving from the Nigerian Shippers’ Council to the Nigeria Ports Economic Regulatory Agency must be carefully managed,” he said.

According to him, the ministerial committee would provide the oversight required to ensure a seamless transition and guarantee that every function is domiciled in the institution best suited to perform it.

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The Minister argued that an effective economic regulator must be able to operate as an impartial referee without simultaneously carrying responsibilities that could compromise, or create the perception of compromising, its neutrality.

“The emergence of NPERA marks a new chapter in the governance of Nigeria’s port sector. It is therefore important that the new economic regulator is freed from functions that are not compatible with economic regulation. A regulator cannot function as an operator and, at the same time, be expected to be perceived as an unbiased referee,” Oyetola said.

The restructuring is therefore expected to establish a clearer institutional division between regulation, infrastructure development, port operations and promotion, potentially reducing the overlapping responsibilities that have historically characterised the administration of Nigeria’s maritime sector.

The Minister said the separation would strengthen confidence in the regulatory environment, improve transparency and provide greater predictability for port users, investors, terminal operators, shipping companies and other maritime stakeholders.

The transfer of the IDP mandate to the NPA, however, should not be interpreted as a retreat from the Federal Government’s inland dry port development programme, Oyetola said.

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Rather, he explained that placing the promotion and development of inland dry ports within the NPA would enable the facilities to be more effectively integrated into Nigeria’s broader port infrastructure and operational network.

“We are committed to strengthening the development of the Inland Dry Ports by placing their promotion within the agency with the appropriate operational and infrastructure mandate. The ultimate objective is to create a more efficient and integrated port system that serves the entire country,” he added.

The reform effectively gives Nigeria’s port sector a new institutional architecture in which NPERA acts as the economic referee, the NPA concentrates on port and inland-port infrastructure and operations, while other agencies retain their respective specialised maritime mandates.

For the Federal Government, the ultimate test of the restructuring will be whether the clearer separation of functions translates into lower costs, more transparent tariffs, improved competition, faster cargo movement and a more predictable business environment across Nigeria’s maritime logistics chain.

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