NSC Saves N31bn from Demurrage Application in Six Month
The Nigerian Shippers’ Council (NSC) has said that out of a total requested amount of N50.8bn demurrage applications it received between January and June 2024, the sum of N19.6bn was validated as reasonable for payment leading to a savings of N31.1bn within the period under review.
The NSC disclosed this on Saturday in Lagos during the unveiling of its innovative Electronic Regulatory Process Portal, a digital platform designed to enhance regulatory functions and promote efficiency in the port sector.
Speaking during the unveiling of the platform, the Executive Secretary and Chief Executive Officer of the NSC, Pius Akutah, said that the initiative is expected to save the Nigerian economy 80 per cent of foreign exchange outflows in substantial amounts, and also minimize capital flight by blocking financial leakages and preventing over-invoicing.
Akutah said ERPP represents a significant step forward in the council’s efforts to modernise and streamline its regulatory processes.
According to him, the impact of these digital advancements is already evident, stressing that between January and June 2024, the NSC conducted a quality assurance test to verify the accuracy of demurrage applications.
“The results were striking: out of a total requested amount of N50.8bn, a sum of N19.6bn was validated as reasonable for payment. This led to substantial savings of N31.1bn over the six months,” Akutah explained.
He stated that the result represents a remarkable 400 per cent improvement in savings compared to the previous year.
“In 2023, our total savings amounted to just N6.7bn. This achievement is a direct result of the innovative automation solutions we have developed, which have greatly improved operational efficiency and cost optimization,” Akutah highlighted.
Akutah added that the ERPP application is homegrown and developed by the agency’s staff.
“The ERPP is a game-changer in our regulatory landscape. It serves as a comprehensive platform for submission, centralisation, and electronic monitoring of operational key performance indicators for all regulated service providers in Nigeria,” Akutah stated.
The ES emphasised that the ERPP is not just a digital tool but a transformative approach to handling the complexities of the port sector.
“Through this platform, stakeholders in the port sector can file annual tariffs, manage voyages, submit airfreight cargo throughput data, and request reviews of tariffs, rates, and charges. It’s all about enhancing accessibility, efficiency, and transparency,” he added.
He explained that the ERPP also integrates a gateway to other crucial applications, such as the confirmation of reasonableness of demurrage, freight rates, and charter party payments.
This integration, according to him, supports the Central Bank of Nigeria’s revised foreign exchange manual of 2018, which mandates the NSC to confirm the reasonableness of such fees as a prerequisite for foreign exchange approvals.
“We have developed a web-based, multi-functional application that eliminates the manual labor involved in calculating and confirming demurrage charges, freight rates, and charter party fees. Now, everything is submitted, processed, and approved online. This is a leap towards reducing delays and ensuring accurate financial transactions,” the ES reiterated.
He maintained that the ERPP is expected to yield significant outcomes for the Nigerian economy.
“The platform aims to save approximately 80 per cent of outflows from the Nigerian economy, block financial leakages and prevent over-invoicing, minimize capital flight,
“By leveraging technology, we are not just enhancing our regulatory functions but also contributing to the overall growth and development of the Nigerian economy. This is about creating a transparent, efficient, and accountable port sector that can drive national progress,” Akutah maintained.
“We are committed to maintaining this momentum and ensuring that our regulatory processes are second to none,” Akutah concluded.
The launch of the ERPP marks a pivotal moment for the NSC and the Nigerian maritime industry. As the Council continues to innovate and adapt, the sector is poised to become more competitive and resilient in the face of global challenges.
