Transforming Nigeria's Ports Economy-An Analysis Of The Nigerian Ports Economic Regulatory Agency Act 2026 (September 2026)

Introduction

Nigeria’s maritime sector is poised for a significant regulatory transformation following the signing into law of the Nigerian Ports Economic Regulatory Agency Act, 2026 (the “Act”) by President Bola Ahmed Tinubu,¹ and the consequential repeal of the Nigerian Shippers’ Council Act, Cap. N133, Laws of the Federation of Nigeria, 2004 (the “Nigerian Shippers’ Council Act”).² This Act establishes a new statutory framework for the economic regulation of Nigeria’s ports and formally transitions the Nigerian Shippers’ Council into the Nigerian Ports Economic Regulatory Agency (the “Agency”).³

The Act represents far more than a change of nomenclature. It introduces a strengthened legal and institutional framework for the economic regulation of port operations, with a focus on addressing regulatory overlaps, promoting transparency in tariffs and charges, fostering fair competition, and improving efficiency across Nigeria’s port system. For terminal operators, shipping lines, logistics providers, cargo owners, and investors, the new regulatory regime signals a potentially significant shift towards greater certainty, accountability, and transparency in the conduct of port-related business.

In this article, we examine the key provisions of the Act and consider their implications for commercial port operations and the broader maritime industry. We also assess the potential of the new regulatory framework to enhance the competitiveness of Nigerian ports and support Nigeria’s ambition to become a leading maritime and logistics hub in West Africa. We conclude that while the Act provides a clearer and more robust legal foundation for the economic regulation of the port sector, its ultimate success will depend largely on the effective implementation and enforcement of its provisions, as well as the regulations made pursuant to it.

Key Provisions of the Act

1. Objectives and Scope of Application

The Act applies to regulated sector, regulated service providers and users of regulated services in Nigeria⁴ and has two key objectives, that is, to: (i) establish a legal framework for the efficient economic regulation of regulated services and related activities; and (ii) protect the interests of shippers, service providers, and other users of regulated services.⁵

These objectives are a bold shift from what used to be the case under the Nigerian Shippers’ Council Act, that is, to provide a forum for the protection of the interest of shippers in matters affecting the shipment of imports and exports to and from Nigeria.

Hence, the Act maintains an expansive scope by directly regulating economic activities across Nigeria’s ports, while also protecting the interests of service providers and users of regulated services alike.

2. Establishment and Functions

Section 3 of the Act establishes the Agency as a body corporate with perpetual succession and a common seal. The agency is also given the right to sue and be sued in its corporate name, enter into contract, acquire and hold property and do all such things necessary for the purpose of the Act.⁶

Prior to the enactment of the Act, the Nigerian Shippers’ Council performed the functions of protecting the interests of shippers and providing a forum for addressing matters affecting the shipment of imports and exports to and from Nigeria. However, following the repeal of the Nigerian Shippers’ Council Act, the Agency now has a more expansive role for the overall economic regulation of Nigeria’s ports. Some of the functions of the Agency as contained in section 4 of the Act include to:

1. administer and enforce the provisions of the Act and any regulation made thereunder;
2. implement regulatory framework for the provision of the regulated services and the regulation of economic activities in the ports;
3. implement Government’s economic regulatory policies in the regulated sector;
4. conduct periodic review of the economic activities of the regulated service providers and users;
5. monitor compliance by regulated service providers and users in terms of approved port concession agreement, arrangement, contract, service level agreement, or any other agreement, arrangement, or understanding entered into by or between regulated service providers for the provision of regulated services in the ports and other regulated sectors;
6. set terms, conditions and fees for the registration of regulated service providers and users in the regulated sector; and
7. set, monitor, assess and enforce performance standards relating to the provision of services in the regulated sector.

In addition to the above, the Agency possesses the power to facilitate international trade in Nigeria through the implementation and enforcement of relevant trade treaties⁷ and is empowered to handle and resolve economic disputes involving port users, using such dispute resolution mechanism as it deems fit, including mediation.⁸ Interestingly, the Agency has the mandate to collaborate with the relevant competition agency⁹ to ensure fair competitive practices in the ports.¹⁰

The Act clearly mandates the Agency to perform the above functions in a manner as not to contravene any legal instrument implemented by other government agencies and to facilitate compliance with obligations under such instruments.¹¹ This provision obviates the concerns about potential overlapping roles between the Agency’s mandate and the Nigeria Ports Authority (NPA), the Nigeria Maritime Administration and Safety Agency (NIMASA), and any other agency.

3. Administration and Management

The Act establishes a Governing Board (the “Board”) which is charged with formulating the general policies of the Agency.¹² Membership of the Board¹³ is composed of a part-time Chairman, a Director- General who shall serve as the Chief Executive and Accounting Officer of the Agency, a representative of the Ministry¹⁴ responsible for the regulated sector in the directorate cadre, and five part-time members with relevant experience in the regulated sector.¹⁵ The Board shall consist of persons with recognized qualification and cognate experience in port management, transport and logistics, law, economics, finance or administration.¹⁶ The Agency is empowered to appoint a secretary for the Board who must be a legal practitioner with not less than ten years post call experience.¹⁷

Contrary to the position under the Nigerian Shippers’ Council Act where the Federal Civil Service Commission must declare the office of the Executive Secretary of the Nigerian Shippers’ Council and its employees to be a pensionable office before the Pension Reform Act (“PRA”) could apply, the Act provides that service as a staff in the Agency is considered to be an approved service under the PRA and, accordingly, staff of the Agency are entitled to pensions and other retirement benefits under the PRA.¹⁸ The Act also exempts the Agency from paying tax on income that accrues from its investments. Therefore, the provisions of any law relating to the taxation of companies and trust funds shall not apply to the Agency.¹⁹

4. Regulations and Guidelines

The Act empowers the Agency to make regulations and guidelines in order to give full effect to the provisions of the Act.²⁰ Hence, the Agency, with the approval of the Minister, may regulate on matters involving the administration of its affairs, including the conduct of inquiries, investigations, arbitration and mediation, the rights and obligations of licensees and permit holders, registration requirements, performance standards, request for information, consumer protection issues, market monitoring and enforcement.²¹ The Agency may also make regulations prescribing fees, fines and penalties for violations of the Act.²² The Act, therefore, gives the Agency the wide power to regulate its own affairs without third-party interference — a right the Nigerian Shippers’ Council did not enjoy under the old regime in which the Minister was required to make regulations for and direct the Council in the exercise of its functions.²³

5. Tariffs

Perhaps, the most significant provision of the Act is the one dealing with tariffs. Under the old regime, the Nigerian Shippers’ Council merely possessed persuasive bargaining power, as it could only negotiate reviews, modifications and increases of NPA tariffs and local shipping charges.²⁴

However, the Act has now empowered the Agency to set guidelines on tariffs, rates and charges, including the minimum and maximum levels of tariffs that can be levied by the regulated service providers.²⁵ The Agency is also required to monitor and review tariffs having regard to prevailing local and global economic conditions and publish the tariffs and charges from time to time.²⁶ It is equally required to perform quality control role by establishing standards of service delivery, including ensuring availability, adequacy, quality, accessibility, affordability and predictability of services.²⁷

Section 26(2) of the Act provides that tariffs, rates or charges imposed or published contrary to the Agency’s guidelines constitute an infraction punishable under the Act. From the commencement of the Act, every regulated service provider is required to file their tariffs or range of tariffs with the Agency. They must comply with the Agency’s guidelines when fixing their tariffs or charges and must publish their tariffs, fees and rates.²⁸ As in the old regime, the Agency is equally required to publish tariffs, rates or charges payable by regulated service users periodically.²⁹ The new filing and publishing requirement is a welcome development as it ensures a fair, competitive and transparent billing system across Nigeria’s ports.

The Act further gives the Agency, to the exclusion of any other body or authority, the power to issue guidelines on the determination and publication of tariffs, rates and charges and to periodically publish the tariffs payable by regulated service users.³⁰ The old regime contained a similar exclusive publication function which required the Nigerian Shippers’ Council, to the exclusion of any private or public person, to publish local shipping charges.³¹

The Act provides strict penalties for publication of tariffs done in contravention of the Act. Compared to the old regime where a first offence attracted a fine of ₦50,000 and refund of the excess amount charged, while subsequent offences attracted a fine of ₦250,000 or imprisonment for three years or both,³² the Act provides for stricter penalties that are in tune with current economic realities, ranging from a minimum fine of ₦2 million or imprisonment for not less than six months or both for first offender in the case of clearing and forwarding agents, shipping agents, cargo consolidators, haulers, jetty operators, warehouse operators or logistics service providers to a minimum of ₦20 million or imprisonment for not less than two years or both for first offender in the case of shipping companies, terminal operators, inland dry port operators and other regulated service providers. The Act provides for twice the above stated penalties in the case of any subsequent offence.³³

Unlike the old regime,³⁴ the Act gives the Agency broad enforcement powers in case of regulated service provider who violates the Act or the regulations made pursuant thereto, including the power to impose fines and fees, or to suspend, revoke, cancel or withdraw the registration, certificate or permit of an offending regulated entity.³⁵

6. Registration

The Act establishes a registration framework for regulated service providers and users of regulated services. Unlike the old regime, the Agency is empowered to make regulations specifying the services that require registration and prescribing the conditions for registration, issuance of certificates, suspension, cancellation, revocation and de-registration.36 The Agency is also required to issue a certificate of registration to every registered service, service provider or user.³⁷

Where registration is required under the Act or regulation made thereunder, a regulated service provider cannot provide a regulated service without such registration, except with the Agency’s approval. A user cannot also use the services of an unregistered service provider in the regulated sector.³⁸ The failure to comply with the registration requirements of the Act is an offence punishable by a fine of not more than ten times the initial registration fee or prohibition from providing or using the relevant service for a period determined by the Agency.³⁹ These provisions also apply to existing regulated service providers in the regulated sector.⁴⁰ A service provider licensed by any other relevant government agency must also register with the Agency before commencing operations in the regulated sector.⁴¹

7. Offences and Penalties

The Act broadly sets out offences and penalties.⁴² A person or corporate body who breaches any of the provisions of the Act or regulations made thereunder commits an offence and may be charged jointly or severally in the same proceedings⁴³.

The Act further provides that where a corporate body is found guilty, its officer or agent is deemed guilty unless the officer can establish that the offence was committed without his knowledge, consent or connivance and that he took reasonable precautions and exercised due diligence. Any director, chief executive officer or other officer involved in the management or affairs of the corporate body may also be charged jointly or severally with the corporate body.⁴⁴

Any person who commits a breach of any provisions of the Act or regulations made thereunder commits an offence punishable in the case of an individual with a fine of not less than ₦1 million or imprisonment for a term of not less than one year or both for first offender or a fine of not less than ₦2,000,000 or imprisonment for a term of not less than three years or both for subsequent offence. In the case of a corporate body, the offence is punishable with a fine of not less than ₦5,000,000 for first offender or a fine of not less than ₦10,000,000 for subsequent offence.⁴⁵

The Act further vests the Agency with power to impose administrative penalties where no penalty is provided for contravention of the provisions of the Act, including fines, fees, and sanctions such as warning, suspension, placement on a sanction list, blacklisting, withdrawal, revocation or cancellation of registration.⁴⁶

The Act introduces a mechanism for compounding offences. Accordingly, the Agency may, subject to section 174 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), accept as settlement certain amount of money not exceeding the maximum penalty applicable to the offence. Any such money received must be paid into the Consolidated Revenue Fund of the Federation. Also, while the Agency may engage private legal practitioners in any proceedings in court, the Act permits a legal practitioner in the Agency’s employment to represent it before any court or tribunal.⁴⁷

The Act further prohibits the disclosure and use of confidential or sensitive information obtained in the course of performing an official duty. A person is prohibited from using such information for personal gain or for the gain of another person. A person who without lawful basis breaches this duty of non-disclosure commits an offence and is liable, in the case of a first offence, to a fine of not less than ₦500,000 or imprisonment for a term of not less than one year or both, and for subsequent offence, to a fine of not less than ₦1,500,000 or imprisonment for a term of not less than three years or both.⁴⁸

The restriction does not, however, apply where the disclosure or use of such confidential information is made in the exercise of a power or performance of a function under the Act or any relevant legislation, or with the consent of the person who supplied the information, or in legal proceedings at the direction of a court, or where the information is already in the public domain.⁴⁹

8. Monitoring and Enforcement Power

Under the Act, the Agency is required to monitor and report to the Minister on the administration and implementation of, and compliance with, the Act; the standards and quality of services rendered in the regulated sector; the tariffs, rates and charges applied by regulated service providers; cargo clearance procedures and processes; and any other relevant matter relating to service delivery.⁵⁰ In carrying out this function, authorised officers of the Agency may enter and inspect the premises of regulated service providers⁵¹

The Agency may authorise its officials or appoint external inspectors to investigate the activities of regulated service providers with the aim of ensuring compliance with the Act.⁵² In the exercise of this power, an authorised officer or appointed inspector may, at any reasonable time and without prior notice, enter the premises of a regulated service provider, inspect and make copies of books, records and documents, and demand production of relevant licences, permits or certifications.⁵³ The Act, however, requires the Agency to obtain a warrant prior to entering the premises of any affected regulated service provider.⁵⁴

The Agency is empowered to, by notice, direct any person subject to the Act to give information or produce documents that is relevant to the exercise of the regulatory powers of the Agency, within a specified period, manner and form, and such person is required to provide true, accurate and complete information.⁵⁵ Failure to provide the requested information may, after a warning to do so within five days is not complied with, lead to suspension from operation for up to six (6) months and subsequent blacklisting or de-registering.⁵⁶ It is an offence to provide information known or reasonably believed to be false or misleading and is punishable with a penalty of not less than ₦1 million for an individual and not less than ₦5 million for a corporate body. The offender shall also be suspended from operations and, where the violation persists, may be blacklisted and de-registered.⁵⁷

To encourage public collaboration with the Agency, the Act offers some measures of protection to persons who cooperate with the Agency. As such, it makes it an offence for anyone to threaten, intimidate or coerce another person, or incite or cause another person to suffer loss, injury or disadvantage, because that other person complied or intends to comply with any request made by the Agency.⁵⁸ In addition, a person who supplies information or documents to the Agency in good faith is shielded from liability for any loss, damage or injury resulting to another as a result thereof.⁵⁹

9. Complaints and Investigation

The Act establishes a framework for initiating complaints and how the Agency is to conduct its investigations. The Agency is empowered to investigate a matter referred to it upon a written complaint. Indeed, the Agency has the power to investigate any matter pertaining to the exercise of its mandates in so far it has any ground to believe that an infringement of the Act has been, is being or is about to be committed.⁶⁰ The Agency may make preliminary inquiries to determine whether to investigate, and where it decides not to investigate, or to stop an investigation after it has commenced, it must inform the complainant and the respondent of the decision and its reasons within three working days from that date.⁶¹

The investigative process contains necessary fair hearing safeguards, as it requires that the respondent must be notified of the investigation, and both parties must have an opportunity to appear before the Agency.⁶² Importantly, the Agency may not make an adverse finding either against a complainant or respondent unless it has given the parties an opportunity to make written submissions within 21 days and have considered the submissions before making its decision.⁶³

On the conclusion of investigation, the Agency is required to prepare and publish a report covering the conduct of the investigation, its findings, the evidence and material on which those findings are based, and any other related matters.⁶⁴ Where the Agency forms the view that a matter does not warrant further investigation, it may discontinue the investigation or inquiry but must give written notice of the discontinuance and its reasons to the parties within 14 days.⁶⁵

The Act establishes the right to appeal against any decision of the Agency. In the case of competition and consumer protection matters, appeals lie to the Competition and Consumer Protection Tribunal, while in any other matter to the Federal High Court.⁶⁶

10. Other

The Act contains miscellaneous and supplementary provisions dealing with ministerial oversight, limitation of action, indemnity, repeal, savings and transitional provisions.

No suit shall be commenced against the Agency or its authorised officers unless a 30-day written notice of intention to commence he suit has been served on the Agency and has expired, and no execution shall be levied or attachment processes commenced against the agency, unless at least three months’ notice of intention to execute or attach has been given to the Agency.⁶⁷ The notice must contain sufficient particulars of the claim, including reliefs sought, and the notice or other court processes may be served on the Agency by delivering it to the office of the Agency.⁶⁸

Members of the Board, the Director-General, officers and employees of the Agency shall be indemnified by the Agency in case any proceedings is brought against them in their official capacities, provided their actions are not ultra vires their powers.⁶⁹

Finally, the Act expressly repeals the Nigerian Shippers’ Council Act and puts in place savings and transitional provisions to ensure continuity.⁷⁰

Conclusion

The Act marks a significant shift from the negotiation-based and shipper-protection model under the repealed Nigerian Shippers’ Council Act to a more comprehensive statutory framework for the economic regulation of Nigeria’s ports and related services. It establishes a dedicated economic regulator with extensive powers over registration, tariffs, monitoring, investigations, enforcement and the resolution of economic disputes.

For stakeholders in the regulated sector, the practical implications of the new regime are significant. Registration may now be a precondition for operating or providing certain regulated services, tariffs and charges are subject to the Agency’s regulatory framework, and regulated entities will be subject to enhanced monitoring, investigative and enforcement measures. The Act also introduces a more robust sanctions regime, with significant administrative and criminal consequences for non- compliance.

Nevertheless, the practical effectiveness of the new regulatory framework will depend substantially on the regulations and guidelines to be issued pursuant to the Act and, more importantly, on their effective implementation and enforcement. Certain provisions of the Act — including those relating to the Agency’s investigative and enforcement powers, its role in tariff regulation, and the potential interaction of its mandate with those of other maritime institutions — may also require careful interpretation and implementation to avoid regulatory overlap and uncertainty.

Overall, the coming into force of the Act provides a clearer and stronger legal foundation for the economic regulation of Nigeria’s ports. If effectively implemented, the new framework has the potential to promote greater transparency, predictability, efficiency and fair competition within the port sector and strengthen Nigeria’s position as a leading maritime and trade hub in West Africa.

Footnotes

1. President Bola Tinubu assented the Nigerian Ports Economic Regulatory Agency Bill on August 13, 2026. See https://thenationonlineng.net/tinubu-assents-to-ports-economic-regulatory-bill/ accessed August 27, 2026.

2. Nigerian Ports Economic Regulatory Agency Act (the “Act”), s. 50.

3. Act, ss.3 & 50.

4. s.2. In section 52, “regulated sector” is defined as ports, terminals, off-docks, jetties, and offshore platforms used for the reception, handling, and provision of cargo services for imports and exports; while “regulated services” means any shipping or port service provided, supplied, or offered for supply in the regulated sector in Nigeria, including vessel reception, carriage, storage and handling of cargo, freight forwarding and clearance services, stevedoring, haulage, cargo consolidation and brokerage, off-dock terminal operations, inland dry port services, seaport terminal or jetty operations, logistics services and any other service provided in a port.

5. s.1.

6. s.3(2).

7. s.4(1)(k).

8. s.4(1)(l)(m).

9. i.e., the Federal Competition and Consumer Protection Commission.

10. Act, s.4(1)(n).

11. s.4(2).

12. ss.5, 13(a).

13. We note an apparent inconsistency between sections 8 and 14(1) of the Act regarding the tenure of the Director-General. Under section 8, the Chairman and members of the Board, of which the Director-General is part, other than ex-officio members, shall hold office for a term of three years and shall be eligible for reappointment for a further term of three years. Section 14(1), however, separately provides that the Director-General shall hold office for a term of four years and shall be eligible for reappointment for a further term of four years. The apparent inconsistency raises uncertainty as to the applicable tenure of the Director-General and may potentially give rise to future debate or controversy regarding the proper interpretation of the relevant provisions.

14. The relevant Ministry is the Ministry of Marine and Blue Economy.

15. s.6.

16. s.7(1).

17. s.15(1).

18. s.18(1).

19. s.21.

20. s.25.

21. s.25(2).

22. s.25(2)(i).

23. Nigerian Shippers’ Council Act, ss. 4 & 9.

24. Please see the Nigerian Shippers’ Council (Local Shipping Charges on Imports and Exports) Regulations, 1977 (the “Regulations”) - Regulations 1 & 2. The Regulations was made pursuant to the now repealed Nigerian Shippers’ Council Act.

25. This is required to be done in consultation with regulated service providers and users of regulated services. See Act, s.26(1)(a).

26. Act, s.26(1)(b)&(d).

27. s.26(1)(c).

28. s.27.

29. s.29(1).

30. s.29.

31. Regulations, Reg. 3.

32. Regulations, Reg. 4.

33. Act, s.29(2).

34. Regulations, Reg. 4.

35. Act, s.30.

36. s.31(1).

37. s.31(2).

38. s.31(3).

39. s.31(4).

40. s.31(5).

41. s.32.

42. Part VIII.

43. s.33(1)-(2).

44. s.33(3)-(4).

45. s.34(1).

46. s.36.

47. s.35 (1)-(3).

48. s.37(1)-(3).

49. s.37(4).

50. s.38(1).

51. s.38(2).

52. s.39 (1)-(2).

53. s.39(3).

54. Proviso to s.39(3). While the Act permits entry at any reasonable time and “without prior notice”, the proviso to s.39(3) mandates the Agency to obtain a warrant prior to the entry. It is not clear what warrant is to be obtained and from which authority. Perhaps, clarity can be provided to this through regulations to be subsequently made by the Agency.

55. s.40.

56. s.41(1).

57. s.41(2)-(3).

58. s.41(4).

59. s.41(5).

60. s.42(1)-(2).

61. s.42(3)-(4).

62. s.43(1)-(3).

63. s.43(4)-(5).

64. s.43(6).

65. s.44(1)-(2).

66. s.45. The Competition and Consumer Protection Tribunal is established pursuant to s.39 of the Federal Competition and Consumer Protection Act, 2018. The distinction would, however, require careful consideration where a purely regulatory decision intersects competition or consumer protection issues.

67. ss.47(1), 49.

68. s.47(2)-(3).

69. s.48.

70. ss.50, 51.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.