Introduction
Nigeria’s maritime sector is poised for a significant regulatory transformation following the enactment of the Nigerian Ports Economic Regulatory Agency Act, 2026 (the “NPERA Act” or the “Act”) by President Bola Ahmed Tinubu on June 19, 2026, and the repeal of the Nigerian Shippers’ Council Act (the “Nigerian Shippers’ Council Act”). The NPERA Act establishes a new framework for the economic regulation of Nigeria’s ports and transforms the former Nigerian Shippers’ Council into the Nigerian Ports Economic Regulatory Agency (the “Agency”), with an expanded mandate to oversee and regulate the economic aspects of port operations in Nigeria.
More significantly, the Act marks a shift in the institutional role of the former Nigerian Shippers’ Council—from a statutory body primarily focused on shipper protection to an economic regulator with broader powers over port services. This expanded mandate positions the Agency to play a central role in shaping the commercial and competitive environment within Nigeria’s maritime sector.
In this newsletter, we examine the key provisions of the NPERA Act and consider its implications for terminal operators, shipping lines, investors and the broader maritime industry.
Objectives and Application of the Act
The NPERA Act has two objectives which are:
- to establish a legal framework for the efficient economic regulation of regulated services including vessel reception, carriage, storage and handling of cargo, freight forwarding, logistics services, and any other service declared to be a regulated service within Nigeria’s ports; and
- to protect the interests of shippers, providers and users of regulated services.
Compared to the former Nigerian Shippers Council Act, which was largely administrative and advisory, the NPERA Act is designed to actively regulate market participants and enforce service standards within Nigerian ports.
The Nigerian Ports Economic Regulatory Agency
The NPERA Act establishes and empowers the Agency to implement the provisions of the Act. In implementing the provisions of the Act, the Agency is required to perform its functions in a manner that does not contravene any law implemented by other government agencies. This requirement is intended to address potential concerns about regulatory overlap and conflict between the Agency and other agencies such as the Nigerian Ports Authority (NPA), the Nigerian Maritime Administration and Safety Agency (NIMASA) etc.
Registration and Licensing
The NPERA Act empowers the Agency to register and license regulated service providers. In exercising this function, the Agency is empowered to make regulations that specify the services that require registration and prescribe the conditions for registration, issuance of certificates, suspension, cancellation, revocation and de-registration.
The registration requirements are also applicable to existing regulated service providers and other service providers licensed by any other relevant government agency within the ports. As of the date of this newsletter, we note that the Agency is yet to release any regulation for the registration of service providers.
Determination of Tariffs, Rates and Charges
The NPERA Act gives the Agency substantial powers to determine tariffs and fines. In addition, the Agency is empowered to set guidelines on tariffs, monitor compliance, set service delivery standards, and publish tariffs as may be necessary.
The failure of any regulated service provider to comply with the guidelines that may be issued by the Agency will result in fines, institution of criminal proceedings or the revocation of the service providers license. More specifically, the Act imposes fines ranging from ₦2,000,000 to ₦20,000,000 on defaulting service providers.
Conflict of Functions and Overlapping Mandates
A significant issue arising from the NPERA Act is its interaction with existing sector regulators. The NPERA Act empowers the Agency to make regulations on standards and conditions of service delivery, market conduct, tariffs and other economic-regulatory matters in relation to “prescribed services”.
The definition of “prescribed services” includes services provided by the National Inland Waterways Authority (NIWA), the Nigerian Ports Authority (NPA) and the Nigerian Railway Corporation. These provisions may potentially overlap with the regulatory powers exercised by those bodies under their own enabling laws.
It is important to note that although the NPERA Act require the Agency to perform its functions without contravening the laws implemented by other regulators, it does not prescribe a mechanism for resolving any inconsistent directives between related regulators. This raises the question of which regulator’s directive should prevail where their regulatory mandates overlap.
Conclusion
As stated earlier, The Act is a significant shift from the shipper-protection framework under the repealed Nigerian Shippers’ Council Act towards a more robust economic regulation of Nigeria’s ports. Given Nigeria’s commitment under the Enhanced Trade and Investment Partnership (ETIP) with the United Kingdom announced on March 18, 2026, which we wrote about here, the NPERA Act appears to be a development that will potentially deliver benefits under the ETIP.
Nevertheless, the practical impact of the Act will depend substantially on the regulations and guidelines to be issued by the Agency, as well as the effectiveness with which the Act will be implemented.
For regulated service providers, the practical implications include –
- 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 and enforcement measures.
Accordingly, businesses operating in the ports sector should review their existing regulatory arrangements against the NPERA framework to ensure compliance.
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.
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