The Senate on 16th March 2018 passed the National Transport Commission (NTC) Bill after its third reading. The bill seeks to replace the Nigerian Shippers Council (NSC) with the National Transport Commission (NTC). Recall that the House of Representatives had on April 12, 2017 similarly passed the bill.
With the passage of the bill by both chambers of the National Assembly, it is now awaiting presidential assent to become law in the country.
Senator Gbenga Ashafa (Lagos East), the chairman Senate Committee on Land Transport said of the bill: “The National Transportation Commission Bill, when signed into law, is capable of setting the transport sector on the path of positive development.
“With this bill, we would successfully create a multi-modal economic and safety oversight regulator for the transport sector. This is very good for business as it brings standard and structure to the sector, while also increasing government’s revenue.”
The purpose of NTC
The National Transport Commission is conceived to be an effective, impartial and independent regulatory authority in the transport sector and to set out the objectives, functions and powers of the commission. It is also to promote the implementation of the National Transport Policy and provide for an efficient economic regulation of the transport sector.
It is also to provide mechanism for monitoring compliance of government agencies and transport operators in the regulated transport industry with relevant legislation and advice government on matters relating to economic regulation of a regulated transport industry, among others.
Core functions of the NTC
The core functions of the NTC are to create an economic regulatory framework for the provision of transport services and facilities; facilitate effective competition, promote competitive market, conduct and ensure that the misuse of monopoly or non-transitory market power is prevented in the provision of transport services; promote private sector participation in the provision of transport services; ensure that operators and users have equitable access to the use of transport facilities, services, channels and routes while having regard to the level of competition and efficiency of the regulated transport industry; and monitor performance of the regulated sector
Powers of the commission
The powers of the commission include among others; to implement government’s economic regulatory policies on transport; Protect the interest of users of transport services by ensuring that prices are fair and reasonable while having regard to the level of competition in, and efficiency of the regulated transport industry; register all transport service providers and determine the fees for such registration; set guidelines and general policies on tariffs charged and monitor compliance by public and private transport service operators and suppliers of prescribed goods and services and develop, enforce and monitor performance standards and indices relating to the quality transport services and facilities provided to user’s shippers and consumers in Nigeria having regard to best international performance indicators.
Nigerian Shippers Council transmuting to NTC
Stakeholders are excited about the speed at which the NTC Bill has been passed. They are also excited about the new prospects and opportunities that may happen in the Nigerian transport sector. However, the challenge is the smooth take-off of the NTC.
But there is high prospect for a smooth take-off when the bill is eventually signed into law. This is because, the Nigerian Shippers’ Council (NSC), an agency of the Federal Government under the supervision of the Federal Ministry of Transport is already performing most of the functions of the NTC thus, industry experts expect government to set in place a machinery that will see the NSC transmute to the NTC for a seamless operation.
In 2014, government appointed the NSC as the ports economic regulator, the job it has done creditably to instill discipline in the maritime sector.
As a temporary measure, the Shippers’ Council was appointed to perform the economic regulatory function at the port in order to entrench economic efficiency in the industry, pending the enactment of a law by the National Assembly. This move was, no doubt, advised by the council’s experience in economic regulation and its role in the maritime/transport industry.
Hon. Aminu Sani Isa in 2017, while commenting on the bill said: “It was highly observed that the thrust of the NTC Bill is economic regulation. To a great extent this is also the main thrust of the NSC Act.” He also noted that the transmutation will also save cost; avoid duplication of agencies and easy adaptability, among others.
He said the main objective of the NTC is to provide efficient economic regulatory framework for the transport sector, mechanism for monitoring compliance of government agencies, transport service providers, and users in the regulated transport industry with relevant legislation and to advice government on matters relating to economic regulation of the regulated transport sector, which the NSC is already doing to a large extent.
Experts are also of the view that the Nigerian Shippers Council transmuting into NTC is expedient and cost effective because the NSC already has structures.
Besides its headquarters in Lagos and robust liaison office in Abuja, the council also has offices in the six geopolitical zones as well as area and port offices spread across the states of the federation. By virtue of its experience and the fact that it has been performing similar economic regulatory functions in the port subsector of the transport industry, the council is most suitable and easily adaptable to perform the role of an economic regulator.
For example Section 6 (1) (b), (c) and (h) of the draft NTC Bill 2016, which provides for some of the core functions of the NTC states as follows:
(b) Protect the interest of users of transport services by ensuring that prices are fair and reasonable while having regard to the level of competition in, and efficiency of, the regulated transport industry;
(c) Examine and resolve complaints, objections and disputes between government agencies in the regulated transport industry – concessionaires, licensed operators, users, shippers and consumers etc.
(d) Develop and monitor performance standards and indices relating to the quality of transport services and facilities provided to users.
(h) Advise the Government of the Federation through the Minister on matters relating to the structure of freight rates, availability and adequacy of shipping space, frequency of sailing, terms of shipment, class and quality of vessels, port charges and facilities.
While one cannot tell exactly how the Federal Government intends to set up the NTC, setting up a new, organization will add unnecessary overhead cost to the already bloated government payroll and yet duplicate the functions of the NSC at the NTC.
