October 2026, Edition 2
The Nigerian maritime landscape has reached a historic inflection point. Following years of legislative deliberation and intense industry advocacy, President Bola Ahmed Tinubu assented to the Nigerian Ports Economic Regulatory Agency (NPERA or the Agency) Act, 2026 in August 2026. This Act establishes an independent, statutory economic regulator for Nigeria’s port sector, signalling a paradigm shift from fragmented interim supervision to a formalized, enforceable regulatory regime.
For over a decade, the Nigerian Shippers’ Council (NSC) operated as the interim port economic regulator, thereby causing some legal ambiguities. The statutory powers of the NSC, originally framed around shipper protection and freight consultation under its previous governing law (i.e., Nigerian Shippers’ Council Act, Cap. N133, Laws of the Federation of Nigeria, 2004), often collided with the functions and mandates of the Nigerian Ports Authority (NPA).
With the repeal of the NSC framework and establishment of the NPERA, Nigeria’s maritime trade infrastructure now better aligns with international best practices.
This article examines the core highlights of the NPERA Act 2026 (or “the Act”) and its impact on port service providers and shippers.
The NPERA Act 2026 introduces rules for trade and marine transport designed to eliminate arbitrary pricing, enforce efficiency standards, and protect both terminal operators and cargo owners.
The Act’s objectives are to establish a framework for efficient economic regulation of “regulated services” and to protect the interests of shippers, providers and users of those services. Regulated services cover any shipping or port service provided, supplied, or offered for supply in the Nigerian sector.
Key highlights of the NPERA Act 2026 are as listed below:
Pursuant to Section 4 of the NPERA Act, the Agency is empowered to administer and enforce the Act, implement regulatory frameworks, and execute government economic policies across the maritime and port sectors, including terminals, off-docks, jetties, and offshore platforms. In carrying out its mandate, the NPERA sets registration terms, conditions, and fees for service providers and users while establishing, monitoring, and enforcing performance standards and contractual compliance across vessel reception, cargo handling, dry ports, haulage, and freight services.
Pursuant to Section 4 of the NPERA Act, the Agency is empowered to administer and enforce the Act, implement regulatory frameworks, and execute government economic policies across the maritime and port sectors, including terminals, off-docks, jetties, and offshore platforms. In carrying out its mandate, the NPERA sets registration terms, conditions, and fees for service providers and users while establishing, monitoring, and enforcing performance standards and contractual compliance across vessel reception, cargo handling, dry ports, haulage, and freight services.
Section 5 of the NPERA Act establishes the Governing Board which is responsible for overseeing the general administration of the Agency. The Board’s statutory functions include formulating high-level policies, approving organization structures, and setting staff remuneration, benefits, and allowances, alongside exercising powers necessary to carry out its statutory mandate.
The Board comprises a part-time Chairman, the Director-General, representatives from the supervising Ministry, and five part-time members with relevant industry experience. The Act further delineates the criteria for appointment, tenure, remuneration, resignation, removal, and overall cessation of Board membership.
Part V of the NPERA Act establishes a financial framework designed to secure operational independence and long-term fiscal sustainability for the Agency.
Section 19 of the NPERA Act creates a Fund responsible for meeting all its expenditures. The Fund derives its capital through a diverse mix of revenue streams, most notably a statutory 1% freight fee levied on all imports into Nigeria. Additional revenue channels include: the initial take-off grant by the Federal Government, budgetary appropriations from the National Assembly, registration fees, service charges, fines collected from regulatory infractions, and returns on Agency investments. To preserve regulatory integrity and safeguard against potential conflicts of interest, the Act explicitly restricts the acceptance of external gifts, endowments, or financial assistance from operators, service providers, or users within the regulated sector.
The application of these funds is strictly tied to advancing the statutory mandate and internal capacity of the Agency. As stated in Section 19(3), monies drawn from statutory appropriations, fines, third-party assistance, and investment returns are earmarked for general administration, property acquisition, operational upkeep, staff remuneration, and Governing Board allowances.
Beyond internal revenues, Section 20 grants the Agency borrowing powers to raise capital for its operations, subject to presidential approval. It also authorizes the Agency to accept technical aid and grants from national, bilateral, and multilateral organizations to achieve its functions and objectives under the Act.
Further, to optimize its fiscal position, Section 21 of the Act grants the Agency full exemption from corporate taxes and standard enactments governing company taxation regarding income derived from its investments.
