NSC RESOLVES COMMERCIAL DISPUTE BETWEEN FEDERAL PRODUCE INSPECTION SERVICE (FPIS) AND PACIFIC INTERNATIONAL LINES (PIL)

The Nigerian Shippers’ Council (NSC) recently resolves a commercial dispute between the Federal Produce Inspection Service (FPIS) and Pacific International Lines (PIL) Nigeria through a structured tripartite mediation.

At the commencement of the tripartite resolution meeting held at Complaints Unit Meeting Room, at NSC Headquarters, Dr.Bashir Ambi Mohammed, Head, Complaints Unit, Representing Executive Secretary/CEO, Akutah Pius Ukeyima, Esq, MON, FCILT, Ph.D welcomed and appealed to all parties for understanding, cooperation, and absolute compliance in line with the Council’s statutory mandate. He emphasized that, pursuant to its enabling laws, the NSC is empowered to intervene in maritime, shipping, logistics, trade, and commercial disputes within Nigeria’s Marine and Blue Economy sector.

Dr. Mohammed noted that, over the years, even senior legal practitioners and Senior Advocates of Nigeria (SANs) have withdrawn cases from constitutional Courts and submitted them to the Council as Complaints, many of which were resolved amicably. He stressed that the Council’s overriding objective is to ensure economic growth, promote stakeholder confidence, and enable all industry players to strengthen and sustain their commercial relationships. He further stated that FPIS is a federal government agency under the Federal Ministry of Trade, while PIL remains one of the most compliant Shipping Companies operating in Nigeria. He then invited the complaint handler to present the background of the dispute.

Presenting the case,Toyin, on behalf of the NSC, informed the meeting that the Council received a formal complaint from PIL Nigeria regarding spraying/disinfestation charges raised by FPIS on PIL-owned Containers intended for the export of agricultural produce. The complaint covered the period April 2024 to December 2024, referenced FPI/HQ/GEN/VOL.II/005, dated 28 November 2025.

The disputed bills were as follows:

• 1,607 units of 20ft Containers, allegedly disinfested, billed at ₦10,670,480
• 1,006 units of 40ft Containers, allegedly disinfested, billed at ₦13,359,680

The total disputed amount stood at ₦24,030,160.

PIL described the charges as arbitrary, irregular, and unknown to the Company at the time the alleged services were rendered, and consequently requested the intervention of the Council. Mr. Dhanesh Nair, General Manager, Commercial, represented PIL Nigeria at the meeting. He stated that a similar incident had occurred previously and expressed concern that the bills were received in November 2025, referencing activities purportedly carried out as far back as April 2024. He raised the following key issues:

1. Lack of Container-Level Details: The bills were issued without Container numbers or operational details. PIL maintained that if FPIS claimed that over 2,000 Containers were disinfested, detailed lists specifying Container numbers, locations, and dates of service should be provided. PIL emphasised that Shipping Lines must be fully aware of what work is carried out on each Container under their control.
2. Cost Allocation and Policy Concerns: As FPIS is a federal government agency, PIL argued that any new cost regime should be routed through the appropriate policy and regulatory channels. PIL further stated that empty Containers cannot be pre-designated for agricultural exports alone, as they may be used for solid minerals or other non-agricultural Cargo. Consequently, PIL argued that such disinfestation costs should be borne by exporters rather than Shipping Lines.
3. Payment Instructions and Accountability: PIL expressed concern that the bills directed payment into two different bank accounts, raising issues of transparency and financial accountability.
4. Delayed Billing: PIL questioned why billing was issued nearly twelve months after the alleged services were rendered, noting that industry best practice requires timely invoicing.

Mr. Nair concluded by requesting comprehensive documentation, including Container numbers, locations, dates of activities, names of exporters (beneficiaries), and relevant certification, to enable PIL to verify the claims and report accurately to its principals.

Responding on behalf of FPIS, Mr. Patric K. Amesin appreciated the Council’s intervention but disagreed with PIL’s assertion that no services were rendered. He stated that FPIS possessed sufficient documentary evidence to substantiate the disinfestation activities carried out on PIL Containers. He explained that prior to Port concessioning, FPIS conducted disinfestation operations within Port premises at the request of Shipping Lines, with Containers laid out by the Carriers. However, following Port concessioning, operational practices changed, and disinfestation activities are now conducted primarily at points of loading, including:

• Exporters’ warehouses
• Crushing plants
• Bonded terminals
• Dry ports

These operations cover major logistics corridors, including Lagos, Port Harcourt, Kano, and Maiduguri. He further advised that if PIL maintains dedicated Container Holding Bays where empty Containers can be aggregated for disinfestation, FPIS could deploy officers to such locations to improve operational efficiency. Mr. Amesin clarified that the correct technical term applicable to Shipping Receptacles is disinfestation, which is distinct from fumigation.

• Fumigation applies to agricultural commodities and is the responsibility of exporters to ensure pests are eliminated before shipment.
• Dis-infestation applies to receptacles and logistics infrastructure, including Containers, Warehouses, Bonded terminals, Vessels, Barges, Railcars, Trailers, and related environments.

The purpose of disinfestation is to prevent pest build-up, cross-infestation, and the export of pests beyond Nigeria’s borders. He noted that repeated interceptions of infested Nigerian produce at destination ports negatively affect the Country’s credibility in international markets.

At the final tripartite mediation session, Mrs. Nwachukwu V. N, Deputy Director, FPIS, commended the NSC for its consistent dispute-resolution role. She noted that frequent changes in Shipping Line management often result in renewed questions regarding FPIS operational procedures. She explained that FPIS services are rendered at sea and at terminals, and that operational challenges often arise due to insufficient information provided by Shipping Lines regarding Container loading points. She cited past experiences at SIFAX Terminal, where significant manpower and equipment were required to access stacked Containers for disinfestation, thereby increasing operational costs.

Based on industry-wide consultations, it was agreed that disinfestation should be conducted at loading bays, exporters’ warehouses, and other logistics facilities. Consequently, FPIS personnel are deployed daily across multiple locations nationwide, including Lagos, Port Harcourt, Kano, and Maiduguri. She emphasized that FPIS’s objective is to ensure that no Container is loaded for export without undergoing disinfestation. She noted that Shipping Lines typically become aware of Container usage only during documentation, creating a timing gap between FPIS operations and Container handover.

Mrs. Nwachukwu further disclosed that Companies such as Golden Oil, Dufi Premier Foods, Crown Flying Oil, and Avara (Abia State) have utilized PIL Containers for export activities. She presented archival evacuation documents containing Container numbers, dates, and locations as evidence of work done. Other FPIS officials present included Zakar S.A., Omotosho R.A., Nwosu Ajamma H.I., Mambo Y., and Suleiman.

Meeting Resolutions

After extensive deliberations, the meeting unanimously reached the following resolutions that :

1. The NSC commends all parties for their patience and cooperation since the commencement of discussions in December 2025.
2. PIL Nigeria shall pay the outstanding sum of ₦24,030,160 upon receipt of complete and verifiable documentation from FPIS, including Container numbers, locations, beneficiaries, dates, and certification.
3. FPIS is requested to fast-track its automation process to enhance efficiency and ease of doing business.
4. PIL Nigeria and FPIS shall each designate a desk officer to ensure structured communication and coordination.
5. FPIS shall issue bills on a quarterly basis, accompanied by full supporting documentation, and all payments shall be made exclusively to the official FPIS account to enhance transparency and accountability.
6. FPIS shall conduct advocacy visits or convene stakeholder town hall meetings to sensitize Shipping Companies and Terminal Operators on its mandate, processes, and documentation requirements.
7. NSC requests that a copy of the FPIS Act be formally provided to PIL Nigeria.
8. FPIS is directed to resubmit its complaint against CMA CGM for Council consideration.
9. PIL is directed to forward its export bookings to FPIS for proper harmonization.
10. FPIS shall assign an officer to collect bookings from PIL pending the establishment of an official FPIS email platform.
11. PIL is urged to remit government revenue promptly, and all FPIS correspondence must be conducted strictly through official government email addresses.

The Council appreciates all parties for their attendance, cooperation, and commitment to amicable dispute resolution.