Crisis Unfolds in Lagos Shippers' Association amid N13bn Fund Dispute

A significant crisis has erupted within the Shippers’ Association of Lagos State (SALS) over a N13 billion judgment fund, which is part of a larger N3 trillion fund payable into the Cargo Defense Fund (CDF) account.

The judgment fund, expected as a refund from shipping companies and terminal operators, arises from the Shipping Line Agency Commission (SLAC) and progressive charges. This financial windfall has sparked internal disputes and accusations within SALS.

Leonard Ogamba, the president of SALS, has dismissed claims of his removal from office by the association’s Board of Trustees (BoT) as laughable and driven by the substantial fund. Ogamba asserted that the BoT’s actions stem from their interest in the N13 billion fund, which is part of the larger settlement between APM Terminals, the Nigerian Shippers’ Council, and the registered trustees of SALS.

He clarified that this fund belongs exclusively to verified shippers across Nigeria and was part of an out-of-court settlement. Ogamba also stated that the BoT meeting on June 11, 2024, where his removal was purportedly decided, was illegal as he was not notified.

“This BoT constituted themselves in 2008. Nobody knew they existed. The record of the status report of the association was invalid, but when they heard I signed the first N13 billion, they woke up from their slumber,” Ogamba explained. He added that the BoT has misconceptions about the fund, believing they are entitled to a large portion of it, while the Cargo Defense Fund is limited by guarantee and cannot be distributed as profit.

Ogamba emphasized that to have a legitimate claim (locus) on the fund, shippers must show evidence of payment, and so far, only two shippers have submitted the required documentation. The Nigerian Shippers’ Council had to actively solicit these documents to determine the amounts due.

He also accused the BoT of attempting to bypass him and sign the settlement terms with APM Terminals Ltd and the NSC in June 2023, which was refused by the Nigerian Shippers’ Council, affirming that only the incumbent president could sign.

A mediation agreement brokered by the Nigerian Shippers’ Council had mandated a halt to SALS meetings until reconciliation. Despite this, Ogamba accused the BoT of holding unauthorized meetings, including one where they allegedly removed him, just two days before a scheduled mediation meeting, which the BoT and their supporters failed to attend.