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 The Cargo Defence Fund was set up because of the need to tackle problems associated with abandonment of legitimate Cargo Claims successfully. The Cargo Defence Fund therefore seeks to assist the often frustrated and confused Nigerian Shippers in their pursuit of legal remedies and claims recoveries.
The Council embarked on a series of studies handled by expert consultants to assess the problems face by shippers, find out why legitimate claims are abandoned, determine how to implement the Fund and also ascertain the level of assistance to be given to shippers. This, the Council was convinced would help base findings on statistical data and also identify vulnerable areas where Nigerian Shippers have suffered greatest loss.
The Council has been charged to consider problems faced by Shippers and advise government on possible solutions, promote and encourage the study and research into these problems and also carryout such other activities as are:
Implementation of the Fund
The Council registered a company limited by guarantee known as The Cargo Defence Fund. This gives the fund the legal entity to operate independently of the Council. The Fund is administered and managed by a Board of Trustees representing various shippers interests and the Fund is completely isolated from the Management of Nigerian Shippers’ Council. The Council has made n initial financial contribution to the Fund, which is described as “Seed Money.” The anticipation of the Trustees is that shippers would be encouraged to contribute to the Fund.
Structure and Administration of the Fund
The various Shippers’ interests represented at the level of the Board of Trustees are the Insurance Industry, Maritime Law Practice, Manufacturers Association of Nigeria, NACCIMA, and four seasoned shippers from the four geo-economic zones of the country, the Executive Secretary/CEO and two other representatives from Nigerian Shippers’ Council.
Shippers are encouraged to contribute on the basis of their associations, or otherwise as may be worked out because the identified beneficiaries to the Fund are shippers’ registered with the Council, directly or indirectly through the Shippers’ Associations. The Fund maintains a list of the existing Shippers’ Associations spread all over Nigeria.
Claims, Processing and Disbursements
Shippers’ complaints or claims would be received at any of the Council’s Area, Port, Zonal Coordinating offices and the Head Office.
The Head Office is located in Lagos at 4, Park Lane, Apapa, Lagos and the Secretariat of the Fund is located at the same address. For the purpose of coordination of claims, the Fund has worked out an arrangement with the Council’s offices to receive complaints or claims promptly, since in principle, all claims would be processed by the Secretariat and presented before the Board of Trustees.
Services Provided Include:
- Legal / Technical Advice
- Loan to pursue Claims / Litigation / Arbitration
- Payment of Risk Management Services
- Foreign Legal Representation
- Cover for Specific Risks as Agreed
- Quality Information Services
- General Risk Management Advice
- To Convene Alternative Dispute Resolution Forum
Claims Approval Procedure
- Who is Entitled to Benefit From the Fund?
A registered Nigerian importer or exporter is entitled to benefit from the Fund so far as he meets the criteria set out by the Board of Trustees of Cargo Defence Fund. Beneficiaries may include individuals or private limited liability companies. A beneficiary may apply himself or request a legal practitioner or an agent to apply on his behalf and represent his interest.
- To Whom Should Claims be Addressed?
Claims should be addressed to the Management of Nigerian Shippers’ Council or to the Secretary of the Fund. Claims must be in writing, containing the date, place and details of transaction causing loss or damage and efforts made by claimant or shipper to remedy the situation.
- Particulars of Claim
(a) Name and address of claimant and or any representative
(b) Nature, place and date of transaction causing loss or damage
(c) Details of transaction and copies of contracts
(d) Efforts made to remedy loss or damage
(e) Amount of claim
(f) Costs of efforts to remedy loss
The Board of Trustees shall exercise discretion as to who may be entitled to benefit from the Fund. Payments or disbursements may cover costs, loss or damage or a proportion or percentage of same.
Settlements shall be dealt with promptly and in accordance with the Rules of Procedure of the Fund. The Trustees have prepared a Claims Brochure, which would be made available on subscription to shippers and their representatives for guidance on matters affecting Cargo Defence Fund. The Trustees have also designed a Subscription Form, which would entitle you to become a member and enjoy all the services of the Fund on the payment of the appropriate registration fee. Other details would be provided to importers and exporters who indicate their interest to subscribe to Cargo Defence Fund.
How to Subscribe to The Fund
By completing the Cargo Defence Fund Subscription Forms and the payment of appropriate fees according to turnover:
| Category | Turn Over (=N=) | Fees (=N=) |
| A | 100,000,000
to 1,000,000,000 | 100,000 |
| B | 10,000,000
to 100,000,000 | 75,000 |
| C | 1,000,000
to 10,000,000 | 25,000 |
| D | Less than 1,000,000 | 15,000 |
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