Reassessing the transition from paper to electronic bills of lading: regulatory impediments and prospective reforms in Nigeria’s maritime sector

• Date: 29 October 2024
• Pages: 187-202
• DOI: https://doi.org/10.1108/JITLP-08-2024-0052
• Published date: 29 October 2024
• Subject Matter: Strategy,International business,International business law,Economics,International economics,International trade
• Author: Damilola Idris Osinuga,Osatohanmwen Anastasia Eruaga

Reassessing the transition from

paper to electronic bills of lading:

regulatory impediments and

prospective reforms in

Nigeria’s maritime sector

Damilola Idris Osinuga

DOLP Consulting, Yaba, Lagos, Nigeria, and

Osatohanmwen Anastasia Eruaga

Nigerian Institute of Advanced Legal Studies (NIALS), Abuja, Nigeria

Abstract

Purpose –The purpose of this paper is to re-evaluate the legal barriers surrounding the implementation of

electronic billing systemsand to propose potential reforms aimed at facilitatingtheir eff‌icient and widespread

adoption in Nigeria. Since the 16th century, bills of lading have been integral to global trade, evolving in

response to the practical exigencies and technological advancements of their respective eras. Despite their

historical signif‌icance, the traditional paper-based bill of lading has increasingly been recognised as a

hindrance to contemporary maritime commerce. The inherent vulnerabilities of physical documentssuch as

susceptibility to damage and the logisticaldelays associated with their manual transfer have underscored the

ineff‌icienciesof this conventional system. These limitations have catalysedthe development of electronic bills

of lading (e-billsof lading) as a digital counterpart, a transition particularly pertinentwithin Nigeria’s maritime

sector.Nevertheless, the adoption of e-bills of lading has engenderedconsiderable apprehension, largely due to

uncertaintiessurrounding their legal validity and operationaleff‌icacy.

Design/methodology/approach –This paper conducts a comprehensive desk-based study to examine the

historical evolution and current concernssur roundinge-bills of lading as a substitute for traditional paper forms.

Findings –Specif‌ically,the paper advocates for the enactment of clearand robust legislation that would grant

e-bills of lading the same legal statusas their paper counterparts.

Originality/value –This paper offers an original contribution to the academic and legal discourse on the

subject, providing a novel analysisof the regulatory gaps while proposing practical recommendationsfor the

effectiveadoption of e-bills of lading in Nigeria’smaritime industry.

Keywords Maritime commerce/shipping, Traditional bills of lading, E-bills of lading

Paper type Research paper

1. Introduction

The global movement of goods signif‌icantly relies on maritime trade. Over 80% of

international trade in goods is carried by sea, which is even higher for most developing

countries, includingNigeria. The bill of lading is a signif‌icant feature of global commerce via

the maritime space, mainly becauseof its essential role in facilitating documentary sales and

raising f‌inance in shipping and internationaltrade transactions. Typically, bills of lading fulf‌il

three primary roles in maritime business operations. They function as documents granting

ownership rights to the goods specif‌ied therein; they serve as acknowledgement receipts for

the transported merchandise; andthey encapsulate the mutually agreed terms and conditions

Journal of

International

Trade Law and

Policy

187

Received19 August 2024

Revised28 September2024

29 September 2024

1O ctober 2024

3O ctober 2024

Accepted7 O ctober 2024

Journalof International Trade Law

andPolicy

Vol.23 No. 2/3, 2024

pp. 187-202

© Emerald Publishing Limited

1477-0024

DOI 10.1108/JITLP-08-2024 -0052

The current issue and full text archive of this journal is available on Emerald Insight at:

https://www.emerald.com/insight/1477-0024.htm

governing the transportationand eventual release of the shipped goods [1]. The conventional

format of the bills of lading since around the 16th century has been a piece of physical

document, passed among all parties who are involved in the trade process up until the f‌inal

purchaser of the goods which it represents.

Contemporary observationssuggest a disjunct between the pace of the paper bill of lading

movement and that of the vessel, with the latter berthing before the party with the right to

present the document. Thisdissonance potentially engenders delays, port congestionsand an

escalation in demurrage expenses (Low, 2000). Evident technological advancements in

various sectors, including the maritime industry, provide additional justif‌ication for

transitioning from traditional paper-based documentation to processes that involve technical

and electronic systems. Overrecent years, numerous industries have embraced digitalisation

as a pivotal means to enhance logistics operations and bolster data management practices.

Furthermore, concerns arise regarding the documentary fraud inherent in paper-based

processing compared to an electronic system alongside the imperative of advancing and

promoting environmental sustainability. The trajectory of dissatisfaction in the utilisation of

paper bills of lading underscoresthe necessity for modernisation within the maritime realm.

The evolutionary process to addressthe problem associated with paper bills of lading has

created the advocacy globally for the adoption of electronic bills of lading (eBOL) to

improve overall eff‌iciency and facilitate seamless integration with contemporary digital

frameworks (Zhu et al., 2022). It is forecasted that by 2030, 50% of all bills of lading in the

world will be electronic (Anagor-Ewuzie,2022). However, the introduction of eBOL raises

some distinct concerns such as its negotiability and the adequacy of extant legislative

measures to accommodate its supplanting the traditional form. Moreover, there arises the

overarching consideration of stakeholders’willingness to depart from entrenched century-

old practices (Marek, 2013).

This article examines the use of eBOLs as an alternative to its paper counterpart. The

review explores the regulatory landscape of e-bills of lading in Nigeria. In addition, the

article examines the various obstacles that have impeded the widespread use of these forms

of lading within the national commercial maritime landscape. It identif‌ies the absence of an

appropriate legal framework as a major setback and recommends legislative reform as the

pathway towards enhancingits acceptance in Nigeria.

The article is divided into six sections, including the introductory (Section 1) and

concluding parts (Section 6). Section 2 discusses the origin and functions of the traditional

bill of lading in global commerce before exploring the limitations that have arisen

concerning its continuous use in Section 3. Section 4 focuses on the rise of eBoLs and

pertinent concerns with respect to its utilisation in Nigeria beforemaking recommendations

as to how to improve its utilisationin Section 5.

2. Timeless traditions −the origin, functioning and pitfalls of the paper bill of lading

A bill of lading is:

A document issued by or on behalf of a carrier of goods by sea to the person (usually known as the

shipper) with whom he has contracted for the carriage of the goods (Treitel et al., 2017).

It is “a document which evidencesa contract of carriage by sea […]. and by which the carrier

undertakes to deliverthe goods against surrender of the document”[2].Tetley distinguishes a

bill of lading from charter parties stating that billsof lading are contracts for the carriage of

goods, unlike charterparties, which are contracts of hire of the ship or her service (Tetley,

2002).

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