One year after the Nigeria Insurance Industry Reform Act (NIIRA) 2025 came into force, concerns persist over its implementation. The law prohibits offshore shipping companies from demanding upfront deposits from importers and freight forwarders as security for the return of containers. However, importers and their agents continue to pay container deposits and detention charges. For instance, a 40-foot container costs N200,000 within Lagos and N400,000 outside the state.
The NIIRA 2025 aimed to unlock billions of naira tied up in refundable container deposits, facilitate faster cargo clearance, reduce the cost of doing business at Nigerian ports, and align the country's maritime industry with international best practices. Section 203 of the Act prescribes penalties of more than N1 million for companies that violate the requirement. Despite this, shipping companies have continued to demand container deposits and impose detention charges, contrary to the new law.
Importers and clearing agents face prolonged delays in securing refunds after returning containers. Shipping companies often attribute delays to late returns or claims that containers were damaged. No shipping company has been sanctioned for allegedly violating the provision. Stakeholders have identified operational bottlenecks, including inadequate holding bays and prolonged truck turnaround times, as contributing factors to the delays.
National President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), Frank Ogunojemite, expressed concerns over the lack of adequate facilities for returning empty containers to the Lagos ports. He attributed the excessive container detention charges to the insufficient number of holding bays and designated collection points. Ogunojemite called on shipping companies to provide adequate holding bays, suspend container detention charges, and compensate importers and freight forwarders for financial losses.
Former National Secretary of the Association of Nigerian Licensed Customs Agents (ANLCA), Abdulazeez Mukaila, confirmed that foreign shipping lines still collect container deposits from importers and agents. He questioned the enforcement of the law and suggested that awareness creation may be necessary. Mukaila revealed that some shipping lines take over 120 days to refund deposits, and about 60-70% of shipping lines in Nigeria do not have their own holding bays.
Mukaila rated some shipping lines for their efficient services, while criticizing others for contributing to port congestion. He emphasized the need for the Shippers' Council or the Nigerian Port Authority (NPA) to enforce the law and address the issue of container deposits and detention charges. The continued disregard for the NIIRA 2025 has resulted in significant financial losses for importers and freight forwarders.
The persistence of container deposits and detention charges has sparked calls for stricter enforcement of the law and improved service standards from shipping companies. Importers and agents are urging regulatory bodies to take action against companies that continue to flout the regulations. The issue has significant implications for the ease of doing business in Nigeria and the competitiveness of the country's maritime industry.
Key points
- Shipping lines in Nigeria continue to defy the NIIRA 2025 by demanding container deposits and imposing detention charges on importers and agents.
- The lack of adequate holding bays and operational bottlenecks contribute to delays in returning empty containers and securing refunds.
- Stakeholders are calling for stricter enforcement of the law and improved service standards from shipping companies.
