Shippers and freight forwarders are intensifying calls for the federal government to abolish the current container deposit refund system, describing it as exploitative, outdated, and a burden on port users. In its place, stakeholders are advocating for the adoption of a Goods-in-Transit (GIT) insurance model, which they believe would ease financial strain, enhance transparency, and improve overall port efficiency.
Industry experts argue that the proposed insurance-based model would bring Nigeria’s shipping operations closer in line with international best practices and significantly enhance the ease of doing business at the ports.
Although the Nigerian Shippers’ Council (NSC) mandates that container deposits be refunded within four to seven days, freight forwarders report frequent delays often lasting several months with no interest paid on the withheld funds.
Kayode Farinto, former Acting National President of the Association of Nigerian Licensed Customs Agents (ANLCA), criticized shipping lines for allegedly turning container deposits into profit making ventures.
“Some shipping companies have turned these deposits into business capital. They withhold the funds for months, use them for private gain, and pay nothing in return to the importers or freight agents. This practice is exploitative and must be stopped,” Farinto said.
He further explained that stakeholders have long urged the NSC to approve annual GIT insurance certificates as a replacement for container deposits.
“Under the GIT model, freight forwarders or logistics firms can present an annual insurance policy covering their operations. If a container goes missing or isn’t returned, the insurance company bears the liability and handles the claim with the operator,” he added.
Supporting the call, Clinton Okoro, Public Relations Officer of the Association of Registered Freight Forwarders of Nigeria (APFFLON), Tin Can Chapter, also condemned what he described as unjust demurrage charges imposed by some shipping companies.
Meanwhile, Festus Ukwu, Secretary General of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), called for broader structural reforms in container handling. He proposed that all shipping lines establish dedicated container depots in Nigeria to streamline returns.
“For greater efficiency, all returned containers should be processed through a central container deposit centre before being loaded back onto return vessels to their country of origin,” Ukwu said.
He revealed that key stakeholders are already working on a new framework aimed at phasing out the current deposit system in favor of more efficient and transparent alternatives.
