The ongoing crisis surrounding delayed container deposit refunds in Nigeria’s maritime sector is deepening, as importers and shipping companies continue to trade blame over refund bottlenecks, prompting renewed calls for regulatory overhaul and system automation to safeguard stakeholder interests.
Despite interventions by the Nigerian Shippers’ Council (NSC), which recovered over ₦62.8 million and $15,964 in the first quarter of 2025 through mediation on 41 complaints, frustrations persist among Nigerian importers and freight forwarders. The complaints range from arbitrary charges and demurrage to non-refunded container deposits—a practice many stakeholders describe as exploitative and harmful to ease of doing business in the maritime sector.
Container deposits are typically collected by shipping lines as a form of guarantee that empty containers will be returned in good condition and within a specific timeframe. However, importers allege that foreign shipping lines exploit this process, often delaying or denying refunds under questionable pretenses.
Shipping companies, on the other hand, have defended their practices. Jacob Losso, Deputy Managing Director of Mediterranean Shipping Company (MSC) Nigeria, admitted that the issue has persisted for over a decade but blamed it largely on importer non-compliance.
According to Losso, container deposit refunds are processed within 48 hours—but only when shippers meet stipulated requirements: returning the container undamaged and within the agreed free time. He added that complications usually arise with one-time users or inexperienced importers who fail to comply with procedures.
“Once the conditions are met, we have no reason to delay a refund,” Losso said during a workshop for maritime journalists. “However, many users either return containers late, in damaged condition, or not at all, making it impossible to process refunds.”
Industry watchers and advocacy groups disagree. Eugene Nweke, Head of the Sea Empowerment and Research Center (SEREC), condemned what he described as systemic abuse of the deposit framework by shipping lines. He argued that the lack of a robust and transparent refund mechanism fosters corruption and inefficiency in Nigeria’s port logistics chain.
Nweke urged for a comprehensive regulatory overhaul, starting with the automation of refund processes, real-time container tracking systems, and the establishment of monitoring units by the NSC to ensure shipping companies are held accountable.
“Importers are suffering double jeopardy,” he said. “They are penalized with demurrage for delays often beyond their control, and then denied refunds they are rightfully owed.”
He proposed alternative models such as insurance-based guarantees or a central container deposit fund jointly administered by the NSC and the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) to reduce dependency on cash deposits and curb abuse.
The crisis is contributing to rising importation costs, straining already burdened small and medium-sized enterprises (SMEs) who rely on maritime trade. Stakeholders say the unregulated nature of container deposit management could further erode Nigeria’s reputation as a viable trade destination, especially in light of the African Continental Free Trade Area (AfCFTA).
With port congestion, arbitrary charges, and refund delays stacking up, importers are demanding legislative intervention and the strengthening of maritime regulations to compel shipping firms to adopt more transparent and accountable practices.
As Nigeria pushes to digitize its ports and increase efficiency in its logistics sector, resolving the container deposit refund crisis is now seen as a critical test of regulatory capacity and industry reform. Stakeholders say the government must urgently facilitate dialogue among all parties—importers, shipping lines, freight forwarders, and regulators—to design a fair and enforceable framework for deposit management.
Until these structural issues are addressed, industry players warn that tensions will continue to escalate, potentially disrupting trade flows and weakening Nigeria’s maritime competitiveness.