Illegal sale of empty containers costs Nigeria N600bn in 30 years, says expert

Nigeria may have lost an estimated N600 billion over the past three decades due to the illegal sale of empty containers by some shipping companies operating in the country.

This disclosure was made by the Principal Consultant of International Trade Advisory Service, Mr. Okey Ibeke, during a meeting with members of the Shipping Correspondents Association of Nigeria in Apapa, Lagos, on Monday.

Ibeke noted that Nigerian importers and clearing agents have long complained about exploitative practices by foreign shipping lines at the ports, which increase business costs and undermine government policies.

He pointed out that Grimaldi is not the only shipping company selling empty containers in Nigeria. Others, including Maersk, MSC, CMA CGM, Hapag-Lloyd, COSCO, ONE, Evergreen, and PIL, have been doing so for decades.

According to industry estimates, hundreds of thousands of containers have been sold in Nigeria for use as shops, security posts, cold rooms, farm storage, and building materials. Ibeke calculated that if 250,000 containers were sold without duty payment at an average value of $1,500 each, Nigeria lost over $375 million in duties and value-added tax  more than N600 billion at current exchange rates over 30 years.

He stressed that empty containers fall under temporary imports, meaning they are brought in to carry cargo and are expected to be re-exported empty. Selling them in Nigeria requires conversion to permanent import under the Nigeria Customs Service Act 2023, which involves applying for approval, paying duties and taxes, and obtaining a release order.

Ibeke explained that transactions for such sales must be conducted in naira unless the Central Bank of Nigeria grants an exemption. He highlighted several laws violated by the practice, including sections of the NCS Act and CBN foreign exchange regulations.

He called on the Comptroller-General of the NCS, Adewale Adeniyi, to immediately suspend all sales of empty containers by Grimaldi and other shipping lines pending investigation. He also urged a system-wide audit of shipping lines and agents from 2006 to date, reconciliation of port records, recovery of outstanding duties, and sanctions against violators.

“This is not about driving away investors. It is about enforcing the law and protecting Nigeria’s revenue at a time when the government desperately needs funds to stabilise the economy,” Ibeke concluded.