Importers and their agents have continued to pay container deposits and detention charges to foreign shipping companies despite the new marine insurance regime introduced under the Nigeria Insurance Industry Reform Act (NIIRA) 2025.

They also face prolonged delays in recovering their funds after returning the containers, with shipping companies attributing the delays to late return or damaged containers.

The NIIRA, signed into law by President Bola Tinubu in August 2025, introduced a major reform to replace the container deposit system operated by shipping companies with a mandatory container insurance framework.

Section 203 of the Act prohibits shipping companies from demanding upfront deposits from importers and freight forwarders as security for the return of containers, prescribing penalties of more than N1 million for violators.

The reform was also expected to free up billions of naira trapped in refundable container deposits, improve cargo clearance, reduce the cost of doing business at the ports and align the country’s maritime industry with international best practices.

However, one year after the law’s enactment, the container deposit system has effectively ceased to provide adequate protection for cargo interests, as importers continue to incur detention charges despite the legal provisions.

No shipping company has been sanctioned for violating the provision, as operators continue to demand container deposits and impose detention charges despite the law’s requirements.

Importers are already grappling with prolonged delays in returning containers due to port inefficiencies, inadequate container holding bays, congestion, poor infrastructure, complex logistics and other operational bottlenecks, all of which add to the cost of doing business in the maritime sector.

Stakeholders have pointed to persistent challenges surrounding empty-container returns, including the lack of holding bays provided by shipping companies, long truck turnaround times and congestion along major port corridors.

They noted that these bottlenecks continue to increase the financial exposure of importers and other supply chain participants, undermining the objectives of the new insurance regime.

National President, Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), Frank Ogunojemite, lamented the failure to provide adequate facilities for the return of empty containers to the Lagos ports.

He said the insufficient number of holding bays and designated collection points for empty containers has created unnecessary bottlenecks that frustrate cargo movement, delay truck turnaround times, and worsen traffic congestion around the Tin Can and Apapa seaports corridor.

Ogunojemite lamented that importers are compelled to pay excessive container detention charges because they cannot return empty containers within the stipulated period due to the lack of available receiving spaces.

He questioned why importers should be punished financially for a problem created by the shipping company, which he said amounts to exploitation of Nigerian businesses and runs contrary to the principles of fair trade and ease of doing business being championed by the Federal Government.

He demanded that shipping companies immediately provide adequate holding bays and empty container collection centres, and suspend container detention charges when importers are unable to return empty containers due to inadequate reception facilities.

Ogunojemite demanded compensation for importers and freight forwarders who have suffered avoidable financial losses arising from delays in returning empty containers as well as strict enforcement of service standards and appropriate sanctions against any shipping company found to be creating artificial bottlenecks for commercial gain.

Partner at Akabogu & Associates, Victor Onyegbado, said the NIIRA 2025 presents an opportunity to address longstanding weaknesses in Nigeria’s container insurance regime, given that cargo routinely moves from vessels to terminals, barges, trucks, warehouses and other logistics points.

He said one of the most significant changes under the new framework is the shift away from container deposit requirements that have traditionally provided shipping companies with financial security for equipment return and damage, while the cargo owners suffer losses.

Onyegbado stressed that while the container deposits offered protection to carriers, they tied up importers’ funds and frequently became a source of commercial disputes.

Responding to the delayed implementation of the legal framework, the Head of the Complaints Unit at the Nigerian Shippers’ Council (NSC), Dr Obiageli Saka, confirmed that implementation of the container insurance framework has yet to commence, explaining that regulators are still developing modalities for a seamless transition.

Saka said introducing the insurance regime requires extensive stakeholder consultations and a clear framework defining liabilities, insurance premiums and operational procedures.

According to her, under the new arrangement, shipping lines would no longer pursue importers for damaged or unreturned containers, as insurance companies would bear such liabilities.

She disclosed that the National Insurance Commission (NAICOM) is already working on implementation guidelines, but cautioned that every major reform comes with initial challenges.