Container indemnity, insurance scheme will increase cost of business at ports – Stakeholders

Freight Forwarders under the aegis of Africa Association of Professional Freight Forwarders and Logistics of Nigeria, (APFFLON) has expressed serious concerns over the draft implementation guidelines for the Container Indemnity & Insurance Scheme, (CIIS), warning that the framework, in its current form, may negatively impact Nigeria’s maritime economy and undermine ongoing efforts to reduce port costs.

National President of APFFLON, Otunba Frank Ogunojemite, in a statement, said while APFFLON acknowledges Federal Government’s commitment to eliminating the container deposit regime and strengthening container management, noted that a detailed review of the draft guidelines reveals provisions that could significantly increase the cost of doing business at Nigerian ports.

According to APFFLON, the draft places excessive operational, financial, and legal responsibilities on freight forwarders, including total liability for container custody, trucking selection, insurance procurement, and third-party risks.

The group warns that this approach departs from international best practices and unfairly overburdens one segment of the maritime value chain.

The freight forwarders also expressed concern over the concentration of wide regulatory, enforcement, and insurance selection powers in a single Clearing-House Administrator, noting that such a structure may encourage monopoly, limit competition, and reduce transparency within the sector.

APFFLON further cautioned that rising logistics and compliance costs could result in cargo diversion to neighbouring ports, leading to loss of national revenue, reduced cargo throughput, and job losses across the maritime industry. These outcomes, APFFLON noted, are inconsistent with the Federal Government’s Marine and Blue Economy agenda and the policy objective of reducing port-related charges.

It therefore called on the Minister of Marine and Blue Economy to suspend the current draft and convene an inclusive stakeholders’ engagement process aimed at producing a balanced, cost-effective, and globally competitive container indemnity framework.