Freight forwarders and shippers across Nigeria are calling on the federal government to end the outdated container deposit refund system and adopt a Goods-in-Transit (GIT) insurance model that better serves the realities of today’s shipping environment.
For years, operators have had to pay large container deposits to shipping lines funds meant to be refunded within 4 to 7 days, according to Nigerian Shippers’ Council (NSC) rules. But in practice, refunds are often delayed for months, with no interest paid, putting unnecessary strain on businesses.
Kayode Farinto, former acting president of the Association of Nigerian Licensed Customs Agents (ANLCA), says the current system has turned into a “money-making venture” for some shipping lines, who hold onto deposits indefinitely and deploy the funds for private use. “It’s unfair, outdated, and needs to go,” he said.
What’s the alternative?
Industry leaders are proposing a shift to GIT insurance, a global best practice. Instead of paying a deposit, freight forwarders would present an annual insurance policy that covers container liability. If a container isn’t returned, the insurer pays the shipping line, and then settles with the operator responsible.
This move would:
Reduce financial burdens on freight agents
Improve transparency and accountability
Align Nigeria with international logistics standards
Speed up operations at inland container depots and ports
Other voices in the sector, like Clinton Okoro of APFFLON and Festus Ukwu of NCMDLCA, are also calling for broader reforms. Ukwu suggests that shipping lines create centralized empty container depots for smoother returns and better tracking, while agents continue to develop a more efficient, transparent logistics system.
This isn’t just a demand, it’s a necessary upgrade to support Nigeria’s trade growth and ease of doing business.
