By Stanley Nkwazema—
For decades, importers, freight forwarders, and clearing agents operating within Nigeria’s maritime sector have complained about what they describe as exploitative practices by some foreign shipping companies. From arbitrary detention charges and delayed container deposit refunds to the insistence on foreign currency payments for local services, stakeholders have consistently argued that these practices increase the cost of doing business in our ports and undermine government economic policies.
Now, a fresh controversy has emerged—one that industry observers say goes beyond commercial disagreements and raises fundamental questions about customs compliance, foreign exchange regulations and government revenue collection. The issue is the sale of empty shipping containers that are on temporary import status by shipping companies without following legal procedures.
Mr. Okey Ibeke, Principal Consultant, International Trade Advisory Services, has, however, raised issues of infractions by the Shipping lines, which he says violate the NCS Act of Legal Process for Conversion of Temporary Import to Permanent Import:
According to Ibeke, under the Nigeria Customs Service Act 2023 and Temporary Import Guidelines, conversion requires: Application: Shipping line applies to NCS for conversion approval. Valuation: Customs assesses value and computes duty, VAT, and levies. Payment: Duties and taxes paid into the Federal Government account via approved banks. Release: NCS issues SGD and Release Order, converting the container to “home use.” Sale: Only after release can the container be sold legally in Nigeria, and the transaction must be in Naira unless CBN grants exemption.
At the center of the debate is the reported plan by an international shipping operator, Grimaldi, to dispose of thousands of empty shipping containers within Nigeria through transactions allegedly denominated exclusively in United States dollars, without fulfilling legal requirements.
Beyond Dollarisation: The Temporary Import Question
While much of the public discourse has focused on the use of foreign currency for domestic transactions, maritime experts insist that the more critical issue concerns the legal status of the containers themselves.
Shipping containers entering Nigeria are typically admitted under a Temporary Importation status. Under this regime, containers are allowed into the country without the payment of import duties and allied taxes on the understanding that they will eventually be re-exported after cargo delivery.
The system is central to global shipping operations. Containers arrive laden with imports and are expected to leave the country either empty or carrying export cargo.
However, Nigerian customs regulations stipulate that such containers cannot simply be used or sold locally. Before any disposal can occur, they must first be converted from temporary admission status to permanent import status, with all applicable duties, taxes and levies duly paid to the Federal Government.
Industry stakeholders argue that failure to comply with this process could amount to a breach of customs regulations and result in substantial revenue losses to the government.
Reports of Large-Scale Container Disposal
According to reports circulating within the maritime industry, Grimaldi Agency Nigeria intends to dispose of more than 2,500 empty containers currently located across the country.
The reports suggest that 40-foot containers are being offered at approximately $2,000 per unit, while 20-foot containers are reportedly priced at around $1,600 each. Prospective buyers are said to be allowed to inspect the containers at designated terminals before receiving invoices denominated in U.S. dollars.
The reported payment structure allegedly requires settlement through domiciliary accounts, with the release of containers occurring only after confirmation of dollar payments.
The development comes at a time when the Federal Government and the Central Bank of Nigeria (CBN) are pursuing policies aimed at strengthening the naira and reducing the prevalence of foreign currency transactions within the domestic economy.
Divided Industry Reactions:
The reported sales have generated mixed reactions among maritime stakeholders.
Some industry leaders have criticised the dollar-denominated transactions, describing them as inconsistent with national efforts to promote financial sovereignty and stabilise the local currency.
Others contend that foreign currency transactions have long formed part of international shipping operations and should not automatically be viewed as unusual.
Yet, Ibeke notes that both arguments may overlook a more fundamental concern: whether the containers have been lawfully converted from temporary import status before being offered for sale.
“If these containers remain under temporary admission, then the issue is not merely the currency used for payment,” Ibeke observed.
“The more important question is whether government has received the duties and taxes required for permanent importation.”
What the Law Requires
Under the Nigeria Customs Service Act, 2023, and existing Temporary Importation guidelines, goods admitted under temporary arrangements must either be re-exported or formally converted to permanent import status.
The conversion process generally requires the following steps:
Application to the Nigeria Customs Service for approval;
Customs valuation to determine the assessable value of the goods;
Payment of applicable import duties, Value Added Tax and other statutory charges through approved channels; and
Issuance of documentation authorising conversion from temporary admission to home use.
Only after these procedures have been completed can such goods be legally sold within Nigeria.
Industry observers argue that any sale undertaken before the completion of these requirements could result in government revenue being circumvented.
The Revenue Implications
The potential financial implications are considerable.
Under the applicable customs tariff classifications, import duties, VAT and other statutory levies become payable when temporarily imported containers are converted to permanent imports.
Using prevailing tariff estimates, stakeholders calculate that government revenue on a container valued at $2,000 could range between $350 and $400 per unit.
Applied to a disposal exercise involving 2,500 containers, the potential revenue exposure could approach $1 million from a single transaction.
While the exact figures would depend on customs valuation and the tariff rates applicable at the time of conversion, analysts argue that the broader concern lies in the cumulative effect of similar transactions that may have occurred over several decades.
A Longstanding Industry Practice?
The controversy has also revived questions about historical practices within Nigeria’s maritime industry.
Nigeria’s import-dependent economy has traditionally generated a significant imbalance in container traffic. While vast quantities of imported goods arrive through the nation’s ports, comparatively few containerised exports depart the country.
As a consequence, shipping companies often accumulate large volumes of empty containers within Nigeria.
Industry estimates suggest that over the past three decades, hundreds of thousands of used containers have found secondary uses across the country—as shops, warehouses, security posts, cold rooms, storage facilities and even structural components for buildings.
The commercial logic is straightforward. Repositioning empty containers to Asia or Europe can be expensive, particularly when export volumes are insufficient to justify return movements. Local disposal may therefore appear economically attractive.
Nevertheless, maritime experts maintain that commercial convenience cannot supersede customs regulations governing temporary imports.
Calls for Regulatory Action
The emerging controversy has prompted calls for a comprehensive review of container disposal practices within Nigeria.
Stakeholders are urging the Nigeria Customs Service to investigate whether containers sold locally over the years were properly converted from temporary import status and whether all applicable duties and taxes were remitted to government.
They are also advocating for the reconciliation of port records, customs manifests and temporary import documentation to establish the actual scale of container disposals within the country.
Supporters of such an exercise insist that the objective is not to discourage investment or disrupt legitimate shipping operations, but to ensure compliance with existing laws and safeguard public revenue.
At a time when Nigeria is seeking to expand non-oil revenue sources, strengthen the naira and improve fiscal sustainability, every potential source of legitimate government income deserves scrutiny.
The debate over container sales, therefore, extends far beyond the disposal of shipping equipment. It has evolved into a test of customs enforcement, foreign exchange discipline and the country’s broader commitment to ensuring that commercial activities align with national economic interests.
- Nkwazema writes from Abuja.
