Key points
- Trade consultant alleges Nigeria may have lost over $600 million in customs duties and VAT through the unlawful disposal of shipping containers over three decades.
- Nigeria Customs Service urged to suspend Grimaldi Agency Nigeria’s planned sale of 2,500 empty containers pending a comprehensive audit.
- Allegations raise fresh concerns over customs compliance, revenue leakages, and the use of foreign currency in domestic transactions.
Main story
Fresh concerns have emerged over potential revenue leakages in Nigeria’s maritime sector following allegations that the country may have lost more than $600 million in customs duties and value-added tax (VAT) through the sale of empty shipping containers by foreign shipping lines operating in the country.
The allegations were made by the Principal Consultant of International Trade Advisory Services, Okey Ibeke, who called on the Nigeria Customs Service (NCS) to immediately suspend the planned sale of over 2,500 empty containers by Grimaldi Agency Nigeria pending a comprehensive investigation.
Speaking at a meeting with members of the Shipping Correspondents Association of Nigeria (SCAN) in Lagos, Ibeke argued that the proposed sale raises critical questions about compliance with customs regulations and the Federal Government’s efforts to curb the dollarisation of local transactions.
According to reports, Grimaldi plans to sell its empty containers to members of the public at $2,000 for a 40-foot container and $1,600 for a 20-foot container, with payments expected to be made in United States dollars through domiciliary accounts.
Ibeke contended that the issue extends beyond the pricing mechanism, arguing that the containers entered Nigeria under a temporary import regime and cannot be legally sold locally without first being converted to permanent imports through customs procedures.
He explained that under the Nigeria Customs Service Act 2023 and existing Temporary Import Guidelines, shipping containers brought into the country under temporary admission must either be re-exported or formally converted through a process that includes customs valuation, payment of applicable duties, taxes and levies, and the issuance of official release approvals by the Customs Service.
According to him, failure to complete these procedures before disposal amounts to a breach of customs regulations and potentially deprives the government of significant revenue.
Using current customs tariff calculations, Ibeke estimated that government revenue losses from duties and taxes could range between $350 and $400 per container. Based on Grimaldi’s proposed disposal of 2,500 containers, he said the potential revenue loss could approach $1 million from a single transaction.
He further claimed that if similar practices had occurred across the shipping industry over the past three decades, involving an estimated 250,000 containers, cumulative losses to the government could exceed $375 million in duties and taxes, translating to more than ₦600 billion at current exchange rates.
The consultant noted that Nigeria’s longstanding trade imbalance contributes to the problem, as vessels arrive with import cargoes but often depart with large numbers of empty containers due to limited containerised exports. This, he argued, creates incentives for shipping companies to dispose of empty containers locally rather than incur the high costs of repatriating them abroad.
The issues
The controversy touches on several critical issues within Nigeria’s maritime and trade ecosystem.
At the centre of the debate is whether shipping lines have complied with customs requirements governing temporary imports and whether government agencies have effectively monitored the movement, conversion or disposal of empty containers over the years.
The matter also raises concerns about potential revenue leakages at a time when the Federal Government is seeking to boost non-oil revenue and improve fiscal sustainability.
Another dimension relates to the continued use of foreign currency in domestic transactions. Industry stakeholders argue that requiring payments in dollars may conflict with ongoing efforts by monetary authorities to strengthen the naira and discourage dollar-denominated local transactions.
The allegations also revive longstanding complaints from importers and freight forwarders regarding container deposits, demurrage charges, detention fees and other shipping-related costs that are often billed in foreign currency.
What’s being said
Ibeke has urged the Nigeria Customs Service to suspend all ongoing and planned container sales by Grimaldi and other shipping lines until a comprehensive audit is conducted.
He called for a system-wide investigation covering shipping companies and their agents operating in Nigerian ports, with a reconciliation of customs records, port exit data and container movements to determine whether containers were properly re-exported, legally converted or unlawfully disposed of.
The trade consultant also advocated the recovery of all unpaid duties, taxes, levies and penalties from operators found to have breached customs regulations.
According to him, enforcing compliance is necessary not only to protect government revenue but also to ensure fairness and transparency within the maritime sector.
What’s next
Attention is now expected to shift to the Nigeria Customs Service and other maritime regulators, including the Nigerian Ports Authority and the Nigerian Shippers’ Council, to determine whether investigations will be initiated into the allegations.
Industry stakeholders will also be watching closely to see whether Grimaldi proceeds with the proposed sale or whether regulatory intervention alters the planned transaction.
Should an audit be conducted, it could potentially trigger wider scrutiny of container disposal practices involving major international shipping lines operating in Nigerian ports.
The outcome may also influence future policies governing temporary imports, container management and foreign currency transactions within the maritime industry.
Bottom line
The allegations surrounding Grimaldi’s proposed container sale have opened a broader conversation about customs compliance, revenue protection and regulatory oversight within Nigeria’s maritime sector. While the claims remain allegations pending official verification, they underscore the need for greater transparency in container management and stronger enforcement of customs procedures to prevent potential revenue leakages in one of the country’s most strategic economic sectors.
