By Joshua Yousouph
About one year after President Bola Tinubu signed the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law, the much-publicized abolition of container deposits at Nigerian ports has yet to take effect, with importers and freight forwarders still paying the controversial charges despite the legal provisions.
The NIIRA 2025, assented to in August 2025, introduced a major reform aimed at replacing the traditional cash container deposit system with a mandatory container insurance framework. Section 203 of the Act prohibits shipping companies from demanding upfront cash deposits from importers and freight forwarders as security for the return of containers, prescribing penalties of over N1 million for violators.
The reform was 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 Nigeria with international best practices.
However, findings by Shipping Position Daily indicate that the reform has remained largely on paper, with industry stakeholders confirming that shipping companies are still collecting container deposits.
Speaking exclusively with our correspondent last week, Head of the Complaints Unit at the Nigerian Shippers’ Council (NSC), Dr. Obiageli Juliana Saka, acknowledged that implementation of the container insurance framework has not commenced, explaining that regulators are still developing modalities for a seamless transition.
According to her, introducing the insurance regime requires extensive stakeholder consultations and a clear framework defining liabilities, insurance premiums, and operational procedures. She explained that 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.
“They have not started implementation. Some people don’t even know those containers are returnable. They think once they pay the deposit, the container becomes theirs. You even see containers converted into shops in some places. These are issues the insurance companies have to consider. No new policy comes without teething problems. As challenges arise, there will always be room for review and improvement,” Dr Saka added.
On his part, the National Public Relations Officer of the Association of Registered Freight Forwarders of Nigeria (AREFFN), Mr. Taiwo Fatomilola, expressed disappointment over the slow implementation of the law, describing Nigeria as a country where good policies are often not matched by execution.
According to him, although the insurance model is widely practised in many countries, Nigeria has failed to translate the policy into action. “We are still paying container deposits. The insurance arrangement would have been the best solution because that would serve as the security instead of tying down people’s money. But they are not doing it.”
Another freight forwarding practitioner and Tin Can Chapter Public Relations Officer of the Association of Registered Freight Forwarders of Nigeria (APFFLON), Clinton Okoro, described the reform as existing “only on paper,” noting that most shipping companies continue to collect container deposits despite the law.
Okoro disclosed that while a few operators, including CMA CGM, had reportedly reduced or stopped demanding container deposits after the reform was announced, most shipping lines continue to retain the practice, sometimes introducing additional charges to offset any perceived revenue losses.
He further revealed that delays in refunding container deposits remain a major source of complaints among freight forwarders. According to him, refund timelines vary across shipping companies, with some processing refunds within days while others retain customers’ funds for months.
Okoro also questioned the effectiveness of existing complaint mechanisms, arguing that despite repeated reports, importers continue to experience delays in recovering their deposits. “The thing is just on paper. Shipping companies are still collecting their deposits,” he said.
