By Seun Ibiyemi
The Sea Empowerment and Research Centre (SEREC) has called on the Federal Government to introduce a demurrage tax on empty and unreturned containers, particularly dilapidated ones, as part of efforts to decongest Nigerian ports and improve environmental safety.
Addressing a press conference in Abuja on Monday, Mr Eugene Nweke, Head Researcher at SEREC, said such a tax would align with international shipping practices and offer Nigeria an opportunity to generate significant revenue while promoting a cleaner, more efficient port system.
Nweke explained that shipping companies currently charge Nigerian shippers an average of ₦10,000 per day in demurrage after the initial grace period. He noted that many countries already apply fees or taxes on unreturned containers, citing Germany, France, the United Kingdom, and the United States as examples where detention fees are enforced once containers exceed their allotted free time.
“Imagine if the government places a demurrage tax on a percentage basis for every unreturned empty container in our ports. The potential revenue generated from that window alone could be substantial,” he said.
According to Nweke, funds accrued from such taxes could be used to revitalise the country’s port infrastructure, modernise operations, and ensure consistent maintenance. He warned that failing to implement such regulatory measures would only perpetuate the current situation, in which unreturned containers continue to clog port spaces and create financial and logistical burdens.
He further stressed the environmental and public health risks posed by abandoned containers, particularly those in poor or unseaworthy condition.
“To mitigate these risks, it is reasonable for Nigeria to adopt similar measures by implementing taxes and fees that encourage the prompt return of empty containers. This will also reduce the financial burden on shipping lines,” Nweke added.
SEREC has proposed the creation of a coordinated strategic container return system, to be jointly managed by the Nigerian Shippers Council (NSC), the Nigerian Ports Authority (NPA), and other relevant stakeholders.
Nweke also encouraged Nigerian businesses to enhance export activities, which would help reduce the imbalance in container traffic and ease the burden on shipping logistics.
Additionally, he advised the government to invest in modern port infrastructure and efficient management systems to streamline container handling, reduce congestion, and improve tracking and return logistics.
He concluded by recommending the establishment of an effective and enforceable container return system to help minimise abandoned containers and reduce port storage costs.