FG Losses $600 million in Customs Duty to Illegal Sale of Empty Containers by Shipping Companies
Maritime expert and Chairman of International Trade Advisory Services, Elder Okey Ibeke
Nigeria may have lost over $600 million in customs duties, VAT and other applicable levies over 30 years due to the illegal sale of empty shipping containers by foreign shipping lines operating in its ports, a trade expert has alleged.
Speaking while addressing journalists covering maritime industry in Lagos on Monday, Mr. Okey Ibeke, Principal Consultant at International Trade Advisory Services, called on the Comptroller-General of the Nigeria Customs Service to immediately suspend all sales of containers by Grimaldi Agency Nigeria and other shipping lines pending a full audit.
Ibeke’s intervention followed media reports that Grimaldi Agency Nigeria plans to sell over 2,500 empty containers to the Nigerian public. According to the reports, which Grimaldi has not refuted, the sale terms are: $2,000 for a 40ft container and $1,600 for a 20ft container. Inspection is allowed at terminals, but invoices will be issued in USD only and payment must be made through domiciliary accounts before release.
“This is happening while the Federal Government, through the CBN and Ministry of Finance, is intensifying efforts to stabilize the Naira and stop the dollarization of domestic transactions,” Ibeke said.
He argued that the core violation is not pricing, but legal status. The containers are in Nigeria under “Temporary Import” status, meaning they were brought in to carry cargo and must be re-exported. They cannot be sold locally unless converted to permanent import through the Nigeria Customs Service.
Under the Nigeria Customs Service Act 2023 and Temporary Import Guidelines, conversion requires: application to NCS, customs valuation, payment of duties, VAT and levies into government accounts, and issuance of a release order. Only then can the container be sold legally in Nigeria, and the transaction must be in Naira unless the CBN grants an exemption.
“With Grimaldi, Step 5 is happening without Steps 1-4. That is illegal,” Ibeke stated.
Using the 2026 customs tariff for HS Code 86.09 — 5% import duty + 7.5% VAT + 0.5% ECOWAS ETLS + 4% FOB levy — Ibeke calculated that government loses $350-$400 in duties and taxes per $2,000 container if sold without conversion. For 2,500 units, the loss is $875,000 to $1,000,000 from one company in one transaction.
Extending the analysis, he said industry estimates show hundreds of thousands of containers have been sold locally over 30 years for use as shops, cold rooms, and building materials, etc. If 250,000 containers were sold at an average $1,500 without duty payment, Nigeria lost over $375 million in duties and VAT — over ₦600 billion at current exchange rates.
“That is money that should fund roads, schools, hospitals, and debt service,” he said
Ibeke said Grimaldi is not an isolated case. For 30 years, Maersk, MSC, CMA CGM, Hapag-Lloyd, COSCO, ONE, Evergreen, and PIL have operated in Nigerian ports under similar conditions.
He linked the problem to Nigeria’s trade imbalance: imports account for 75% of dry cargo while exports are just 15%. With oil and minerals making up 70% of exports but not containerized, ships arrive full but leave 97% empty. The cost of repatriating empties — $2,000 to $4,000 per 20ft container — incentivizes shipping lines to abandon or sell them locally.
The press conference also highlighted 10 recurring complaints by importers and clearing agents: arbitrary demurrage/detention charges billed in USD, no invoice breakdown, delayed refund of container deposits, forced use of nominated transporters, rejection of Naira payments, and withholding of Telex Release/Original Bills of Lading until local charges are paid
Ibeke said the practice breaches:
1. NCS Act 2023, Section 36*: Temporary goods must be re-exported or converted with duty paid. Sections 245, 248 & 249 give Customs powers to detain, seize, and impose penalties.
2. CBN FX Regulations*: FX Manual 2018, Paragraph 9.01 mandates Naira for all domestic transactions except with exemption. Domiciliary accounts are for foreign inflows, not local payments.
3. NPA Temporary Import Guidelines*: Require reconciliation of containers on exit or conversion.
4. Nigerian Shippers’ Council Regulations 2015*: Mandate Naira for local charges and penalize unfair practices.
Ibeke urged the Customs CG to:
a. Suspend all sales of Grimaldi and other shipping line containers pending investigation.
b. Conduct a system-wide audit of all shipping lines/agents from 2006 to date.
c. Reconcile NPA gate records with NCS import manifests to identify containers not re-exported or converted.
d. Assess and recover all outstanding duties, taxes, levies, and penalties.
e. Sanction violators under Sections 36 and 245 of the NCS Act, including license suspension.
“This is not about driving away investors. It is about enforcing the law and protecting Nigeria’s revenue at a time when government desperately needs funds to stabilize the economy and pursue President Ahmed Tinubu’s Renewed Hope Economic Agenda,” he concluded.
