SEREC Raises Alarm Over Financial, Environmental Cost Of Unreturned Empty Containers At Nigerian Ports

SEREC Raises Alarm Over Financial, Environmental Cost Of Unreturned Empty Containers At Nigerian Ports
……..proposes strategic container return system to stem losses

Fwdr Dr.Eugene Nweke,Head Research,SEREC

By Frank Odinukaeze

The Sea Empowerment and Research Centre (SEREC) has issued a strong warning over the growing financial and environmental burden caused by over 100,000 unreturned empty containers littering Nigerian ports and surrounding areas.

In a bulletin dated June 20, 2025, SEREC stated that although the exact losses are difficult to calculate, the country is believed to be losing hundreds of millions of dollars annually due to issues related to container congestion, demurrage charges, and inefficient return logistics.

According to the report, the average cost of freighting an empty 20-foot container back to its origin is between $2,000 and $4,000, while a 40-foot container costs up to $6,000 depending on the shipping route. With containers piling up across the ports, roads, and industrial zones, SEREC estimates that demurrage charges alone can climb as high as ₦60,000 per container per month.

“This is a silent crisis,” said Fwdr Eugene Nweke, Research Fellow and Head of Research at SEREC. “Many of these containers are left unattended for months, causing massive logistical and financial strain on port operators, shippers, and the environment.”

SEREC also highlighted that approximately 45% of these containers are unseaworthy and pose safety and health hazards to communities where they are dumped or abandoned.

The bulletin proposes that Nigeria adopt global best practices by introducing a government-imposed demurrage tax on every unreturned container beyond the official three-month stay. According to SEREC, shipping lines currently charge Nigerian shippers an average of ₦10,000 per day after the grace period, a cost that could be partially redirected into public infrastructure if properly regulated.

“Such a tax, if implemented and transparently managed, could generate additional revenue for road maintenance and environmental restoration,” the report stated.

Drawing inspiration from international examples in Germany, the UK, the US, and Australia, where regulatory frameworks enforce timely container returns through detention fees or deposit schemes, SEREC is pushing for similar reforms in Nigeria.

To address the crisis, SEREC is advocating for the establishment of a Strategic Container Return System, to be jointly managed by the Nigerian Shippers’ Council (NSC), Nigerian Ports Authority (NPA), and the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN).

Other recommendations from SEREC include:
Promoting non-oil exports to ensure containers are used for outbound shipments rather than left idle.

Expanding and modernizing port infrastructure to reduce turnaround time.

Investing in digital systems for container tracking and return coordination.

SEREC confirmed that it has officially written to the Honourable Minister of Marine and Blue Economy, urging immediate policy action to address the issue.

“This is a systemic problem that demands coordinated intervention,” said Nweke. “If we do not act now, the long-term consequences will go beyond financial losses to include environmental degradation and reputational damage to Nigeria’s maritime sector.”

The call to action comes amid broader efforts by the government to reposition Nigeria as a key player in global trade under the African Continental Free Trade Area (AfCFTA).