Nigeria's Idle Containers Expose Deep Imbalance in Trading Structure

Strategic Insights -

Nigeria's seaports are overwhelmed with hundreds of containers that are lying idle for months, causing traffic gridlocks and exposing a significant imbalance in the country's trading structure. The situation is attributed to a disparity between dry cargo imports and exports, with experts saying that shipping companies are struggling to match their imports with exports. According to data from the National Bureau of Statistics (NBS) and the Central Bank of Nigeria (CBN), oil and minerals have consistently made up around 70 percent of total imports over the last nine years, while non-oil exports have struggled to make up more than 5.6 percent of total exports.

Key Takeaways:

  • Over 100,000 empty containers are occupying terminal space across Nigeria's ports, with up to 500 million dollars annually lost due to delays, inefficiencies, and lost trade opportunities.
  • Shipping lines have an agreement with the Nigerian government to return empty containers, but they are choosing to hold onto them, violating the standard operating procedure to avoid losses.
  • The estimated freight cost to return an empty container to origin ports is $4,000 for a 20-foot container and up to $6,000 for a 40-foot container.
  • Container abandonment costs the country $500 million annually due to delays, inefficiencies, and lost trade opportunities, according to data obtained from the Importers Association of Nigeria.
  • The Nigerian Ports Authority (NPA) claimed that the 100,000 abandoned containers should be better classified, with further disaggregation needed.
  • The Customs Act 2023 classifies containers as temporary imports, but enforcement is weak, and Customs often resorts to auctioning to clear the space.
  • The Nigeria Shippers' Council, designated as the port economic regulator, denied the specific number but did not dispute that empty containers are a major issue.
  • A SEREC think tank recommended introducing demurrage tax on a percentage basis on all empty containers not returned within the official three-month period.
  • The local community in Apapa and nearby areas have repurposed the idle containers into office spaces, roadside shops, and container homes.

Statistics:

  • 100,000 empty containers occupying terminal space across Nigeria's ports.
  • $500 million annually lost due to delays, inefficiencies, and lost trade opportunities.
  • 70 percent of total imports consist of oil and minerals over the last nine years (data from NBS and CBN).
  • 5.6 percent of total exports were non-oil exports in the last year (data from NBS and CBN).
  • 75 percent of total imports was dry cargo in the first quarter (Q1) of 2025 (data from NBS and CBN).
  • 15 percent of total exports were non-oil exports in the first quarter (Q1) of 2025 (data from NBS and CBN).
  • $4,000 estimated freight cost to return an empty container to origin ports (20-foot container).
  • $6,000 estimated freight cost to return an empty container to origin ports (40-foot container).

Sources:

  • BusinessDay: Suileman Ayokunle, a freight forwarder, is quoted.
  • National Bureau of Statistics (NBS): Provides data on oil and mineral imports over nine years.
  • Central Bank of Nigeria (CBN): Provides data on oil and mineral imports over nine years.
  • Sea Empowerment and Research Centre (SEREC): Provides a report estimating up to 100,000 empty containers occupying terminal space and the cost of delays.
  • Importers Association of Nigeria: Provides data on the loss due to delays and inefficiencies.
  • Nigerian Ports Authority (NPA): Seyi Eyawe, an official of the NPA, is quoted.
  • Customs Act 2023: Classifies containers as temporary imports.
  • Nigeria Shippers' Council: Denies the specific number but acknowledges empty containers as a major issue.
  • SEREC think tank: Recommends introducing demurrage tax on a percentage basis on empty containers not returned within the official three-month period.