Why container deposit fund defies Nigerian shippers council —Shittu

MORE facts have emerged over why the nation’s port economic regulator, the Nigerian Shippers Council (NSC) has not been able to abolish the draconian Container Deposit Fund (CDF) collected by shipping companies from importers as a guaranty for the return of empty containers.

The Container Deposit Fund is deposits made by the importer to the shipping companies as a guaranty for the return of empty containers, which is then refunded to the importers once the empty containers are returned to the shipping companies. However, the fund is not always refunded by the shipping companies in most cases, forcing operators to lament undue extortion by the shipping firms.

Speaking to the Nigerian Tribune on the matter, a former National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Olayiwola Shittu revealed that lack of legal backing to enforce the law by the NSC has ensured that shipping lines continue to extort Nigerian importers through the collection of CDF.

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According to the former ANLCA National President, “the shipping lines have not heeded the pleas of the NSC on CDF over the years because they know the agency lacks the legal powers to compel them (shipping lines) from collecting the fund from importers. Yes, the NSC has the executive backing to act as the economic regulator, but this backing is not backed by legislative procedure, which is law.

“Another reason why the CDF has remained unchallenged is that powerful Nigerians sit in the boards of these shipping lines, either as chairman or members. Many of these shipping lines have established links to powerful Nigerian politicians who in turn protect their interest.

“I really pity the Executive Secretary of the NSC, Hassan Bello, because he has really tried all he could to abolish the CDF collection by the shipping lines, all to no avail.

“Again, don’t let’s forget that in the Nigerian maritime value chain today, the shipping agencies who represent these shipping lines here in Nigeria have major roles to play in abolishing the illegal payments. However, the shipping agencies have remained silent on the matter because they are the conduit pipes through which these shipping lines extort Nigerians.

“Imagine a situation where importers pay Container Terminal Charges to both the terminal operator and the shipping agencies? That is duplication of excessive charges. A shipping agency does not run a terminal, why are they collecting Container Terminal Charges?

“Until the NSC gets backed by laws on these issues, the shipping lines will continue to brazenly extort Nigerian importers at the ports.”

 

Nigerian Tribune

David Olagunju

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