Nigeria loses $500M annually to abandoned containers- SEREC warns

Nigeria’s ongoing port crisis, fueled by an influx of abandoned and empty shipping containers, is costing the country an estimated $500 million annually in lost revenue and economic inefficiency.

This stark warning comes from the Sea Empowerment and Research Center (SEREC), as detailed in its recent May bulletin by head of research, Eugene Nweke.

The core of the problem, according to SEREC, lies with shipping lines deliberately leaving behind up to 97% of empty containers.

They cite the prohibitive costs of returning these containers overseas; for example, a vessel carrying 4,500 TEUs (twenty-foot equivalent units) would incur up to $9 million in repositioning fees if it were to avoid dumping empties in Nigeria.

Last month, SEREC estimated that 100,000 TEUs of containers currently clutter Nigerian ports.

Many of these are unseaworthy, leading to severe congestion, environmental hazards, and operational inefficiencies.

Nearly half of all containers in circulation—approximately 45%—are deemed unsafe or “rickety,” further compounding the issue.

The widespread impact of this crisis is evident in various areas: traffic jams near port access roads, significantly increased shipping turnaround times (from a global average of 4–7 days to 12–15 days in Nigeria), higher import costs, and increased environmental pollution due to more trucks and container stacking.

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SEREC has proposed a comprehensive set of reforms to address the deepening crisis:

• Implementing real-time digital tracking and terminal management systems, coupled with strict scheduling for empty container evacuation.
• Revising the flawed container deposit system, advocating for its replacement with insurance-based or collective-fund models managed by the Nigeria Shippers’ Council and freight forwarders.
• Urging increased exports and investment in infrastructure to ensure that containers are refilled and efficiently moved, rather than left stranded in Nigerian ports.

Adding to the frustration, SEREC has also criticized the federal government’s delayed release of a $700 million budget allocated for port rehabilitation.

These funds are crucial for alleviating congestion and improving operational efficiency at terminals.

With Nigeria facing an estimated $500 million loss per year and its standing in West Africa’s maritime landscape slipping, SEREC is calling for urgent policy action.

Their recommendations emphasize the need for a smarter, export-driven, and tech-enabled port infrastructure to unclog operations, restore competitiveness, and reduce costly idle inventories.