Shipping industry stakeholders are calling for urgent reforms to Nigeria’s abandoned cargo disposal framework, warning that gaps in the current system risk undermining transparency, revenue recovery and operational efficiency at the nation’s ports.

The Association of Shipping Lines Agents of Nigeria says establishing a clear and transparent legal structure for auctioning overtime cargo would significantly improve confidence in port operations while strengthening government revenue collection.

The Chairman of the association, Boma Alabi, made the call during an interview in Lagos, noting that the present system requires stronger regulatory clarity under the Nigeria Customs Service Act 2023.

Legal Uncertainty Around “Overtime Cargo”

Alabi noted that while the Act provides broad authority for the disposal of abandoned cargo, it does not explicitly define what constitutes “overtime cargo” nor does it clearly state the timeline after which cargo may be deemed abandoned.

This regulatory ambiguity, she said, could expose stakeholders—including government agencies—to disputes and litigation.

According to her, the absence of formally issued regulations under the law creates uncertainty within port operations.

She added that establishing clear guidelines would help protect government revenue, strengthen institutional credibility and improve operational efficiency.

Call for Transparent Auction Mechanisms

The association also urged authorities to adopt open, competitive and auditable auction systems when disposing of condemned cargo.

Alabi expressed concerns over reports that certain cargo allocations were being made directly to private individuals or companies at fixed prices ranging between ₦1 million and ₦2 million per consignment, without open bidding.

Such arrangements, she warned, could undermine transparency and prevent the government from achieving optimal value when disposing of seized or abandoned goods.

“Open competitive bidding should remain the primary method for disposing of public property, especially when cargo has been condemned and vested in government authority,” she said.

Risks of Revenue Leakage

The association warned that non-competitive allocation practices could inadvertently create incentives for cargo owners to deliberately allow goods to lapse into overtime status in order to reacquire them later at discounted values.

According to Alabi, this could potentially encourage:

• Evasion of full customs duties
• Avoidance of terminal handling charges
• Reduction of shipping agency fees
• Loss of government revenue

She also raised concerns over the current cost-recovery framework, which caps terminal and agency charge recovery between 25 percent and 50 percent.

Given the extended storage, handling, repositioning and operational disruptions associated with overtime cargo, she said the cap no longer reflects the real economic cost of port operations.

Industry Seeks Collaborative Reform

While raising the concerns, the association acknowledged ongoing efforts by the Nigeria Customs Service to tackle fraud, eliminate fake allocation letters and introduce centralised authentication systems.

However, the group stressed that stronger regulatory clarity and transparent processes would reduce disputes, limit legal risks and improve trust across the maritime ecosystem.

Alabi reiterated that shipping agents remain committed to working with customs authorities to promote port decongestion, revenue protection and operational efficiency within Nigeria’s maritime sector.

BRANDECONOMY Insight

The debate over Nigeria’s abandoned cargo auction framework highlights a deeper structural issue within the country’s maritime governance architecture.

1. Overtime Cargo as a Revenue Opportunity

Abandoned cargo auctions represent a potentially significant revenue stream for government agencies. However, without transparent auction frameworks, the system risks becoming vulnerable to inefficiency and revenue leakages.

2. Regulatory Clarity Is Critical for Port Efficiency

Nigeria’s ambition to become a regional logistics hub depends heavily on predictable and transparent regulatory systems. Clear rules on cargo timelines, auction procedures and cost recovery would reduce disputes and improve port competitiveness.

3. Aligning with Global Port Governance Standards

Leading global ports operate transparent digital auction systems for abandoned cargo, often integrated with customs platforms. Implementing similar systems in Nigeria could strengthen accountability while supporting broader reforms such as the National Single Window initiative.

If successfully implemented, reforms in the overtime cargo framework could help improve port efficiency, investor confidence and government revenue within Nigeria’s maritime sector.