Maritime Industry Voices Concern Over Proposed Container Insurance Framework
The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has raised significant alarms regarding the draft implementation guidelines for the Container Indemnity & Insurance Scheme (CIIS). The association cautions that the current framework could have detrimental effects on Nigeria's maritime economy and counteract ongoing initiatives to lower port expenses.
Excessive Burdens on Freight Forwarders
In a formal statement, Otunba Frank Ogunojemite, National President of APFFLON, acknowledged the Federal Government's dedication to phasing out the container deposit system and enhancing container management. However, he emphasized that a thorough examination of the draft guidelines uncovers clauses that might substantially elevate operational costs at Nigerian ports.
According to APFFLON, the draft imposes considerable operational, financial, and legal duties on freight forwarders. These include:
- Full accountability for container custody
- Responsibility for selecting trucking services
- Obligation to procure insurance
- Assumption of third-party risks
The association argues that this strategy deviates from international standards and places an unfair load on a single component of the maritime supply chain.
Risks of Monopoly and Reduced Transparency
Freight forwarders have also highlighted worries about the consolidation of regulatory, enforcement, and insurance selection authorities within a sole Clearing-House Administrator. Such a configuration, they note, might foster monopolistic practices, stifle competition, and diminish transparency across the sector.
Potential Economic Consequences
APFFLON further warned that escalating logistics and compliance expenses could lead to cargo being redirected to neighboring ports. This shift might result in:
- Loss of national revenue
- Decreased cargo throughput
- Job losses throughout the maritime industry
These potential outcomes, APFFLON stated, are at odds with the Federal Government's Marine and Blue Economy agenda and the policy goal of reducing port-related charges.
Call for Inclusive Stakeholder Engagement
In response, APFFLON has urged the Minister of Marine and Blue Economy to halt the current draft and initiate a comprehensive stakeholders' consultation process. The aim is to develop a balanced, cost-effective, and globally competitive container indemnity framework that supports Nigeria's economic interests.
