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The Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has raised objections to the Draft Implementation Guidelines for the Container Indemnity & Insurance Scheme (CIIS), cautioning that the proposed framework could increase the cost of doing business at Nigerian ports and weaken ongoing reforms aimed at improving trade efficiency.
In a statement issued by its National President, Frank Ogunojemite, APFFLON acknowledged the Federal Government’s intention to abolish the controversial container deposit regime and improve container management across the maritime sector.
However, the Association said a closer examination of the draft guidelines reveals structural and operational flaws that may undermine these objectives.
According to APFFLON, the draft places excessive financial, legal and operational burdens on freight forwarders by assigning them full responsibility for container custody, trucking selection, insurance procurement and third-party liabilities.
The group argued that such provisions deviate from international best practices and unfairly concentrate risks on one segment of the maritime value chain.
“Freight forwarders are being turned into insurers, regulators and guarantors at the same time,” APFFLON stated, warning that the framework could expose operators to liabilities beyond their control and discourage participation in the formal logistics system.
The Association also expressed concern over the proposed governance structure of the scheme, particularly the wide-ranging powers assigned to a single Clearing-House Administrator. APFFLON noted that vesting regulatory oversight, enforcement authority and insurance selection in one entity could encourage monopoly, stifle competition and reduce transparency within the industry.
“This level of concentration creates room for abuse and undermines the principles of fairness and accountability that should guide sector-wide reforms,” the statement said.
APFFLON further warned that increased compliance and logistics costs arising from the CIIS could drive cargo traffic away from Nigerian ports to neighbouring countries, leading to revenue losses, reduced cargo throughput and job cuts across the maritime ecosystem.
Such outcomes, the Association noted, would contradict the Federal Government’s Marine and Blue Economy agenda, which prioritises cost reduction, competitiveness and the attraction of regional trade flows into Nigeria.
In light of these concerns, APFFLON called on the Honourable Minister of Marine and Blue Economy to suspend the current draft guidelines and convene a broad-based stakeholder engagement involving freight forwarders, terminal operators, shipping lines, insurers, truckers and port regulators.
The Association stressed that any container indemnity framework must be balanced, transparent and aligned with global standards, while ensuring that responsibilities and risks are equitably distributed across all actors in the logistics chain.
APFFLON reaffirmed its willingness to work with the Ministry and relevant agencies to design reforms that protect indigenous operators, promote trade facilitation and strengthen Nigeria’s position as a competitive maritime hub in West and Central Africa.
“The objective should not just be regulation, but smart regulation that lowers costs, supports local businesses and enhances Nigeria’s attractiveness as a trade gateway,” the Association posited.
