The Nigerian Shippers’ Council, through its Complaints Unit, recently carried out an unscheduled intervention visit to the Head Office of CMA CGM Nigeria, located at Leventis Building, Apapa, Lagos, to resolve a highly contentious Demurrage and Cargo Lien Dispute.
The intervention became necessary following an urgent complaint received from Bolton Multi Commodity KFZE, a Free Trade Zone, registered investor engaged in the importation of Raw Materials for Local Production.
In their formal petition to the Council, the Consignee alleged unlawful withholding of their Consignment by CMA CGM Nigeria over an unrelated outstanding debt owed by a Third-Party Entity with no contractual or legal affiliation with Bolton Multi Commodity KFZE. The Company further asserted that it had no financial obligation to CMA CGM beyond the current shipment under dispute.
The NSC delegation, led by Dr. Bashir Ambi Mohammed (Head, Complaints Unit), included Mr. Hassan Aminu (Assistant Chief Operations Officer) and Mr. Yahaya Abdullahi Wachiko (Operations Officer). The session was held at CMA CGM’s meeting room, 2nd Floor, Leventis Building, Apapa.
The CMA CGM team was represented by Mr. Ferreira Hinelder (Managing Director), Mr. Austin Obagidi (Chief Commercial Officer), and Mr. Ebenezer (Credit Control Officer).
In his opening remarks, Mr. Ferreira appreciated the Council’s prompt intervention, noting: “I had to attend personally because of the high regard we have for the Executive Secretary/CEO and the Council. Though the notice was short, I deemed it necessary since the purpose aligns with our mutual interest, ensuring fairness and trade facilitation.”
He, however, disclosed that CMA CGM had earlier sent a formal complaint to the Council regarding outstanding demurrage liabilities exceeding ₦1 billion owed by several Kano based shippers, for which no formal response had been received.
According to him, the current case involved a financial exposure of ₦101 million, which CMA CGM initially demanded in full before cargo release. However, following NSC’s mediation, the Company conceded to accept ₦63 million within 24 hours or, alternatively, an indemnity undertaking to offset the outstanding.
The Managing Director cited Clause 20 of the Bill of Lading and relevant provisions of the Customs and Excise Management Act (CEMA), which empower the Carrier to exercise a Lien over Cargo or re-export the Consignment to the Port of Origin should the liability remain unsettled.
Responding, Dr. Ambi clarified that while the Council ordinarily issues formal communications, the unscheduled visit was prompted by the urgency of a Cargo under Lien and the need to prevent further accumulation of demurrage.
He emphasized that the Council does not interfere in waiver negotiations, as such matters fall within the commercial discretion of the Carrier, but reiterated that NSC’s role as the Port Economic Regulator is to ensure fairness, transparency, and equity between Service Providers and Users.
Dr. Ambi, further noted that the Council would soon embark on a Stakeholder Sensitization Programme in Kano to address recurring issues relating to demurrage accumulation, Cargo Liens, and delayed container returns. “Our duty is to ensure that no party is cheated. The Council’s concern is always the Cargo interest, protecting the importer’s investment while ensuring the Service Provider’s rights are respected,” he said.
He thereafter invited Mr. Hassan Aminu to share his professional view.
Mr. Aminu explained that upon receiving the initial complaint, he advised that the matter be investigated thoroughly to establish contractual nexus and liability before escalation to the Service Provider. He noted that while Shipping Lines are easily traceable for dispute resolution, many Freight Forwarders and Clearing Agents operate under untraceable or fictitious business addresses, complicating recovery and accountability.
He added that through the Council’s intervention, the actual debtor, the Consignee responsible for the accrued detention was identified and brought before the Shipping Company. “Our goal is to prevent the current shipment from suffering avoidable delays or re-exportation, not to demand free services. We simply urge reasonable concessions to enable immediate payment and cargo release, as demurrage and storage charges continue to accrue daily,” he stated.
He further cautioned that re-exportation of the Consignment to France, as empowered by the Carrier’s Bill of Lading clause, would impose additional costs on both the Shipping Line and the Nigerian economy, hence advised a downward review of the payment demand.
The Consignee appealed to the Council to prevail upon CMA CGM to accept 40% payment of the ₦101 million liability, citing financial constraints and the time sensitive nature of the 24-hour payment window. “The Council remains our last hope for a fair resolution,” the Consignee pleaded.
Resolution
After extensive deliberations and review of all supporting documents, both parties under the facilitation of the Nigerian Shippers’ Council agreed to a final settlement sum of ₦55 million out of the initial ₦101 million demanded by CMA CGM Nigeria. The Cargo Lien was consequently lifted, and arrangements were made for immediate release of the Containers.
All parties expressed gratitude for the Council’s intervention.