…Firm accused of tax evasion, arbitrary charges, and regulatory violations

By Daniel Abia

The House of Representatives Committee on Public Petitions has directed the Inspector-General of Police, Kayode Egbetokun, to compel Mediterranean Shipping Company Nigeria Limited (MSCNL) to appear before it over a petition filed by the Citizens Whistleblowers Coalition (CWC).

The order was issued on Wednesday during the committee’s sitting after MSCNL failed to honour two separate invitations. The summons were extended specifically to the company’s Managing Director, Andrew Lynch, and Deputy Managing Director, Jake Iosso.

Deputy Chairman of the Committee, Hon. Martins Nwogu, who presided over the session in the absence of the chairman, disclosed that MSCNL neither attended the hearing nor submitted a written response to the petition despite being properly notified via an official letter and a newspaper publication.

Counsel to the whistleblowers, Hon. Uzoma Abonta, decried the company’s disregard for Nigeria’s legal institutions, urging the committee to consider recommending the revocation of MSC’s operating licence if it fails to comply. He also requested that the committee extend its summons to other relevant regulatory agencies, including the Nigerian Ports Authority (NPA), Federal Inland Revenue Service (FIRS), Federal Competition and Consumer Protection Commission (FCCPC), Nigerian Shippers Council, and the Nigerian Customs Service.

Invoking Sections 88 and 89 of the 1999 Constitution (as amended), which empower the National Assembly to investigate and summon individuals and organizations, the committee mandated the IGP to enforce the appearance of the MSCNL executives at the next hearing scheduled for July 31.

In its petition, the Citizens Whistleblowers Coalition accused MSCNL of engaging in a series of infractions including delayed delivery of shipments, arbitrary charges, unfair trade practices, and systemic tax evasion. The petition alleges that the global shipping firm, which reportedly earns over €86 billion in annual revenue and employs more than 200,000 people worldwide, has been underreporting its earnings in Nigeria — the company’s largest African market.

The coalition further claimed that MSC’s shipping operations in Nigeria are riddled with oppressive charges, particularly in relation to demurrage and detention fees. They cited long-standing complaints from stakeholders in the maritime sector about the company’s failure to refund container deposits collected from freight forwarders and clearing agents — deposits that range between ₦200,000 and ₦400,000 per container.

According to the petition, such practices have previously triggered protests. In May 2021, importers and clearing agents under the Nigerian Association of Government Approved Freight Forwarders and the Association of Nigerian Licensed Customs Agents threatened to boycott MSC shipping lines over alleged scams relating to container deposits.

The committee emphasized that failure to hold MSCNL accountable could set a dangerous precedent for multinational corporations operating in Nigeria.