…As Petition Accuses Shipping Giant of Tax Evasion, Extortion, and Unfair Trade Practices
By Fatima Saka
Abuja – The House of Representatives Committee on Public Petitions has directed the Inspector General of Police (IGP) to compel the appearance of the Managing Director and Deputy Managing Director of Mediterranean Shipping Company (MSC) Nigeria Limited, Andrew Lynch and Jake Iosso, for repeatedly ignoring legislative summons.
The decision was taken during the committee’s sitting on Wednesday, July 2, following the shipping company’s continued refusal to respond to a petition filed by the Citizens Whistleblowers Coalition. Presiding over the hearing in the absence of the committee chairman, Deputy Chairman Hon. Martins Nwogu cited MSC’s failure to honour two separate summonses, despite evidence that the company had been duly served, including through national newspaper publication.
Hon. Uzoma Abonta, counsel to the Citizens Whistleblowers Coalition, told the committee that MSC was operating in flagrant disregard of Nigerian laws and institutions. He urged the panel to take firm action, including recommending suspension of the company’s license, should it continue to defy the National Assembly.
Abonta also called on the committee to expand its summons to other maritime and regulatory agencies, including the Nigerian Ports Authority (NPA), Federal Inland Revenue Service (FIRS), Federal Competition and Consumer Protection Commission (FCCPC), Nigerian Shippers Council, and Nigeria Customs Service, to probe systemic irregularities involving MSC.
Quoting Sections 88 and 89 of the 1999 Constitution, Hon. Nwogu reaffirmed the National Assembly’s powers to conduct investigations and summon individuals or entities. Citing these legal provisions, the committee invoked Section 89 (c) and (d), empowering it to order the IGP to enforce the appearance of MSC’s top executives at its next sitting scheduled for July 31.
The petition by the Citizens Whistleblowers Coalition accused MSC of multiple infractions, including delay in shipment deliveries, arbitrary charges, illegal detention of shipments, extortion, tax evasion, and unfair business practices. The group claimed that despite the company’s reported global revenue of over €86 billion and its Nigerian operations being the largest in Africa, MSC has not been transparent in declaring its local earnings or paying appropriate taxes.
The petitioners also cited long-standing grievances by freight forwarders and clearing agents, such as unrefunded container deposits and excessive shipping charges. In 2021, two key freight forwarders’ associations — the Nigerian Association of Government Approved Freight Forwarders (NAGAFF) and the Association of Nigerian Licensed Customs Agents (ANLCA) — threatened to boycott MSC over similar complaints.
Further allegations include:
Excessive Charges: Importers accuse MSC of imposing duplicate TELEX fees at both loading and discharge ports, a practice they claim is unlawful.
Rip-offs via Demurrage: Multiple agents allege they were charged for demurrage resulting from MSC’s own delays in shipment delivery.
Failure to Refund Container Deposits: Applications for refunds, some pending since 2020, have allegedly been ignored by MSC.
Violation of Consumer Protection Laws: The petition asserts that MSC’s non-transparent billing practices breach Sections 115 and 127 of the FCCPC Act, which require fair, reasonable, and disclosed pricing.
FG, Nestlé Nigeria Partners to Improve Water Quality Management Nationwide
The Citizens Whistleblowers Coalition concluded that MSC’s disregard for Nigerian regulations reflects monopolistic arrogance, warning that no company should be allowed to operate above the law — regardless of its global stature.
The House Committee pledged to pursue the matter to its logical conclusion, emphasizing that no corporate entity would be allowed to undermine the legislative authority of Nigeria.
About the Author
