Freight Monitor

CRFFN: A struggling agency on government life support.

Funso OLOJO

The idea behind the creation of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) was a noble one.

Established through an Act of Parliament in 2007, CRFFN is charged with the responsibilities of regulating and controlling the practice of freight forwarding in Nigeria and promoting the highest standards of competence, practice and conduct among members of the profession.

Eighteen years after its creation, CRFFN has remained a struggling agency, barely surviving on the life support provided by the government, thus desecrating the nobility of its birth.

Meant to be a regulatory agency independent of government control and interference as espoused by the International Federation of Freight Forwarders (FIATA), the umbrella regulatory body for the practice of freight forwarding globally, CRFFN has perpetually and permanently remained tied to the apron string of Nigerian government.

As a matter of fact, the council would have long been dead if not for the financial oxygen provided by the Ministry of Marine and Blue Economy, its supervising ministry.

For close to 18 years, CRFFN has been a liability, a parasitic body whose preoccupation was more on how to survive than the performance and discharge of its statutory responsibility of regulating the freight forwarding practice in Nigeria.

The successive governing boards of the Council since inception, had been populated by people who are more concerned with their pecuniary interests, people who are more interested in their self- preservation and financial gains, than those with the burning passion to develop the struggling freight forwarding industry.

The successive acts of incompetence, the culture of lack of commitment, insincerity and corruption amongst the leadership of the council have resulted to a thick layers of rot that has stunted the growth of the body.

Largely unpopular among the freight forwarders whom it is meant to regulate due to lack of impact and efficient service delivery, CRFFN has become a puariah in the industry it is meant to superintendent over.

To shore up its internally generated revenue, the government approved the collection of Practitioners Practising Fee(POF) collectable on all cargo landed at the airports, seaports and border stations.

Under the POF regime, importer pays N3.5 per tonne of cargo imported into the country, N1.5 per kilo for air cargo, N1,000 on each imported 20- feet container and N2,000 per 40- feet container.

After the initial hiccups as a result of opposition by the disgruntled freight forwarders, the collection of the controversial POF commenced in 2021 under the leadership of the former Registrar, Samuel Nwakohu, who took over from the pioneer Registrar, Sir Mike Jukwe in 2019.

Before Nwakohu handed over to Chinyere Uromta as an Acting Registrar in January 31st, 2023, the POF was collected for three years.

The collection expectedly continued under the leadership of Uromta from January 31st,2023 to October 2024 when she was asked to hand over to the incumbent Registrar, Mr Igwe Kingsley.

Effectively, before Kingsley came on board barely two months ago, CRFFN has collected POF, reported to have run into several millions of naira, for four years.

Ironically, the Council, despite these collections,couldn’t still pay the salaries of its staff for 10 months prior to the take over of Kingsley.

The question is where did the millions of naira accrued for four years under Nwakohu and later, Uromta, go?

Obviously, the humongous amount of money collected as POF but which actually amount was shrouded in mystery, had been mismanaged and misappropriated.

Apart from few poorly coordinated training programmes organized for freight forwarders, there was no tangible means to which the POF actuals were deployed.

For the period which the Council couldn’t pay its staff, the regulatory body became a bout of laughter among the industry operators, especially the freight forwarders whom it supposed to regulate.

Its staff became restive and unrestrained, abandoned the core mandate of the council and started to hobnob with the Maritime Workers Union of Nigeria(MWUN) which eventually subsumed the council staff into its fold as one of its affiliate groups when the staff members were unionised by the labour union.

The purpose was to use the platform of the trade union to pressurize the council’s leadership to pay their accumulated salary.

When the situation became embarrassing and humiliating to the government, the Minister of Marine and Blue Economy, Adegboyega Oyetola, had to intervene by providing financial succour through the payment of the accumulated salary arrears in two tranches of five months each.

The last tranche was released recently shortly after the appointment of the incumbent Registrar, Mr Igwe Kingsley.

This scenario, as absurd and shameful as it was, signaled the beginning of the end of the Council, no matter the pretence among some incurable optimists.

As it stands now, the council has lost all relevance as a regulator, it has lost its dignity and prestige among the freight forwarders who the it is meant to regulate.

This sad reality was poignantly brought home after the surprise appointment of Kingsley as its Registrar.

Appointed from the fold of National Association of Government Approved Freight Forwarders (NAGAFF), one of the five accredited freight forwarding groups, the incumbent Registrar is obviously unpopular among the freight forwarding operators.

Presently, other accredited freight forwarding groups have rallied themselves together to challenge the appointment of the new Registrar in court.

That is why the Registrar may not be able to bring the Council from its present precipice of total descent into oblivion.

Unless the other freight forwarding groups rally their support round him, Kingsley’s tenure as the Registrar of CRFFN would be another flash in the pan, devoid of colour, character, impact and any developmental stride.

Unfortunately for the new Registrar, the present crop of staff in CRFFN have lost motivation for committed service delivery to the industry.

Their fears, which will be their major preoccupation, is for how long will the government give the council financial bail- outs to meet its obligations before the hand- outs dry up?

That is why we consider the so -called vision the Registrar purportedly has for the industry as a mere rhetorics devoid of conviction and purpose.

The tenure of Kingsley would be a defining moment in the life of CRFFN as it will either make or totally break the struggling agency.

Unless he enjoys the support of the disgruntled federating associations, no amount of financial bail -outs from government, no amount of interventions from government and no amount of vibes, vibrancy and commitment brought into the running of the council by Kingsley will save the CRFFN from taking the final plunge into the dark abyss of obsecurity.

Freight Monitor

Freight forwarding business under threat as Customs Agents lament high cost of goods clearance at ports

— We are diversifying into other businesses to stay afloat– ANLCA Chieftain cries out.

Funso OLOJO

This is not the best of times for freight forwarders who ply their trade at the Nigerian ports.

This is because their cherished trade is under threat due to the astronomical increase in the cost of clearance of goods at the ports.

Due to the plethoral of charges slammed on importers/ Shippers at the Port, most of them could not afford to bring in as many containers as before while others have outrightly stopped the importation business.

This development, our reporter gathered, has therefore put the freight forwarding business on the brink of collapse due to lack of patronage.

According to the cost analysis of cargo clearance procedures at the Port, an average importer, using the Nigerian ports, pays more than six different exorbitant charges apart from customs duties.

For instance, before an importer could exit his goods from the ports, he pays the following charges.

a. N500,000 NAFDA Certification

b. N500,000 SON Certification

c.45 per cent( up from 30 per cent) terminal operators and shipping companies service fees/ charges

d. N 150,000 to N200,000 NESREA/ other Environmental Agencies charges

e. N45,000 per day demurrage on 20- footer container

f.N68,500 per day demurrage on 40- footer container

g.20 million Customs duty on 20- footer container

h.26 million Customs duty on 40- footer container.

In addition to these charges, the Nigerian Ports Authority (NPA) has recently increased its tariff by 15 percent.

It could also be recalled that the Nigeria Customs Service only recently put on hold the 4 per cent Free on Board (FOB) charge on imports due to the outcry of freight forwarders .

However, the FOB charge would eventually be reinstated later after sufficient consultations and sensitization are carried out by the customs.

Alhaji Mukaila Abdullaziz, the former Sole Administrator of the Association of Nigerian Licensed Customs Agents(ANLCA) said the listed bills are more than that.

“What you have just listed was an average cost, they are more than that” he declared with a hint of bitterness in his voice, when asked to confirm the cost analysis as the foremost freight forwarder in the industry.

” The Customs’ Federal Operations Unit(FOU) is still there.

“Their officers will lay siege on the road for a container that have already paid the exorbitant fees you have mentioned.

“They too will slam their panthom charges on the already exited container and if you don’t pay, they will impound it and take it to their office” the ANLCA Chieftain declared.

When asked how freight forwarders break even in the face of these multiple charges, Abdullaziz retorted;

” We are not breaking even .No agent is breaking even except the dare- devil ones who are ready to do anything to break even.

“But for some of us who are old hands on the job and have names to protect, we are not breaking even because we are not ready to compromise the system”

“That is why most of us have diversified into other businesses to stay afloat”.

“The freight forwarding industry is dead” he said with a hint of regret in his emotion – laden voice.

Our reporter could confirm that most of the old hands in the freight forwarding business have diversified into hospitality business as they are owners of choice hotels spread across Lagos and other commercial cities in Nigeria.

Freight Monitor

Adeyanju rallies support for new CRFFN Registrar.

– appeals to warring associations to give Igwe Kingsley a chance

– warns his failure will affect freight forwarding industry

Funso OLOJO

Prince Adewale Adeyanju, the indefatigable President- General of the Maritime Workers Union of Nigeria (MWUN) has risen in stout defence of the appointment of Mr Igwe Kingsley, the new Registrar of the Council for the Regulation of Freight Forwarding practice in Nigeria (CRFFN), vowing to deploy the machinery of the union to ensure his success.

His support was against the backdrop of the opposition from other freight forwarding associations which went to court to challenge the appointment of the new Registrar.

Adeyanju, who was speaking exclusively in an interview with our reporter in his office, admonished the warring associations to shield their swords and support the new Registrar to succeed.

” The industry is bigger than individuals.

“Government has the right to appoint whoever it feels can perform, it has the right to appoint and disappoint.

“The new Registrar has been given that opportunity and every of us owes him a duty to rally round him and support him to succeed, especially the freight forwarding groups.

” They should know that such opportunity can come to any of them in the nearest future. Therefore, they should allow the young man to function by giving him the needed support” the top union leader admonished.

He said that the Minister of Marine and Blue Economy, Adegboyega Oyetola, should be commended for appointing the new Registrar from the fold of freight forwarding and the least that is expected of his colleagues in the industry is to support him.

” If they frustrate him and he fails, the freight forwarding industry will bear the consequences of his failure but if they support him and he succeeds, the industry will enjoy the benefits of such success.

“So it is in their best interest to support him to succeed” Adeyanju declared.

He expressed dismay at the hard stance of other associations against the appointment of the new Registrar which he said is not from Yoruba or Hausa but igbo stock whom he claimed are the people surprisingly waging war against him.

Adeyanju however pledged the unflinching support of the maritime labour union for the new Registrar and promised to rally other stakeholders for his success.

” Our own union, the Maritime Workers Union of Nigeria, will support him, work with him and shall rally all other stakeholders to support the young man so he can succeed.

” If he succeeds, the better for all of us, if he fails, the freight forwarding industry will continue to grapple with its challenges even though I don’t pray for his failure”

Adeyanju, who is also the Vice -President of the Nigeria Labour,Congress(NLC),

relieved the problems which have hobbled the performance and efficiency of the CRFFN over the years to the point that the workers in that organization were owed salaries for a year.

” When the council became one of our affiliate members, we discovered that there were lot of crises in the council, in- fighting as workers were writing petitions against themselves.

” Salaries were being owed while the workers were suffering.

“But when we came in, we had to write a letter to the Minister who graciously promised us through the Permanent Secretary, to wade into the crisis.

” I learnt the government, through the NPA,has given the Council bail out twice last year, the last one was shortly before the Christmas/ New Year holiday.

” I want to thank the Minister for his intervention, especially for the bail- outs and appointment of someone from the freight forwarding industry as the new Registrar which clearly shows he is a workers- friendly person” the labour leader noted.

He however wondered how long would the CRFFN depend on government bailouts.

” This is the reason why we all need to support the new Registrar to succeed so that the council will function and become vibrant to cater to the aspirations of the teeming freight forwarders who are daily grappling with numerous challenges in the industry” Adeyanju observed.

Watch out for the full interview

Freight Monitor

ANLCA’s factional crisis at Airport chapter worsens as Emenike suspends Bamgbala Adewusi over trump up charges

Nwokeoji, ANLCA President

Funso Olojo

The factional crisis at the Murtala Mohammed Airport chapter of the Association of Nigerian Licensed Customs Agents(ANLCA) may have taken a dangerous dimension as the National President of the Association, Emenike Nwokeoji, has ordered the suspension of Prince Bamgbala Adewusi, the factional Chairman of the Airport Chapter of the ANLCA.

The crisis, which was triggered by the dissolution of the Adewusi-led chapter executives and the appointment and inauguration of Temitope Pius Akindele-led new chapter executives about two months ago, has witnessed several twists and turns that dovetailed into multiple litigations before it finally degenerated into the suspension of Prince Adewusi.

In an internal memo written and signed by Fakanlu Olumide, the National Secretary of ANLCA, Prince Adewusi together with two other members, Mr. Davies Ben Chukwunenye and Mr Lekwauwa Ifeayi Valentine, were suspended for their ”refusal to appear before the disciplinary committee to defend themselves over the documented allegations of financial malpractices bordering on embezzlement of association money”.

The memo, dated 7th, June 2024 anC addressed to all ANLCA Corporate Members titled Suspension of Membership reads inter alia “This is to notify the entire members of the Association of Nigerian Licensed Customs Agents(ANLCA) of the suspension of the membership of the under listed from the association;

1.Mr Bamgbala Adewusi of ASHOV Nig.Ltd/BATOLAB Nigeria Limited.

2. Mr Davies Ben Chukwunenye of SAMON KAY Nigeria Limited.

3. Mr Lekwauwa Ifeayi Valentine of ROKBAL Global Investment Limited.

”The decision to suspend the membership of the above persons is premised on their failure/refusal to appear before the Disciplinary Committee to defend themselves over the documented allegations of financial malpractices bordering on embezzlement of Association money as stated in section 24(10) of our 2023 constitution as amended.

”It is noteworthy that the fourth member also accused in the petition showed up at the Disciplinary Committee sitting and absolved himself.

”It must be emphasized here that members of the Association are under the obligation to conduct themselves in line with the provisions of the Constitution of the Association hence no member should be allowed to act as if he/she is above the said Constitution.

”Consequently, the above-stated members henceforth cease to be recognised as members of the Association, and no transaction shall be conducted with them in their former capacities as members of the Association until further notice.

”We hereby use this opportunity to thank our members for their understanding and support, especially our members in the MMIA Cargo chapter.

”We enjoin them to go about their business peacefully while assuring all that no amount of recalcitrance and blackmail will deter this administration from doing what is constitutional and in the best interest of ANLCA” the memo concluded.

However, industry commentators believed that the suspension of Prince Adewusi was more of political victimisation given the standoff between him and the National President of ANLCA, Mr. Emenike Nwokeoji over the controversial elections in the Airport Chapter.

One of the top members of ANLCA who craved anonymity described Adewusi’s suspension as witch-hunting and an attempt by Emenike to break the resistance and sheer willpower of the factional chapter Chairman which has stood his ground and refused to be intimidated since the crisis started.

The source however described the purported suspension as a charade that will further plunge the association deeper into crisis.

Prince Adewusi was yet to respond to his suspension as at the time of writing this report.