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CRFFN survival hangs in balance as court nullifies collection of POF from Customs Agents

–lacks powers to regulate Customs licensed agents
–ministerial directive of 2017 on collection of POF is illegal 
Funso OLOJO/ Gloria Odion 
The thin thread of survival which the Council of Regulation of Freight Forwarding in Nigeria(CRFFN) is delicately hanging onto is currently being threatened as the Lagos High Court has nullified the collection of Practitioners Operating Fee(POF) by the Council.
It would be recalled that due to the paucity of funding by government to support the CRFFN, the government created an ingenious way which the CRFFN could be generating revenue internally through the collection of practicing fees from freight forwarding industry practitioners called POF.
However, in 2017, the then Minister of Transportation, Rotimi Ameachi made a declaration that all freight forwarders operating in the Nigerian Ports should pay a fee called the POF to be collected by the CRFFN.
The directive further tied the access of any freight forwarder to the Port and taking delivery of his goods to the payment of the fee.
However, in 2018, the National Council of Managing Directors of Licenced Customs Agents(NCMDLCA) approached a Lagos High Court in order to stop the collection of the controversial POF which commenced in 2017.
In the suit No. FHC/CS/765/2018, filed before Justice D.E Osiagor of the Lagos High Court, the Council of Managing Directors sought the following reliefs:
“A  declaration that the business of Licensed Customs Agents(LCA) is not under the control and regulation of the Ministry of Transportation and Council for the Regulation of Freight Forwarding in Nigeria(CRFFN).
“A declaration that Licensed Customs Agents and the Business of Licensed Customs Agents, and the right of Licensed Customs Agents to enter the Port to conduct and carry out business of Licensed Custom Agent is created and regulated by the Customs and Excise Management Act.
“A declaration that Licensed Customs Agents and the Business of Licensed Customs Agents and Freight Forwarders and the Business of freight Forwarding are functionally and operationally different bodies and business under the control, regulation and supervision of different and separate Government Ministries and parastatal.
“A declaration that the Ministerial Directive mandating that  Council For the Regulation of Freight Forwarding in Nigeria to Commence collection of Practitioners Operating Fees(POF) and that the Payment of Practitioners Operating Fees is a requirement for release and delivery of cargo from the sea-Ports, AirPort and Land Borders Station is ultra vires, the power of Minister of Transportation and therefore null and void.
“A declaration mandating the Nigeria Customs Service(NCS) to ensure that all Licenses issued or renewed by the Nigeria Customs Service(NCS) to ensure that all Licenses issued are renewed by Nigeria Custom Service(NCS) will first be cleared by Council For the Regulation of Freight Forwarding in Nigeria(CRFFN) by conforming payment of Registration, Annual Subscription and Practitioners Operating Fess as it affect the business of Licensed Customs Agents is ultra vires the power of the Minister of Transportation and thus null and void.
“A declaration that the Ministerial Directive mandating that Security Gate-Passes for access to Seaport and International Cargo Airport and Land Border Ports be issued by Council For the Regulation of Freight Forwarding in Nigeria is ultra vires the Ministerial power and thus null and void.
In the originating summon disposed to by Mr Lucky Eyis Amiwero, the National President of Council of Managing Directors, the association sought an order of the court for the following:
“AN order revoking and quashing the Ministerial Directive of the 2nd Defendant issued and published in Vanguard Newspaper issued on Tuesday, August 1, 2017 at page 29 only relates to the business and operation of Licensed Customs Agents.
“AN order that Licensed Customs Agents be allowed access to the Seaport, Cargo Air ports to carry on their legitimate business upon presentation of valid license as registered Licensed Customs Agents.
The defendants in the suit were the Honorable Minister of Transportation, the Nigerian Ports Authority(NPA) and the Council For the Regulation of Freight Forwarding(CRFFN) in Nigeria.
In his landmark ruling on May,26th, 2025, Justice D.E Osiagor granted all the reliefs and orders sought by the Plaintiff,the Council of Managing Directors.
The Judge therefore made the following declarations
“The regulation of Licensed Customs Agents is governed squarely by the Customs and Excise Management Act, which provides a comprehensive legal frame for the licensing and oversight of Customs operation in Nigeria specifically:
“THE MINISTER CHARGED WITH THE RESPONSIBILITY OF REGULATING , LICENSING LICENSED CUSTOMS AGENT IS THE MINISTER OF FINANCE AND NOT TRANSPORT
“It follows that only the Minister of Finance, acting through the Nigeria Custom Service is statutorily authorized to regulate the business and operation of Licensed Customs Agents.
“The Honorable Minister of Transportation is not recognized under the Customs Act as having any supervisory or regulatory role in this regard.
“The (CRFFN) Act established a Council to regulate Freight Forwarders- A profession distinct from License Customs Agents.
“Under Section 4 the (CRFFN) is empowered to determine qualification, register Freight Forwarders, and Set standard for practice
“License Customs Agent(LCA) is a distinct profession from Freight forwarders.
“The Regulatory reach of (CRFFN) does not extend to Customs Agents under the Customs Act, therefore, any attempt to subject Licensed Customs Agents to (CRFFN) regulation, include payment of Practitioners Operating Fees(POF) lacks legal foundation
“Licensed Customs Agents(LCA) are not subjected to the regulation of (CRFFN), include payment of Practitioners Operating Fees(POF)  lack legal foundation
“The Minsters Directives that only person cleared by CRFFN including payment of registration, subscription and Practitioners Operating Fees(POF) may  access the Port or renew Customs Licenses, is ultra vires,imposing unauthorized regulatory condition on Customs Agents(LCA) who are neither under the supervision of(CRFFN)
“The Honorable Minster of Transportation lacks the Legal authority to issue directive regulating the business and operation of Licensed Customs Agents. The directive is ultra vires, null and void as the encroachment upon the statutory function of the Minister of Finance.
“Licensed Customs Agents(LCA) are governed by CEMA, which vest regulatory control in the Nigeria Customs Service and the Minister of Finance.
“However, mandates that these Licensed Customs Agent(LCA) must first be cleared by the (CRFFN) a separate regulatory body established under a different statute, for purposes of obtaining port access of Custom License renewal.
“This create a direct and irreconcilable conflict of Laws, Customs Agent already Licensed under CEMA, are being subjected to a second, unauthorized layer of regulation.
“This duplicity undermines legal certainty and introduces regulatory confusion, in breach of Section 153 and 156 of CEMA, which vest exclusive Licensing authority in the Minister of Finance.
“It follows therefore that the Licensed Customs Agents(LCA) should not be subjected to overlapping and conflicting obligation stemming from separate and different statutory authorities without express legal backing.
“Secondly, the directive imposes the payment of Practitioners Operating Fees(POF) as a condition for port access and license renewal, even though there is no statutory obligation under CEMA for such payment.
” This amount to an unlawful financial imposition on class of professional who are already operating under a different statutory scheme, imposing financial obligation without clear legislative authority constitutes an abuse of executive power and violates the principle of legality.
“The directive further mandates that the issuance of security gate-passes for access to Port shall be subjected to  the (CRFFN) certification and payment of fess, this directly weakens/ impairs the ability of the Licensed Customs Agents to carry out their statutory duties at the Port, by conditioning their access on compliance with unauthorized requirements .
“The directive places the livelihood of these Licensed Customs Agents(LCA) at risk, and exposes them to arbitrary denial of access to the operational zones of their profession. Such regulatory overreach amount to constructive exclusion from lawful business and infringes the constitutional right to freedom of trade and profession guaranteed  under section
16(1)(b) and Section 17(3)(a) of the 1999 Constitution( as amended).
“Hence administrative actions that violate statutory or constitutional right must be struck down.
“Fourthly, the Ministerial directives is ultra vires, the power of the Minister of Transportation, it is settled law that an act done in excess of statutory authority is null and void and cannot have legal effect.
“The Directive creates legal Jeopardy for Licensed Customs Agent(LCA) by compelling them to comply with illegitimate demands, there placing them in a position of conflict with their primary regulator- the Nigeria Customs Service(NCS)”
” Licensed Customs Agents shall not be subjected to regulatory control by (CRFFN) or required to pay  fees or obtain clearance from (CRFFN) as a condition for access to  Ports or renewal of  their Licenses under Customs Act; the two questions for determination are resolved in favor of the Plaintiff/licensed Customs Agents(LCA)” declared Justice Osiagor in his final ruling.
Following this ruling, stakeholders expressed fears over the survival of the CRFFN which has been struggling due to inadequate funding and gross maladministration deeply steeped in alleged misappropriation of its scarce resources.
The challenge of the regulator of the freight forwarding industry was further compounded by government declaration which removed some MDAs, including the CRFFN, from collection of annual financial hand outs.
” Now that the court has restricted the scope of the collection of the POF, which is its main source of funding as its internally generated revenue(IGR), the survival of the struggling council is hanging on a thread” a concerned freight forwarder observed.
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Customs

Customs exempts raw materials, machineries, parts,  project cargo, humanitarian aids,aircraft parts from 4 percent FOB charge 

Funso OLOJO
In a rare gesture of magnanimity and desire to stimulate the economy, the Nigeria Customs Service has granted concessions to manufacturers who engage in importation of raw materials, machineries and their parts, government projects and humanitarian aids.
This category of manufacturers will be exempted from paying the controversial 4 percent Free-on- Board (FOB)charge.
Included in the concession are commercial aircraft parts, beneficiaries of the presidential initiative for unlocking healthcare value chain.
These measures were the fall- out of a long- drawn consultation and engagement between the Nigeria Customs Service and the Manufacturers Association of Nigeria( MAN) held in Lagos on Friday, September 26th, 2025.
The  Comptroller- General of Customs,  Adewale Adeniyi, led a team of high- powered Customs High command to the National Secretariat of MAN whose team was led by the President of the association, Otunba Francis Meshioye.
Reading the agreement signed by Adeniyi on behalf of the NCS and Otunba Francis Meshioye of MAN, the CGC disclosed that the special concession on the select manufacturers was made by the Customs in consultation with the Minister of Finance, Wale Edun.
Giving the details of the exemptions, Adeniyi clarified that the concession was meant for the category of manufacturers who engage in the importation of the exempted cargoes.
“Nigeria Customs Service announced that following consultation with the Honourable Minister of Finance and the Coordinating Minister of the Economy, approval has been granted for strategic exemptions from the 4% FOB charges on the following, among others:
“Importation of raw materials, spares, and machines by the manufacturers who are beneficiaries of concessions contained in Chapters 98 and 99 of the Customs Tariff,
“Manufacturers who are currently on chapters 98 and 99 are advised to apply for pre-release of the consignment to avoid payment of demurrage.
“In addition, members of MAN who import raw materials, machines, and spares that are not currently on chapters 98 and 99 to be onboarded in order to enjoy the exemptions provided in 5(i) above.
“MAN, NCS, and the Federal Ministry of Finance will work together for the inclusion of manufacturers that are currently not on chapters 98 end 99.
“An immediate tripartite consultation of the Federal Ministry of Finance, NCS, and MAN would be held immediately to work out the modalities for expedited onboarding of manufacturers on chapters 98 and 99” Adeniyi explained.
He further disclosed that the 4% FOB payments already made by manufacturers who are yet to be onboarded to chapters 98 and 99 will be held as credit and be utilized for future customs-related transactions after their onboarding.
The CGC further listed the category of the beneficiaries of the special exemption to include government projects with Import Duty Exemptions Certificates, goods imports for Humanitarian, Life Saving and other related purposes and beneficiaries of the Presidential Initiative for unlocking Healthcare value chain as well as commercial airlines’ spare parts.
Adeniyi had disclosed that the recent suspension of the 4 percent FOB by the Ministry of Finance has opened a new vista of opportunity to make wider consultations and engagements with relevant stakeholders such as MAN, the outcome of which he said were the special exemption granted some category of manufacturers.
The concession has addressed the concerns of the manufacturers in the areas of the increasing cost of production which the 4 percent FOB will engender.
MAN through its President, Otunba Francis Meshioye, has also raised concerns on multiple checkpoints as threat to trade facilitation, multiple alerts in the clearance system and the B’Odogwu platform glitches.
However, the Customs helmsman said the service has developed robust policies that would engender seamless clearance procedures at the port.
“The Nigeria Customs briefed MAN on the various trade facilitation initiatives undertaken by the Service.
 “This includes the Economic Operator Programme (AEO), Advance Ruling, and Time Release Study.
“NCS, during the dialogue, expressed strong commitment to balancing its revenue generation mandate with innovative trade facilitation measures” the CGC assured.
” Beyond existing exemptions, discussions focused on additional trade facilitation initiatives being implemented by the Nigeria Customs Service to support manufacturing operations.
“These include the development of one-stop shop frameworks designed to streamline regulatory processes and eliminate bureaucratic bottlenecks, systematic reduction of unnecessary checkpoints that add costs without corresponding value, and integration of digital solutions to accelerate legitimate trade processing as well as maintain security standards.
 “The Service also outlined initiatives aimed at providing real-time clearance capabilities and automated risk assessment systems that reduce compliance costs for legitimate operators” Adeniyi concluded.
However, both parties agreed to comply with the terms and conditions of the agreement and pledge to sustain the consultation for the mutual benefits of the two parties and the Nigeria’s economy in general.
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Headlines

International encomiums pour in on Dakuku as two global literary icons endorse his book

Funso OLOJO 
Commendations  have continued to trail the release of ” Leading in a Storm”,  the latest book on Leadership by Dr Dakuku Peterside, the former Director – General of the Nigerian Maritime Administration and Safety Agency (NIMASA).
The latest endorsement came in from two international iconic figures,
Philipp Humm, the author of  bestseller books and Professor Andrew Sykes, a professor at the Kellogg School of Management and CEO, founder of Habitats at Work.
The duo commended Dr Dakuku’s book which they described as a masterpiece on Leadership.
Their endorsements underscore the book as an essential guide for leaders navigating real turbulence—appropriate for boardrooms, cabinet meetings, and high-pressure operational environments that require quick decisions based on incomplete information.
According to Philip Humm “Navigate chaos with confidence. This leadership guide provides powerful insights, stories, and tools for leaders to adapt, think creatively, and lead effectively during unpredictable times.”
Prof. Andrew Sykes supports this assertion, adding, “Leading is challenging even in the best circumstances.
“Leading during chaos demands a completely different skill set: a clear mind and a process for steering your team and your organisation toward calmer waters.
“This book offers perfect guidance, complete with anecdotes and stories illustrating its points. Given that we frequently transition from one crisis to another, this book is essential reading for the modern leader.”
“Leading in a Storm” serves as a practical roadmap through chaos, teaching leaders how to quickly interpret context, manage complexity, and communicate calmly and credibly when the stakes are high.
“The book does not idealise crises but equips leaders to balance speed with sound judgment, principles with pragmatism, and urgency with disciplined learning.
 Sykes and Humm highlight its unique blend of clarity and practical frameworks that can be implemented immediately, a language that resonates across sectors, and a leadership rhythm that maintains team alignment and confidence under pressure.
Building on the success of Dr Peterside’s earlier bestseller, “Strategic Turnaround: Story of a Government Agency,” this new book distils years of experience in public administration and transformation into key competencies for times of crisis.
It provides a playbook for leaders to convert confusion into priorities, turn meetings into actionable outcomes, and transform uncertainty into forward momentum—granting a sense of control and direction amid turbulent times.
Dr Peterside said if his book
“I wrote this as a practical companion for leaders who must perform even when the path isn’t clear.
“The goal is straightforward: to help people act with clarity, mobilise teams with purpose, and deliver results amid the storm.”
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Customs

Customs, MAN meet to resolve bottlenecks in clearing procedures at ports.

Funso OLOJO 
The Nigeria Customs Service has met with the Manufacturers Association of Nigeria(MAN) to deliberate on the areas of friction and bottlenecks in the clearing process at the port with the aim of resolving them.
The two parties met on Friday, September 26th, 2025 when the President of MAN, Otunba Francis Meshioye played host to the Customs High command led by the Comptroller- General of Customs, Adewale Adeniyi, at the association’ s office in Ikeja, Lagos.
Otunba Meshioye had complained of the soffocating atmosphere created for his members by the re- introduction of the 4 percent Free-on- Board (FOB) on imports as well as what he described as the teething problems thrown up by the newly introduced indigenous customs trade portal, B’Odogwu.
He said that the purpose of engaging with the customs is to ensure these problems are resolved amicably to enable the manufacturers have seamless customs procedures at the port.
In his response, the Customs CG said the service recognized the importance of  manufacturing sector as the backbone of Nigeria’s industrial development, adding that the success of that sector directly connects to  the nation’s nation’s prosperity.
Adeniyi said the recent developments, particularly that of the Ministry of Finance directive, regarding the suspension of the 4% FOB charge, have opened pathways for deeper dialogue between the two institutions.
” While this charge exists as a legal provision under the Nigeria Customs Service Act 2023, effective implementation requires genuine consultations, like the ones we’re having today, with those that it impacts most directly.
” This process of consultation, therefore, balances fiscal responsibilities with industrial growth imperatives”
” Your voices matter, all our manufacturers, and your experience helps to shape our understanding of how customs procedures can either enable or constrain manufacturing excellence.
“The Nigeria Customs Service has consistently supported manufacturing through concrete initiatives that recognize the strategic importance of industrial competitiveness to our national economic objectives.
“Our support extends to structural trade facilitation improvements” he declared.
The CGC further disclosed that the service has concluded the process of developing a comprehensive framework for establishing one-stop shops that will revolutionize how manufacturers interact with customs and other regulatory agencies.
These initiatives, he noted, aim to eliminate bureaucratic processes that frustrate legitimate business operations as  customs continued to maintain robust security and compliance standards.
Adeniyi recalled some of the policies which the customs have implemented to further make clearing process seamless and less cumbersome
“We have also carried out systematic streamlining of checkpoints along our major highways, reducing unnecessary delays that hurt costs without adding value to revenue generation or our security outcomes” the CGC said.
” Digital transformations lies at the heart of our trade facilitation strategies.
“We have investments in systems like the B’ Odogwu platform that provide real-time clearance capabilities, automated risk assessments, and seamless integration with the supply chain system. Technology should eliminate friction in the supply chain.
“All of these technology initiatives complement our policy frameworks to create comprehensive support for manufacturing sector groups.
 “As we speak here, distinguished ladies and gentlemen, we have commenced the integration of our B’ Odogwu system into the National Single Window Project, which is expected to come on stream in the first quarter of 2026.” the Customs helmsman declared.
Adeniyi outlined the role of customs which is to facilitate legitimate trade, as well as to continue to protect the nation’s borders and collect appropriate revenues.
He said the role of the manufacturer is to drive industrial production, create employment, and contribute to the  nation’s economic diversifications.
” These roles are complementary, and they require this kind of collaboration that we’re having to achieve optimal outcomes” the CGC concluded.
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