Connect with us

Headlines

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.
Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Headlines

FG takes safety on waterways campaign to Ogun, donates 3500 life-jackets to waterways operators.

Funso OLOJO 
As part of efforts to enhance the safety of waterways across the nation, the federal government has donated 3500 life-jackets to Ogun State Government for waterways operators in the state.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, who handed over the life-jackets on Tuesday, assured Nigerian inland waterways users that the ministry will stop at nothing to curb the needless loss  of lives on waterways.
Represented by Director of Maritime Services in the Ministry of Marine and Blue Economy, Dr. Mercy Ilori, the Minister said the campaign is part of a deliberate national strategy to embed a culture of safety on our inland waterways.
 “This is one of the most comprehensive Federal government responses in recent times to the persistent loss of lives on Nigeria’s waterways.
“Consequently, there have been successful handovers of Safety life jackets at Niger, Bayelsa, Anambra, Akwa Ibom, Delta, Taraba, and Lagos States.
” We are now in Ogun State to sustain the momentum and  reveal the government’s unwavering commitment to protecting the lives and livelihoods of the people of Ogun.
“You will all agree with me that the frequency and tragic consequences of boat mishaps across the country are deeply concerning.
“It is in recognition of this menace that the Federal Ministry of Marine and Blue Economy aligned with the Renewed Hope Agenda of President Bola Ahmed Tinubu, to prioritize life-saving interventions to bring about tangible change.”
He stressed that the government’s commitment to end the needless loss of lives on waterways is anchored on three pillars: Strict enforcement of the Inland Waterways Transportation Regulations 2023; Continuous public education and sensitization campaigns; and Provision of critical safety equipment, notably life jackets, to waterway users.
“It is worthy to note that the National Inland Waterways Authority (NIWA), a key agency under the Ministry, plays a pivotal role in ensuring the success of this strategy.
“NIWA continues to lead in regulation, monitoring compliance, and supporting education and enforcement efforts on our inland waters,” he remarked.
Meanwhile, the Governor of Ogun State, Dapo Abiodun, assured the Minister that the life jackets will be distributed equitably to registered operators across the state.
The Governor, who was represented by the State Commissioner for Transportation, Engr. Gbenga Dairo, stated that safety on the nation’s waterways wasn’t a privilege but a right of everyone in Ogun State.
He also assured that the State is ready and willing to provide all the necessary support to sustain the momentum but to enhance inland waterways as viable and secured alternative to road infrastructure.
“Safety on the waterways is not a privilege, it is a right.
” Every life jacket handed over today represents a life potentially saved, a family preserved, and a future secured.
” This initiative aligns with the human capital development pillar of our administration’s ISEYA agenda ensuring that people remain at the heart of our progress
“Ogun State values the synergy we have fostered with the Ministry of Marine and Blue Economy and applauds their dedication to the development of marine infrastrucnare, safety standards, and the blue economy as a whole.
” Ogun State stands ready and willing to provide all the necessary support to sustain this momentum, not only in marine safety but also in enhancing inland waterways as viable and secure alternatives to road transport.”
“To our waterway users, boat operators, fishermen, and residents of our riverine communities: these life jackets are for you.
” But more importantly, the knowledge and awareness you will gain from this sensitization effort will serve as your daily companion, protecting you and helping you protect others.
“Ogun State hereby assures the Federal Ministry of Marine & Blue Economy and NIWA that these life jackets will be equitably distributed to verified and recognised operators across the state’s waterways, from Iwopin to Ebute-Ero, from Agbara to Tongeji, Imakun Omi to Ode-Omi, and other active riverine corridors.
” A strict monitoring and maintenance protocol will be enforced to ensure sustainability and accountability.”
The State Governor, however, warned that State actors would not allow preventable tragedies define the nation’s waterways
“As we continue to embrace innovation and development in transportation, we must also embrace accountability and responsibility.
“Let us not allow preventable tragedies to define way of life, let us instead champion the principles of safety, respect for life, and collective vigilance.”
However, the Managing Director of NIWA, Mr. Bola Oyebamiji, warned that the issue of safety on the inland waterways cannot be over emphasized as he recounted several tragic incidents that claimed lives in hundreds.
“The issue of safety can never be over-emphasized. In June 12, 2023, a wooden boat carrying wedding guests returning from a marriage ceremony from Niger State capsized in Jeva Channel Lake, in River Niger in Kwara State, owing to overloading and a submerged tree.
“The boat was reported to be carrying over 200 guests despite having the capacity of carrying just less than 100 passengers.
“More than 200 lives were lost, among which a father and four of his children were involved. So you can imagine the kind of tragedy that befell the family.
“Again, in October 1, 2024, a wooden boat carrying mostly women and children traveling for religious festive occasions capsized in Niger State.
“The boat was reported to be carrying over 300 passengers even though it has the capacity of carrying less than 100 passengers. More than 100 lives were lost.”
NIWA Managing Director, who was represented by Engr. Elsie Egwuatu, observed that in the respective cases the boats were heavily overloaded, sailed at night without the proper navigational aids and conveyed passengers without life-jackets.
“So if you think safety is expensive, try disaster. Over 90 percent of accidents that happen on our waterways are caused by human error.
“In most cases, it is caused by captain’s negligence. The newly gazetted Marine and Transport Regulations Codes, which spells out offences and punishments, ranging from fine to imprisonment, mandates the compulsory use of life jackets for all waterways users sailing on our waterways,” she added.
Also speaking, the National President of the Association of Tourist Boat Operators and Water Transporters of Nigeria (ATBOWATON), Alhaji Tarzan Balogun called for intensified regulatory efforts to prioritize safety and infrastructural development on Nigerian waterways.
Alhaji Balogun commended the government for its efforts in promoting safety across the country’s inland waterways, even as he assured that the life jackets would be used judiciously.
“There must be a firm policy — no life jacket, no entry. I’ve witnessed several cases where passengers refuse to wear them. That should not be allowed. Safety must come first,” he said.
Balogun also praised the federal government, particularly President Tinubu and the Minister of Marine and Blue Economy, for their commitment to maritime safety and for recognizing the importance of life-saving gear in water transport.
“If you’re drunk or perceived to be a threat to others onboard, operators must have the authority to refuse you entry.
” There is also the problem of bringing animals onboard, especially dogs who can scare passengers onboard and make boats capsize,” he stated.
Balogun also called on the Ogun State Government to emulate Lagos by setting up a dedicated waterways authority and constructing jetties in collaboration with local boat operators.
Continue Reading

Headlines

Dangote supports NPA -led One stop shop committee with brand new bus for enhanced operations 

Funso OLOJO 
The President/Chief Executive of Dangote Industries Limited, Alhaji Aliko Dangote has commended the Nigerian Ports Authority (NPA) for the effective way it has handled the implementation of the Federal Government’s policy on domestic sales of crude oil and refined products in Naira.
To this end, Alhaji Dangote has donated a brand new Coaster bus to the OSS Committee to further ease its operations.
In a letter signed personally, Alhaji Aliko Dangote assured that  his organisation will continue to explore ways of supporting the committee to sustain its successes in the implementation of the presidential directive.
The Letter reads in part: “In recognition of the enormous responsibility placed on shoulders of the One Stop Shop (OSS) by the President and Commander in Chief of the Armed Forces, and our commitment to ensuring the committee delivers on its mandate, I am pleased to donate to the committee one (1) brand new Coaster bus to facilitate the daily discharge of their operations.
“We believe this bus will be used productively by the committee as we continue to look for ways to support and appreciate the efforts of this noble committee
Recall that the Chairman, Technical Sub-Committee, on the implementation of the Federal Government’s policy on domestic sales of crude oil and refined products in Naira, Zacch Adedeji, had during a recent visit to NPA, commended the One-Stop-Shop (OSS) Team, led by the Nigerian Ports Authority (NPA) for ensuring smooth operations of the directive.
He thanked the team led by NPA for “playing a pivotal role in the successful implementation of the presidential directive on the domestic sales of crude oil and refined products in Naira”
 Adedeji said: “We recognize that this pioneering effort is a significant achievement, and no doubt reflects your commitment and patriotism”.
“Thus, we encourage you to maintain the hard work and dedication that has made this initiative a success.
“We also extend our gratitude to all participating agencies for their invaluable cooperation and support,” Adedeji said.
Continue Reading

Headlines

CRFFN Registrar talks tough over Court judgement nullifying collection of POF, declares Customs agents will continue to pay despite court ruling.

–vows to appeal the judgement. 

Funso OLOJO / Gloria Odion 
The Registrar of the Council for the  Regulation of Freight Forwarding Practice in Nigeria(CRFFN), Mr Kingsley Igwe, has vowed that the Council will appeal the Lagos High Court judgement which nullified the collection of Practitioners Operating Fee(POF) by the CRFFN from Customs Clearing Agents.
It would be recalled that 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.
However, seven years later, on May 26th, 2025, Justice D.E Osiagor , ruled that the collection of POF from the Customs Agents by the CRFFN was illegal, contending that the council only have control over freight forwarders but not customs agents.
But in a swift reaction, the Council’s Registrar said the Customs agents are within the sphere of control of the CRFFN and are therefore mandated  pay the POF.
Quoting copiously from the Customs Act 2023, Mr Igwe said the Customs agents are part of the freight forwarding profession.
 ” The Nigerian Custom Service Act, 2023, further reinforces the regulatory role of CRFFN  over customs agents who operate within the freight forwarding value chain, notably Section 106, Subsection 4 of the Nigerian Custom Service Act, 2023, states, and I quote, a customs representative, if you like, a customs license agent, shall be a freight forwarder.
“I repeat, a customs representative, if you like, a customs agent, shall be a freight forwarder, and shall be subject to the regulations and code of conduct of the freight forwarding profession in Nigeria, in this case, a profession regulated by Council for Regulation of Freight Forwarding in Nigeria”
” This provision legally integrates custom representatives into the freight forwarding profession, making them subject to the regulatory control and code of conduct established by CRFFN”
The council Registrar therefore vowed that the court judgement will be appealed.
” The Council’s legal team is thoroughly reviewing the contents, the context and legal implication of the said judgments and reaffirm that where necessary, the Council will exercise its rights of appeal, review or clarification through competent judicial channels”
The Registrar also condemned what he described as a secretive manner in which the court process was carried out without informing the defendants.
“I wish to express deep concern over the secretive manner in which it was issued reportedly without due notice to the defendants as named in the suit.
” Such a process somehow is contrary to expected principles and processes as enshrined in the Constitution of the Federal Republic of Nigeria.
“The Council views this report as the handwork of some mischief makers to derail the peace reforms and progress achieved in the freight forwarding sector in recent times”
He said that the court judgement would not stop the Council from collecting the POF, ” because the appeal never mentioned that they should stop paying POF”
” It only declared it illegal. It didn’t say stop, henceforth.
“So the collection of POF is continuous. And as a matter of fact,this is not against court ruling”
” I want to be clear on that. Because court never said stop collecting. It’s two different things.
“So that people don’t misunderstand it that way. Then, we’re already almost at the point of submitting the appeal. And we will pass the same submission” Igwe declared.
He therefore urged the freight forwarding practitioners to go about their normal duties and continue to pay the POF.
Igwe also declared that the plaintiff, the Council of Managing Directors which instituted the court process is under the control of the CRFFN ” and they will pay and continue to pay the POF”
He therefore asked the freight forwarders to continue to discharge their obligations under the CRFFN by paying the required practitioners fee pending the matter is resolved in the Court.
“POF is not a tax or a revenue level. But a statutory fee gazetted by the Federal Republic of Nigeria and created under the powers conferred on CRFFN by its establishing acts.
Continue Reading

Trending