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.
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.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

Customs

Tinubu hails Nigeria’s Customs model as AfCFTA picks local firm for $multi-billion project

Bergmans subsidiary wins 20-year continental customs modernisation contract 

Gloria Odion, Maritme reporter

President Bola Ahmed Tinubu has hailed the emergence of Nigeria’s homegrown Customs modernisation model as a continental benchmark following the selection of a subsidiary of Nigerian-owned Bergmans Security Consultant and Supplies Limited to execute a 20-year, multi-billion-dollar AfCFTA Customs Modernisation Project.

The development, according to the President, represents a major vote of confidence in Nigeria’s growing capacity to develop indigenous technology and expertise capable of powering Africa’s emerging trade architecture.

The project will be implemented by AfriTrade CMP Limited, a subsidiary of Bergmans, and is expected to deploy digital and physical infrastructure for customs processing, cargo tracking, border management and trade-data exchange across participating African countries.

Tinubu’s commendation was contained in a State House statement issued yesterday, Monday, August 10th, 2026, by his Special Adviser on Information and Strategy, Bayo Onanuga.

The President said the continental deal was particularly significant because another subsidiary of Bergmans, Trade Modernisation Project Limited, is already implementing Nigeria’s Customs Modernisation Programme in partnership with the Nigeria Customs Service (NCS).

He described the development as evidence that solutions developed and tested in Nigeria could now be scaled across the continent.

“What has been built and tested in Nigeria is now providing a model for the continent. This is how African integration should work: Africans building African solutions for African markets,” Tinubu said.

He added that Nigerian institutions and businesses could play a pivotal role in building the technology and infrastructure required to make the African Continental Free Trade Area work effectively.

“Under our Nigeria First policy, we will continue to create opportunities for capable Nigerian businesses to compete at home, across Africa and globally,” the President said.

Tinubu specifically commended Bergmans, AfriTrade CMP Limited, Trade Modernisation Project Limited, the Nigeria Customs Service, Comptroller-General of Customs, Bashir Adewale Adeniyi and Nigerian professionals whose work, he said, had earned continental confidence.

The President said the development also reflected the transformation taking place within the Nigeria Customs Service under Adeniyi, particularly in the areas of digitalisation, institutional reform, trade facilitation and indigenous technology deployment.

AfCFTA endorsement

The continental endorsement gathered momentum during the recent visit of the Secretary-General of the AfCFTA Secretariat, Wamkele Mene, to the NCS Headquarters in Abuja, where he inspected the Customs Service’s modernisation platform.

Mene visited the headquarters alongside members of the Senate Committee on Customs led by Senator Jibrin Isah, following a two-day retreat on customs modernisation and reforms.

After witnessing the system in operation, the AfCFTA Secretary-General described B’Odogwu, Nigeria’s indigenous Unified Customs Management System, as a model with potential for wider adoption across Africa.

Mene disclosed that non-African companies had also offered similar solutions but said AfCFTA had opted for an African solution, underscoring the continent’s determination to develop its own expertise and infrastructure.

The endorsement effectively elevates B’Odogwu from a Nigerian Customs digitalisation initiative to a potential template for the continent’s evolving customs administration.

Senator Isah also expressed the Senate committee’s support for the modernisation programme after witnessing the technology in operation, saying members had become ambassadors of the initiative.

B’Odogwu at centre of transformation

First piloted in October 2024, B’Odogwu has become a major component of the NCS modernisation programme, supporting the digitalisation of customs processes and integrating critical functions including cargo tracking, data infrastructure, surveillance, risk management and non-intrusive inspection.

The system is also being integrated with the National Single Window, which was launched in March 2026 as a unified digital gateway for cross-border trade processes.

The integration is expected to improve the speed and transparency of cargo clearance while reducing inefficiencies and strengthening data exchange among agencies involved in international trade.

For Nigeria, the AfCFTA development goes beyond the commercial value of the continental project.

It represents a rare opportunity for the country to export technology, expertise and institutional know-how, rather than merely participate in Africa’s expanding trade market as a consumer.

The development also reinforces the argument that investment in indigenous technology and institutional reform can produce solutions with commercial value beyond Nigeria’s borders.

With AfCFTA seeking to dismantle barriers to intra-African trade, modern customs infrastructure will remain critical to achieving faster cargo clearance, improved revenue collection, effective border controls and seamless exchange of trade information.

The emergence of Nigerian-developed customs technology at the centre of that continental ambition could therefore mark a significant shift in Nigeria’s role in Africa—from being principally a market for imported technology to becoming a provider of strategic trade infrastructure for the continent.

Continue Reading

Customs

Customs FOU ‘A’ crushes smuggling ring, seizes N3.24bn worth of contraband, recovers N729m revenue

-intercepts cannabis, tramadol, rice, vehicles, elephant tusks, other prohibited goods

Funso Olojo, Editor

The Nigeria Customs Service (NCS) Federal Operations Unit Zone ‘A’ (FOU ‘A’), Ikeja-Lagos, has dealt a heavy blow to smuggling and revenue fraud, intercepting 220 consignments of prohibited and smuggled goods with a combined Duty Paid Value of N3.24 billion and recovering N728.98 million in lost revenue.

The seizures, recorded through a series of intelligence-driven operations, highlight the escalating battle by the Customs Service to shut down illicit trade routes, protect domestic production and plug revenue leakages arising from false declarations, under-valuation and other customs infractions.

Among the major seizures were 4,956 bags of foreign parboiled rice weighing 50kg each, equivalent to eight trailer loads; 12 foreign-used vehicles; 2,683 parcels of synthetic cannabis (Sativa) weighing 1,439.9kg; 49 parcels of Ghanaian Loud weighing 26.1kg; one parcel of crystal methamphetamine weighing 0.35kg and 13 parcels of granular cannabis weighing 1.35kg.

The Unit also intercepted 240,000 tablets of Tramadol, 12,000 tablets of Hypnox and 22 elephant tusks weighing 130.84kg, alongside 964 25-litre jerrycans of Premium Motor Spirit (PMS), representing 24,100 litres.

Other items seized include 26 cartons of foreign vegetable oil, 686 cartons of foreign poultry products, 414 bales of used clothing and 2,947 pieces of used tyres, among other prohibited and smuggled goods.

The Comptroller of FOU ‘A’, Gambo Aliyu, said the N728.98 million revenue recovery represented an important component of the Unit’s enforcement mandate, particularly its efforts to recover government revenue lost through fraudulent trade declarations.

Aliyu warned importers, exporters and licensed customs agents against deliberate attempts to short-change the government, urging them to make accurate declarations and comply fully with applicable customs laws and regulations.

He said the Unit would continue to facilitate legitimate commerce but would show no mercy to operators involved in smuggling, revenue evasion and other forms of economic sabotage.

According to him, the latest seizures demonstrate the importance of intelligence gathering, risk profiling, inter-agency collaboration and intelligence fusion in dismantling sophisticated smuggling networks.

He attributed the Unit’s operational successes to improved intelligence capabilities and cooperation from sister agencies, stakeholders, border communities and members of the public.

Beyond the revenue implications, the seizures have significant economic and public-safety consequences.

The interception of foreign rice, poultry products, vegetable oil, used clothing, tyres and foreign-used vehicles is expected to provide additional protection for local manufacturers and producers already battling the effects of illicit imports.

Similarly, the seizure of large quantities of cannabis, tramadol, crystal methamphetamine and other controlled substances underscores the Customs Service’s growing role in preventing the movement of illicit drugs and potentially harmful pharmaceutical products through Nigeria’s trade corridors.

The recovery of the elephant tusks also reinforces the Service’s contribution to the fight against illegal wildlife trafficking and the protection of endangered species.

Aliyu, however, stressed that FOU ‘A’ was not at war with legitimate trade, insisting that its enforcement strategy was built around striking a balance between strong border control and trade facilitation.

He assured compliant traders that the Service remained committed to a fair, predictable and transparent trading environment, while warning that the Unit would sustain its zero-tolerance posture towards smuggling and revenue fraud.

The Customs boss called for stronger partnership with the business community and the general public, noting that sustained intelligence sharing and vigilance were critical to consolidating the gains recorded in revenue recovery, border security, public safety and economic protection.

He said the NCS, through FOU ‘A’, would continue to align its enforcement operations with the Federal Government’s broader economic agenda by protecting domestic production, promoting compliance, facilitating legitimate trade and blocking the circulation of prohibited and harmful goods.

Continue Reading

Analyses

The National Single Window Illusion: Why phase two cannot succeed on paper

Monday Discourse with Nasiru Ibrahim

The official rollout of Phase One of the National Single Window (NSW) was heralded as a monumental leap toward a paperless, automated trade ecosystem.

On paper and within executive dashboards, the achievements are clear: the serialization of Licenses, Certificates, and Permits (LCPO), streamlined electronic manifest transmissions, and integrated risk management for primary regulators like SON and NAFDAC.

Yet, as the steering committee aggressively prepares for the imminent deployment of Phase Two, a severe operational reality check is required.

The claim that the Single Window has successfully “taken off” remains a purely administrative illusion when measured against the brutal, manual friction remaining at our terminal gates.

The core vulnerability of the current transition is the absolute failure to align digital front-end clearances with physical back-end enforcement.

Importers are successfully navigating the centralized National Single Window Portal, obtaining official electronic green lights, only to watch their consignments get trapped by manual human greed the moment the cargo hits the access roads.

Phase Two promises end-to-end electronic customs clearance, full payment digitization, and automated interoperability with the Nigeria Customs Service’s new B’Odogwu Unified Customs Management System.

However, if the federal administration continues to pour billions into software updates while leaving parallel manual check-points unpunished, Phase Two will simply become a highly expensive digital facade masking an archaic extortion regime.

True trade facilitation is not a technological achievement; it is a direct function of political will.

The integration of advanced platforms like B’Odogwu across major commands like Apapa and Tin Can proves that our regulatory arms possess the technical capability to automate. The problem is cultural and financial.

Entrenched administrative empires are deliberately preserving parallel manual structures because documentation loops, artificial delays, and manufactured compliance flags remain incredibly lucrative.

For the National Single Window to transition from a policy delusion into a genuine economic catalyst, the state must move past cosmetic celebrations.

The presidency must deploy the executive power required to completely outlaw physical interventions outside the approved digital framework and enforce severe punitive consequences for any agency chief who authorizes parallel verification processes.

Until the gate complies with the portal, the National Single Window project remains grounded.

Chief Ibrahim Nasiru, a public affairs analyst, writes from Abuja

Continue Reading

Trending