With an annual loss, said to be in the neighborhood of N100Billion, there is certainly no doubt about the need to indigenize freight forwarding practice in Nigeria, and reserve cargo clearance and delivery within Nigeria to Nigerians
So, when recently, the Director of Commercial Shipping Services at the Nigeria Shippers’ Council; Mrs. Dabney Shall Holma hinted that the Council is already working along that line, one can’t but heave a sigh of relief.
With an annual loss, said to be in the neighborhood of N100Billion, there is certainly no doubt about the need to indigenize freight forwarding practice in Nigeria, and reserve cargo clearance and delivery within Nigeria to Nigerians
So, when recently, the Director of Commercial Shipping Services at the Nigeria Shippers’ Council; Mrs. Dabney Shall Holma hinted that the Council is already working along that line, one can’t but heave a sigh of relief.
The Shippers’ Council top personnel told visiting members of the Customs Consultative Council at a recent meeting that the Council has commenced plans towards indigenisation of freight forwarding in the Nigeria. She added that the plan was part of the ‘new port order’ agenda.
Apparently unhappy about the current trend of foreign domination of Nigeria’s freight forwarding practice, she said; "we cannot rely on the multinationals to build capacity, because they will not do it, they will continue to hire and fire".
Going further she had said that, there is need to set aside apportion of the logistics chain for Nigerians.
"But I can tell you that the Nigeria Shippers’ Council has identified that factor and we are saying that nobody should do freight forwarding except he is a Nigerian”, she stated rather patriotically.
But the perspective of the registrar of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN); Sir Mike Jukwe gives a further insight into why foreign firms practice freight forwarding in Nigeria.
He noted that the practice is prevalent because of the concept of door-to-door. “For instance, a shipper in Europe may have a corresponding body here in Nigeria who is into freight forwarding. They will prefer that that body will carry on the aspect of freight forwarding on their behalf”.
We are shocked that, even though smaller countries like Ghana and Republic of Benin have embraced the principle of local content to freight forwarding for many years, Nigeria is just waking up.
We are equally surprised that the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) appears helpless.
The registrar, rather than muster opposition against the practice only advised Nigerian shippers to desist from surrendering their jobs to foreign companies who would gladly take them away from them.
He also added that, they should “ensure that that component is not included in any agreement Nigerians are signing with their foreign shippers out there, so that when the cargo comes in, it will be cleared by the local freight forwarders.” It is also more disturbing that he submitted that, “it is only when that is not in the agreement that you find it easy to do anything in that regard”.
For a practice that accounts for more than NI00Billion annual loss to the economy, the move by the Nigerian Shippers’ Council (though commendable) is coming a bit late.
The need to indigenize freight forwarding is as much the task of the Nigerian Shippers’ Council as that of the CRFFN. We are even of the opinion that the CRFFN is more at the centre of it all than any agency or institution of government.
While it is true that most indigenous freight forwarding firms may not be topnotch when compared with their foreign counterparts, we are however certain that, so many indigenous firms can stand shoulder to shoulder with their foreign counterparts. The difference between them is ownership; while one is wholly Nigerian, the other has their roots offshore Nigeria.
It is a shame that what couldn’t fly in neighbouring countries like Benin Republic and Ghana has found roots in Nigeria. It is also sad that the practice has been unchecked for years.
Without mentioning names of companies, many freight forwarding firms have existed in the country for decades and have found age long ally in government establishments that license them.
We are aware that many of these foreign firms have found willing allies in personnel of these government agencies, with whom they often collude and circumvent the rules. They have bonded warehouses, from where they do door-to-door logistics for their high net worth clients. Only few (if any) indigenous firms have these.
At this juncture, we will like to ask: Are these firms in the register of the CRFFN, are they licensed by the Nigeria Customs Service to practice? We know that answers to these questions are – Yes. It therefore means that, for freight forwarding to be indigenized in Nigeria there must be collaboration between the indigenous practitioners and the government agencies, especially CRFFN, Customs and Nigerian Shippers’ Council.
Perhaps, it is apt to ruminate over the real definition of freight forwarding and ask the often asked question: who is freight forwarder and who is a customs agent.
While we will not attempt a definition, we are however aware that majority of those who claim to be freight forwarders are mere customs licensed agents.
It stands to reason therefore that, for Nigerian firms to desire to be like their foreign firms, they must go beyond the realm of customs brokerage to a more daring realm of freight forwarding- which customs clearing is just an integral part of.
Notwithstanding the dilemma of nomenclature and practice of freight forwarding and customs clearing, we are on the same page with the Nigerian Shippers’ Council in this campaign, but we urge collaboration with the CRFFN and the Nigeria Customs Service.
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