The Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) has been plunged into a major credibility crisis as four out of its five accredited freight forwarding associations have openly rejected the controversial Practitioners Operating Fee (POF), branding it illegal.
At a joint press briefing held in Lagos on Friday, the associations, namely: the Association of Nigerian Licensed Customs Agents (ANLCA), National Association of Freight Forwarders and Consolidators (NAFFAC), National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), and the Association of Registered Freight Forwarders Nigeria (ARFFN) — vowed to enforce the April 2023 judgment which, according to joint press statement declared the collection of POF from customs-licensed agents illegal and null and void.
“The court was very clear,” said one of the leaders. “The CRFFN cannot regulate customs-licensed agents. It cannot compel them to register with it. And it certainly cannot impose fees like the POF on them.”
Recall that the judgment, delivered by Justice A.O. Faji of the Federal High Court in Lagos, ruled that:
“The CRFFN has no power whatsoever to register or control customs-licensed agents and that any attempt to do so violates the exclusive powers conferred on the Nigeria Customs Service by the Customs and Excise Management Act (CEMA).”
Despite this ruling, the freight forwarders expressed shock and disappointment over a recent press release allegedly issued by CRFFN directing terminal operators to disregard the court ruling. They described the move as a deliberate attempt to undermine the judiciary and said such action amounts to executive lawlessness.
“We are in a country governed by the rule of law,” Emenike Nwokeoji stated.
“When a court gives an order, it must be obeyed until overturned by a higher court. We have consulted our lawyers, and they advised we stand firm. So yes, we are no longer paying the POF.”
They also disclosed that they have instructed all their members nationwide to cease remitting POF with immediate effect, warning that terminal operators who continue to collect the fee will be complicit in contempt of court.
The associations noted that while the case was originally filed by factional NCMDLCA President, Lucky Amiwero, the court ruling applies to all customs licensed agents, as it addresses the broader legal status of CRFFN’s authority.
“Whether it was Amiwero or anyone else who filed it is immaterial. The substance of the judgment is what matters”, the associations’ Presidents emphasized . “The court ruled based on the law. And that law protects every customs-licensed agent.”
They accused the CRFFN of being hijacked by political appointees and commercial interests who, despite regulatory failures, are desperate to keep the POF stream alive — a fee the agents say has never been transparently accounted for.
“We were promised 35% of the proceeds. We have received nothing. No records, no transparency, no benefits. Why should we continue to fund an illegal structure?” one of the presidents queried.
They also pushed back on the argument that POF helps develop the freight forwarding sector, stating that there is no evidence that the collected funds have improved the practice or protected agents’ interests.
Addressing question from our correspondent, Mr. Adeyinka Bakare who had previously served on the CRFFN governing board, explained that his stance was not motivated by personal grievances but by respect for the judiciary and the Freight Forwarding Act.
“It’s wrong for anybody, no matter your position, to ask people to ignore a court judgment. Unless that ruling is appealed and overturned, we must obey it.”
The freight forwarders warned that continued disregard for the court decision could result in chaos and threaten the legitimacy of CRFFN itself.
Defending their decision further, they argued that the appointment of the current CRFFN registrar and other actions by the Council did not follow the proper legislative process. “The Act is clear on the procedures for such appointments. What we see now is executive rascality.”
Responding to questions about the economic implications of halting POF payments, the associations questioned the fairness of the fee. “Why should we be taxed on every job we handle? Do engineers pay for every contract they take? Do doctors pay for each patient (they treat)?”
When asked about NAGAFF’s absence from the coalition, they noted that internal politics and affiliations have led to its current alignment with CRFFN.
“This is not about which faction or tribe someone belongs to. This is about the law,” they said.
The associations maintained that all customs-licensed agents fall under the purview of the Federal Ministry of Finance and the Nigeria Customs Service, and not CRFFN. “The court was clear. CRFFN has no regulatory power over customs-licensed agents. That’s the crux of the judgment,” they concluded.
