The Acting Registrar, Council for the Regulation of Freight Forwarding in Nigeria (CRFFN),Mrs. Chinyere Uromta,has urged the new Minister of Marine and Blue Economy, Mr. Gboyega Oyetola to reconsider the federal government’s decision to discontinue funding for the Council.
Uromta made this appeal during her address to the Minister of Marine and Blue Economy, Mr. Gboyega Oyetola, on his inaugural visit to the Council’s headquarters in Lagos.
Uromta passionately argued against the government’s move to exclude CRFFN from budgetary allocations, emphasizing the crucial role the Council plays in the freight forwarding subsector. She asserted that without CRFFN’s intervention, Nigeria would have faced the risk of being delisted from the International Federation of Freight Forwarding Associations (FIATA).
She stated that this funding discontinuation, initially recommended by the Presidential Committee on Salaries (PCS), poses significant challenges to the Council’s financial sustainability, as its current Internally Generated Revenue (IGR) falls short of covering personnel costs.
Uromta however expressed optimism in the Council’s ability to boost IGR through enhanced collaboration with government agencies such as the Nigeria Customs Service, Federal Ministry of Aviation, Nigerian Ports Authority, and Federal Ministry of Finance (Revenue Department).
She stressed the urgency of addressing the issue of the federal government’s policy, which deducts 40 percent of CRFFN’s revenue at source for the Consolidated Revenue Fund (CRF). This policy, she argued severely impairs the Council’s capacity to meet its financial obligations, especially after being removed from the personnel budget, with effect from January 2024.
Uromta also called for a review of the Act that established the Council, which currently defines it as a professional body rather than recognizing its role as a regulatory agency and an international regulatory body for freight forwarding standards under FIATA. She highlighted the critical need for amending the CRFFN Act to reflect the Council’s multifaceted responsibilities.
She further requested the Ministry of Marine and Blue Economy’s assistance in facilitating CRFFN’s integration with key agencies like the Nigeria Customs Service, Nigeria Civil Aviation Authority, and Nigerian Ports Authority, especially concerning the Lekki Deep seaport, which is a significant source of the Council’s IGR.
“The government needs to allow us get out revenue perfected to avoid what will affect the Nigeria’s profile at the FIATA congress
“We are hopeful that the Budget Office of the Federation shall address this matter with a view to reviewing downwards the 40 percent remittance or complete removal of the same”, she stated
Uromta also sought the support of the minister for the relocation of the Council’s administrative headquarters to Abuja, citing cost-efficiency and the revenue-generating potential of an Abuja-based office.
Mrs. Uromta’s plea encompassed various aspects, including revenue generation, regulatory functions, and administrative efficiency. She expressed hope that these requests would be addressed within the Minister’s first 100 days in office.
She said “accommodation has been a problem, we are making a passionate appeal sir that this place because of the nearness to the seaports and land borders should be approved as operational headquarters, while the administrative headquarters be moved to Abuja.
“This will lead to prudent spending because almost every week I am in Abuja and funds are being spent in BTA and all that are the funds needed to professionalise the industry we are in” she said.
In response, Minister Gboyega Oyetola commended the Council’s efforts and expressed willingness to consider their requests. He suggested that the Ministry would explore the possibility of relocating the administrative headquarters to Abuja, provided suitable accommodation was available. Regarding revenue generation, he encouraged the Council to explore various options and assured them of the Ministry’s support in evaluating these alternatives.
The Minister acknowledged the importance of CRFFN’s role, not only in Nigeria but also as an international regulator. He emphasized the need for the Council to adapt to the changing landscape and consider viable options for its sustainability.
