Findings by Shipping Position Daily have revealed that the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) faced substantial challenges in meeting its revenue targets over the years, with significant variances between approved budgets and actual revenue generated.
According to data given to our correspondent by a member of the Marine Transport Committee of the Senate who pleaded anonymity, in 2022 the Federal Government set an approved revenue of N5.04 billion for CRFFN to generate. However, the council, only managed to generate N471.6 million, which represented just 9.37% of the approved budget.
Fast forward to 2023, the Federal Government allocated an approved budget of N873.2 million for CRFFN. By September 30th, the council had generated N388 million, marking a 44.52% performance. While the revenue performance in 2023 showed an improvement over the previous year, it still fell short of the budgeted amount.
The breakdown of the revenue sources revealed similar trends in both years. In 2022, the budget allocated N4.76 billion from the Practitioners’ Operating Fees (POF), but CRFFN only managed to generate N420 million, representing just 8.8% of the approved budget. In contrast, membership registration fees saw impressive performance in 2022, with an approved budget of N2.47 million and CRFFN generating N21.43 million, exceeding expectations at 866.1%. However, annual subscription fees struggled, with a budget of N273.1 million, but only N30.15 million was generated, resulting in a budget performance of 11.03%.
Moving to 2023, the Federal Government approved N600 million for CRFFN to generate through POF. As of September 30th, the council had generated about N360.25 million, marking a 60.04% performance. Membership registration fees had a budget of N93.2 million, with CRFFN generating N13.5 million, resulting in a performance of 14.48%. However, annual subscription fees continued to be a challenge, with a budget of N180 million and only N14.2 million generated, reflecting a budget performance of 7.29%.
Shipping Position Daily recalls that CRFFN’s leadership during a recent interactive session with the Senate committee on marine transportation had attributed the difficulties in meeting revenue targets to several issues, including legislative intervention. They emphasize the importance of collaboration and integration with key stakeholders, seeking support from the Senate Committee on Marine Transportation to facilitate these efforts.
Furthermore, the council stated that it faces multiple litigations and court cases from practitioners who resist paying the Practitioners’ Operating Fees (POF), which is a significant revenue source. The council called for intervention from the Senate Committee to address these legal challenges.
