The Head of the Sea Empowerment Research Centre, Dr. Eugene Nweke, has issued a clarion call for urgent reforms to the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), citing its current state as a critical impediment to the growth and effectiveness of the freight forwarding sector.
In a letter that was addressed to the Minister of Marine and Blue Economy; Mr Adegboyefa Oyetola, a copy of which was sighted by our correspondent, Dr. Nweke emphasized the need for a professional reevaluation of the council’s operations, urging for a restructuring that prioritizes regulatory effectiveness and eliminates political interference. He stated that, “for a professional freight forwarding regulatory council to be effective, a sustainable funding model and efficient administration are crucial.”
The letter outlines various administrative issues and structural concerns that have hindered the council’s effectiveness.
Nweke identified several fundamental factors contributing to the CRFFN’s challenges, including the “wrong categorization of the Council as an agency of the FMOT” instead of an independent regulatory body.
He criticized the council’s administrative structure, noting the creation of excess offices and a governing council with over 30 members, which he argues has resulted in political interests overshadowing professional expertise.
He further explained that the electoral process for the governing board is influenced by “selfish and political interests devoid of professional interests.” This situation has led to a government influence that compromises the integrity of the council, with board chairmanship elections often resulting in the appointment of non-core practicing professionals.
Funding issues also plague the CRFFN, according to Dr. Nweke. He expressed concern that the reliance on government budgets and allocations has diminished other professional standards for revenue generation. He stated that, “instead of government occasional financial intervention/assistance, we have a quick-fix and politically induced full yearly budgeting and allocations in place.”
To support his recommendations, Dr Nweke presented successful models of freight forwarding regulatory councils worldwide, such as the International Federation of Freight Forwarders Associations (FIATA) and the British International Freight Association (BIFA).
He proposed a streamlined governance structure for the CRFFN that includes a smaller board of 8 to 10 members and a secretariat of 5 to 7 staff, which he believes would foster effective regulatory engagement.
Nweke also highlighted the importance of implementing a robust funding model, incorporating diverse revenue streams such as membership and license fees, levies on freight transactions, and private sector partnerships. He noted that an ideal funding model would not only ensure financial stability but also enhance the council’s autonomy and operational capacity.
Nweke further emphasized the need for independence, transparency, and stakeholder engagement in the regulatory process. He stated, “For a professional freight forwarding regulatory council to be effective, a sustainable funding model and efficient administration are crucial.”
