Mr Frank Obiekezie is the National Secretary of the Association of Registered Freight Forwarders of Nigeria (AREFFN). In this interview with Joshua Yousouph, he dwells on issues in the industry, especially freight forwarding, and sundry others
First, we are already getting to the end of the year. How will you appraise the maritime industry in 2023?
The maritime industry from my own perspective as a freight forwarder, I would say it has not done very well, because my ultimate goal as a freight forwarder is to see efficient operations in the port, trade facilitation, seamless clearance and delivery of goods. So things are not getting better from this angle. It is like we’re going back to the bad old days. You must have heard of the new problems associated the call-up system. We are back to square one. Trucks are finding it difficult to enter the ports. What does it result into? Just the escalation in cost of transporting goods in and out of the ports. From that angle, I cannot say that we have done well. The only glimmer of hope is the new direction of emphasis on export. Most of our young men are being directed to export because before now, most of the freight forwarders and Customs agents are mainly concentrated in clearing imported goods. But with the new difficulties in the economy and dwindling availability of forex, the clarion call has been – what do we do to earn more foreign exchange? The understanding is that until we begin to export more and add value to what we export, added value will command higher income. So that’s an area I can say we have hope; if it is sustained. Recently we had a conference with NAFDAC and they have given them a mandate to ensure that they inspect exports, mainly food, drugs, raw materials, cosmetics and drinks to ensure that they meet international standards before they leave our shores, to reduce the incidence of rejection and non-payment of our agreed export proceed. So if this is sustained over time, emphasis may shift. So I think that’s a good development in the maritime sector.
How will you appraise the activities of your association stating your achievements and challenges that was faced this year?
The Association of Registered Freight Forwarders of Nigeria (AREFFN) is operating within the maritime sector and we have been a strong voice in advocating efficient port operations. We have done our best ensuring that the freight forwarders still have hope in terms of associations coming to their rescue in view of the attitude of the terminal operators and shipping companies who are taking advantage of the difficulties in our economy to escalate their charges at will. AREFFN has been in the forefront of championing (with the Nigerian Shippers’ Council) to ensure that these things are not done arbitrarily. It has not been easy because the Shippers’ Council does not even have enough resources and powers to enforce some of the decisions and agreements. It is still a problem. AREFFN has been reaching out to ensure that there are no difficulties in the industry as regards relationship between associations. AREFFN is making in-roads in terms of inter-association relationship. We have been trying to forge a good working relationship and create a synergy among the five accredited associations and if we are able to succeed, it will help in giving us a voice. This is because before now, the terminal operators, shipping companies and even Customs hinge on the weaknesses or these fault lines among the associations; using divide and rule. But AREFFN has been doing everything possible to see that the associations come together and to speak with one voice. Internally, we have been reorganizing our Chapters. One of our greatest achievements this year is strengthening of the Tin Can and Seme Border chapters. The closure of Seme border was a setback, but now we have re-launched our presence there; working with other associations. The only problem we still have now is that of Airport Chapter. We discovered that there are some of our partners and associations that have their chapters there, some of our people appear to be operating independently of their national bodies. So we are getting them to understand that government has registered and recognized five associations and these five associations are equal before the law. But we hope that with the new government in ANLCA, that things will begin to settle down in the spirit of inter-association cooperation. We were at their inauguration and we’re just trying to extend that handshake across the association, because without this unity being achieved, the operators in the ports will continue to suffer. That is a goal we have set for ourselves. I think we are doing our best.
Recently, there were issues between with freight forwarders and terminal operators as regards the hike in terminal charges. Has it been resolved?
Well, we’re still on it. You know, in Nigeria, to raise prices is very easy, but when negotiations are made and agreements are reached, to bring the price down is always difficult. The terminal operators increased their charges by about 600% and the Shippers’ Council invited them and informed us that having reviewed the parameters, they have brought it down to 400%. It was like a foregone conclusion. We were not brought into the discussion and it was partly as a result of not working together, as I told you earlier. So, eventually, in the interest of the economy, we all decided to move on considering the nature of our assignment in order not to close the ports. So, when this issue came up, the Shippers’ Council did not take us into full consideration before accepting and agreeing with that 400%. It is affecting us already because the cost of clearing now has skyrocketed, and ultimately, it will be hurting the economy. I look at it as, you know, a delayed disaster or time bomb because everybody is complaining.
Around January this year, the former Registrar of the CRFFN handed over to the current acting Registrar and up till now, we have not heard any update as regards the appointment of a substantive Registrar. What are your concerns on this?
Like every other issue in Nigeria, they can always have an excuse for this. You know, the Council for the Regulation of Freight Forwarding in Nigeria was domiciled in the Ministry of Transportation and now with the coming of this government, they created the ministry of Marine and Blue Economy. From all indications, even without any formal notification, the CRFFN has been ceded to the ministry of Marine and Blue Economy, where it actually should be domiciled instead of being with the Minister of Transportation. We don’t know whether the tenure of the subsisting council is still running or has expired. So, with this type of uncertainty, it will be difficult. The performance of the current acting registrar of CRFFN has not been very good. There is lots of interference. So, CRFFN has never been given its proper position. It’s like some people are using CRFFN as a kind of conduit pipe. If you look at the life of CRFFN, you would see that it has not moved beyond where it was. We are waiting for the good intentions of the new minister of Marine. Probably by the time he settles down, there might be a redefinition and functions of CRFFN and its relationship with which ever ministry that will supervise it. I think excessive interference is stunting the growth of CRFFN, that’s why, you see, most freight forwarders resort more to Shippers’ Council as opposed to CRFFN, which is not supposed to be. During the negotiation for storage charges increase, we didn’t see CRFFN and that is a minus.
Are members of your association still paying POF and have they got their dividends from CRFFN?
For confirmation, our members are still paying POF. But for the question of whether our members have been receiving dividends, this question has been asked several times and has been answered. The situation has not changed. Nobody accounts for the POF collection. Some time ago, we just woke up one morning and found about One hundred and something thousand naira in our account as an association. We write a letter to CRFFN that the purpose or the source of that payment should be explained to us, but till today, nobody has answered us. As for our individual members, nobody has received a dime. On the issue of not having records updated, we challenged them to pay those whose records are updated so that others will know that it is real. But nobody has been paid. So does it mean that all of us don’t have our records in CRFFN? Are they not the ones who did the registration? But the bottom line is that they are collecting that money and they are putting it wherever they like. That’s why the Registrar and some other Directors were living so large. We know all these things, but because the associations have refused to fight for their rights. After all, this council is supposed to be our council. But I know that one of these days, the Council will prevail and they will fight for that through the associations. We’ll come together to ask for what belongs to us.
Some people are still confused that some of the 43 items that were ‘unbanned’ by the CBN cannot still be imported through the land borders and seaports despite the lifting of the ban. What is your reaction to this?
Many factors might be responsible. I think rice was not allowed to be imported through the land borders, but you could bring them through the seaports. And moreover, these 43 items that were stopped from foreign exchange, some of them are outright contraband. I think frozen turkey and all these things are not allowed. The government is the one creating this confusion with the 43 items. Are you lifting them from the prohibition list or are you lifting them from foreign exchange availability? That’s the issue because an item that is banned for commercial purposes and you are denying it foreign exchange, of what purpose do you want foreign exchange?
Recently the CBN Governor said that those items were never banned.
You see some of these things they are saying on television and the newspapers, they are not sincere. They should come out with a circular that people can hold on to, because they are confusing customs. There should be a proper circular which Customs will implement. Let us know the items that are on prohibition list. Some of our policy makers are still confused. They don’t think things over and over again, consulting experts before they start making public statements. That’s one of the reasons our economy is not where it’s supposed to be.
Finally, many people have said the new minister of Marine and Blue Economy has actually been moving at a very slow pace. As a stakeholder, what would be your advice for him?
It’s like there’s a consensus that not much is happening in that sector. Because, you know, we have this saying of putting a square peg in a square whole. The minister was the Governor of Osun State, I don’t know if he has any experience in maritime. Such a person coming to head a new ministry like that requires a lot of preliminary work to take-off. It requires that the person should be somebody who is grounded, who is yearning to be in that ministry who already knows one or two things about that ministry. So that when he comes, he will not be bogged down with starting a new ministry. I don’t think he has even had time to look at the main work of that ministry. Maybe they are still bogged down with him setting up the ministry. Nothing new can be said that have come from that ministry. So, well, I don’t know. I would wait for him. Eventually he will take off and we would see action. May be if he’s able to assemble good experts around him, probably from next year, the ministry will have all hands on deck. We can see a lot of retouch even among Customs and every other persons in the port process already. But we hope that this will help him and he will do his best to develop the industry.
