Investigations by Shipping Position Daily have revealed that despite the decision of major freight forwarding associations to reject the controversial Practitioners Operating Fee (POF), customs licensed agents at Nigerian ports still continue to pay the fee to terminal operators, citing fear of cargo delays and consequential demurrage.
The development has deepened the ongoing crisis surrounding the POF, as agents openly defy their associations’ directive and are complying with the demands for compliance by port terminal to ensure swift cargo clearance.
Recall that, at a joint press conference recently held in Lagos by four out of the five accredited freight forwarding associations under the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), they kicked against continue collection of the POF.
The associations are: 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 (AREFFN). The groups described the POF as “illegal” and vowed to enforce the April 2023 court judgment which declared the collection null and void.
However, findings by our correspondent last week from the ports revealed that customs licensed agents still continue to pay the fee through the terminal operators to avoid cargo delays, losses, and further financial penalties.
An official notice signed by the Registrar and CEO of CRFFN, Mr Kingsley Igwe and addressed to all terminal operators and Industry stakeholders which was made available to Shipping Position Daily noted that the Council has filed an appeal and served all relevant parties, including the Plaintiff, NCMDLCA.
In the notice, the CRFFN clarified that, under established legal principles, the filing of a Notice of Appeal serves as an automatic stay of execution of the judgment. Consequently, the Council maintains that its regulatory authority, including the right to collect the POF, remains valid and enforceable until the appellate court delivers a final verdict. The Council called on all freight forwarders to continue their compliance with the POF directive and CRFFN regulations, emphasizing that the appeal process is ongoing.
Speaking with Shipping Position Daily last week, a former Western Zone Coordinator of the Association of Nigerian Licensed Customs Agents (ANLCA), Sir John Oforbike revealed that despite the associations’ pronouncements, the CRFFN fee remains a non-negotiable payment for clearing agents across major port terminals.
Sharing his experience, Ofobrike disclosed that he recently cleared 13 containers through Apapa Port and was compelled to pay the CRFFN-imposed fee across multiple terminals, including Lekki and Tin Can. According to him, refusal to pay the POF results in immediate delays and demurrage charges of up to ₦15,000 per day.
Ofobrike emphasized that the process is purely between the licensed company and the port authorities, with no association influence involved. He further criticized the leadership of the freight forwarding associations, accusing them of pretending to fight for agents while allegedly pursuing personal interests.
“I paid all the CRFFN fees for about 13 containers this week (last week) in Apapa. If you don’t pay, your cargo won’t be cleared. You’ll pay demurrage of about ₦14,000 to ₦15,000 daily. So who should bear the cost? We don’t have a choice. “Who are they leading? Are they fighting for the agents or for their percentage? These payments are not tied to being a member of ANLCA or any association. Once you clear with your company’s license, you’re billed directly,” Oforbike explained.
Also speaking, the National Public Relations Officer of the Association of Registered Freight Forwarders of Nigeria (AREFFN), Mr Taiwo Fatomilola pointed fingers at terminal operators for the continued collection of the controversial POF, insisting that despite a court ruling declaring it illegal, the fee remains embedded in the port system.
According to Fatomilola, the inclusion of POF in the operational payment software of terminal operators has made it difficult to halt the collection, as removing it would require major system reconfigurations. He however maintained that the ongoing collection is in clear defiance of a court judgment and the collective resolution of the freight forwarding associations, stressing that all monies collected so far, past and present must be accounted for.
Speaking further, he said, “The people collecting for them are the terminal owners. PTML /Grimaldi in Apapa have already embedded it in their system. To remove it now would mean disrupting several processes”.
On his part, Secretary General of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Mr Festus Ukwu confirmed the continued collection of the controversial POF at Nigerian ports.
In a brief but firm comment, Ukwu told our correspondent that agents have no choice but to comply with the payment in order to exit their goods from the ports. “Yes, we are still paying. You cannot exit any goods without paying. You can even ask other agents in the port, they are all paying. They (terminal operators) didn’t stop it.” he said.
