By Joshua Yousouph
The Registrar of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), Mr. Kingsley Igwe, has explained why freight forwarders have been unable to enjoy the expected benefits or dividends from the Practitioners Operating Fee (POF). He attributed the challenge to deep-rooted systemic inefficiencies and lack of transparency in the payment framework.
Speaking to Shipping Position Daily at the sidelines of a stakeholders’ engagement last week, Igwe revealed that the POF system, particularly the 5 per cent dividend component expected to support practitioners, had deviated from its original purpose, due to structural flaws in its design and implementation.
According to him, the platform used for collecting the fee was not domiciled within CRFFN, thus leaving the Council without access to critical backend data needed to track payments and identify actual beneficiaries.
He explained that payments made through third-party channels, such as point-of-sale (POS) operators at port terminals, often capture the details of the payment agent rather than the freight forwarder who made the payment. This, he said, creates a major disconnect in the system, making it difficult to determine who is entitled to any form of compensation or benefit tied to the POF.
“For example Fatima, a POS operator may process payments of POF for multiple practitioners, but the system records only her transaction volume without capturing the details of the actual freight forwarders. This makes it practically impossible to isolate individual contributions and determine who should benefit from the 5 per cent,” he stated.
Igwe noted that this lack of traceability has significantly hindered the Council’s ability to fulfil expectations tied to the POF, including training, professional development, and financial returns for practitioners. He admitted that the issue has persisted for years and remains one of the most complex challenges facing the Council.
The Registrar further disclosed that the Council is now prioritising digitalisation as a key solution to address the problem. He explained that a new system is being developed to ensure that payments are properly captured, with accurate records linked directly to individual practitioners, thereby enhancing transparency and accountability.
He also pointed out that beyond the technological shortcomings, the freight forwarding industry has been weakened by divisions along union and association lines, which have further complicated efforts to implement unified reforms and policies.
Igwe emphasized that the original intent of the POF was not only to regulate the profession, but also to fund capacity building and training for freight forwarders, similar to how other sectors such as maritime and seafaring receive institutional support. However, he lamented that these benefits have not materialized, leaving many practitioners dissatisfied.
Describing the situation as both challenging and frustrating, the CRFFN boss acknowledged the concerns of stakeholders and called for collaborative solutions. He urged industry players to engage with the Council and contribute ideas that could help resolve the longstanding issues surrounding the POF framework.
“We are not hiding anything. The system has its flaws, and we must confront them with honesty. My office remains open for dialogue. If stakeholders have workable solutions, we are ready to adopt them and move the industry forward,” he said.
