The inability of the Federal Government to properly regulate one of its agencies in the maritime sector has resulted to the loss of billions of naira. Since the creation of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), the conflict between it and the Nigeria Customs Service (NCS) agents, as well as freight forwarding firms has stunted its assignment of collecting professional fee from operators.
The council was empowered by Act No. 16 of 2007 to regulate and control the practice of freight forwarding in the country. It was learnt that the council, which has been deeply involved in crisis with the customs agents, lacked expertise to run the council due to the composition of its board.
Between 2012 and 2017, CRFFN was expected to have generated N50 billion and retain 60 per cent, but it failed consistently to collect the fees.
According to the sharing formula, while the council is expected to collect 60 per cent of the revenue, the registered associations would share 35 per cent, and registered companies that handled cargoes would also share the remaining five per cent.
As part of its mandate, CRFFN is expected to generate N10 billion annually from the imposition of N1,000 on every imported 20-foot container and N2,000 on every 40-foot container.
Also, the council was authorised to collect N1,000 per truck load of general cargo, N500 per imported car and N1,000 on other types of imported vehicles. In addition, it charges annual subscription fee of N10,000 per staff freight forwarders; executive freight forwarders, N20,000; freight forwarding companies, N30,000 and freight forwarding service providers, N25,000.
However, CRFFN has failed to influence practicing freight forwarders to pay the fee. Reacting to the council’s shortcoming, President of the Nigerian Institute of Freight Forwarders and Customs Brokers (NIFFCB), Dr. Olu Ikokide, said that the CRFFN had been plunged into series of problems for failing to appoint more practitioners into its governing board.
Commenting on the fee, the National Publicity Secretary of the Association of Nigerian Licensed Customs Agents (ANLCA), Dr. Kayode Farinto, said trouble started when the council asked importers and agents to bear the additional cost, which could translate to annual revenue of about N10 billion into the coffers of CRFFN
