By Chidi Anthony Opara, RFF, FIIM, CDOA
A federal high court in Lagos, with Justice D.E.Osiagor presiding in suit number: FHC/CS/765/2018 filed by National Council Of Managing Directors of Customs Licensed Agents(NCMDLCA) reportedly on 26th of May, 2025, ruled that the collection of Practitioners Operating Fees (POF) by the Council For The Regulation Of Freight Forwarding In Nigeria (CRFFN) from Licensed Customs Agents is illegal.
Licensed Customs Agents usually refer to corporate entities licensed by the Nigeria Customs Service to act as liaison between the Service and importers/exporters during the process of forwarding of freights (imports and exports). There are however other licensees of the Nigeria Customs Service like bonded warehouses and manufacturing companies.
Interestingly, NCMDLCA, the plaintiff in the above referenced suit is one of the accredited freight forwarding associations being currently regulated by CRFFN, meaning that the association applied to CRFFN for accreditation prior to being accredited.
The presiding Judge further pronounced that “the regulation of licensed customs agents is governed squarely by the Customs and Excise Management Act(now Nigeria Customs Service act)which provides a comprehensive legal framework for the licensing and oversight of customs operations in Nigeria specifically” and that “the regulatory reach of CRFFN does not extend to customs agents licensed under CEMA(now NCSA). Therefore, any attempt to subject licensed customs agents to CRFFN regulation including the payment of POF lacks legal foundation”.
This judgement in my opinion is right. Let me however, for the purpose of clarity, situate my agreement with the judgement within contexts.
Firstly, the Practitioners Operating Fees (POF), should as the name imply, be rightly collected from the earnings of the Practitioners(Registered Freight Forwarders), not on imports and exports(which does not belong to the practitioners). Licensed Customs Agents, for the umpteenth time are not professionals, they are not natural persons, they are corporate bodies and so cannot be professionals. The regulator (CRFFN) in synergy with the Nigeria Customs Service can however insist that those who head Licensed Customs Agencies and those who occupy Professional positions therein must be Registered Freight Forwarders.
The basis of this synergy have already been provided for in section 19, subsection 1, of the CRFFN act(act 16 of 2007)which states that “notwithstanding the provisions of any other laws, any government agency responsible for granting of permits, approvals and licenses to freight forwarders shall in addition to any other requirement, require the applicant to submit a certificate of registration as a registered freight forwarder by the council”.
The act further states in section 19, subsection 2 that “every freight forwarder licensed under the Customs and excise management act(now Nigeria Customs Service act) prior to coming into force of this act, shall immediately after the commencement of this act, submit to the Nigeria Customs Service and any relevant authority, a certificate of registration issued by the Council”.
It would be necessary to inform here that the Nigeria Customs Service is statutorily part of the Council For The Regulation Of Freight Forwarding In Nigeria(CRFFN)governing board.
Secondly, if a practitioner fail to pay POF, the regulator should find ways to curtail his/her Professional privileges instead of preventing the smooth movement of imports and exports (which does not belong to the practitioners.)
Thirdly, the collection of POF and the enforcement of none payment of POF should never be within the ports.
Lastly, I also agree with the judgement that the Nigeria Customs Service is a regulator but would hasten to add that the Service does not regulate any known profession.
Like the Nigerian Ports Authority, Nigerian Airports Authority, etc, The Nigeria Customs Service regulatory mandate is within the purview international trade procedures.
(Opara is a Registered Freight Forwarder, Independent Information Management Practitioner and Editorial Adviser at News Updates
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