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By Steve Agbota
The lingering rift between the Licensed Customs Agents (LCA) and the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) has claimed its first casualty. It has abruptly halted the collection of the controversial Practitioners Operating Fee (POF), with the latter targeting to generate up to N10 billion annually from it.
Both parties are disagreeing over the appropriateness or otherwise of the collection.
When POF was introduced in early 2019, Customs agents across the country vehemently opposed it, worrying that it will worsen the already high cost of doing business at the nation’s seaports.
As if the clearing agent’s opposition was not enough, it was revealed that the port economic regulator, the Nigerian Shippers Council (NSC), was not totally in support of the POF, especially as it is tied to cargoes leaving Nigerian ports
After several unsuccessful efforts to kick-start the collection, former Minister of Finance, Budget, and National Planning, Zainab Ahmed, finally gave the green light in a letter dated January 6, 2020. The approval, conveyed through the Director of Home Finance, Okokon Udo, authorised the CRFFN to begin collecting the Practitioners Operating Fee (POF) at the country’s seaports.
The minister stated that freight forwarders must, henceforth, show receipt of payment of POF before their cargoes can exit the ports.
Daily Sun learnt that under the POF regime, the CRFFN is targeting between N5 billion to N10 billion annually from the collection of the POF as importers would pay N3.50k per tonne of cargo imported into the country, N1.50k per kilo for air cargo, N1,000 on each imported 20-feet container and N2,000 per 40-feet container.
Despite the official approval, many freight forwarders at the Lagos ports rejected the payment of the Practitioners Operating Fee (POF).
The National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), led by Lucky Amiwero, spearheaded the opposition by taking the matter to court, arguing that the fee was unlawful.
In a recent ruling, the Federal High Court in Lagos sided with the group, declaring that the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) has no legal backing to collect the POF from licensed customs agents.
The judgment, delivered on Monday, May 26, 2025, by Justice D.E. Osiagor, held that the CRFFN lacks the legal authority to regulate Licensed Customs Agents (LCAs), as their oversight falls exclusively under the Nigeria Customs Service (NCS) and the Minister of Finance, as stipulated by the Customs and Excise Management Act (CEMA).
The case, which has spanned several years, was filed by the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) against the CRFFN and the Minister of Transportation in Suit No. FHC/CS/765/2018. A copy of the court judgment obtained by Daily Sun confirms that the court nullified the directive issued by the Ministry of Transportation mandating LCAs to register with the CRFFN, pay subscription fees, and the controversial POF as preconditions for port access and license renewal.
Justice Osiagor also emphasised that the CRFFN Act of 2007 was enacted solely to regulate freight forwarders and cannot be extended to Customs agents without violating constitutional and statutory protections.
Following the judgement, Amiwero, President of the NCMDLCA, welcomed the decision, describing it as a victory for justice and professional integrity.
“We have always maintained that the POF collection was not tied to any service provided on imports or exports. This judgment vindicates our position,” he said.
He reiterated that licensed Customs agents, as professionals licensed under CEMA, form a distinct body separate from freight forwarders, who fall under CRFFN’s regulatory scope.
“NCMDLCA is a body of licensed Customs agents, not freight forwarders, and we shall ensure that our members are no longer subjected to unlawful levies or obstructed from carrying out their duties at the ports,” he added.
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Amiwero further stated that the association would pursue the refund of all POF payments previously collected by CRFFN from Licensed Customs Agents.
Conversely, the quest by the CRFFN to generate between N5 billion and N10 billion annually through the collection of POF from clearing agents across the country seems to have hit a brick wall following a court judgement, as four out of its five accredited clearing agents’ associations have openly rejected the controversial POF, branding it illegal.
The latest rejection was a result of a recent press release allegedly issued by CRFFN directing terminal operators to disregard the court ruling. The clearing agents described the move as a deliberate attempt to undermine the judiciary and said such action amounts to executive lawlessness.
The four associations mounting strong opposition are; the Associations of Nigeria Licensed Customs Agents (ANLCA), National Association of Air Freight Forwarders and Consolidators (NAFFAC), Association of Registered Freight Forwarders of Nigeria (AREFFN) and the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) have subsequently directed their members to immediately stop paying the controversial fee.
The fee, intended to fund training and development for freight forwarders, has faced resistance due to concerns about misappropriation of funds and the CRFFN’s track record, according to clearing agents.
At a recent joint press conference, the associations warned the government agencies involved, including CRFFN and terminal operators, to respect the court’s judgment and cease all POF collection forthwith, or risk being held in contempt of court.
“This judgment nullifies the collection of POF from Customs Licensed Agents. As Customs Licensed Agents, we demand that you immediately cease the collection of POF from our members in compliance with this court order. Continuing to collect these fees would be a direct disregard of the court’s judgment.
“We specifically urge you to disregard the letter Reference No. CRFFN/RCEO/POF/CIRC/07/2025 dated July 10, 2025, which incorrectly advises the continued collection of POF in defiance of the aforementioned judgment. We swiftly noticed that the CRFFN letter lacks an official signature from any council official, which suggests the author was attempting to avoid impending contempt of court criminal proceedings. We are confident that you will uphold the rule of law in this matter,” the associations warned.
Meanwhile, ANLCA National President, Emenike Nwokeoji, said that the court judgment secured by Mr Lucky Amiwero benefits all Licensed Customs Agents, and hence the associations will not sit on the fence and allow CRFFN to disobey the court judgment given the latter’s threat for terminal operators to continue to enforce the collection of the POF.
“The major issue we want to address here is the implementation of the judgment. While we subjected the judgment to our different legal department interpretations, we now saw a release signed by management of CRFFN urging terminal operators, which was listed on the rider, to disobey the court judgment. We say no!
“This issue has gotten to the stage where it would be unfair for us to sit back and watch knowing that we are operating in a country that is governed by the rule of law. That was why we decided to come together as associations based on the legal interpretations we have gotten from our different legal advisers of the various associations.
“It is a court judgment; once a judgment is obtained, it is either obeyed or an appeal is made. If you are not comfortable with the judgment, all the parties involved, including CRFFN and terminal operators, are under the Ministry of Marine and Blue Economy, and they all have legal departments. I believe that their legal department cannot tell them to just throw away a court judgment,” he said.
Also speaking, NAFFAC President, Adeyinka Bakare, said the position of the respective associations doesn’t mean they want the CRFFN to run aground, stressing that the Council has legitimate budgetary provisions to handle its obligations.
He equally observed that the court judgment applies to all customs license holders, adding that, as a freight forwarder, one cannot operate at the ports or transact business with the customs or clear cargoes without possessing a customs license.
Bakare explained that NAFFAC members, who are predominantly at the airports, are equally subjected to other licenses from the Federal Airport Authority of Nigeria (FAAN), among others, which any freight forwarder willing to clear cargo from the airport must possess.
On his part, the National Secretary of the AREFFN, Francis Obiekezie, who spoke on behalf of the president of the association noted that, regardless of the internal crisis within the NCMDLCA, the court judgment must be obeyed to the letter.
“Lucky Amiwero is a customs licensed agent. He is doing most of the things that we are doing, the court we went to is Nigerian and it is not the Council of Managing Directors’ court.
“So we are following what happened, and we are principal stakeholders in the case he went to court upon, so the outcome will affect us,” he said.
Interestingly, the factional NCDMLCA President, Chief Ifeanyi Anakweze, encouraged NCMDLCA members to obey the suit won by Mr. Lucky Amiwero; despite challenging Amiwero’s focus in the matter.
He maintained that aside from the internal rivalry in the NCDMLCA, the victory obtained by Amiwero is one to be endorsed by all Nigerian freight forwarders.
