CRFFN to Challenge POF Ruling, Reaffirms Regulatory Authority
Bisi Akingbade
Council for the Regulation of Freight Forwarding in Nigeria, CRFFN, has declared its intention to appeal the recent judgment of the Federal High Court in Lagos, which nullified the collection of the Practitioners Operating Fee, POF.
The Registrar, CRFFN, Kingsley Igwe,at a press briefing held today, the reaffirmed the Council’s legal mandate as established under Act No. 16 of 2007. He emphasized that the CRFFN is legally empowered to regulate freight forwarding practices in Nigeria, including customs agents operating within the freight forwarding value chain.
Igwe said that “As a matter of fact, in the light of the foregoing, CRFFN wishes to reaffirm the following for the general public and industry stakeholders. Number one, CRFFN's legal mandate,” Igwe said.
The Registrar explained that the Council’s core responsibilities are clearly defined in Section 4, Subsection A to G of the Act, which includes the regulation and control of freight forwarding services, setting professional standards, licensing, registration, and disciplinary oversight of freight forwarders.
"This mandate unequivocally includes oversight over all freight forwarding service providers, including custom license agents, when engaged in freight forwarding activities," Igwe stated.
He further referenced the Nigerian Customs Service Act of 2023 to support CRFFN’s regulatory authority. “The Nigerian Custom Service Act, 2023, further reinforces the regulatory role of CRFFN over customs agents who operate within the freight forwarding value chain, notably Section 106, Subsection 4 of the Nigerian Custom Service Act, 2023, states, and I quote, a customs representative, if you like, a customs license agent, shall be a freight forwarder," he said.
"I repeat, a customs representative, if you like, a customs agent, shall be a freight forwarder, and shall be subject to the regulations and code of conduct of the freight forwarding profession in Nigeria, in this case, a profession regulated by Council for Regulation of Freight Forwarding in Nigeria,” he added.
According to Igwe, this provision legally integrates customs representatives into the freight forwarding profession, thereby making them subject to CRFFN’s regulatory authority and professional code.
He noted that the Council’s legal team is currently reviewing the judgment's contents and implications and assured stakeholders that all legal options, including appeal, review, or request for clarification, would be explored.
“The Council’s legal team is thoroughly reviewing the contents, the context and legal implication of the said judgments and reaffirm that where necessary, the Council will exercise its rights of appeal, review or clarification through competent judicial channels,” Igwe stated.
Expressing dissatisfaction with the court process, Igwe criticized the manner in which the judgment was delivered, claiming it lacked transparency.
“I wish to express deep concern over the secretive manner in which it was issued reportedly without due notice to the defendants as named in the suit,” he said.
“Such a process somehow is contrary to expected principles and processes as enshrined in the Constitution of the Federal Republic of Nigeria," he added.
He described the judgment as a deliberate attempt by mischief makers to derail the progress made in the sector. “The Council views this report as the handwork of some mischief makers to derail the peace reforms and progress achieved in the freight forwarding sector in recent times,” he said.
Igwe also clarified that the POF is not a tax but a statutory fee backed by law.
“The practitioner's operating fee, POF, is not a tax or a revenue levy. I repeat, POF is not a tax or a revenue levy. It is a statutory fee gazetted by the Federal Republic of Nigeria and created under the powers conferred on CRFFN by its establishing acts. Section 4E of the CRFFN Act empowers the Council to maintain a register of persons or organizations engaged in freight forwarding,” he explained.
He emphasized that the court did not issue a directive halting the collection of POF, only declaring it illegal, a distinction the Council believes allows collection to continue pending appeal.
"It only declared it illegal. It didn’t say stop, henceforth. So the collection of POF is continuous. And as a matter of fact, this is not against court ruling. I want to be clear on that. Because court never said stop collecting. It’s two different things,” Igwe said.
“So that people don’t misunderstand it that way. Then, we’re already almost at the point of submitting the appeal. And we will pass the same submission,” he added.
He noted that the Council of Managing Directors has been participating in the POF process and will continue to do so until further notice.
"On whether the Council of Managing Directors and the rest of them have been paid, they are under, as a matter of fact, it's a bit complicated, because they have their internal issues," he said.
"This is not to put log horns with any association or group or any entity or persons. However, it is one of the issues that CRF has been looking into, the activities of the associations, and CRF will come up with a report at the end of it. So we are reviewing the participation of all the practitioners," he added.
He added that CRFFN had just concluded stakeholder engagements and training programs, which would continue alongside upcoming workshops.
"As you know, we just finished our stakeholder engagement and the trainings, which will also be ongoing. The training will continue, and we'll also be having some more workshops and stakeholder engagement in no distant time. More information will be given at these events. And in the last stakeholder engagement, the Council of Managing Directors were fully represented. The attendant speaks for himself," he concluded.
