POLICY BRIEF: Recognising Freight Forwarders, Licensed Customs Agents in Nigeria

By Aniezechukwu Francis Uchechukwu

OVERVIEW

Freight forwarders and Customs-licensed agents are the linchpins of Nigeria’s
international trade responsible for canvassing importers, ensuring compliance, facilitating clearance, and ultimately securing revenue for the federal
government. Yet they remain largely unacknowledged in national honors or
financial compensation frameworks.

REGULATORY FRAMEWORK

World Trade Organization (WTO)

The WTO’s Trade Facilitation Agreement (TFA) aims to expedite the movement,
release, and clearance of goods. It encourages member states to simplify
customs procedures and ensure that legitimate trade faces minimal barriers.
Freight forwarders and customs agents are recognized as key private-sector
partners in achieving TFA goals.

World Customs Organization (WCO)

The WCO develops instruments such as the Revised Kyoto Convention (RKC) on
the simplification and harmonization of customs procedures. It recommends the licensing of customs brokers and the adoption of modern risk management techniques. It emphasizes public-private partnerships to boost compliance and trade facilitation.

Nigeria Customs Service Act (NCSA)

The Nigeria Customs Service Act, 2023 regulates customs operations, licensing, and compliance. It mandates that only licensed customs agents can transact with customs on behalf of importers/exporters. The Act also imposes responsibilities
such as accurate declarations, duty payment, and compliance with trade
restrictions

FIATA Rules (Federation of International Freight Forwarders
Associations)

FIATA sets global professional standards for freight forwarders. Its Model Rules outline duties of care, contractual obligations, liability limits, and dispute resolution guidelines. FIATA encourages member associations to train forwarders to high ethical and professional standards, strengthening global trade facilitation.

CONTRIBUTION TO FEDERAL REVENUE

2022:

Nigeria Customs Service (NCS) collected approximately N3.2 trillion in duties and levies

2023:

Revenue hovered near N3.2 trillion, with official mid-year projections.
Freight forwarders were credited with enabling the collection of over N500 billion
within the first half of 2020—extrapolating similar performance through 2022–23.

2024:

Full-year revenue reached N6.105 trillion, an astonishing 90% increase
over 2023. Half-year haul alone was N2.74 trillion, exceeding target by 8%.

Q1 2025:

Already N1.75 trillion, exceeding quarterly goal by 6%.
These revenues are largely dependent on the work of licensed agents. Their
orchestration of transactions is instrumental to duty flows.

THE NEGLECT IN RECOGNITION & COMPENSATION

Despite this foundational role, Freight forwarders and Customs brokers are
seldom acknowledged in national award systems. There is no structured financial
incentive or bonus from NCS or the Federal Government.
Their professionalism praised by ANLCA’s leadership in securing half-a-trillionnaira in H1 2020 is not reinforced through formal recognition

GLOBAL COMPARISONS

US:

Licensed brokers are certified under Title 19 CFR §111 with formal
recognition and involvement in compliance.

UK, Singapore, and China:

Brokers and forwarders participate in AEO/trusted trader programs, gaining priority processing and fiscal incentives. By contrast, Nigeria lacks parallel structures to incentivize the private sector’s contribution to customs revenue.

ANALYSIS: WHO ACTUALLY GENERATES THE REVENUE?

Customs officers regulate and collect, but do not create the trade.
Freight forwarders and licensed agents: Attract clients and trade flows. Ensure correct classification, valuation. Prepare, submit documentation. Pay duties upfront to smooth clearance. They are, in effect, revenue generators. Without them, Nigeria’s booming customs revenue simply would not happen.

POLICY RECOMMENDATIONS

Recommendation Impact

* Institutionalize Annual Awards for top-performing licensed agents.
Enhances morale, signals public sector appreciation

* Introduce Revenue-sharing Bonuses e.g. a 0.5–1% bonus on duties
processed by a licensed agent

* Integrate Agents into AEO/Trusted Trader Framework Faster clearances,
lower inspections, formal recognition

* Professional Development & Certification Grants Build capacity, align with
WCO/WTO standards

* Publish Annual Performance Metrics for agents Transparency,
benchmarking, incentives.

CONCLUSION

Freight forwarders and Customs-licensed agents are central to Nigeria’s customs revenue machine—generating up to N6.1 trillion in 2024 alone. Yet they remain invisible to national honors and excluded from meaningful compensation.
It is imperative that the government moves swiftly to: Recognize their value formally, Reward their contributions, Structure systems to retain and empower them. By doing so, Nigeria will not only sustain revenue growth but also elevate its global trade competitiveness.

Prepared by:

Aniezechukwu Francis Uchechukwu
(Director General, Sea Empowerment Research Centre.)

23rd June 23, 2025