Open Letter to Minister Adegboyega Oyetola Over Looming Crisis in Freight Forwarding Sector

There is palpable tension in the Nigerian freight forwarding sector, flowing from the lack of Governing Board for the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), the recent court judgement directing the Council not to collect the controversial Practitioners Operating Fee (POF) from Licenced Customs Agents.

OFFICIAL OPEN LETTER

To: The Honorable Minister of Marine and Blue Economy

Subject: Urgent Need to Revisit and Reform the Freight Forwarding Industry in Nigeria

Dear Honorable Minister,

We write to bring to your attention the ongoing challenges in the freight forwarding industry in Nigeria, particularly with regards to the relationships between the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) and the various associations representing freight forwarding logistics providers.

BACKGROUND

The recent call by the National Association of Government Approved Freight Forwarders (NAGAFF) to deregister certain associations, including the Association of Nigeria Licensed Customs Agents (ANLCA), National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), AREFFN, and NAFFAC, should not be wished away at this point in time. This call has highlighted the need for a holistic approach to reforming the industry. While there are valid arguments both for and against the deregistration of these associations, we believe that a more comprehensive and inclusive approach is necessary to address the underlying issues.

THE CRITICAL ROLE OF FREIGHT FORWARDING LOGISTICS

It is necessary to refocus our understandings on the vital role the Freight forwarding logistics plays in the maritime industry, contributing significantly to the nation’s economy. The industry’s importance cannot be overstated, as it:

– Facilitates international trade and commerce
– Generates revenue for the government through customs duties and taxes
– Enhances national security by ensuring the safe and efficient movement of goods
– Supports national development objectives by providing essential logistics services to various sectors of the economy

Given the industry’s importance, it is imperative that the Minister takes a proactive approach to addressing the challenges facing the freight forwarding industry.

KEY CONCERNS

1. Lack of Industry Stability: The ongoing conflicts between the CRFFN and the associations have created uncertainty and instability in the industry, which can have far-reaching consequences for the economy.

2. Inadequate Representation: The current regulatory framework may not be providing adequate representation for all industry stakeholders, potentially leaving some groups without a voice or representation.

3. Regulatory Framework Review: The CRFFN’s regulatory framework and mandate should be strengthened or possibly reviewed to ensure that it is effective and efficient in regulating the freight forwarding industry.

THE NEED FOR HOLISTIC REFORM

We recall that since 2015, political and pecuniary interests have overridden the professional advancement interests of the CRFFN, as exhibited by the previous governing council members, past registrars and management team, and affiliated consultants. This has led to a need for administrative direction via a holistic reform, which is in line with the oversight functions of the Minister as enshrined in Section 5 of the Act 16 of 2007.

RECOMMENDATIONS

In light of the above concerns, we recommend that the Ministry of Marine and Blue Economy:

1. Conduct a Thorough Investigation: Conduct a thorough investigation into the activities of the CRFFN and the associations to ensure that due process is followed and that all parties are given an opportunity to be heard.

2. Engage Industry Stakeholders: Engage with industry stakeholders, including freight forwarding logistics providers, to understand their concerns and ensure that any decisions made are in the best interests of the industry as a whole.

3. Review Regulatory Framework: Review the CRFFN’s regulatory framework and mandate to ensure that it is effective and efficient in regulating the freight forwarding industry.

4. Foster Industry Stability: Take steps to foster industry stability and promote a conducive environment for freight forwarding logistics providers to operate.

5. Revisit Pending Amendment: Revisit the pending amendment of the Act 16 of 2007, which is before the National Assembly, to address any ambiguities or weaknesses that may be contributing to the current challenges.

CONCLUSION

Given the crucial role of freight forwarding logistics in the maritime industry and the nation’s economy, we urge you to take a proactive approach to addressing the challenges facing the industry. A holistic reform of the industry is necessary to promote stability, efficiency, and growth. We believe that our recommendations will help to achieve this goal and contribute to the overall development of the nation’s economy.

There’s no better time reinforce sanity in the freight forwarding profession than now, and the time to wade the big
stick is now and doing so for national interests.

Honorable minister, we urge you to dutifully salvage a seemingly helpless sub sector of the maritime industry, the freight forwarding providers for optimal goal. Reform now, or never!.

Sincerely,

Fwdr Eugene Nweke Rff
For: Sea Empowerment and Research Center – SEREC