The freight forwarding community has criticised the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) over alleged lack of transparency, mismanagement and insincerity in the disbursement of the Practitioner Operating Fees (POF) dividends.
The POF is a mandatory levy imposed on freight forwarders and clearing agents from all shipments and cargo handled at Nigerian ports, in which the revenue is intended to contribute to the development of freight forwarding and port services.
The alleged mismanagement and lack of clarity in the distribution of the fund have sparked outrage within the freight forwarding community.
The Chieftain of the Association of Nigerian Licensed Customs Agents (ANLCA), Pius Ujubonu, explained that in a meeting held in 2016 with then-Minister of Transportation, Rotimi Amaechi in Abuja, it was unanimously agreed by all five registered associations that the “declarant,” is a license owner and that 35 per cent of the POF would be remitted to the declarant.
He added that the issuance of the Common User Entrance Permit should align with the policies of the Nigeria Ports Authority (NPA).
Ujubonu expressed deep dissatisfaction with the progress that followed this decision, noting that those who disagreed with the majority decision have hindered the advancement of CRFFN.
He emphasised that the core issue with CRFFN has consistently been operational inefficiency, with the focus on the dividends not adequately addressing policies meant to improve freight forwarding practices.
He raised concerns about CRFFN’s communication and engagement with associations, stating that these groups were primarily occupied with disputes over the sharing ratios rather than focusing on the respective declarant.
Also speaking, the National Secretary of the Association of Registered Freight Forwarding Practitioners of Nigeria (AREFFN), Frank Obiekezie, lampooned CRFFN’s lack of sincerity and transparency in handling the POF issue, stating that it allegedly disburses funds to associations without adequate explanations.
Obiekezie stressed that further clarification is needed from CRFFN, where stakeholders from all freight forwarding associations are invited for round table discussions about the disbursements to ensure transparency and accountability.
The AREFFN Secretary suggested that there might be political complexities surrounding the POF matter, which could lead to resistance from freight forwarders if transparency is not ensured.
He expressed concerns that if such issues persist, it might become challenging for CRFFN to rebuild trust and convince freight forwarders to participate in future payments of POF.
On his part, the National Vice President of the National Association of Freight Forwarders and Consolidators (NAFFAC), Anthony Onyike, noted that these payments are more readily accessible to individuals or agencies affiliated with recognised freight forwarding associations.
He however advised that freight agencies or individuals should formalise their association memberships as a critical step in gaining access to the POF dividends.
