Bid by the Council of Regulation of Freight Forwarding in Nigeria (CRFFN) to generate N2 billion on each container transiting from the port to various destinations across the country has been halted by a Lagos High Court.

Findings revealed that about two million Twenty Equivalent Units of containers are processed at the port annually and the council had said that it would charge N1,000 as Practitioners Operating Fee (POF) on every container coming out of the port.

It was gathered that due to the paucity of funding by government to support the CRFFN, the government created an ingenious way which the CRFFN could be generating revenue internally through the collection of practicing fees from freight forwarding industry practitioners called POF.

However, the court nullified the collection of POF by the council in May this year, saying that the regulation of Licensed Customs Agents was governed squarely by the Customs and Excise Management Act, which provides a comprehensive legal frame for the licensing and oversight of Customs operation in Nigeria.

In 2017, the then Minister of Transportation, Rotimi Ameachi, made a declaration that all freight forwarders operating in the Nigerian Ports should pay a fee called the POF to be collected by the CRFFN.

The directive further tied the access of any freight forwarder to the port and taking delivery of his goods to the payment of the fee.

However trouble strated in 2018 when the National Council of Managing Directors of Licenced Customs Agents (NCMDLCA) approached a Lagos High Court in order to stop the collection of the fee which commenced in 2017.

In his landmark ruling on May,26th, 2025, Justice D.E Osiagor granted all the reliefs and orders sought by the Plaintiff, the Council of Managing Directors.

The judge explained that the regulation of licensed customs agents was governed squarely by the Customs and Excise Management Act, which provides a comprehensive legal frame for the licensing and oversight of Customs operation in Nigeria, adding that the minister charges with the responsibility of regulating licensed customs agents was the Minister of Finance and not transport.

According to him, the duplicity undermines legal certainty and introduces regulatory confusion, in breach of Section 153 and 156 of CEMA, which vest exclusive Licensing authority in the Minister of Finance.

Osiagor noted: “It follows that only the Minister of Finance, acting through the Nigeria Custom Service is statutorily authorised to regulate the business and operation of Licensed Customs Agents.

“The Minister of Transportation is not recognised under the Customs Act as having any supervisory or regulatory role in this regard. The (CRFFN) Act established a council to regulate Freight Forwarders, a profession distinct from licensed customs agents.

“Under Section 4 the (CRFFN) is empowered to determine qualification, register Freight Forwarders, and Set standard for practice “License Customs Agent(LCA) is a distinct profession from freight forwarders.

“The regulatory reach of CRFFN does not extend to customs agents under the Customs Act, therefore, any attempt to subject Licensed Customs Agents to (CRFFN) regulation, include payment of Practitioners Operating Fees(POF) lacks legal foundation.”

He stressed that the licensed customs agents were not subjected to the regulation of CRFFN, include payment of POF lack legal foundation, adding that the minsters directives that only person cleared by CRFFN including payment of registration, subscription and POF may access the port or renew customs licenses was ultra vires, imposing unauthorised regulatory condition on Customs Agents(LCA) who are neither under the supervision of (CRFFN).

Osiagor said that the Minster of Transportation lacked the legal authority to issue directive regulating the business and operation of licensed customs agents.