Council To Appeal Judgement On POF Collection

The Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), has vowed that it will appeal the Lagos High Court judgement which nullified the collection of Practitioners Operating Fee (POF) by the CRFFN from Customs Clearing Agents.

Recall that in 2018, the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) approached a Lagos High Court to stop the collection of the controversial POF, which commenced in 2017.

However, seven years later, on May 26th, 2025, Justice D.E. Osiagor ruled that the collection of POF from the Customs Agents by the CRFFN was illegal, contending that the council only had control over freight forwarders but not customs agents.

But in a swift reaction, the Council’s Registrar, Kingsley Igwe, said the Customs agents are within the sphere of control of the CRFFN and are therefore mandated to pay the POF.

Quoting the Customs Act 2023, Igwe said the Customs agents are part of the freight forwarding profession.

”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.

“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 the Council for Regulation of Freight Forwarding in Nigeria”

”This provision legally integrates custom representatives into the freight forwarding profession, making them subject to the regulatory control and code of conduct established by CRFFN”
The council Registrar, therefore, vowed that the court judgment would be appealed.

”The Council’s legal team is thoroughly reviewing the contents, the context and legal implications of the said judgments and reaffirms that where necessary, the Council will exercise its rights of appeal, review or clarification through competent judicial channels”

The registrar also condemned what he described as a secretive manner in which the court process was carried out without informing the defendants.

“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.

”Such a process is somehow contrary to expected principles and processes as enshrined in the Constitution of the Federal Republic of Nigeria.

“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 that the court judgement would not stop the Council from collecting the POF, ” because the appeal never mentioned that they should stop paying POF”

”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 the court ruling. I want to be clear on that. Because the court never said stop collecting. It’s two different things.

“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” Igwe declared.
He therefore urged the freight forwarding practitioners to go about their normal duties and continue to pay the POF.”

Igwe also declared that the plaintiff, the Council of managing directors which instituted the court process is under the control of the CRFFN ” and they will pay and continue to pay the POF”

He therefore asked the freight forwarders to continue to discharge their obligations under the CRFFN by paying the required practitioners’ fee pending the matter is resolved in the Court.

“POF is not a tax or a revenue levy. But a statutory fee gazetted by the Federal Republic of Nigeria and created under the powers conferred on CRFFN by its establishing acts.