POF Collection: CRFFN to sanction terminal operators and shipping lines against sabotage
The Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) has directed all terminal operators and shipping companies to continue full collection of Practitioners Operating Fee (POF) without interruption, warning that any of them that refuse to comply will be sanctioned in line with extant laws and applicable port operation guidelines.
The collection of POF by the CRFFN has been marred by a purported judgment by the Federal High Court delivered in favour of the National Council of Managing Directors of Licensed Customs Agencies led by Lucky Amiwero. The judgement stopped the CRFFN from collecting POF from licensed customs agents.
However, the CRFFN has denied ever receiving such a judgement, pointing out that it is fully empowered not only by its Act but the approval by the Federal Government of the Federation in 2017 mandating CRFFN to collect the fee. The Council maintained that all practitioners involved in cargo delivery, including customs agents, are legally binded to pay POF.
To avoid sabotage on the sides of terminal operators and shipping lines, the Council, on Thursday, July 10, 2025, sent a circular to all terminal operators and shipping lines operating in the country to disregard the hues about the court judgement and continue the collection of the fee.
In the circular, with a tone of warning, categorically clarified the statutory obligation of all stakeholders, including terminal operators and shipping lines, to enforce and support POF collection which remains in full force.
The heading of the circular with a Reference: CRFFN/RCEO/POF/CIRC/07/2025 is Re: Continued Enforcement of Practitioners Operating Fee (POF) in Line With Statutory Mandate of CRFFN
The circular reads as follows:
The attention of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) has been drawn to the moves by some groups of practitioners who have cited the recent court ruling as grounds to withhold compliance with the payment of the Practitioners Operating Fee (POF).
In line with our press release on Tuesday 8th July 2025, we wish to categorically clarify that the statutory obligation of all stakeholders, including terminal operators and shipping lines, to enforce and support POF collection remains in full force and unaffected by the referenced court pronouncement, which is currently under legal review and has not invalidated any section of the CRFFN Act.
For avoidance of doubt:
1. Section 4(d) & (e) of the CRFFN Act No. 16 of 2007 empowers the Council to:
• Regulate and control all aspects of freight forwarding practice in Nigeria.
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• Determine fees, including registration charges and other tariffs payable by practitioners.
2. Further reinforcing this position is Section 103(4b) and 106(3b) of the Nigeria Customs Service Act, 2023, which provides that:
“A customs representative shall be a freight forwarder and shall be subject to the regulations and code of conduct of the freight forwarding profession in Nigeria.”
3. The Federal Executive Council (FEC) approved the implementation of POF collection on 19th May 2017, and it remains a lawful source of Internally Generated Revenue (IGR) for the Council, supported by the Federal Ministry of Marine and Blue Economy (FMMBE), Nigerian Port Authority (NPA), and Nigerian Shippers’ Council (NSC).
4. The ongoing collection of POF is part of a broader national policy to professionalize freight forwarding, improve port efficiency, and ensure a regulated operating environment in line with global best practices.
5. Terminal operators are duly obligated as technical enforcers and service integrators under the POF framework to:
• Ensure compliance at the point of cargo release.
• Block the release of shipments not accompanied by proof of POF payment.
6. The Council has not received any binding legal pronouncement that vacates the above mandate or restrains its implementation by any party.
Accordingly, all terminal operators and shipping companies are hereby directed to continue full enforcement of POF collection without interruption. Any willful sabotage, refusal, or negligence to comply may attract regulatory sanctions in line with extant laws and applicable port operation guidelines.
The CRFFN remains open to engagement and further clarification on this matter. However, we emphasize that compliance with this directive is mandatory, and failure to do so may be interpreted as a breach of statutory obligations.
