Nigeria Revenue Service: SEREC counsels cargo stakeholders to uphold professionalism
By Gboyega Oni
Following the signing into laws the new tax bills by President Bola Ahmed Tinubu last week, cargo stakeholders – shippers, freight forwarders and customs agents – have been charged to uphold high professional discipline and maintain quality services.
The new tax laws, which have replaced the old ones, come with new innovative and flexible ideas aimed at propelling the growth of the nation. One unique thing about the new tax laws is the establishment of Nigeria Revenue Service (NRS), which will replace the Federal Inland Revenue Service (FIRS) by January 1, 2026.
The NRS, as empowered, is to collect all taxes and revenues for many government agencies, importantly the Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA) and Nigeria Customs Service.
The NRS is expected to reshape the payment and collection of port and cargo taxes and customs duties as shippers, freight forwarders and customs agents will be in the spotlight and so the need for them to up their games in compliance with the new laws.
The cargo stakeholders were counseled by the Sea Empowerment and Research Center (SEREC) in a clarion call to cargo stakeholders by its Head of Research, Fwdr Eugene Nweke.
The call, which dwells on various challenges face by cargo stakeholders, is titled – A Call For A Renewed Professional Resilience And Commitment By Freight Forwarding Practitioners.
According to the call, in compliance with the newly signed Tax Reform Bills via the establishment of the Nigeria Revenue Service (NRS), shippers and practitioners must understand that they are now in the eyes of the sun.
It is essential to renew our professional steadfastness and commitment to delivering quality freight logistics services. As critical players in the transport logistics industry, we have a responsibility to uphold high professional discipline and maintain quality services.
The SEREC’s call sounds full thus:
We live in extraordinary times, with global events having far-reaching impacts on our national economy, international trade, and security supply chain. The freight forwarding industry is not immune to these challenges. Despite these challenges, I commend the resilience and efforts of freight forwarding practitioners, association leadership, regulatory council management, and stakeholders in keeping the nation’s ports and economy moving.
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However, it is essential to renew our professional steadfastness and commitment to delivering quality freight logistics services. As critical players in the transport logistics industry, we have a responsibility to uphold high professional discipline and maintain quality services.
This clarion call highlights key industry focus areas, changes, and challenges that require our attention:
a) Port Automation and Digitalization: Embracing the national single window and customs migration to the B’odogwu’s trade platform, with a focus on machine learning and artificial intelligence. Upgrading professional skills and expertise is a deserving necessity.
b) Tax Reform: Compliance with the newly signed Tax Reform Bills via the establishment of the Nigeria Revenue Service (NRS). Shippers and practitioners must understand that they are now in the eyes of the sun.
c) Unified Efforts Towards Redemptive Professional Regulation: The need for an informed, structured, and strategically positioned regulatory administration, a functional and all-inclusive CRFFN regulatory administration, is apt. The prevailing situation calls for professional recommitment devoid of sentiments and undue tussle. This is the time for all practitioners to think about building professional legacies.
d) African Continental Free Trade Implementation: The critical role of freight forwarders in driving the process is key. Yet, it appears that greater practitioners are offered a back seat.
e) Professional Frustration: The impact of foreign exchange rates and the dynamism surrounding the China Currency Swap Policy on the profession and citizenry. Equally, practitioners have a duty to raise the bars of their professional discipline high and revisit their roles with regards to supply chain security compliance and shun activities aiding the influx of fake, substandard, pirated, and dangerous imports and exports. It is essential to understand that port automation and digitalization also entail the principles of profiling.
f) High Cost of Doing Business:_ The need to address too many taxes and charges without cost or duplicated functions. This is a major infraction to the regional transshipment hub objectives. Additionally, in the months ahead, key agencies of the government will be reintroducing new charges and levies, for instance, the reintroduction of 4% customs operation funding, the stipulated charges embedded in the about-to-be-signed-into-law Nigeria Shipping and Port Economic Regulatory Agency, etc.
g) Efficient and Predictable Shipping and Port Sector: The urgent need to address inequitability surrounding our nation’s international trade terms (Incoterms). Also, the need for prompt shipping operations regulations cannot be overstated.
h) Local Content Laws: The need to revisit and reactivate local content laws. The foreign incursions into the profession and the gradual takeover plan by the first-generation port operators and their shipping lines affiliates call for unified fronts.
i) Industry-Related Concerns: Various concerns require the attention of freight forwarding practitioners. The need and time to come together for professional sustainability are now.
To address these challenges and opportunities, we must work together as a profession, sharing knowledge, expertise, and best practices. We must also invest in ongoing training and professional development to stay up-to-date with industry developments.
In light of these challenges, the Sea Empowerment and Research Center calls on freight forwarders to renew their professional resilience and recommitment to delivering quality services.
