Victory for Licensed Customs Agents: Federal High Court Rules Against POF Collection

Strategic Insights -

The National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) has secured a significant victory against the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) after the Federal High Court declared the collection of Practitioners' Operating Fee (POF) from Licensed Customs Agents as illegal. The judgement, delivered on Monday, May 26, 2025, has effectively nullified the directive issued by the ministry of Transportation mandating that Licensed Customs Agents (LCAs) to obtain clearance from the CRFFN including payment of registration fees, subscription dues, and Practitioners Operating Fees (POF) as a precondition for access to ports and renewal of operational licenses.

Key Takeaways:

  • The Federal High Court ruled that the collection of POF from Licensed Customs Agents is illegal, nullifying the directive issued by the ministry of Transportation.
  • The regulation of Licensed Customs Agents falls squarely under the Customs and Excise Management Act (CEMA), which vests authority solely in the minister of Finance and the Nigeria Customs Service (NCS).
  • The NCMDLCA President, Lucky Amiwero, disclosed that the association will seek a refund of all payments made under the POF.
  • The CRFFN Act of 2007 was established to regulate freight forwarders and cannot be applied to customs agents without breaching statutory and constitutional safeguards.
  • The court ruling noted that there are no infrastructure or any development projects attributable to the POF collected by CRFFN from LCAs.
  • The NCMDLCA will follow due process in ensuring that licensed customs agents are not unlawfully obstructed from accessing the port to perform their lawful duties or made to pay monies that have been declared illegal by the court.
  • The court found that the minister of Transportation, acting through the NPA and CRFFN, had overstepped legal boundaries by attempting to impose regulatory and financial obligations on a profession it has no statutory control over.

Statistics:

  • The judgment has effectively nullified the directive issued by the ministry of Transportation, mandating that LCAs to obtain clearance from the CRFFN including payment of registration fees, subscription dues, and POF as a precondition for access to ports and renewal of operational licenses.
  • The collection of POF from LCAs has been deemed illegal, and the NCMDLCA will seek a refund of all payments made under the POF.

Sources:

  • NCMDLCA President, Lucky Amiwero, speaking to LEADERSHIP on the judgment
  • Federal High Court judgement, delivered on Monday, May 26, 2025
  • Section 2 of CEMA explicitly defines 'Minister' as referring to the Minister of Finance
  • CRFFN Act of 2007
  • Customs and Excise Management Act (CEMA)