In a landmark ruling that redefines the regulatory landscape of Nigeria’s maritime and customs operations, the Federal High Court in Lagos has stripped the Minister of Transportation and the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) of any authority over Licensed Customs Agents (LCAs).
Justice Daniel Osiagor, who delivered the judgment, ruled that the regulatory control of LCAs rests solely with the Minister of Finance, acting through the Nigeria Customs Service (NCS), as stipulated in the Customs and Excise Management Act (CEMA). The verdict nullified a 2017 directive by the Ministry of Transportation published in Vanguard Newspapers, which attempted to extend CRFFN’s regulatory reach to LCAs.
Customs Agents Not Subject to CRFFN or Transport Ministry
The court, in suit number FHC/CS/765/2018 filed by the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), declared that LCAs are distinct professionals from freight forwarders and cannot be subjected to the CRFFN’s fees, clearance requirements, or regulations.
Justice Osiagor stated:
“The regulation of Licensed Customs Agents is governed exclusively by CEMA. The Minister of Transportation has no supervisory or regulatory role under the Customs Act. The CRFFN, established by the 2007 Act, only regulates freight forwarders and does not extend to customs agents.”
The judgment further clarified that only the NCS, under the supervision of the Minister of Finance, has the statutory authority to issue, renew, or revoke LCA licenses.
Reacting to the decision at a press briefing in Lagos, Lucky Amiwero, President of the NCMDLCA, described the judgment as “long overdue,” noting that customs agents had been wrongly classified alongside freight forwarders for years.
“We are not freight forwarders. We operate under a completely different legal framework, and this judgment rightly affirms our distinct professional status. It also ends years of regulatory overreach by the CRFFN and the Transport Ministry,” Amiwero said.
He urged the NCS to ensure the smooth implementation of the ruling to prevent further harassment of licensed agents at ports.
Despite the judgment, the CRFFN has insisted that the ruling does not affect its mandate to collect the Practitioners Operating Fee (POF) from customs agents.
Kingsley Igwe, Registrar of the CRFFN, maintained that the Council remains legally empowered to regulate freight forwarding in Nigeria under Act No. 16 of 2007.
“The court’s ruling does not nullify the CRFFN’s statutory mandate. We are still empowered to collect the POF and maintain regulatory oversight on freight forwarding operations, as LCAs interact closely with freight forwarding processes,” Igwe argued.
This position, however, is expected to face resistance from LCAs, who may seek further judicial clarification on the POF collection.
Industry experts say the judgment could significantly reshape regulatory dynamics at Nigerian ports. By reaffirming CEMA as the exclusive legal framework for LCAs, the ruling is expected to reduce multiple charges, ease bureaucratic bottlenecks, and possibly lower the cost of doing business in the maritime sector.
However, analysts warn that continued disputes over fee collections between LCAs and the CRFFN may trigger further legal battles, with possible implications for port efficiency.
Key Takeaways
CEMA exclusively regulates LCAs, placing oversight under the Finance Ministry and the NCS.
The CRFFN’s authority is limited to freight forwarders and does not extend to licensed customs operations.
The ruling is expected to reduce regulatory duplication at ports, but lingering disputes over fees may continue.
With this judgment, stakeholders are now looking to the federal government and the NCS to provide clear guidelines to ensure seamless implementation and avoid conflicts between customs agents and other regulatory agencies.