The Federal High Court in Lagos has ruled that the collection of the Practitioners Operating Fee (POF) by the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) from Licensed Customs Agents is unlawful and lacks statutory authority.

In a landmark judgment delivered on Monday, 26 May 2025, Justice D.E. Osiagor held that the CRFFN does not possess the legal mandate to regulate Licensed Customs Agents (LCAs), whose regulation is exclusively the responsibility of the Nigeria Customs Service (NCS) and the Minister of Finance, as provided under the Customs and Excise Management Act (CEMA).

The case, which has been in court since 2018, was instituted by the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) against the CRFFN and the Minister of Transportation in Suit No. FHC/CS/765/2018. According to the judgment, a directive from the Ministry of Transportation that required LCAs to register with the CRFFN, pay subscription fees, and remit the controversial POF as a condition for port access and licence renewal has been struck down.

The court ruled unequivocally: Only the Minister of Finance, acting through the Nigeria Customs Service, is statutorily authorised to regulate the business and operation of Licensed Customs Agents. It further clarified that Section 2 of CEMA defines Minister strictly as the Minister of Finance, while Sections 153 and 156 lay out the process for licensing, oversight, and permissible charges for LCAs. Nowhere, the court stated, is authority granted to the Ministry of Transportation or CRFFN to impose such requirements.

Justice Osiagor also stated that the CRFFN Act of 2007 was enacted to regulate freight forwarders and cannot legally be extended to Customs agents, as doing so would violate statutory and constitutional boundaries.

Any overlap in port operations between freight forwarders and Licensed Customs Agents does not justify regulatory conflation, the judgment read.

Reacting to the ruling at a press briefing in Lagos over the weekend, NCMDLCA President, Mr Lucky Amiwero, described the verdict as a triumph for professionalism and rule of law.

We have always insisted that the POF had no legal basis, as it was not tied to any service rendered on imports or exports. This decision confirms our long-standing position, he said.

He explained that LCAs, licensed under CEMA, form a distinct professional category separate from freight forwarders, who fall within the CRFFNs jurisdiction.

NCMDLCA represents licensed Customs agents, not freight forwarders, and we will ensure our members are no longer subjected to unlawful levies or hindered from performing their duties at the ports, he added.

Mr Amiwero further disclosed that the association would initiate steps to recover POF payments previously collected by the CRFFN.

We will follow lawful channels to reclaim the funds. There is no visible infrastructure or development tied to these collections. Nigerians deserve to know where the money went, he stated.

He also warned that any appeal from the CRFFN or the Ministry of Marine and Blue Economy would be strongly contested.

If they decide to challenge this judgment, we are fully prepared to return to court, he said.

The ruling is seen as a major development in Nigerias maritime and port regulatory landscape, affirming the distinct roles of regulatory bodies and safeguarding the operational independence of Licensed Customs Agents.