Freight forwarders in Lagos on Tuesday disagreed with the Nigerian Shippers’ Council over its plan to introduce a minimum share capital for companies and individuals engaged in the freight forwarding activities in the nation’s seaports.
The Executive Secretary, Nigerian Shippers’ Council, Barr. Hassan Bello was quoted as saying in a parley with senior media practitioners in Lagos recently that the Council was concluding work on the plans to introduce a minimum share capital for freight forwarders in order to root out touts in the industry.
However, the plan seemed not to go down well with the freight forwarders for whom the plan was meant for as many of them decried the said plan calling it a misplacement of priority
Speaking in an interview with Daily Champion in his office in Lagos, the Secretary General, National Association of Government Approved Freight Forwarders (NAGAFF), Hon. Increase Uche described the move as unfortunate.
Uche lamented that while the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), a body saddled with the responsibility of ensuring the professionalization of the freight forwarders was there trying to champion the professionalization of the sub-sector, the Shippers’ council was bringing up issues that has nothing to do with professionalism.
He cautioned that one thing the Shippers’ Council as the economic regulator of the port industry should avoid is trying to regulate the shipping industry as well as the maritime industry as according to him, there is a difference between them.
According to him,” part of the problems we have been facing over the years is the misplacement of priority. We are all aware that the Shippers’ Council is now the economic regulator of the industry, one thing we must try to avoid is the shippers’ council trying to regulate the shipping industry as well as the maritime industry as a whole because there is a difference. We equally know that the supply chain is all encompassing”.
“To the statement he has just made, I must say it is unfortunate that while the CRFFN, the regulatory body is there trying to champion the issue of professionalizing the sub-sector, he is again trying to bring up some issues that doesn’t relate to professionalism”.
He stated that consolidation of freight forwarding industry is a different matter entirely when it comes to professionalizing the sub-sector adding that setting a minimum share capital that the freight forwarders should meet before he is allowed to operate would amount to taking the industry back to the concession period of 2006 when companies like Damco came up under Maersk Line and APMT.
Uche disclosed that where he expected the shippers’ council to channel attention to was the licensing regulation of the Nigeria Customs Service with a view to separating the use of license to admit one into a profession rather than insisting that such a person must undergo some training or have a minimum qualification to that effect.
While emphasizing that the freight forwarders were not the problem in the port, the NAGAFF Scribe reminded the shippers’ council that its role as the commercial regulator of the industry has to do with regulating charges at the port and therefore should leave the issue of professionalism for the CRFFN.
He therefore advised the council to find a way to support the CRFFN to get it right adding that once CRFFN got it right, every other thing would fall in place.
“Let us get the CRFFN right and talk of professionalizing the sector and not the minimum share capital base. By professionalizing the sector, consolidation will follow, the whole thing will naturally fall in place”, he said.
On his part, the Former Public Relations Officer, Save Nigeria Freight Forwarders, Importers and Exporters Coalition (SNIFFIEC), Mr. David Pius said that the idea could only be possible when the infringement on the rights of the freight forwarders by the terminal operators, shipping companies and the customs are checked.
Pius also noted that attention should be on the training and professionalization of the freight forwarders and not on the minimum share capital as being canvassed by the council.
“I expected Hassan Bello to talk about how he should work in collaboration with the CRFFN to ensure that the average freight forwarder in Nigeria is equipped and acquainted with the necessary knowledge he needed to compete favourably with his counterparts across the globe and to carry out his duties effectively”.
“I think when he does that that is when I can say that it is a welcomed development. Capitalizing or recapitalizing the capital base of the freight forwards in Nigeria should not be the issue now and shouldn’t arise at this point in time”, Pius said.
When contacted, the Registrar, Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), Sir Mike Jukwe declined comment on the matter.
Jukwe however said that shippers’ council is a government agency and that whatever it did was in line with the government directives.
He disclosed that consolidation of freight forwarders was part of the reforms that CRFFN proposed to the Ministry of Transport and was waiting for its approval.
“Honestly, I don’t want to comment on this matter. It (Shippers’ Council) is a government agency and whatever they are doing is in line with the government directives. To say whether they have the powers or not, I don’t want to meddle into that now”.
“Our regulatory function is on and if there is the need for that, we do it. You see, anything we propose as management, you are well aware that the council is not in place at the moment, anything we propose, goes to the Ministry for approval. I am aware that all these are part of the reforms that we proposed and are waiting for approval”, Jukwe stated.
