POF: Stakeholders Kick,As CRFFN Moves To Scuttle VP Osinbajo Ease Of Doing Business Ideas

By Roland Ekama , Lagos

Freight forwarders and customs brokers on Tuesday opposed plan by the Council for the Regulations of Freight Forwarding in Nigeria to commence collection of Practitioners Operating Fee (POF) in Nigerian Ports, saying the fee would increase the cost of doing business in the ports and would further scuttle the laudable initiative on the ease of doing business introduced by Vice President Prof Yemi Osinbajo.

Recall that the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) has announced the commencement of the payment of a thousand naira on 20 feet container, two thousand naira on 40 feet container, 350k per tonne on General cargo while it will cost one naira per tonne on bulk cargo to be paid to the Council.

But some aggrieved stakeholders were miffed about the condition placed on the payment of the fee that no cargo would be allowed to exit the port without payment of the fee.

They lampooned the Council for the unnecessary burden on the end users of the cargoes cleared from the port , pointing out that already there are multiple tariff paid on consignment before exiting the ports.

According to them , the introduction of POF into port operations would further increase the clearance of cargoes ,calling on the Vice President to halt the process.

A chieftain of the Association of Nigerian Licensed Customs Agents (ANLCA)Mr . Femi Abiodun Olabanji who was embittered with the introduction of the fee said; “The problem we are passing through in this port is too much, Do CRFFN want to kill us?

“If the CRFFN was established to regulate the freight forwarding practice, it is not to come and collect money.

“This system will lead to more demurrage in the port before they say we must pay before our cargo can exit the port.

“We pay mportation duty to Custons that is the VAT, 7 percent, 1 percent CIS, shipping company charges of container charges and rent on the container, you will pay all these charges with VAT.

“You will pay terminal charges with VAT, if you imported goods relating to NAFDAC, you will pay them with VAT, if you bring in goods relating to SON, you will pay with VAT, so also Plant Quarantine Service, you will pay their money with VAT.

“Whether you pay normal duty or not, you will pay for dropping of container, customs examination and releasing fees. All these are borne by the importer.

Mr.Iwunor John of NAFFAC Airport chapter said, “Do you know how many taxes we pay in airport; FAAN collects several charges from us and they will still collect money for Identity Cards up to the tune of N15 thousand.

“There are other groups that collect money and we are not collecting salary from anybody, why will you not have mercy on us?

“Since government is more powerful than any individual, I want to beg you please the amount with which we register for both company and individual should be reduced.

According to Mr. Yomi Adebola “Everybody is talking about payment and my question is if CRFFN was created to protect our interest, I see the payment as adding to our burden.

“Other professional bodies like ICAN pay professional dues annually, why not limit our own too to annual payment instead of asking us to pay per shipment.

“We pay customs duty and other charges; this one you want us to pay, who do we refer it to?

Speaking, the Registrar of the Council, Barrister Samuel Nwakohu maintained that mechanism has been put in place to tackle the divergent opinions of the freight forwarders.

The Registrar maintained that collection of POF will not increase the cost of doing business in the ports.

Nigeria is ranked 131 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings.

The rank of Nigeria improved to 131 in 2019 from 146 in 2018. Ease of Doing Business in Nigeria averaged 143.92 from 2008 until 2019, reaching an all time high of 170 in 2014 and a record low of 120 in 2008.