By Ekaete Bassey The Nation
President, National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, at the weekend, commended the recent judgment of the Federal High Court sitting in Lagos affirming that the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) and the Ministry of Transportation have no statutory authority to regulate the business or operations of Licensed Customs Agents (LCAs).
Amiwero described the ruling as a significant step towards restoring professional autonomy and easing the operational burdens placed on agents over the years, during a national press conference at the NCMDLCA Secretariat in Lagos.
“This is not just a legal win—it is the liberation of Licensed Customs Agents who have faced operational challenges for nearly two decades,” he said.
The judgment, delivered in suit No. FHC/CS/765/2018, clarified that the regulation of LCAs is governed exclusively by the Customs and Excise Management Act (CEMA), under the purview of the Minister of Finance and the Nigeria Customs Service (NCS). It declared unlawful a 2017 directive that had made registration with CRFFN and the payment of Practitioners Operating Fees (POF) a requirement for port access and licence renewals by LCAs.
In delivering the judgement, Justice Daniel Osiagor ruled that: “The regulation of Licensed Customs Agents is governed squarely by the Customs and Excise Management Act.
“Only the Minister of Finance, acting through the Nigeria Customs Service, is statutorily authorized to regulate the business and operation of Licensed Customs Agents,” the Court held.
The court further drew a clear distinction between Licensed Customs Agents and Freight Forwarders, asserting that both are separate professions regulated by different legal instruments.
“Licensed Customs Agent (LCA) is a distinct profession from Freight Forwarders. The CRFFN Act established a Council to regulate Freight Forwarders—a profession distinct from Licensed Customs Agents,” the judgment stated.
Read Also: Niger Delta ex-agitators applaud Tinubu for backing NDDC boss amid smear campaigns
The ruling invalidated the 2017 directive and restrained CRFFN from imposing any form of registration, clearance, or fee requirement on LCAs. It affirmed the rights of duly licensed agents to access seaports, airports, and land borders based solely on their accreditation by the NCS.
“The directive of the Minister of Transportation published in the Vanguard Newspaper of August 1, 2017, is declared null and void as it relates to Licensed Customs Agents,” the court concluded.
Amiwero noted that while the legal victory is important, the broader objective is to create a clearer regulatory environment for customs operations.
“This is not just about money. It is about ensuring that the role of Licensed Customs Agents is properly defined and respected under the law,” he said.
He assured stakeholders that the Council would work closely with the relevant authorities to ensure the judgment is implemented effectively and without disruption to trade.
According to the NCMDLCA boss, the Council will pursue recovery of funds collected based on the now-invalidated directive. He however refrained from placing a monetary value on the expected refund.
“We will follow the appropriate legal processes to address the financial implications of the ruling. What matters most is that our members can now operate without undue constraints,” he said.
He also expressed readiness to engage any appeal process that may follow, stating that the NCMDLCA has consistently pursued its cases through lawful channels.
“We are not afraid of appeal. We have confidence in the legal system and we believe in the strength of our case,” he said.
Legal experts believe the ruling reinforces constitutional principles by preventing regulatory overreach that could impose financial obligations without statutory backing.
“This judgment reinforces the doctrine that statutory bodies cannot impose fees or regulatory hurdles outside their enabling laws. It’s a significant precedent for regulatory certainty in Nigeria’s port sector,” a maritime lawyer, Onyekachi Abraham, told The Nation.
For businesses operating across Nigeria’s maritime and logistics value chain, the ruling carries far-reaching consequences. By eliminating the POF for LCAs, the judgment promises a reduction in transaction costs that stakeholders say could enhance competitiveness and ease of doing business at Nigerian ports.
“The court’s decision removes one layer of cost and bureaucracy from port operations. This should reduce costs for importers and exporters and enhance efficiency in cargo clearance,” a Lagos-based senior maritime consultant, who preferred anonymity, said.
However, the financial implications for the CRFFN, and potentially the federal government, could be substantial, according to experts. If customs agents succeed in recovering fees collected since the directive’s implementation, the refunds could amount to billions of naira, posing a significant revenue liability for the government.
“There could be fiscal consequences if refunds are pursued and awarded. Depending on the sums involved, it could impact the cash flow of CRFFN and government allocations for port infrastructure projects,” the maritime lawyer added.
The ruling is expected to simplify regulatory compliance for LCAs and may enhance port efficiency by removing overlapping mandates. Industry analysts have described it as a positive development for Nigeria’s maritime sector and for the overall ease of doing business.