Repositioning CRFFN:Nweke Calls for Reforms In Nigeria’s Freight Forwarding Council
Repositioning CRFFN:Nweke Calls for Reforms In Nigeria’s Freight Forwarding Council
Fwdr.Dr.Eugne Nweke,Head ,Sea Empowerment Research Center
By Frank Odinukaeze
In a detailed letter addressed to the Honorable Minister of Marine & Blue Economy, a concerned professional Fwdr. Dr.Eugene Nweke,former President National Association of Government Approved Freight Forwarders (NAGAFF),and Head Research, Sea Empowerment Research Center RGT. has called for a comprehensive reevaluation of the Council for Regulations of Freight Forwarding Practice in Nigeria (CRFFN).
The letter highlights critical administrative issues and proposes strategic reforms to enhance the council’s regulatory effectiveness.
The letter, which emphasizes a non-accusatory and constructive approach, outlines several fundamental concerns:
Misclassification of the Council: The CRFFN is currently categorized as an agency under the Federal Ministry of Transportation (FMOT) due to a legal interpretation by a former Attorney General. The letter argues that this misclassification undermines the council’s independence as a professional regulatory body.
Administrative Overhaul: The letter points out the creation of excess offices and an over-bloated governing board with over 30 members. It criticizes the influence of political interests over professional expertise, resulting in a governing board dominated by politicians lacking core professional knowledge.
Electoral Process: The current electoral process for the governing board is described as being driven by selfish and political interests, rather than professional merit. Government interference in the election of the board chairmanship is also highlighted as a significant issue.
The letter criticizes the reliance on politically induced yearly budgeting and allocations, instead of occasional financial interventions. It also highlights the downplaying of other professional revenue generation methods and the mismanagement of income from the Practitioners Operating Fee (POF).
Weak and poorly funded enforcement operations, the construction of unsustainable physical structures, and the acquisition of expensive fleets are identified as major operational inefficiencies.
Dr Eugene Nweke in the letter, called for the CRFFN to be repositioned as an independent professional regulatory council, free from excessive government interference and political interests. It advocates for a streamlined administrative structure, a merit-based electoral process, and sustainable financial management practices.
According to the lengthy letter,Honorable Minister is urged to consider these suggestions and engage with stakeholders to implement the necessary reforms for the betterment of Nigeria’s freight forwarding industry.
In a significant move towards enhancing the efficiency and governance of the freight forwarding industry, a new regulatory framework was proposed.
According to Fwdr. Dr Eugene Nweke ,Rff Fnis Fptm Ksm,
Sea Empowerment Research Center RGT,this framework aims to establish a robust administrative structure for a Freight Forwarding Regulatory Council, drawing inspiration from successful models worldwide.
The proposed framework highlights the importance of adopting global standards and best practices. It references successful regulatory councils such as the International Federation of Freight Forwarders Associations (FIATA), the National Customs Brokers & Forwarders Association of America (NCBFAA), and the British International Freight Association (BIFA).
These organizations have demonstrated effective governance, stakeholder engagement, and industry oversight.
The framework, according To Dr.Nweke,suggests a streamlined administrative structure to ensure efficient regulatory engagements. Key components include:
Board: A compact board comprising a chairman and 8-10 members.
Secretariat: An executive secretary with a team of 5-7 staff members.
Technical Committees: 3-5 committees with 5-7 members each, focusing on specific areas such as standards, training, and compliance.
Regional Chapters: 2-3 chapters with 2-5 staff members each to ensure better regional representation.
Funding Models and Revenue Allocation
To sustain its operations, the council will adopt globally standard funding models, including membership fees, license fees, levies on freight transactions, government grants, private sector partnerships, and fees from professional training and certification. The revenue will be allocated as follows:
Membership Fees: 20%
License Fees: 20%
Levy on Freight: 25%
Government Grants: 5%
Private Sector Partnerships: 5%
Others: 25%
Key Considerations and Best Practices
The framework emphasizes the need for independence, transparency, accountability, stakeholder engagement, and capacity building. It also advocates for international benchmarking, public-private partnerships, technology integration, compliance monitoring, and continuous improvement.
This comprehensive framework sets a new benchmark for establishing a professional freight forwarding regulatory council. While adjustments may be necessary to cater to specific industry needs and stakeholder feedback, the proposed structure promises to enhance the efficiency and governance of the freight forwarding industry.
