How Quackery, Gov’t Policies and Corruption Undermine Freight Forwarding in Nigeria – Dr Mustapha, CEO, AZ Logistics
Dr Azeez Mustapha, Managing Director of AZ Logistics, a leading logistics company in the maritime sector, has identified quackery, poor government policies, and corruption as significant challenges facing the freight forwarding industry in Nigeria. He called for urgent reforms to elevate standards within the sector.
Speaking at the Congress of Nigerian Maritime Media Practitioners (CONMMEP) monthly roundtable forum in Lagos, Dr Mustapha remarked, “We face numerous issues in this industry due to individuals posing as legitimate clearing and forwarding agents. Many are unlicensed and operate as mere touts. A visit to Apapa reveals individuals with plastic bags claiming to be clearing agents. However, I commend the regulatory body, the Council for Regulation of Freight Forwarding in Nigeria (CRFFN), established in 2007, for its efforts to distinguish genuine practitioners from impostors. My company is registered, and I am an individual member as well, yet challenges persist.”
He continued, “A pressing concern in freight forwarding and the maritime sector is government policy. Rapid changes in policy create challenges across the board, from customs to shippers and beyond. This instability often results from inadequate consultation and engagement with genuine practitioners and key players in the value chain. Consequently, we encounter setbacks from Customs to the Nigerian Ports Authority (NPA), the Shippers’ Council, and the Central Bank of Nigeria (CBN). Rather than solely focusing on these issues, we must adopt a solution-oriented mindset, recognising that there are viable pathways forward.”
Regarding corruption within the maritime sector, Dr Mustapha stated, “The ETO call-up system represents an improvement compared to the past 18 years, but corruption and extortion remain pervasive. This issue is deeply embedded in our system. There is a distinct difference between providing a solution and engaging in extortion. For example, if cargo movement takes two weeks, what costs are incurred by end-users? The burden ultimately falls on consumers like you and me when we shop.”
He added, “The ETO call-up system has not eliminated extortion, as it is a government-related issue beyond our control. Contracts often involve kickbacks to contractors, the NPA, and other stakeholders. The platform owners are in business to profit, which perpetuates extortion.”
Dr Mustapha highlighted how these challenges hinder growth in freight forwarding and the maritime industry. He also addressed the issue of customs officials from the Federal Operations Unit (FOU) intercepting trucks that have already been cleared by customs authorities.
“This remains a policy issue impacting trade facilitation in Nigeria,” he stated. “Customs is mandated to safeguard the nation, generate revenue, and prevent illicit goods from entering the country. However, when a Customs Area Controller releases a consignment and officials from the same organisation subsequently stop it, this is incorrect. Customs often view this as another revenue opportunity, which has been a point of contention for over 20 years.”
He elaborated, “In a properly functioning system, there should be no need to detain goods once they have been cleared. Officers who examined and approved the goods at the port should stand by their assessments. Consequently, there is no justification for FOU units to stop trucks or agents on the road. It is imperative for customs to address their internal processes to ensure seamless trade facilitation. Such bureaucratic hurdles are unique to Nigeria and do not occur in countries like Ghana.”
Dr Mustapha concluded, “We must strive for a more efficient and transparent system that promotes growth and integrity in the freight forwarding industry.”
