Aniebonam: CRFFN is Not Working Because of ANLCA
• Says importers are losing billions of Naira investments due to connivance between customs officers and agents at ports
Chief Dr. Boniface Okechukwu Aniebonam, is a prominent freight forwarder who has been in the struggle to improve on the profession. He is one of the key players in the establishment of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN). As former member of the Association of Nigerian Licensed Customs Agents (ANLCA), he broke away from the association to form the National Association of Government Approved Freight Forwarders (NAGAFF) which is currently competing favourably with the former. One thing that has played out in the past two decades is that the two associations have never agreed on any issue. The two have always walked on opposite directions on issues affecting the industry. This trend became very unhealthy for the sector in what forced industry stakeholders to champion the call for the establishment of CRFFN as a possible unifying Council which will also regulate the freight forwarders and customs agents. But the truth is that this objective does not appear to have been achieved, as practitioners have remained on war path working against themselves even on issues of collective interest. In this exclusive interview with SHIPPING DAY, Aniebonam bares his mind on some of the issues, areas of disagreement with ANLCA, among others, particularly on how to collectively address common problems affecting practitioners which are caused by the Customs personnel and other agencies in the ports. He is particularly bitter with customs agents or importers who complain about Customs 100 percent examination, arguing that it is better to do this before the importer takes his goods to avoid seizures on the highway. While cautioning importers to make honest declarations, he is of the view that those who have infractions in terms of concealment or under-declaration can sort them out during examination with payment of additional duties so that such goods will not be seized on the way by operatives of the Federal Operations Unit (FOU). Aniebonam is also not happy with some Customs officers who connive with agents and fail to do proper examinations at the ports only for the goods to be intercepted on the way. He advises importers and customs agents to comply with all trade regulations, and submit fully to 100 per cent examination at the ports, address all issues right there as the only way to avoid losing such huge investments through seizures. Aniebonam equally advises importers to visit warehouses or offices of FOUs in Ikeja, Benin, Owerri, among others to see the amount of seizures, waste of investments, and learn to be compliant in trade regulations. Excerpts..
What are your expectations in terms of policy direction in the maritime industry as it affects freight forwarders as we begin the journey to the next level of President Muhammadu Buhari’s second term administration?
Let me tell you, when you are not in a place where somebody is buried, if you are asked to exhume the body, you are likely going to start from the leg. I will give you a good example, the Performing Musicians Associations of Nigeria (PMAN), those who founded PMAN, Mrs Esiene Igbokwe and the rest of them. The PMAN became hijacked and it died a natural death because those who had the dream, those who had the concept, those who know what it is all about were not given opportunity to advance the course. CRFFN is the baby of NAGAFF and it is not in contention. Nobody is contending that and if you still want to know, somebody like Chief Adebayo Sarumi is still alive. I overheard him saying one or two things in Golden Tulip Hotel sometimes ago, somebody told me, but that was distorting the fact. I recall that when Sarumi was the Executive Secretary of Nigerian Shippers Council(NSC), he wanted to keep the register of freight forwarders and behold, I was the President of NAGAFF then and I said no. You don’t have the authority to keep the register of freight forwarders. The Act that set up the NSC is very specific and direct on matters that have to do with shippers, importers and exporters. NAGAFF was really not in good terms with the NSC then because we saw certain action of the leadership of the Council that tended to create some level of favouritism and we took a step further to distant ourselves from it and rely on the law. So that was the first encounter with Sarumi when I was the President of NAGAFF, and he realized what we were talking about. He had to retrace his steps otherwise we would have gone to do some destruction he would never have believed, especially when we have to fight against breaching the law . Now, during late Chief Ojo Maduekwe as a Minister of Transport, again I was the President of NAGAFF, we had the dream, we had the drive and again we had the commitment. I was focused and we wanted to take freight forwarding into international arena. We moved in to register NAGAFF as a member of FIATA officially . It was then the move, call it a mistake but it was not a mistake, people realized that NAGAFF, ANLCA…. it is not today ANLCA began pushing NAGAFF up and down and to a large extent, it is the cause of their problem because the time they will use to run their association well is the time they will be using in fighting NAGAFF.
But NAGAFF never bothered because I was in command. I had the leadership quality, I had what it takes, I am an ex-custom officer, I am trained so I know where I am going. So, that mistake was that we made open that we are entering FIATA which led to petition being fired here and there in their usual characteristics. That is how that chance was stalled even at the time we went to US Embassy to pick our visa to attend FIATA conference. Then what happened, the vice President of African bloc had to visit Nigeria. We hosted him at Eko Le Meridian. I had over 2-3hours with him and we now agreed that all the various contending voices, all the petitions they are getting, these people never knew anything about FIATA. But as soon as they heard NAGAFF has gone to FIATA, they started firing petition. So, it was in that meeting that we agreed that the way forward is to cause an action that will bring all the contending voices into one umbrella. We decided to go to Abuja to meet with Ojo Maduekwe. After the meeting, we filed in the first document at the National Assembly for the enactment of the Act establishing CRFFN . Thereafter Sarumi joined to backup the whole movement. We received tremendous support from well meaning people, including Mr Hassan Bello, Mrs Mfom Usoro. During the Public Hearing, you were still in this industry, you saw what happened. ANLCA and their group went to the National Assembly to say they are not party to CRFFN Act. Alhaji Sani Kamba, a serving senator and a former President of ANLCA came out openly to say he was going to kill the bill. But Senator Ohuabunwa told him no, we don’t kill bills here, Chief Henry Njoku was there, Alhaji Olayiwola Shittu was there. It was one person only, Shittu that saw the dream. Every other person in ANLCA was against the Bill and they did everything possible to kill it. But the Bill became an Act. During the maiden election, you saw what happened, how it was rigged openly. How was it rigged, first the whole process was burgled, in other words people were disenfranchised, individuals participating were disenfranchised from participating. The Custom licensing regulations vis-avis agencies that were licensed by custom, even those that were moribund were registered and behold used in the election. Go and ask people like Chief Peter Obi, Ogbuagu, Tony Iju and the rest of them, they know why, but we never bothered afterall four years will come and go. Some people even registered a day to the occasion. I know how many people came to me at Abuja that I will do this and do that and I said, I don’t understand what you are talking about, but I was the first person to go and shake their hands, four years is not far. Four years later what happened?, NAGAFF took over the command. All the chances were to be declared to NAGAFF, we had to follow the process now, out of 1,300 people that were registered as members of CRFFN , NAGAFF had 1003 members. But we don’t think negatively, but all we need is to have an inclusive council because that is the initial concept. Again you saw in this election how it ended, the imposition was made by the Minister of Transport, it is crazy!. You saw the Act, some strange moves, changing the Council which is a quasi -government to become an agency of government, what does that mean? Picking money from Federation Account for a Council that is self sustaining, wasting government fund where we have an opportunity to generate fund and empower freight forwarding and to sustain the country. Well, we are making progress. The only excuse I can give you now, I hope the Chairman of the Council, I know he was not feeling too good during the election. …. You saw how they were struggling on who will be the chairman . You want to become the chairman of a Council that you don’t even understand what the whole thing is all about. Again, look at the imposition in total contradiction of the Act of the Council, I feel very terrible but the good news, one of the major reasons I made a u-turn after I left NAGAFF 6years I was the president was that I felt unfulfilled for members of NAGAFF not to be in the Council, because that is the Council that protects NAGAFF as an organisation. There were members of NAGAFF principally individual practitioners who have the drive to be referred to as professionals having undergone the necessary training and qualifications as opposed to licensing regulation of Customs, a corporate body cannot be referred to as professional and if there are issues that should come up, you cannot build professionalism with a corporate entity. Like I said I am fulfilled, I am happy NAGAFF is there and I guess they should be able to defend themselves there now. That area you are going to, I want to talk to the Chairman, I want to confirm he is alright. If I am made a consultant to council, I will accept it. I have the dream, I have the drive, it is still part of the things I could do.
They don’t know what it is, they spend more time fighting the council, so how do you think the council will grow. If you go to ANLCA , you may not see people more than somebody like Tony Iju who understand what the council is all about. There are people you can rely on, one is Ozo Chukwura as he knows what the council is all about, another is Barrister Ada, there are very few of them, somebody like Tayo Oyeniyi understands but those are in the minority.
Why the Council is not working has to do with ANLCA and other associations. ANLCA and NAGAFF have to work together, if they cannot work together, anybody cannot claim that it can achieve much without ANLCA and NAGAFF combining. The port is in disarray, that is system collapse in terms of work etiquette, where do we start. Nothing is working, rules of engagements are in disarray . Even when they use this word of Ease of Doing Business, ease of doing business is simply telling you to do the right thing, you cannot have ease doing business when you are not doing the right thing. For instance, the road network is not working, so if you do not do the road to be okay, you cannot be talking of ease of doing business. If infrastructures are not there, you cannot get the best, you see some of these things we complain about are what could be discussed in the council, so that is it.
Talking about things not working well at the ports, some agents wanted to go on strike and NAGAFF advised its members not to be part of it, and some members of ANLCA were not happy about this, how would you react to this?
I am not aware that any reaction came from ANLCA but if it happened, it is not unusual of them. You know when you lack knowledge and you refused to acknowledge that you do not have knowledge, you are the most foolish man. We are not in Banana Republic, we are professionals, there must be rules of engagement . There is a way things are done. What was the essence of 72hours notice to withdraw service from the port, what are the grievances, do you stay in a glass house and throw stone? If you want to do certain things, you first of all do self-cleansing. If it is you, what do you do? So it is nonsensical on the part of ANLCA for anybody to bring such matter to us. Of course NAGAFF cannot been involved with anything outside the ambit of the law. There are processes for you to withdraw service from the port. You must give reasonable time, like 21days to the government and you have not finished the processes of engagement, you just fire,72hours.You don’t do things like that, the port is very strategic but in any case under the circumstance when the communication does not flow very well, what do you do? You seek for knowledge, you seek for information. The thing that made those people to give that 72hours, what was the issue, basically what triggered that was what they called third-party transaction and what is third- party transaction?; basic instrument in terms of documentation, the pre-arrival notice and of course the bill of lading. These are things that were generally in conflict to the extent of distorting custom system in terms of data processing By the time the committee members came, they came not even the way people feel. They want to find out something on the spot sake. It was three guys, third-party transaction, for me an importer has the right to enter into any transaction with anybody so that shouldn’t be a problem to custom as far as am concerned but are we in a position to stop customs from doing what they are supposed to do in line with the customs regulation?. We are not in position to do so, it is an agency of the government but if you unveil that action, you will see that NAGAFF, ANLCA are not involved but rather some members of ANLCA, NAGAFF and other associations gathered themselves together in the name of stakeholders, and behold you cannot see the chairman of NAGAFF Apapa, the chairman of NAGAFF Tin-can or people of any of the command involved in port action that seem to threaten the peace and tranquility of the port under another name stakeholders. When you will write your report, you will say so so person who is the chairman of NAGAFF before you start talking of stakeholders, now you have brought in NAGAFF into the discussion while NAGAFF has no consent to that. So, when you are in leadership position, you need to be careful of what you put out to the public . You cannot easily say this is my personal opinion. If I tell you anything today as my personal opinion, I have overgrown personal opinion as far as this industry is concerned, as far as NAGAFF is concerned. If I say anything today you will say it is the founder of NAGAFF even though it is personal opinion, which person’s opinion when you know I have the authority to change things.
So these are part of the things I have to let you people know and for God sake, I want to remind you of the non-IDR (Import Duty Report) scandal …. Government wants to implement 100 percent examination of all cargo irrespective of whatever it is. You don’t have any right to say no, for instance if it has to do with security. So this is what government wants to do, so why will you begin to tell government not to do that. You recall that time (non-IDR crisis period) , ANLCA again, and some of them said they were going to shutdown the ports and I said to them why will you want to shutdown the port, is it because government wants to ensure that100% examination is done on a container? And what does the law say, the law says 100% examination. So, if an officer of custom decides to exercise discretion or probably use scale of preference to carry on his responsibility, he is doing it to his own peril, he is doing it to his own risk. In that regard I said no, NAGAFF will not be part of it. Position your container let them examine it, let us know what is coming in . Again came ANLCA and some trade associations. I was even invited at Federal Palace Hotel and I was alleged to be the one championing 100 percent examination against the Igbos because I am an igboman. Meanwhile, some logistics were given to some people in ANLCA, some money was given to them, I am aware, but the issue is one Dr. Aniebonam who is the President is not going to be part of it. We told government to protect NAGAFF people during the course of doing their job that we don’t know what this people (ANLCA members) are talking about. When I came to that Federal Palace Hotel meeting, they did not even allow me to talk. I kept quiet until somebody said why not allow this man to talk to us and I said fine, I said my brothers don’t listen to all these people ooo, either they are doing what they are doing lacking knowledge or they are being mischievous. Don’t fight a fight you cannot win, if government said they are doing 100% examination, please go and show them your container. You can’t win the fight but the lacuna there is that any item you did not declare should be seized . I think that was the fear. It was then they gave me the opportunity to speak to them. I called late Usman, my deputy president , I said gentlemen, look at this document, I sent this document to President Obasanjo in relation to this matter on 100 percent examination, look at his reply. Can I read it for you people, some said read what? And I kept quiet and at a time they said okay, read it. I said somebody should read it so that it will not be as if I am reading what is not there. What did I ask Obasanjo? I only looked at relevant customs law that have to do with penalty, inherent on traded goods when there is an infraction. So this concept of seizure is arbitrary because this thing is different from armed robbery or kidnapping. I advised my brothers and said, what you people need to do, great men here, gather yourselves and move down to the National Assembly , meet Senate President Okadigbo, Arthur Nzeribe and the rest of them, go and see Baba (Obasanjo) say see see…. Do you know the people were happy?, they carried me up and begin to thank me and thank me and thank me. Here and then they formed a Committee that went to Abuja, they met Obasanjo and the matter was resolved . How was it resolved, perform exam no more seizure . Any item that was not covered, duty should be paid with a penalty of 20%. Why are you fighting over what you do not have control over, you are flouting the law . If I tell you now what is happening, I want somebody to contradict me . This is the truth. People are making wrong description , non-compliance, go to Federal Operations Unit (FOU) and get facts. The type of inherent abuse in making genuine declaration for custom
purpose is terrible, and I get worried because these guys are endangering the investments of these traders and they don’t know. You are carrying ash tray and you say you carrying lighter, at the end of the day goods are released and FOU operatives will seize them when that matter should have been resolved on examination day. What is examination of customs all about, confirm the declaration in the single entry declaration form against the actual content by proper customs officer in the presence of importer’s representative . Under Destination Inspection (DI) you are at liberty to make honest declarations for customs purpose. Tell them what you have and if the price is reasonable Customs will say so and if it is not , they will get it done and you will take your goods and go. This way, we are looking at our investments to be saved. But when you talk, people will say what is this man talking about. If I don’t say what I feel is right when will I say it especially as I am an Igboman. Our people are losing their investments on matters that are avoidable and you say this, nobody listens to you. If you doubt me, go to FOU, go to Ikorodu terminal, go to Benin, go to Owerri and see the load there that are being seized and these are traded goods and it would have been a different thing if they are contraband. The sections of the law, section 46, 47, 161,162, call it untrue declaration for customs purpose is on contravention. Let me tell you, if it is not that customs is very nice, not only that those goods will be seized, if they prosecute you, it is five years imprisonment with no option of fine. Go and check it, section 46. On this matter of concealment, false declaration, it is five years imprisonment with no option of fine, that is what the law says.
What should one expect from both the customs and importers under the next level of this administration?
I have my own grouse with the customs. A businessman has his interest, what is his interest, to maximize profit. If government thinks these business people are so patriotic, they will do the right thing, then there will be no need for customs, there will no need for all other agencies at the ports. So, why do you connive, so when you talk, they will go after you. Anybody who wants to go after any person, go after yourself not me, I have the duty to tell you the right thing to do. You recall that the day CG (rtd Col. Hammed Ali) came here, he made it very clear that proper customs examination will resolve all those issues. Proper customs examination takes inventory of these things. We cant continue this way. Will people live by begging? Every time you are begging a human being like you, when you should avoid such problem. What we need to do, let us, any of the regulatory agencies, from SON to NAFDAC to Custom, let us do the right thing in the next level. Let us get the system working. You can get the system working, the society is working when you follow the rules of engagement, and then of course enforcement of regulation. If you know you are about coming to Tin-can, Apapa port, PTML, what happened to Sokoto border, what happened in Idiroko, what happened in Seme border, it is one and the same, shut up the place, follow the rules. That is how we can get the system working because at the end of the day these traders are going to different markets and if you leave an opening somehow, those who come in here will have an upper hand in terms of competition. The agencies of government should be free to do what they are supposed to do, that is the next level. That leads us to legal issue by NAGAFF. Five man committee has been set up and we are doing a profile of leadership of various agencies of the government and anybody we found wanting, we will make appropriate recommendation. By doing so, we have done our own civic responsibility for Mr. President because people are calling this man, this man… The power under section 5 of Constitution has been delegated. Is he (Buhari) going to be police IG, is he going to be CG of Custom? He has given you power, go and represent and let us build a greater nation. Why can’t we do it ? Look at what happened in Transport Ministry, CRFFN is the most critical agency of the government as it is now that can be so much involved in the issue of compliance professionally and it is not working, why is it not working? It is totally distorted by human element.
What advice would you give to help in reshaping CRFFN and as a guide to the Chairman of the Council?
The current chairman is the best thing that will happen to CRFFN whether anybody likes it or not. I believe he will do well. We want to excuse him, he is not feeling very well. He has his own problem, for instance fund. The past administration, that’s another issue, I am waiting for them. I think the current chairman must look at the accounts of the past administrations of CRFFN because a lot money has gone down the drain. We are watching to see what will happen. A lot of money through the personal account of CRFFN has been misappropriated, serious money and that is why they are handicapped, they don’t have money to take off. Again this is why I said it should have been a self-sustaining organization. But in the usual characteristics of ANLCA, see how they bungled the whole thing. ANLCA is pursuing NAGAFF, you are destroying yourself.
What has happened to the idea of collecting Ports Operating fees (POF) which is seen as capable of sustaining CRFFN?
That is what I am telling you that it is a self-sustaining organisation. Somehow, remotely, the issue of sharing formula or who gets what, do you understand, ANLCA was the issue, and I think we have passed that stage when we beat them hands down during the election in terms of number. We have shown them we have a greater number of practitioners, 1003 of NGAFF members out of 1300 practising members of CRFFN during the election. NAGAFF six, ANLCA six and other small group associations one, one, that’s inclusive. They themselves accepted that because they know their strength . So, if ANLCA, NAGAFF come together then we will keep the ball rolling, get the system working, how do we add value to the good governance of our country. The two associations don’t always agree because of certain individuals and those individuals are the ones fighting themselves at the board level, court, what is it?.
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