Shippers to pay 12.5% freight service charge

Shippers are set to pay a standardised freight forwarding service charge of 12.5 per cent following the Council for the Regulation of Freight Forwarding in Nigeria’s (CRFFN) move to overhaul the country’s cargo clearance cost structure.

According to the CRFFN’s findings, freight forwarding service charges currently range between eight per cent and 22 per cent of total transaction costs, with some operators charging irregular, unpredictable fees.

The charges leave freight forwarders absorbing losses after settling shipping lines, terminal operators and customs duties.

The Registrar of CRFFN, Kingsley Igwe, disclosed that freight forwarders would be subject to a mandatory, standardised freight service charge regime before the end of the first quarter of 2026.

He said following extensive consultations with industry stakeholders and comparative studies of logistics pricing models in other jurisdictions where freight charges are clearly defined and regulated, the Council agreed on a benchmark service charge of 12.5 per cent, which will serve as the standard rate under the new framework.

Igwe said the Council also examined existing pricing structures in Nigeria, reviewed bills of lading submitted by freight forwarders and analysed practices of logistics companies already operating structured service charge models.

“In many cases, after paying shipping lines, terminal operators and customs duties, freight forwarders are left with nothing from the service charge. That is unfortunate, and it must stop,” Igwe stated.

Igwe said the move is designed to tackle the absence of a transparent and predictable mechanism for determining freight forwarding and logistics charges, which has often led to inconsistent pricing, delays and disputes in port operations.

He said the initiative has received backing from the highest levels of government following consultations with the Permanent Secretary of the Ministry of Marine and Blue Economy.

Igwe noted that the proposed system is not merely about fixing prices, but about deploying a digital platform that would automatically compute applicable service charges based on declared cargo and transaction details, ensuring transparency for shippers, freight forwarders and government agencies alike.

Under the new regime, Igwe stated that shippers will have full visibility of what they are being charged, while freight forwarders will be protected from allegations of concealment or suspicion from regulatory and enforcement agencies.

Igwe said the framework would also address hidden costs and informal payments that have continued to inflate logistics expenses across the ports, adding that once charges are clearly defined, operators will be able to track revenue, forecast earnings and plan their businesses more effectively.

The Registrar further explained that the system will align freight forwarding operations with Nigeria’s evolving tax framework, making it easier for operators to declare earnings and avoid penalties associated with non-compliance.

He said the Council is finalising the development of the supporting system and expects full roll-out of the framework before the end of the first quarter of the year, pending final alignment with relevant government authorities.