The National Council on Transport, NCT has said that the freight forwarding components of all government contracts must be handled by indigenous operators.
The council took this decision at its last meeting following the recommendation of the Council for the Regulation of Freight Forwarding in Nigeria, CRFFN. The council comprises Minister of Transport, the Permanent Secretary, Commissioners for Transport and their Permanent Secretaries at the state level as well as the heads of transport related institutions across the country.
Disclosing this in Lagos over the weekend, Registrar of CRFFN, Mike Jukwe, said the decision was taken to empower local operators. He explained that the implementation of the decision will help protect the economy as well as provide security for the country by ensuring that dangerous goods do not find their way into Nigeria unchecked.
According to him, “The National Council on Transport has insisted that all federal government contracts that have freight forwarding components in line with the local content policy should be handled by Nigerian freight forwarders.
“We are also going to insist that this provision of the resolution of the NCT is implemented to the latter . And let me tell you why foreign companies do freight forwarding in Nigeria, it is because of the aspect of door to door. Door to door is involved in any freight forwarding business. For instance a shipper in Europe that has a subsidiary in Nigeria that is into freight forwarding, will prefer that the company carries out the business of freight forwarding on their behalf.
“By selling Door to Door, there is a prepared agreement where the freight forwarding component is also embedded in the contract. We will work on that because in Nigeria we hardly do most of the Door to Door. With the Door to Door, they are taking the business away from us.
“So it is for us to fight and agree that the component is not included in any agreement Nigerians are signing with their foreign shippers. That should be left out, so that when the cargo comes in, it will be cleared locally. In our own regulations, for a foreign company to operate in Nigeria as a freight forwarder, one of the conditions is that the Chief Executive Officer, CEO or the Chief Operating Officer, COO must be a Nigerian and we will enforce it,” he concluded.