Nigeria’s strategic location along the Gulf of Guinea, with over 850 km of coastline and major ports like Apapa, Tin Can Island, Onne, and Calabar, makes it a vital hub for shipping and freight forwarding in West and Central Africa. As the continent’s most populous nation and largest economy, these maritime activities are integral to trade, supply chains, and regional integration.
Freight forwarding involves complex intermodal logistics—transport, storage, customs clearance, and cross-border delivery—all strictly regulated to ensure safety, efficiency, and compliance with international trade standards. Businesses in this sector must comply with a range of legal and regulatory requirements, including incorporation under CAMA 2020, CRFFN licensing, and adherence to CEMA customs procedures. Regulatory oversight is supported by NIMASA, NPA, and NSC, whose coordinated efforts uphold operational efficiency and stakeholder protection, with violations attracting severe penalties such as cargo seizure, licence revocation, or criminal charges.
This article provides a concise legal analysis of the registration and compliance landscape for shipping and freight forwarding businesses in Nigeria. It outlines the statutory obligations, licensing procedures, and regulatory considerations relevant to operators seeking lawful and sustainable entry into the sector.
Regulatory Framework for Shipping and Freight Forwarding in Nigeria
The regulation of shipping and freight forwarding in Nigeria is underpinned by a multi-agency framework designed to ensure compliance with both national legislation and international maritime standards. The following agencies play pivotal roles;
- Nigerian Shippers’ Council (NSC): Established under the Nigerian Shippers’ Council Act, Cap N133 LFN 2004, the NSC functions as the port economic regulator, responsible for protecting cargo interest and promoting efficient port operations.
- Nigerian Maritime Administration and Safety Agency (NIMASA): Created under the NIMASA Act, 2007, the agency regulates maritime safety, ship registration, seafarer certification, and enforces the Coastal and Inland Shipping (Cabotage) Act, 2003.
- Nigerian Ports Authority (NPA): Governed by the NPA Act, Cap N126 LFN 2004, the NPA is charged with the administration and development of Nigerian ports and harbours.
- Council for the Regulation of Freight Forwarding in Nigeria (CRFFN): Established under the CRFFN Act No. 16 of 2007, it regulates and licenses freight forwarders to ensure professionalism and adherence to global standards.
- Corporate Affairs Commission (CAC): Oversees business registration and incorporation under the Companies and Allied Matters Act (CAMA), 2020.
- Nigeria Customs Service (NCS): Operates under the Customs and Excise Management Act (CEMA), Cap C45 LFN 2004, managing import/export licensing and cargo clearance.
- Merchant Shipping Act 2007: The Merchant Shipping Act regulates labour-related issues and merchant shipping in general. The Act created the Agency for Maritime Safety Administration, which is in charge of maritime administration, security, and safety.
Business Registration and Licensing Requirements for Shipping and Freight Forwarding in Nigeria
| Step | Regulatory Body | Requirement/Process | Minimum Share Capital | Fees (Estimated) |
| 1. Business Incorporation | Corporate Affairs Commission (CAC) | Register a limited liability company with relevant objects (e.g., logistics, freight forwarding) in the Memorandum of Association. | Freight forwarding – ₦5 million Shipping ₦25 million (recommended for logistics/shipping) | CAC Filing & Stamp Duty Fees: ₦50,000 – ₦120,000 depending on share capitalExcluding the professional fees |
| 2. CRFFN Registration | Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) | Submit application, CAC documents, proof of training or membership with accredited associations (e.g., ANLCA, NAGAFF), and pay practicing fees. | Not applicable | Corporate registration fee: ₦50,000; Annual practicing fee: ₦70,000–₦100,000 |
| 3. Customs Licensing | Nigeria Customs Service (NCS) | Apply to the Comptroller-General with tax clearance, CRFFN certificate, bond (₦500,000), and employment of a licensed agent. | Not applicable | Application fee: ₦10,000; Licensing fee: ₦200,000; Bank Bond: ₦500,000 |
| 4. NIMASA Registration | Nigerian Maritime Administration and Safety Agency (NIMASA) | Provide evidence of ship agency or ownership, safety compliance, and apply for cabotage waiver if applicable. | ₦25 million+ (for shipping lines) | Varies; Cabotage Waiver: ₦50,000 – ₦200,000; Company Registration: ₦300,000 |
| 5. Other Certifications | NPA, FIRS, NAFDAC, SON | Obtain Port Pass (NPA), register for TIN and VAT (FIRS), and apply for NAFDAC/SON approvals where applicable. | Not applicable | NPA Port Pass: ₦10,000 – ₦50,000; TIN: Free; NAFDAC: Variable (₦50,000 – ₦250,000) |
Post -Incorporation Compliance and Operational Obligations
To maintain legal operation and avoid penalties or suspension of licenses, shipping and freight forwarding companies in Nigeria must fulfil the following ongoing compliance obligations:
1. Annual License Renewals
- CRFFN Renewal: Companies registered with the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) must renew their corporate membership and practicing licenses annually. This ensures continued recognition and access to port operations and customs.
- Customs Agency License Renewal: Licensed customs agents must renew their operating license with the Nigeria Customs Service (NCS) every year, including revalidation of bank bonds and submission of updated company documents.
2. Tax Filing and Remittance
- Companies must obtain a Tax Identification Number (TIN) and comply with both federal and state tax requirements.
- Regular filing and remittance of:
- Company Income Tax (CIT) to FIRS (usually between 20% 30% of profits depending on the annual turnover),
- Value Added Tax (VAT) (7.5%) on taxable supplies,
- Withholding Tax (WHT) where applicable,
- Pay-As-You-Earn (PAYE) tax on employee salaries to the relevant State IRS.
NOTE:The Finance Act 2023 mandates shipping companies without separate Nigerian financials to submit a director- and auditor-certified gross revenue statement with supporting invoices. This provision ensures accurate reporting of Nigeria-sourced income. Also, regulators like NIMASA must obtain evidence of income tax filing and a valid Tax Clearance Certificate before issuing permits or approvals, reinforcing tax compliance within the shipping and air transport sectors.
3. Compliance with International Shipping Standards
- Adherence to International Commercial Terms (INCOTERMS) as developed by the International Chamber of Commerce, which guide trade contract obligations (e.g., FOB, CIF, DDP).
- IMO Regulations: For shipping companies, compliance with standards set by the International Maritime Organization (IMO), including safety (SOLAS), pollution control (MARPOL), and manning standards.
4. Training and Certification of Freight Agents
- CRFFN requires that freight forwarding practitioners undergo professional training and certification. Membership in accredited associations (e.g., NAGAFF, ANLCA) may also be required.
- Ongoing capacity development ensures agents are updated on documentation, tariff regimes, and customs procedures.
5. Timely Submission of Shipping Documents
Freight forwarders and shipping agents must ensure timely and accurate submission of key shipping documents, such as:
- Cargo manifests
- Bills of lading
- Packing lists
- Invoices
- These documents are necessary for customs clearance and port handling, and late or incorrect submissions may lead to delays, fines, or cargo seizure.
6. Accurate Record Keeping
- Companies are required to maintain detailed and up-to-date records of all shipments, invoices, customs documentation, and regulatory correspondence.
- These records must be readily available for inspection by:
- The Nigerian Shippers’ Council (NSC)
- Nigeria Customs Service (NCS)
- Federal Inland Revenue Service (FIRS)
- CRFFN auditors or enforcement teams
Penalties for Non-Compliance
Failure to register or operate without a license can attract sanctions such as:
- Seizure of goods by Customs
- Fines and blacklisting by CRFFN or NSC
- Revocation of operational licenses
- Legal actions under Nigerian maritime laws
Conclusion
Participation in Nigeria’s shipping and freight forwarding sector demands strict compliance with a complex legal and regulatory framework. Beyond incorporation, operators must secure relevant licenses, adhere to tax obligations, and maintain ongoing regulatory approvals. As trade volumes grow and port reforms advance, only fully compliant and professionally managed businesses will be positioned to thrive and benefit from Nigeria’s expanding role in regional and global logistics.
References
- Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) Act No. 16 of 2007
- Nigerian Shippers’ Council Act, Cap N133 LFN 2004
- Customs and Excise Management Act (CEMA), Cap C45 LFN 2004
- NIMASA Act, 2007
- Coastal and Inland Shipping (Cabotage) Act, 2003
- Companies and Allied Matters Act (CAMA) 2020
- Nigerian Ports Authority Act, Cap N126 LFN 2004
- Federal Inland Revenue Service (Establishment) Act 2007
- www.crffn.gov.ng
- www.customs.gov.ng
- www.nimasa.gov.ng
- www.shipperscouncil.gov.ng
Written by Temitope Omololu of Aviel Avenante Law Practice