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The Sea Empowerment and Research Center (SEREC) has called on the Nigeria Customs Service (NCS) to adopt a balanced, competency-driven licensing framework for customs agents, as debates over proposed fee increments for agents, chandlers, and bonded terminal operators gather steam.
In its August Position Paper titled “Effectiveness and Efficiency of License Regulations for Customs Agents,” SEREC warned that arbitrary or steep increases in licensing fees could stifle competition, discourage new entrants, kill Small and Medium-sized Enterprises (SMEs) and hamper efficiency in the clearance process.
The maritime-focused research body recommended that licensing fees be set at levels that balance regulatory oversight with the need to promote healthy competition, proposing a tiered fee structure that would allow smaller businesses and new entrants to pay lower fees, thereby encouraging wider participation.
SEREC also urged the NCS to introduce categorised licenses based on services offered such as import/export handling, customs brokerage, and freight forwarding, while integrating a tiered licensing system that accounts for agent experience and specialization.
The organization stressed that licensing should be competency-based, requiring agents to demonstrate technical expertise in customs procedures, tariff classification, valuation, and rules of origin before approval.
In the position paper, signed by SEREC’s Head of Research, Chief Eugene Nweke, the group further recommended mandatory ongoing training and professional development as a condition for license renewal.
Beyond the technical criteria, SEREC cautioned against exorbitant fee increments in Nigeria’s already challenging port environment, warning that such hikes could hurt small and medium-sized enterprises. It instead called for reasonable adjustments that reflect current economic realities.
The group also rejected the idea of recapitalization, consolidation, or mergers of licenses as a quick fix to licensing inefficiencies, noting that such measures are lengthy, complex, and disruptive to operations. It advocated instead for streamlined reforms that can be implemented without excessive delays.
According to SEREC, stakeholder engagement is key, so it urged the NCS to hold broad consultations with bodies such as the Nigerian Shippers’ Council (NSC) and the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) before finalizing any fee or licensing changes.
The paper outlined a model licensing framework comprising a tiered system based on experience, competency requirements, continuous training obligations, and a fair fee structure that supports smaller operators. SEREC also suggested regular reviews to keep the framework relevant and effective.
In an interesting twist, the group proposed that licensed agents should receive a fair percentage of the total duty collected on transactions they process. This, it argued, would serve as a performance incentive and discourage underhand dealings with traders.
SEREC’s proposed categories include Standard Licenses for general clearance, Advanced Licenses for complex or high-value shipments, Specialized Licenses for sensitive goods, Brokerage Licenses for valuation and classification services, and Multi-Tasking Operational Licenses for bonded warehouse operators, free zone managers, and fast-track operators.
The research centre maintained that a well-structured licensing system would enhance professionalism, strengthen compliance, and drive economic competitiveness by improving efficiency in the customs clearance process.
It equally pledged readiness to work with NCS to craft a framework that benefits regulators, operators, and the trading public alike.
