The Nigerian Shippers’ Council has successfully resolved a long standing dispute bordering on non-release, alleged professional misconduct, and financial loss involving a 1X40FT container (MRKU3947840) covered by Bill of Lading No 598351059, with an estimated cargo value exceeding ₦20 million at the time of shipment.
The Complaint was instituted by Ukwuoma Industries Sewing Machine Engineering Company, Aba, Abia State, against Mr. Joseph Okwudili Umezugha of U-Cenet Nigeria Limited, a licensed clearing and forwarding agency based in Apapa, Lagos.
Investigations revealed that the disputed container, declared as carrying two vehicles, was found by the Nigeria Customs Service (NCS) to contain four vehicles alongside used clothing, the latter classified as prohibited items under extant Customs regulations. The cargo was subsequently auctioned by Customs after enforcement action.
The Complainant alleged that in 2020, she engaged the clearing agent to process the clearance of the container, making staggered payments totaling ₦6.8 million, covering clearing fees, additional port charges, and ancillary costs. Despite these payments, the cargo was never released, prompting police involvement and prolonged disputes.
The matter culminated in a final tripartite dispute-resolution meeting convened by the NSC under its Participatory Regulatory framework, bringing together the Complainant, the Clearing Agent, legal representatives, and the National Association of Government Approved Freight Forwarders (NAGAFF).
Addressing the meeting on behalf of the Executive Secretary/CEO, Dr. Bashir Ambi Mohammed, Head, Complaints Unit, expressed Management’s dissatisfaction over the protracted nature of the dispute.
He emphasized that the Council’s intervention was not judicial but regulatory, anchored on fairness, transparency, and enforceable outcomes, stressing that abusive language and obstructionist conduct would not be tolerated in resolution proceedings.
The meeting was chaired by Mrs. Mary Funmilola Afolabi (POO), who reiterated that the Council’s mandate is to facilitate amicable settlements outside the rigours of prolonged litigation, without prejudice to the authority of the Courts. The meeting was held at Complaints Unit Meeting Room, 1st Floor, B-Wing, Nigerian Shippers’ Council Headquarters, Apapa, Lagos.
Presenting the case overview, Mr. Vincent Nkwocha (SOO) outlined the transactional failures, Customs enforcement actions, and the agent’s admission-through Counsel that the container was under-declared, while also noting the existence of a pending suit at the Federal High Court involving Customs authorities.
NAGAFF, represented by its National Publicity Secretary, Dr. Stanley Umemma, confirmed extensive engagement with its member and acknowledged professional lapses in the handling of the Consignment. He urged compensation as a remedial measure, noting that the loss of the container arose from failure to execute the clearing mandate with due diligence and resolution of this matter is only to the credit of NSC.
Legal representatives of the clearing agent, Dickson Yakubu & Associates, initially expressed reservations but later confirmed their client’s willingness to submit to the Council-facilitated resolution. A written commitment was presented, indicating readiness to commence settlement payments from February 2026.
From the Council’s Legal Services Department, Barr. Joy B. Dimka delivered a legal opinion establishing:
Primary liability on the clearing agent for accepting clearing fees without performance; and Contributory exposure by the Shipper due to discrepancies between the cargo and the declared Bill of Lading.
She advised a neutral settlement in the interest of commercial justice, taking into account incurred port charges and ongoing litigation.
Resolutions Reached
After extensive deliberations and document review, the meeting unanimously reached the following resolutions:
- The NSC condemned the under-declaration of cargo, particularly in the presence of a licensed freight forwarder, describing it as a serious breach of trade compliance standards.
- The Complainant accepted ₦5 million as full and final settlement, following NAGAFF’s intervention.
- The settlement sum shall be paid in installments as follows:
- ₦2 million on or 5th February 2026
- ₦1.5 million on or before 5 March 2026
- ₦1.5 million on or before 6 April 2026. All payments must be evidenced and formally submitted to the Council.
- A Settlement Agreement shall be executed by all parties in the presence of NAGAFF and legal representatives.
- The Council issued a strong warning to stakeholders against cargo under-declaration and non-compliance with Customs regulations.
- U-Cenet Nigeria Limited was advised to strictly adhere to freight forwarding ethics, professional standards, and constituted authority.
- The NSC expressed satisfaction at resolving a dispute that spanned over five years, underscoring the effectiveness of regulatory mediation.
The Council commended NAGAFF for its constructive role and urged continuous sensitization of freight forwarders on compliance, professional responsibility, and dispute-avoidance mechanisms.
