NAGAFF Advocates Freight Forwarders’ Consolidation to Counter Foreign Dominance, Strengthen Nigeria’s Economy
NAGAFF Advocates Freight Forwarders’ Consolidation to Counter Foreign Dominance, Strengthen Nigeria’s Economy
By Babatunde Aremu
The National Association of Government Approved Freight Forwarders (NAGAFF) has called for the strategic consolidation of freight forwarding companies in Nigeria, describing the move as critical to strengthening local operators, improving trade facilitation and safeguarding the nation’s economic and security interests.
The association’s Secretary-General, Fwdr. Godfrey Emeka Nwosu, made the call in a policy briefing on the future of Nigeria’s freight forwarding industry, warning that the fragmented nature of local operators was leaving the sector increasingly vulnerable to foreign dominance.
According to Nwosu, the consolidation of smaller freight forwarding companies into stronger and better-organised entities would enable indigenous operators to achieve economies of scale, improve service delivery and compete more effectively with foreign-owned and foreign-backed logistics firms.
He explained that consolidation would allow operators to pool resources, share cargo space and infrastructure, reduce operational costs and minimise exposure to underutilised capacity and empty runs.
“Consolidation provides a strategic pathway for local freight forwarders to build stronger businesses, improve efficiency and compete effectively in an increasingly globalised logistics environment,” he said.
Nwosu noted that the benefits of consolidation would extend beyond freight forwarding companies to other stakeholders across the maritime and logistics value chain.
He said shippers would benefit from more affordable and reliable logistics services, while the Nigeria Customs Service and other regulatory agencies could enjoy more streamlined documentation, inspection and cargo-clearance processes.
According to him, better-organised freight forwarding operations could also contribute to reduced port congestion, improved cargo flow and more efficient utilisation of logistics infrastructure.
The NAGAFF Secretary-General further argued that consolidation could contribute to national security by improving cargo visibility, documentation and monitoring, thereby making it easier for relevant authorities to identify and prevent smuggling and other forms of illicit trade.
He urged the National Assembly to develop an enabling regulatory framework to guide consolidation within the industry while ensuring that indigenous freight forwarders are adequately protected.
Among other measures, he called for increased investment in warehouses, transportation corridors and digital logistics infrastructure, as well as capacity development programmes for freight forwarders and customs brokers.
He also advocated stronger cargo-security protocols and greater collaboration between government agencies, freight forwarders, shipping companies, terminal operators, financial institutions and other private-sector stakeholders.
Nwosu stressed that consolidation should not be viewed merely as a business strategy but as a broader economic policy capable of strengthening Nigeria’s domestic logistics industry.
He said a stronger indigenous freight forwarding sector would enhance trade competitiveness, create employment opportunities, attract investment, improve government revenue and strengthen Nigeria’s economic sovereignty.
He therefore urged policymakers to act decisively to create an environment that would encourage responsible consolidation and ensure that Nigerian freight forwarding companies remain competitive as foreign participation in the country’s logistics sector continues to expand.
“Consolidation for freight forwarders and companies is a national imperative. It is the pathway to improved service provision, protection of local operators and enhanced economic sovereignty,” Nwosu stated.
