NAGAFF raises alarm over foreign dominance, charges freight forwarding firms to consolidate
Maureen Aguta
The National Association of Government Approved Freight Forwarders (NAGAFF) has warned indigenous freight forwarding companies that failure to consolidate their operations could leave them increasingly vulnerable to foreign dominance in Nigeria’s logistics and maritime sector.
The association said the growing fragmentation of local freight forwarding companies was weakening their capacity to compete with better-capitalised foreign firms, urging operators to urgently embrace consolidation to build stronger and more competitive Nigerian-owned logistics companies.
Secretary General of NAGAFF, Fwdr.
Godfrey Emeka Nwosu, made the call in a policy briefing on the future of freight forwarding in Nigeria, describing consolidation as a “strategic imperative” for the industry.
Nwosu said the freight forwarding sector was a critical enabler of international trade but warned that the dominance of small, fragmented operators had created vulnerabilities that could be exploited by foreign competitors.
According to him, bringing smaller freight forwarding companies together would enable operators to pool resources, cargo volumes, infrastructure and expertise, thereby reducing costs and improving service delivery.
“Consolidating multiple smaller freight forwarding companies into larger, unified firms offers a strategic solution to enhance competitiveness, efficiency and resilience,” he said.
Nwosu explained that consolidation would allow operators to share cargo space and transportation resources, reducing per-unit logistics costs while limiting exposure to underutilised capacity and empty runs.
He said stronger companies would also be better positioned to invest in warehouses, transportation networks, digital systems and skilled manpower, giving indigenous operators the capacity to compete for larger cargo volumes and contracts.
The NAGAFF official said the benefits would extend beyond freight forwarders to shippers, Customs, port operators and the wider economy.
He said shippers would have access to more affordable and reliable logistics services, while Customs authorities could benefit from more structured cargo movements that would simplify inspection, documentation and clearance.
For port operators, he said, more coordinated cargo evacuation would help improve cargo flow and reduce congestion.
Nwosu also identified consolidation as a national security imperative, arguing that better-organised cargo movements would make it easier for regulatory and security agencies to monitor consignments and detect suspicious activities.
“Consolidated cargo is easier to monitor, reducing risks of smuggling and illicit trade,” he stated.
To achieve the objective, NAGAFF urged the National Assembly to establish a clear regulatory framework to guide consolidation, mergers and strategic partnerships within the freight forwarding industry while protecting indigenous operators from unfair competition.
The association also called for investment in warehouses, transport corridors and digital cargo management systems, as well as capacity-building programmes for freight forwarders and customs brokers.
NAGAFF further advocated stronger public-private partnerships among government agencies, freight forwarders, shippers and port operators to create an efficient logistics ecosystem.
Nwosu stressed that the issue was no longer simply about the survival of individual freight forwarding companies but about Nigeria’s ability to retain value from its international trade.
He warned that without stronger indigenous companies, local operators could continue to lose market share and strategic opportunities to foreign competitors.
“Consolidation for freight forwarders and companies is a national imperative,” Nwosu said, adding that the objective should be to ensure that Nigerian freight forwarders were not “short-changed by foreign dominance” but positioned as strong contributors to national trade, revenue generation and economic security.