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The National Association of Government Approved Freight Forwarders (NAGAFF) has called on freight forwarding companies in Nigeria to embrace consolidation as a strategic measure to strengthen local operators and safeguard the country’s economic and security interests.
The association’s Secretary-General, Freight Forwarder Godfrey Emeka Nwosu, made the call in a policy briefing on the future of the freight forwarding sector, warning that fragmentation among local operators was leaving the industry increasingly vulnerable to competition from better-capitalised foreign companies.
Nwosu said the consolidation of smaller freight forwarding businesses into stronger and more coordinated entities would improve competitiveness, operational efficiency and resilience while enabling Nigerian operators to compete more effectively in the international logistics market.
He described freight forwarding as a critical component of trade facilitation, connecting importers and exporters with ports, customs authorities, transporters and other stakeholders involved in the movement of goods.
However, he said the dominance of numerous small and fragmented operators had created operational weaknesses that could be exploited by foreign companies entering the Nigerian market.
According to him, consolidation would enable local operators to pool resources, share cargo space and reduce the cost of transporting goods.
“Shared cargo space reduces per-unit transportation costs,” the policy briefing stated, adding that stronger firms would be better positioned to compete with foreign entrants while improving the quality and reliability of services to customers.
He said consolidation could also reduce operational risks associated with underutilised capacity and empty cargo runs.
He explained that coordinated shipments would enable freight forwarders to maximise available transport and warehouse capacity, improve scheduling and shorten delivery times.
The NAGAFF official said the benefits of consolidation would extend beyond freight forwarding companies to other stakeholders across the maritime and logistics chain.
For shippers, he said, consolidation could provide access to more affordable and efficient logistics services, while customs authorities could benefit from streamlined cargo inspection and clearance processes.
Port operators, he added, could also experience reduced congestion and improved cargo movement as a result of more coordinated logistics operations.
At the national level, Nwosu said a more organised freight forwarding sector would contribute to economic competitiveness, revenue generation and a stronger trade balance.
He identified trade facilitation as one of the major strategic benefits of consolidation, arguing that coordinated operations could accelerate customs clearance and reduce bottlenecks that frequently delay cargo movement.
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He also linked consolidation to capacity development, saying larger and better-structured freight forwarding companies would be better positioned to invest in infrastructure, technology and professional expertise.
According to the policy briefing, improved economies of scale could expand operators’ profit margins and market reach while strengthening their ability to provide competitive services.
He further highlighted the national security implications of a more organised freight forwarding sector.
He said coordinated cargo operations would make shipments easier for relevant authorities to monitor and could help reduce the risks associated with smuggling and other forms of illicit trade.
Against this backdrop, NAGAFF urged the National Assembly to establish an enabling regulatory framework to guide consolidation within the freight forwarding sector while protecting legitimate local operators.
The association also called for increased investment in logistics infrastructure, including warehouses, transportation corridors and digital systems capable of improving cargo tracking and information sharing.
It advocated capacity development programmes for freight forwarders, customs brokers and other professionals within the supply chain, stressing that human capital would remain essential to the success of any consolidation strategy.
On security, he urged policymakers to strengthen cargo monitoring and enforcement mechanisms to prevent the movement of illicit goods through the nation’s ports and logistics corridors.
He also called for stronger public-private partnerships involving government agencies, freight forwarders, port operators, shippers and other stakeholders.
He maintained that government and industry could achieve better results by working together to create an environment in which Nigerian logistics companies could grow, compete and invest in modern infrastructure.
He warned that failure to address fragmentation could leave local freight forwarding businesses increasingly disadvantaged as foreign companies expand their presence in the Nigerian market.
He described consolidation not merely as a business strategy but as a national imperative capable of strengthening service delivery, protecting local enterprise and advancing Nigeria’s economic sovereignty.
Nwosu said decisive legislative and regulatory action was required to ensure that Nigerian freight forwarders were not displaced by foreign dominance but were instead positioned as strong contributors to trade facilitation, economic development and national security.
He urged lawmakers and other stakeholders to treat the issue as a matter of strategic national interest and develop policies that would enable local freight forwarding companies to build scale, improve efficiency and compete successfully in the evolving global logistics industry.
