Freight Forwarders seek policy backing for industry consolidation

By Joy Enamuma

The Secretary-General of the National Association of Government Approved Freight Forwarders (NAGAFF), Godfrey Emeka Nwosu, has called for the consolidation of freight forwarding companies in Nigeria, describing it as a strategic step toward strengthening indigenous operators and protecting the nation’s economic interests.

In a policy briefing issued by the association, Nwosu warned that the increasing presence of foreign firms in the freight forwarding sector could undermine local businesses if operators failed to unite and build stronger institutions.

He noted that the freight forwarding industry remains a key driver of trade facilitation, but fragmentation among local operators has weakened their ability to compete effectively in an increasingly globalised market.

According to the briefing, merging smaller firms into larger and more coordinated entities would enhance efficiency, reduce operating costs, improve service delivery, and strengthen the capacity of local operators to compete with foreign companies.

NAGAFF explained that consolidation would allow freight firms to share cargo space, lower transportation costs, improve delivery timelines, and reduce losses arising from underutilised capacity and empty cargo movements.

The association further stated that industry stakeholders, including shippers, customs authorities, and port operators, would benefit from more efficient logistics services, faster cargo clearance processes, and reduced port congestion.

Beyond economic gains, the briefing highlighted national security implications, noting that consolidated cargo systems would make monitoring easier and help curb smuggling and other illicit trade activities.

Nwosu also urged the National Assembly to establish a clear regulatory framework to guide consolidation efforts, while investing in transport infrastructure, warehousing facilities, digital systems, and capacity development for freight operators and customs brokers.

He called for stronger public-private partnerships and improved cargo monitoring mechanisms, stressing that consolidation should be viewed as a national imperative rather than a commercial option.

“Consolidation is the pathway to improved service delivery, protection of local operators and enhanced economic sovereignty. Government must create policies that ensure indigenous freight forwarders are not disadvantaged by foreign dominance but are positioned as major contributors to trade growth and national security,” the statement added.