Nwosu advocates stronger local freight firms to counter foreign competition

Stanley Ihedigbo

Secretary-General of the National Association of Government Approved Freight Forwarders (NAGAFF), Godfrey Nwosu, has called on freight forwarding companies operating in Nigeria to embrace consolidation as a strategic measure to strengthen indigenous operators and protect the country’s economic interests from growing foreign dominance in the logistics sector.

Nwosu said the continued fragmentation of local freight forwarding companies had weakened their capacity to compete effectively in an increasingly competitive maritime and logistics environment.

He argued that the emergence of larger, stronger and better-coordinated freight forwarding companies would enhance operational efficiency, improve service delivery, expand market reach and make indigenous operators more resilient.

According to him, consolidation should no longer be regarded merely as a corporate or commercial decision, but as an important strategy for strengthening Nigeria’s trade facilitation system and protecting the interests of local businesses.

“Consolidating multiple smaller freight forwarding companies into larger, unified firms offers a strategic solution to enhance competitiveness, efficiency and resilience,” he said.

The NAGAFF scribe explained that consolidation would enable freight forwarders to pool cargo space, equipment, human resources and other operational assets, thereby reducing per-unit transportation costs and minimising exposure to underutilised capacity and empty runs.

He noted that individual small and medium-sized operators often struggle with the high cost of logistics, inadequate infrastructure, limited access to technology and weak bargaining power.

According to him, bringing such operators together would enable them to achieve economies of scale and compete more favourably with larger foreign-controlled logistics companies.

Nwosu further stated that larger and better-coordinated freight forwarding operations could improve service reliability through streamlined schedules, more efficient cargo handling and faster delivery of consignments.

He said stronger local companies would also be in a better position to negotiate favourable terms with shipping lines, terminal operators, transport companies and other service providers within the maritime value chain.

Beyond the benefits to freight forwarding companies, Nwosu said consolidation would have positive implications for shippers, Customs authorities, port operators and the wider Nigerian economy.

He explained that shippers could benefit from more affordable and efficient logistics services, while the Nigeria Customs Service would benefit from more organised cargo operations, simplified inspection procedures and improved clearance processes.

“Consolidation accelerates customs clearance, reduces bottlenecks and strengthens operational capacity while improving infrastructure utilisation,” Nwosu stated.

He added that more organised freight forwarding operations could contribute to improved cargo flow within Nigerian ports and reduce congestion caused by inefficient movement and handling of consignments.

According to him, a stronger indigenous freight forwarding sector would also contribute to increased government revenue, improved trade facilitation and a healthier balance of competition within Nigeria’s logistics industry.

Nwosu also highlighted the potential security benefits of consolidation.
He argued that organised and properly monitored cargo operations would make it easier for relevant government agencies to track shipments, identify suspicious consignments and strengthen measures against smuggling and other forms of illicit trade.

He therefore urged the National Assembly and other policymakers to develop a clear and practical regulatory framework that would guide consolidation within the freight forwarding sector.

According to him, such a framework should encourage legitimate mergers, partnerships and strategic alliances among indigenous operators while preventing practices that could expose local businesses to unfair competition.

He also called for increased investment in critical infrastructure, particularly warehouses, transport corridors, port access roads and digital logistics platforms.

Nwosu said modern logistics operations could not thrive without efficient infrastructure and technology, stressing that digitalisation remained essential to improving cargo tracking, documentation, communication and overall supply-chain management.

He further advocated capacity-building programmes for freight forwarders, Customs brokers and other stakeholders in the maritime sector.

According to him, operators need continuous training in international trade procedures, digital technologies, customs regulations, supply-chain management, compliance and modern logistics practices to remain competitive.

The NAGAFF Secretary-General also called for stronger cargo monitoring and security protocols, stressing that consolidation should be accompanied by effective oversight to ensure transparency, accountability and compliance with existing laws.

He urged government agencies and private-sector operators to embrace public-private partnerships that would promote collaboration, infrastructure development and the adoption of modern logistics solutions.

Nwosu maintained that the growing presence of foreign companies in Nigeria’s logistics and freight forwarding space made it increasingly necessary for indigenous operators to develop stronger business structures.

He warned that continued fragmentation could leave many local operators vulnerable to marginalisation, particularly as international companies with greater financial resources, technology and global networks expand their operations in Nigeria.

He therefore urged freight forwarders to look beyond individual business interests and consider strategic partnerships that could create stronger Nigerian-owned logistics enterprises.

“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,” he said.

The NAGAFF scribe called on policymakers to act decisively by creating an enabling business and regulatory environment in which indigenous freight forwarding companies could grow into stronger and more competitive enterprises.

He stressed that supporting local operators was not about shutting out foreign investment, but about ensuring that Nigerian companies were sufficiently equipped to compete on a level playing field.

Nwosu urged freight forwarders to take advantage of consolidation, technology, professional development and strategic partnerships to build sustainable businesses capable of competing effectively in the local and international logistics market.

He maintained that a stronger indigenous freight forwarding industry would ultimately contribute to more efficient ports, improved trade facilitation, increased government revenue, job creation and the protection of Nigeria’s broader economic interests.