The Secretary-General, National Association of Government Approved Freight Forwarders (NAGAFF), Godfrey Nwosu has called on freight forwarding companies in Nigeria to embrace consolidation as a strategic measure to strengthen local operators and protect the country’s economic interests from growing foreign dominance.
Nwosu said the fragmentation of local freight forwarding companies had weakened their ability to compete effectively, stressing that the emergence of larger and more unified firms would improve efficiency, service delivery and resilience across the sector.
According to him, consolidation has become necessary to safeguard the interests of indigenous freight forwarders and position them to compete favourably in an increasingly competitive logistics environment.
“Consolidating multiple smaller freight forwarding companies into larger, unified firms offers a strategic solution to enhance competitiveness, efficiency and resilience”, he said.
Nwosu noted that this would enable operators to share cargo space and other resources, thereby reducing per-unit transportation costs while minimising exposure to underutilised capacity and empty runs.
He added that larger and better-coordinated operations would also improve service reliability through streamlined schedules and faster cargo delivery, while giving local firms greater market reach and bargaining power.
The NAGAFF scribe further stated that the benefits of consolidation would extend beyond individual freight forwarding companies to other stakeholders across the maritime and trade sectors.
Nwosu explained that shippers would have access to more affordable and efficient logistics services, while Customs authorities would benefit from simplified inspection and clearance processes.
He also noted that port operators could experience reduced congestion and improved cargo flow, with the broader economy benefiting from increased competitiveness, revenue generation and a stronger trade balance.
“Consolidation accelerates customs clearance, reduces bottlenecks and strengthens operational capacity while improving infrastructure utilisation,” Nwosu stated.
On national security, he argued that consolidated cargo operations could make shipments easier to monitor and strengthen efforts to curb smuggling and other forms of illicit trade.
Nwosu therefore urged Parliament to establish a clear regulatory framework to guide consolidation practices while protecting indigenous freight forwarding companies from unfair competition.
He also called for increased investment in warehousing facilities, transport corridors and digital systems, as well as capacity development programmes for freight operators and Customs brokers.
The NAGAFF Secretary-General further recommended stronger cargo monitoring and security protocols, alongside public-private partnerships that would promote collaboration between government agencies and industry stakeholders.
He maintained that consolidation should not be viewed merely as a business strategy, but as a measure capable of strengthening Nigeria’s trade facilitation system and economic sovereignty.
“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 tasked policymakers to act decisively in creating an enabling environment that would allow indigenous freight forwarders to grow into stronger and more competitive enterprises, rather than being marginalised by the increasing presence of foreign firms in Nigeria’s logistics sector.
