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, improve service delivery and protect the nation’s economic and security interests.
The association made the call in a policy briefing signed by its Secretary-General, Godfrey Emeka Nwosu, which highlighted the growing vulnerability of local freight forwarders to foreign competition as a result of fragmentation within the industry.
According to Nwosu, the consolidation of smaller freight forwarding companies into larger and more unified entities would enhance the competitiveness, efficiency and resilience of Nigerian operators.
He said the freight forwarding sector remained a critical component of trade facilitation, but noted that the fragmented nature of the industry had weakened the capacity of local operators to effectively compete with foreign firms.
Nwosu explained that consolidation would enable freight forwarders to share cargo space, thereby reducing transportation costs and improving overall operational efficiency.
He added that stronger and more integrated local firms would be better positioned to compete with foreign entrants, while streamlined operations could improve delivery schedules and service reliability.
“Consolidation” would also help reduce operational risks associated with underutilised capacity and empty cargo runs, according to the policy briefing.
The NAGAFF official further noted that the benefits of consolidation would extend beyond freight forwarding companies to other stakeholders across the logistics and trade value chain.
He said shippers would gain access to more affordable and efficient logistics services, while Customs authorities could benefit from simplified inspection and clearance processes.
Similarly, port operators would experience improved cargo flow and reduced congestion, while the wider economy could benefit from increased competitiveness, higher revenue generation and an improved trade balance.
Nwosu also identified trade facilitation, capacity building, revenue generation and national security as some of the strategic benefits of freight forwarders’ consolidation.
He argued that consolidation could accelerate Customs clearance and reduce bottlenecks by creating more coordinated operations.
According to him, stronger freight forwarding companies would also have greater capacity to invest in infrastructure and develop the technical expertise required to support Nigeria’s growing trade activities.
On national security, the NAGAFF Secretary-General said consolidated cargo operations could make shipments easier to monitor and thereby help reduce the risks associated with smuggling and other forms of illicit trade.
He therefore called on Parliament to establish a clear regulatory framework to guide consolidation practices while protecting the interests of indigenous freight forwarding companies.
Nwosu also urged lawmakers and government agencies to prioritise investment in warehousing facilities, transport corridors and digital systems to support a more efficient logistics industry.
He called for capacity-development programmes for freight forwarders and Customs brokers, as well as stronger cargo-monitoring protocols to prevent illicit trade.
The NAGAFF official further advocated greater public-private partnerships between government and industry stakeholders to create an enabling environment for consolidation.
He described consolidation as a “national imperative,” stressing that it would improve service delivery, strengthen local operators and enhance Nigeria’s economic sovereignty.
Nwosu urged Parliament to act decisively in creating policies and frameworks that would support the consolidation of freight forwarding companies and ensure that indigenous operators were not displaced by increasing foreign participation in the sector.
He said the objective should be to position Nigerian freight forwarders as stronger contributors to the country’s trade facilitation, economic development and national security.
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