Consolidation Key to Freight Forwarding Growth, NAGAFF Tells FG

 

 

The National Association of Government Approved Freight Forwarders (NAGAFF) has called on the Federal Government to promote the consolidation of freight forwarding companies as a strategic measure to strengthen local operators, improve service delivery and protect Nigeria’s economic and security interests.

 

In a policy statement, the Secretary-General of NAGAFF, Fwdr. Godfrey Emeka Nwosu, said the growing fragmentation among local freight forwarding operators had left the industry vulnerable to foreign dominance, stressing that consolidation remained critical to building stronger and more competitive indigenous firms.

 

Nwosu said bringing multiple smaller freight forwarding companies together into larger and more unified entities would enhance competitiveness, operational efficiency and resilience, while enabling local operators to compete more effectively with foreign entrants into the Nigerian logistics market.

 

According to him, consolidation would also help operators achieve greater cost efficiency through the sharing of cargo space and other resources, thereby reducing per-unit transportation costs and minimising exposure to underutilised capacity and empty runs.

 

He noted that a more coordinated industry would improve service reliability through streamlined operations, better scheduling and faster cargo delivery, ultimately providing shippers with more affordable and efficient logistics solutions.

 

Nwosu further explained that the benefits of consolidation would extend beyond freight forwarding companies to other critical players in the maritime and trade ecosystem.

 

He said Customs authorities could benefit from simplified inspection and clearance processes, while port operators would experience improved cargo flow and reduced congestion as a result of better coordination among freight operators.

 

On the national economy, the NAGAFF Secretary-General said consolidation would strengthen the capacity and market reach of indigenous operators, improve their operational margins and contribute to increased revenue generation and a stronger trade balance.

 

He also identified national security as another major benefit of consolidation, noting that cargo handled through more structured and accountable systems would be easier to monitor, thereby reducing the risks of smuggling and other forms of illicit trade.

 

To achieve this, Nwosu urged lawmakers and relevant government agencies to establish a clear regulatory framework to guide consolidation practices while protecting the interests of local freight forwarding companies.

 

He also called for increased investment in warehousing facilities, transport corridors and digital systems, alongside capacity development programmes to equip freight operators and Customs brokers with the expertise required to operate effectively in a more competitive environment.

 

Nwosu further advocated stronger cargo security protocols and increased public-private collaboration between government and industry players to ensure that consolidation contributes meaningfully to trade facilitation, economic growth and national security.

 

He maintained that consolidation should be treated not merely as a commercial strategy but as a national imperative capable of strengthening Nigeria’s freight forwarding industry and enhancing the country’s economic sovereignty.

 

According to him, decisive action by government would create the enabling environment needed for indigenous freight forwarders to consolidate their operations, withstand foreign competition and emerge as stronger contributors to Nigeria’s trade and security objectives.