Stakeholders raise alarm over foreign logistics dominance

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By Godwin Oritse

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The Council for the Regulation of Freight Forwarding in Nigeria, CRFFN, has said that the growing participation of foreign firms in Nigeria’s freight forwarding, customs brokerage and logistics sector should be viewed as a reflection of deeper structural deficiencies rather than simply a nationality issue.

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Speaking on the ongoing debate over foreign involvement in the industry, the Registrar of the Council, Mr. Kingsley Igwe, said the issue deserves serious policy attention.

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Igwe, however, maintained that the conversation should move beyond the “foreign versus indigenous” narrative to address the underlying weaknesses within Nigeria’s freight forwarding ecosystem.

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According to him, the increasing presence of foreign operators is largely a consequence of longstanding institutional and structural challenges rather than the primary cause of the industry’s current difficulties.

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He identified inadequate professional capacity as one of the major challenges confronting the sector, noting that Nigeria’s freight forwarding industry has, for decades, suffered from weak institutional training, inconsistent regulatory enforcement and insufficient investment in human capital.

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He further observed that while several countries deliberately developed globally competitive logistics professionals through structured certification programmes and continuous capacity development, Nigeria’s professional development framework has remained inconsistent, limiting the competitiveness of indigenous operators.

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He also explained that inadequacy of capital has continued to constrain indigenous operators. Modern logistics has evolved into a technology-driven and capital-intensive business requiring investments in digital infrastructure, multimodal transport systems, warehousing, project cargo management, and integrated supply chains.

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Similarly, a retired Deputy Comptroller-General of the Nigeria Customs Service and Trade and Maritime Customs Consultant, Mr. Dera Nnadi, said the Registrar’s observation on the capital-intensive nature of the freight forwarding industry should be given due consideration.

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According to Nnadi, many indigenous operators have failed to prioritise investment in the sector, noting that proceeds generated from freight forwarding businesses are often channelled into ventures outside the maritime industry instead of being reinvested to expand operations, build capacity and enhance competitiveness.

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