The Council for the Regulation of Freight Forwarding in Nigeria has said foreign logistics dominance exposes longstanding weaknesses. These weaknesses exist within the country’s freight forwarding and customs brokerage industry.
According to Vanguard, CRFFN Registrar Kingsley Igwe said the growing presence of foreign companies deserved serious policy attention. However, he warned against treating the issue solely as a contest between foreign and indigenous operators.
Igwe argued that international firms had expanded because Nigeria’s logistics industry continued to struggle with weak professional training, inadequate capital and inconsistent regulatory enforcement. He said addressing these structural problems would improve the competitiveness of local businesses.
The registrar maintained that foreign participation was not the main cause of the industry’s challenges. Instead, it reflected deficiencies that had remained unresolved for several decades.
Foreign logistics dominance reflects deeper problems
Igwe identified inadequate professional capacity as a major obstacle facing Nigerian freight forwarders. He said the sector had suffered from limited institutional training and insufficient investment in human capital.
According to him, several countries deliberately developed internationally competitive logistics professionals through structured certification and continuous training programmes.
Nigeria, however, has not maintained a consistent professional development framework for operators. This gap has affected the ability of indigenous firms to compete with better-funded and more technically advanced companies.
Igwe said stronger certification, training and regulatory systems would help Nigerian operators provide services that meet international standards.
He also called for a broader discussion about improving the entire freight forwarding ecosystem. This, he argued, is better than concentrating only on the nationality of companies operating within it.
Limited capital weakens indigenous firms
The CRFFN registrar also identified limited access to capital as another major challenge confronting local operators.
He explained that modern logistics had become a technology-driven and capital-intensive industry. Companies now require substantial investment in digital systems, warehousing and multimodal transportation.
Operators also need resources for project cargo management, integrated supply chains and other specialised services. These services are demanded by manufacturers and international businesses.
Foreign companies often possess the financial strength and technology needed to provide such services. Many indigenous firms, however, lack the funding required to expand beyond small-scale customs brokerage.
Igwe said the financial gap had made it difficult for Nigerian companies to compete for major logistics contracts. As a result, it is difficult for them to operate across several parts of the supply chain.
Local operators criticised over poor reinvestment
A retired Deputy Comptroller-General of the Nigeria Customs Service, Dera Nnadi, supported Igwe’s position on the capital-intensive nature of the industry.
Nnadi, who now works as a trade and maritime customs consultant, said indigenous operators must take greater responsibility for their limited growth.
He argued that many freight forwarders failed to reinvest profits generated from their businesses. Instead, some operators used the proceeds to finance unrelated ventures outside the maritime and logistics sectors.
According to him, this practice prevents companies from acquiring equipment, adopting new technology and developing the capacity required to compete with foreign firms.
Nnadi said operators must direct more resources towards expanding their businesses, training workers and strengthening their service delivery.
He maintained that consistent reinvestment would enable indigenous companies to handle larger contracts. Additionally, it would help them participate more effectively in international supply chains.
Calls grow for industry-wide reforms
The comments have renewed debate over the growing influence of foreign firms in Nigeria’s logistics, freight forwarding and customs brokerage sector.
Some stakeholders fear that local companies could lose more business as international operators expand their presence. Moreover, these operators may control important segments of the industry.
However, the CRFFN believes restricting foreign participation without addressing local weaknesses would not provide a lasting solution.
The council wants stronger professional training, better regulatory enforcement and improved access to finance for Nigerian businesses.
It also expects indigenous operators to adopt modern technology and build companies capable of competing beyond traditional clearing services.
Industry stakeholders say such reforms could reduce foreign logistics dominance. At the same time, they would create stronger Nigerian companies that can operate across regional and international markets.
