The National Association of Government Approved Freight Forwarders (NAGAFF) has called on the Federal Government to enact specific legislation to protect indigenous freight forwarding operators from the growing presence of foreign firms in Nigeria’s maritime sector.
NAGAFF Secretary-General, who made the call while speaking on developments in the freight forwarding industry, said foreign companies were taking advantage of gaps in Nigeria’s regulatory framework to participate directly in freight forwarding activities.
He, however, acknowledged that the foreign firms were not currently violating any law, arguing that existing Nigerian maritime legislation does not specifically protect freight forwarding in the same manner that the Cabotage Act protects certain aspects of the maritime industry.
According to him, the Cabotage Act, administered by the Nigerian Maritime Administration and Safety Agency (NIMASA), largely protects areas including shipping, shipbuilding, ship ownership, and other maritime activities, but does not extend similar protection to freight forwarding.
He therefore urged the government to introduce a domesticated legal framework that would clearly define the participation of foreign companies in Nigeria’s freight forwarding business and give greater protection to local operators.
The NAGAFF official cited the neighbouring Benin Republic as an example, saying its regulatory framework protects indigenous freight forwarders by restricting foreigners from directly practising freight forwarding at its ports.
He argued that Nigeria could adopt a similar approach to ensure that local freight forwarders remain relevant in the industry and that economic opportunities generated by the maritime sector are retained within the country.
He also raised concerns over the involvement of major international shipping lines in activities that, according to him, extend beyond their traditional role as vessel owners and liner operators.
He cited the operations of major shipping companies and their related port interests, arguing that the arrangement could place indigenous operators at a disadvantage.
The NAGAFF secretary-general proposed that Nigerian freight forwarding companies could form partnerships and establish incorporated entities to serve as liner agents for foreign shipping lines, rather than allowing foreign companies to establish structures that effectively control the entire chain of operations.
He said such an arrangement would create opportunities for Nigerian operators and ensure that foreign shipping lines contribute more directly to local employment and business development.
He further linked the issue to national security, warning that greater government oversight was necessary whenever foreign entities gain extensive access to strategic maritime and cargo operations.
The call comes amid wider concerns within the freight forwarding industry over the ability of indigenous operators to compete effectively in an increasingly globalised maritime and logistics environment.
