CRFFN BLAMES STRUCTURAL GAPS FOR RISING FOREIGN DOMINANCE IN LOGISTICS SECTOR

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RismadarVoice Reporters, July 31, 2026

The Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) has attributed the growing dominance of foreign firms in Nigeria’s freight forwarding, customs brokerage and logistics industry to longstanding structural and institutional weaknesses rather than nationality.

Registrar of the Council, Kingsley Igwe, said the increasing presence of foreign operators should prompt a broader policy conversation focused on strengthening the local logistics industry instead of framing the issue as a contest between indigenous and foreign companies.

According to him, foreign participation reflects deep-rooted challenges that have limited the growth and competitiveness of Nigerian operators over the years.

Igwe identified inadequate professional capacity as one of the sector’s biggest setbacks, noting that the industry has suffered from weak institutional training, inconsistent regulatory enforcement and insufficient investment in human capital.

He said that while many countries have deliberately developed globally competitive logistics professionals through structured certification programmes and continuous skills development, Nigeria’s professional training framework has remained inconsistent, leaving indigenous operators at a disadvantage.

The CRFFN Registrar also highlighted limited access to capital as a major obstacle to the growth of local freight forwarding companies.

He explained that modern logistics has become a technology-driven and capital-intensive industry requiring substantial investments in digital infrastructure, warehousing, multimodal transportation systems, project cargo management and integrated supply chain solutions.

Also commenting, retired Deputy Comptroller-General of the Nigeria Customs Service and maritime trade consultant, Dera Nnadi, said indigenous operators must take greater responsibility for strengthening the sector through sustained investment.

Nnadi noted that many local freight forwarders often divert profits from their businesses into ventures outside the maritime industry instead of reinvesting in expanding operations, improving capacity and adopting modern logistics technologies.

He urged indigenous operators to prioritise long-term investment if they are to compete effectively with foreign firms and play a more significant role in Nigeria’s logistics and supply chain industry.

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