Licensed agents seek law reserving freight jobs for Nigerians

Licensed agents have called on the National Assembly to urgently initiate legislation that would reserve critical aspects of Nigeria’s freight forwarding and customs brokerage business for indigenous operators.

The agents warned that the increasing dominance of foreign firms is threatening employment, encouraging capital flight, and posing serious national security risks.

A former Acting National President of the Association of Nigerian Licensed Customs Agents, Kayode Farinto, made the call while presenting a position paper during a House of Representatives Breakfast Session organised to harvest practical policy recommendations aimed at advancing the nation’s economic development through legislative reforms.

Farinto argued that Nigeria’s logistics industry has gradually slipped into the hands of foreign interests.

“The development calls for urgent legislative intervention similar to the Nigerian Oil and Gas Industry Content Development Act to ensure that critical components of the logistics value chain are reserved for Nigerians,” Farinto said.

Farinto explained that logistics comprises several interconnected sectors, including transportation planning, cargo booking, documentation, customs clearance, warehousing, cargo handling, and customs brokerage.

However, he stressed that customs brokerage and freight forwarding should be protected because of their strategic importance to the nation’s economy and security.

The maritime expert urged lawmakers to either enact “a new law specifically on indigenous freight forwarding or expand the country’s local content legislation to accommodate customs brokerage and other sensitive areas of the maritime logistics industry.”

According to him, such legislation would stimulate local participation, create jobs, and ensure that wealth generated within the sector remains in the Nigerian economy.

“If freight forwarding is left in the hands of indigenous Nigerians, it will create employment opportunities and ensure that revenues generated from the business are retained within the country rather than being repatriated abroad,” he said.

He noted that indigenous freight forwarders, who previously played significant roles in handling specialised cargoes, have steadily been edged out by multinational logistics companies.

The ANLCA chieftain warned that, beyond its economic consequences, the increasing foreign participation in customs brokerage raises national security concerns because operators in that segment have unrestricted access to sensitive cargo information and import documentation.

“Nigeria cannot afford to leave strategic logistics activities in the hands of foreign interests at a time when the country is battling insecurity, arms smuggling, and transnational crimes,” Farinto warned.

Also speaking, the National President of the African Association of Professional Freight Forwarders and Logistics, Frank Ogunojemite, backed the call to enact legislation reserving critical aspects of the freight forwarding profession for qualified indigenous practitioners.

“Every serious economy protects strategic sectors that are vital to national security, employment, and economic development. Nigeria should not be an exception. Freight forwarding, customs brokerage, and logistics services are integral to international trade, revenue generation, and supply chain security. Therefore, indigenous professionals must be given the necessary legal backing to play leading roles in these sectors,” Ogunojemite argued.

According to him, countries around the world operate policies that protect their citizens’ participation in key industries, adding that Nigeria itself has the Nigerian Oil and Gas Industry Content Development Act, which promotes local participation in the oil and gas sector.

“Similarly, the Coastal and Inland Shipping (Cabotage) Act was enacted to encourage indigenous participation in coastal shipping. There is no reason why the freight forwarding profession should not enjoy similar protection where it serves the national interest. However, APFFLON believes such legislation must not be driven by sentiment or protectionism alone. It should be carefully drafted after extensive consultation with all recognised freight forwarding associations, government agencies, and private sector stakeholders. The objective should be to strengthen indigenous capacity, encourage technology transfer, create employment for Nigerians, and ensure that foreign operators complement, not displace, licensed Nigerian practitioners,” he stressed.

He reiterated that the legislation should also reflect the principles of reciprocity, adding that Nigerian freight forwarders face restrictions in many foreign jurisdictions.

“It is therefore reasonable for Nigeria to establish a framework that safeguards opportunities for its own licensed professionals while remaining compliant with international trade agreements, including the African Continental Free Trade Area. APFFLON emphasises that protecting indigenous participation should never compromise professionalism or service quality. Government should simultaneously invest in training, digital transformation, professional certification, and institutional reforms to ensure Nigerian freight forwarders remain globally competitive,” Ogunojemite stated.

Also speaking, a former Apapa Chapter Chairman of the Association of Registered Freight Forwarders of Nigeria, Jones Idemili, said that in other countries, Nigerian freight forwarders are not allowed into the port, unlike what is obtained here.

“When I was in Apapa, I spoke on that particular issue, about not giving leeway to the indigenous freight forwarders to operate. Unlike other countries, if you go to Cotonou, Nigerians don’t enter inside their ports. They will bring the goods out from the port, and we start operating from there to Nigeria. But here in Nigeria, people from other countries will come without any control. They have licences to operate, more than some of our indigenous practitioners. So, this thing has caused a lot of problems for agents. We are suffering, local practitioners, indigenous practitioners are suffering, because of the way they continue to allow those foreigners to operate within Nigeria. So, these are the issues that should be tackled, otherwise all our indigenous practitioners will be out of job. There should be some elements of control, so that these indigenous practitioners will be able to at least break even,” Idemili said.