By Oluyinka Onigbinde
Former Acting National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Dr. Kayode Farinto, has 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, warning that the increasing dominance of foreign firms is threatening employment, encouraging capital flight and posing serious national security risks.
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.
Addressing lawmakers and other stakeholders, the maritime industry expert argued that Nigeria’s logistics industry has gradually slipped into the hands of foreign interests, leaving indigenous freight forwarders increasingly marginalized, particularly in the handling of project cargoes and customs brokerage services.
According to him, 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 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.
He 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.
Farinto lamented that foreign firms now dominate the lucrative project cargo segment of the industry, alleging that about 90 per cent of project cargoes entering Nigerian ports are handled by expatriate companies.
He noted that indigenous freight forwarders, who previously played significant roles in handling specialised cargoes, have steadily been edged out by multinational logistics companies.
“I cannot remember the last time an indigenous freight forwarder handled a major project cargo in Nigeria. Today, almost everything is controlled by foreign companies,” he said.
He further expressed concern that international shipping companies have expanded beyond their traditional role of transporting cargoes into freight forwarding and customs brokerage, thereby competing directly with Nigerian practitioners.
Citing Mediterranean Shipping Company (MSC) as an example, Farinto said shipping lines are increasingly offering end-to-end logistics services that have significantly reduced business opportunities available to indigenous freight forwarders.
The former ANLCA leader 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.
According to him, 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.
He recalled instances where prohibited items, including arms and explosives, were intercepted at the nation’s ports, arguing that greater indigenous participation would strengthen accountability within the system.
Farinto said customs brokerage should be regarded as a strategic national service because practitioners have access to cargo manifests, shipping documents and sensitive information relating to imports into the country.
He also identified the growing adoption of door-to-door logistics services by foreign companies as another major factor undermining indigenous freight forwarders.
According to him, the arrangement enables foreign firms to originate shipments overseas and deliver them directly to customers in Nigeria without involving local freight forwarders, effectively transferring business opportunities that ordinarily belong to Nigerians.
“The concept of door-to-door logistics has inadvertently taken away the rights of Nigerian freight forwarders because foreign companies now control the movement of cargo from origin to final destination,” he stated.
Farinto dismissed suggestions that Nigerian operators lack the technical competence to manage sophisticated logistics operations, insisting that the country has developed sufficient human capacity over the years.
He blamed weak policy implementation rather than lack of expertise for the continued dominance of foreign operators, pointing to the Cabotage Act as an example of legislation whose objectives have been undermined by indiscriminate waivers granted to foreign companies.
“There is no capacity problem in Nigeria. If countries like Ghana and Benin Republic can successfully empower indigenous operators, there is no reason Nigeria cannot achieve the same thing,” he argued.
Turning to the issue of port concession renewal, Farinto advised the Federal Government to tread cautiously in reviewing the contracts of terminal operators.
While clarifying that he was not speaking on behalf of any operator, he urged government to recognise the contributions of indigenous terminal operators such as Port & Cargo Handling Services Limited and ENL Consortium, which, according to him, have invested heavily in modern cargo handling equipment and contributed significantly to port development.
He argued that unlike foreign operators who repatriate profits overseas, indigenous companies reinvest their earnings in Nigeria, thereby creating employment opportunities and stimulating economic growth.
According to him, the renewal of port concession agreements should be based strictly on measurable performance and value addition rather than political considerations or unverified allegations.
Farinto also challenged claims that foreign-operated terminals have outperformed indigenous operators, insisting that several Nigerian terminal operators have consistently invested in infrastructure and modern cargo handling equipment since the commencement of the port concession programme.
He singled out Port & Cargo Handling Services as one of the first indigenous terminal operators to introduce Rubber Tyred Gantry (RTG) cranes into the Nigerian port system, describing the investment as evidence of local capacity.
The maritime stakeholder, however, criticised the operational model of some foreign terminal operators, particularly those handling cargo volumes beyond the designed capacities of their terminals.
According to him, the practice contributes significantly to port congestion, truck gridlock and inefficiencies within the port corridor.
He argued that operators intending to handle larger cargo volumes should be encouraged to expand into new port locations under properly structured port development plans instead of overstretching existing facilities.
Farinto concluded by urging the National Assembly to champion policies that prioritise indigenous participation in strategic sectors of the maritime industry, warning that failure to do so would result in increased capital flight, shrinking opportunities for Nigerian businesses and greater exposure of the country’s logistics system to security vulnerabilities.
“The future of Nigeria’s freight forwarding industry depends on deliberate legislative protection. If we fail to act now, we risk surrendering a strategic sector of our economy entirely to foreign interests,” he warned.
