MASSIVE job loss looms in Nigeria’s logistic chain sub-sector following the increasing take-over of logistics jobs by foreign firms at the nations ports and borders, a situation that is threatening employment, encouraging capital flight and posing serious national security risks through massive importation of arms and ammunition at Nigerian ports.
Disclosing this with the Nigerian Tribune exclusively, the former Acting National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Dr. Kayode Farinto, 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.
According to Mr. Kayode Farinto: “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
“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 strate
He urged the National Assembly 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.
Such legislation, according to him, 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.
