Freight forwarders are indispensable in the world of trade. They help facilitate and organize shipments while transporting commodities from manufacturers or exporters to their importers or destination.

However, over the years, freight forwarders in Nigeria have faced several impediments, which have affected the logistics of many export and import activities in the country. Take a look at them below:

1. Speed and cost of clearance

Advancement in communication technology and automation has made online clearing and a faster clearing of goods possible globally. Freight forwarders can now communicate with authorities, complete forms online, and clear goods irrespective of where they are. However, despite such advancements, most of the processes in Nigeria are still manual. Government agencies like the Nigerian Ports Authority (NPA), Nigerian Drug Law Enforcement Agency (NDLEA), Standards Organization of Nigeria (SON), and even the police want to see freight forwarders in person before clearing them. Thus, the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) has recognized this problem and how delays in the clearance process often lead to low performance in the maritime sector.

2. Professional capacity

The regulatory environment around the practice of freight forwarding in Nigeria is not very efficient. The minimum training required to practice is vague, and self-serving agents who pose as freight forwarders cause a major challenge in the industry.

Many Nigerian freight forwarders have only gained informal and often insufficient training, hence their limited professional capacity. Thus, their failure to meet the requisite knowledge may be a cause for many of the problems they face during customs clearance.

However, new efforts are being made to provide formal training to practitioners through accredited institutions. For example, the Nigerian Export Promotion Council (NEPC) facilitates the identification of reliable freight forwarders through its online database of freight forwarders, customs brokers, and cargo agents in Nigeria.

3. Low demand

The COVID-19 pandemic has lowered economic activities, with import and export trade being no exception. This has naturally decreased the demand for freight forwarders. For example, after markets were shut down in Nigeria, many goods were stuck at the port. This, along with travel restrictions, has presented enormous barriers.

As the middlemen, it is important for freight forwarders to help mitigate the challenges that have resulted from the pandemic. They can do this by maintaining good communications with other parties in the supply chain, legally assessing special contracts, and checking up on customers.

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