Stakeholders seek national policy to cut trade cost, boost exports
Absence of structured cargo consolidation systems has continued to inflate trade costs and weaken Nigerian shippers’ competitiveness within Africa, the Sea Empowerment and Research Centre (SEREC) has stated.

Other stakeholders also reckoned that the challenge has hindered Nigeria’s progress in the African Continental Free Trade Area (AfCFTA), despite its strong trade growth and a fast-growing logistics market.

Cargo consolidation is the aggregation of multiple small consignments into larger, cost-efficient freight units, especially where trade flows are largely characterised by small and medium consignments, agricultural produce and light manufacturing, as well as informal and semi-formal exporters.

In a position paper to the Minister of Ministry of Marine and Blue Economy and that of Aviation and Aerospace Development, signed by the Head of Research, Dr Eugene Nweke, SEREC cited figures that showed Nigeria’s intra-African trade rose sharply to about $18.43 billion in 2024, up from $8.1 billion in 2023, representing a 127 per cent increase and accounting for approximately 8.3 per cent of the total intra-African trade valued at $220.3 billion in 2024.

The research centre also noted that Nigeria’s exports to African markets grew by about 14 per cent in the first half of 2025, reaching N4.82 trillion ($3.3 billion).

However, SEREC warned that the rapid growth in trade volumes is not being matched by logistics efficiency, largely due to fragmented cargo flows and the lack of consolidation platforms.

The centre noted that Nigeria’s freight forwarding and logistics market was valued at about $6.47 billion in 2025, while the air freight market alone is estimated at $8.18 billion, with projections to rise to $11.82 billion by 2031.

According to SEREC, the absence of structured consolidation systems has prevented this market value from translating into competitive export logistics.

Also, the paper showed that only about 0.38 per cent of Nigeria’s exports by value are transported by air, while over 97 per cent are transported by maritime transport.

SEREC argued that this imbalance reflects structural weaknesses, stressing that without organised air cargo consolidation, Nigerian exporters are unable to access lower freight tariffs, stable cargo volumes for airlines and predictable African trade lanes.

“Without consolidation, Nigerian exporters face higher per-unit freight costs, irregular sailings and flight schedules, indirect routing through non-African hubs and the possibility of delivery-time competitiveness. In a continental market that now exceeds $ 220 billion in intra-African trade, failure to institutionalise cargo consolidation amounts to a strategic disadvantage, not merely an operational inefficiency,” the centre stated.

SEREC also warned that cargo consolidation currently in Nigeria remains largely ad hoc, import-oriented, and foreign-dominated, with many Nigerian cargoes often consolidated offshore, leading to capital and value leakage.

This, the Centre said, weakens indigenous freight forwarders and limits the country’s ability to retain logistics value within its economy.

On job creation and the economic multiplier effects, SEREC said the combined logistics and air freight market value supports tens of thousands of direct jobs, including cargo consolidators and planners, freight forwarding professionals, load controllers and cargo analysts, warehouse and terminal operators and Customs documentation and compliance officers.

SEREC noted that indirect employment across warehousing, cold chain logistics, ICT platforms, trucking, insurance and finance could be two to three times higher than direct employment, in line with global logistics job multipliers.

Also, the Director of International Trade at the Maritime Researchers and Authors Association of Nigeria (MARASSON), Sunday Ademuyiwa, emphasised that aligning cargo consolidation strategies with AfCFTA opportunities would deliver clear gains for Nigerian shippers, including reduced logistics costs, an increase in trade efficiency, improved competitiveness and broader access to new markets across the continent.

Ademuyiwa urged shippers to embrace cargo consolidation and strategically use the AfCFTA to cut costs, boost competitiveness, and expand their market reach.

He explained that the cargo consolidation approach is particularly important at a time when African trade is being reshaped by the AfCFTA framework.

According to him, the AfCFTA offers Nigerian shippers access to a market of about 1.3 billion people with a combined gross domestic product (GDP) of roughly $3.4 trillion, alongside reduced tariffs and fewer trade barriers.

“If cargo consolidation is properly leveraged, this framework can help increase exports, diversify Nigeria’s trade portfolio and deepen regional integration and cooperation,” he said.

To address these gaps, SEREC recommended the adoption of a National Cargo Consolidation Policy, the designation of licensed consolidation hubs at key airports and seaports with fast-track customs regimes, targeted operational incentives for Nigerian-owned consolidators, integrators and cargo airlines.