In 2022, a small logistics outfit based in Accra, Ghana, successfully brokered a deal to move textile goods from Kumasi to Abidjan, Côte d’Ivoire, for a group of West African SMEs.
The journey, once a bureaucratic nightmare of duties, permits, and language barriers, took just three days. That same year, a Nigerian SME in Aba tried to ship leather sandals to Cotonou, Benin Republic, less than 300km away, and faced two weeks of port delays and multiple levies.
The contrast was jarring — and it revealed a telling story: the implementation of the African Continental Free Trade Agreement (AfCFTA) may have unlocked unprecedented trade opportunities, but for Nigerian freight forwarders and SMEs, the road is still winding and steep.
The AfCFTA, launched officially in January 2021, is one of the most ambitious undertakings in Africa’s economic history.
With 54 of 55 African countries on board, it creates a single market of over 1.4 billion people and a combined GDP of $3.4 trillion. The key promise? To eliminate up to 90% of tariffs and significantly reduce non-tariff barriers to intra-African trade. For Nigerian freight forwarders and small-to-medium-sized enterprises (SMEs), this should be a dream scenario. Yet, many are not prepared – nor fully aware – of how to position for the coming trade boom.
Why Nigerian SMEs should care
SMEs are the backbone of Nigeria’s economy, accounting for 96% of businesses and 84% of employment, according to the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). Yet only a fraction of these businesses are export-oriented. The barriers range from lack of awareness, poor logistics infrastructure, to limited cross-border partnerships. Freight forwarders – the essential bridge between manufacturers and their markets – are key to unlocking these barriers.
With AfCFTA reducing tariffs and simplifying customs procedures, Nigerian SMEs can access new markets across West, East, Central, and Southern Africa more efficiently. But they cannot do it without freight forwarders who understand the protocols, have regional logistics networks, and can navigate the diverse documentation and regulatory frameworks across the continent.
The missed opportunity – and the fix
Nigeria, as Africa’s largest economy, should naturally be the largest beneficiary of AfCFTA. But indicators suggest otherwise. According to the International Trade Centre’s 2023 AfCFTA Readiness Report, Nigeria ranks behind countries like Kenya, Rwanda, and Ghana in SME readiness and logistics support systems. Ghana, for instance, has streamlined export documentation for SMEs, and developed a centralised digital platform that integrates port authorities, customs, and freight forwarders. Kenya has built a robust regional logistics network and created export hubs in Nairobi and Mombasa for agricultural and manufactured goods.
In Nigeria, the story is more complicated.
Our ports remain congested. The Lagos ports, which handle over 70% of Nigeria’s trade, suffer from delays due to poor infrastructure, overlapping agencies, and lack of automation. The Apapa gridlock alone costs the Nigerian economy over N4 trillion annually, according to estimates by the Lagos Chamber of Commerce and Industry (LCCI). To truly unlock AfCFTA’s promise, Nigerian freight forwarding must go digital, collaborative, and Pan-African in mindset.
Strategic opportunities for Nigerian freight forwarders and SMEs
1. Regional partnerships and cross-border collaboration
One of the most important steps Nigerian freight forwarders can take is to build partnerships with counterparts across African borders. Collaboration is key. Joint ventures with logistics firms in Kenya, Ghana, Rwanda, and even francophone countries like Côte d’Ivoire and Senegal will ease documentation, warehousing, and last-mile delivery challenges.
2. Digital freight platforms and trade facilitation
Technology can reduce friction. The adoption of digital platforms that link exporters, freight forwarders, and border authorities can radically simplify operations. Platforms like TradeLenda, Kobo360, and Sendbox are already creating digital access to freight logistics for Nigerian SMEs, and should be supported through government incentives and private-sector investment.
3. Customs brokerage and AfCFTA certification support
Many Nigerian SMEs lack the technical knowledge of customs documentation, sanitary and phytosanitary requirements, or rules of origin certifications under AfCFTA. Freight forwarders can expand their service offerings by helping clients obtain the necessary AfCFTA certificates, navigate regional trade documentation, and even conduct compliance training for SME clients.
4. Investment in multimodal infrastructure
Rail transport is undergoing a revival in Nigeria. The Lagos-Ibadan railway, and the soon-to-be-completed Kaduna-Kano corridor, provide a cost-effective option for moving freight inland to connect with West African trade routes. Forwarders who diversify into rail-enabled logistics can capture new regional trade flows – particularly in heavy-duty agriculture and manufacturing cargo.
5. Government and private sector synergy
Nigerian government agencies – particularly the Nigerian Export Promotion Council (NEPC), Nigerian Ports Authority (NPA), and the Nigerian Shippers Council — must work closely with logistics operators and SME clusters to streamline processes. Customs processes must be digitised, port operations decongested, and inland dry ports equipped to serve as hubs for AfCFTA-bound goods.
One successful model for this collaboration is Kenya’s Export Promotion and Branding Agency (KEPROBA), which offers tailored training for SMEs, subsidised logistics partnerships, and country-branding support for Kenyan goods in African markets. Nigeria can learn from this.
Time to upskill
Finally, freight forwarding professionals in Nigeria must embrace continuous learning. Understanding AfCFTA trade terms, harmonized system codes, and regional market trends is not optional. SMEs need logistics partners who are not just transport facilitators but trade advisors. There’s a golden opportunity here: to become trade consultants to Nigeria’s 40 million SMEs that are eager to explore the continent but don’t know how.
Conclusion
The AfCFTA has created an exciting frontier for intra-African commerce, one that Nigerian freight forwarders and SMEs cannot afford to ignore. While the road ahead is filled with infrastructural and bureaucratic hurdles, it is also paved with unprecedented opportunity. Nigeria must not just trade — it must lead the trade.
Freight forwarding is the compass that will guide Nigerian SMEs through this new terrain. By adopting smarter strategies, forging stronger partnerships, and pushing for infrastructure and policy reform, Nigeria’s logistics players can position themselves not just as movers of goods, but as enablers of Africa’s economic integration.
AfCFTA isn’t just a trade pact; it’s a call to action. And for Nigerian freight forwarders and SMEs, the time to act is now.
About the Author
Ernest Eleodinmuo is the CEO of NNORUKA ELEODINMUO GLOBAL SERVICES LTD, a leading Nigerian haulage firm with over a decade of experience in logistics, shipping, and freight forwarding. He writes from Lagos, Nigeria.
