Ayo Bankole, a strategy expert and the Convener of Lagos SME boot Camp has reacted to the decision of the Nigerian Postal Service (NIPOST) to introduce costs of licence for logistics and courier services, stating that NIPOST just declared war on SMEs in Nigeria.
The decision of the Nigerian Postal Service to introduce costs of licence for logistics and courier services has sparked outrage from a large section of Nigerians mainly online.
NIPOST had recently announced an increase to the cost of licences for logistics and courier companies.
The move, according to experts would increase the cost of goods purchased online.
Bankole in a thread on his twitter handle, said “NIPOST has just declared war on SMEs in Nigeria, sadly on the eve of the #LagosSMEbootcamp. Logistics has become a flashpoint of trade during COVID, many SMEs relying on it for transactions, & many youths who lost income elsewhere investing. What is happening is a tragedy.”
“NIPOST is one of those regulators in Nigeria that doubles as a player, ie also competing with Nigerians who struggle to make the system better. An inefficient regulator stifling the growth of the sector to Favour its inefficiencies. I have two friends in entertainment, a DJ & MC.”
“Their business halted. Both have invested in logistics. The volumes of delivery transactions shot up as retail moved online & transactions moved from physical to virtual. Logistics became the biggest enabler to tech for trade. The largest part being SMEs. NIPOST wants to kill it.”
“NIPOST is asking SMEs that want to operate within Lagos to pay N2,000,000 and then N800,000 annually. I am confident that NIPOST did not use any data or logical reasoning to arrive at this pricing. It points solely to a libidinal urge for more money, which again will be siphoned.”
“I’m so pained that SMEs contribute so much to this economy, most on survivalist mode, and callous regulators like @NipostNgn will ruin it. Arresting & impounding riders. A tragedy.
NIPOST had said companies which provide international courier services like DHL, UPS and FEDEX, are expected to pay N20m for a new licence and N8m annually while those who offer national services are expected to pay N10m for licence and N4m yearly for renewal.
Logistics companies that operate within regions are expected to pay N5m for licence and N2m annually.
For firms that operate within states, the cost of procuring a licence is N2m while the renewal costs N800, 000.
Courier firms that operate within municipalities are to pay N1m for licence and N400,000 annually and for Small and Medium Enterprises, the licence is N250,000 while the annual renewal of the licence is N100,000.
The SME category is for small courier firms which have not more than five delivery vehicles