The Lagos Chamber of Commerce and Industry, LCCI has called on the federal government to save the Nigerian courier industry from stifling and suffocating regulatory regime by expunging some provisions in the guidelines, which were introduced recently by the Nigerian Postal Services.
The chamber stated that the federal government should expunge the provision in the courier regulation guidelines, which required operators of courier and logistics services to contribute two percent of their annual revenue to the postal fund.
The fund is meant for postal development and delivery of postal services in rural and underserved areas.
A statement issued by the Director-General of the LCCI, Muda Yusuf, and titled: “NIPOST regulatory provisions for courier industry,” called on the government to remedy the framework that allowed the NIPOST to be a regulator and an operator.
“A framework in which NIPOST is both a regulator and operator is detrimental to the development of the courier business in the country. This is inconsistent with the best practice principles of business regulations globally. Currently, NIPOST is vested with powers to regulate its competitors. This arrangement is unfair, inequitable, and inherently repressive. It is a negation of the ease of doing business policy of the Federal Government and inconsistent with the extant competition law of the federal republic of Nigeria.
We, therefore, urge the federal government and the National Assembly to urgently remedy the situation.
The LCCI has strong reservations over a provision in the courier regulation guidelines which prescribes that “an operator of courier and logistics services shall contribute a sum equal to 2% of its total annual revenue to the Postal Fund which sum shall be used for postal development and delivery of postal services in rural and underserved areas.” We submit that this provision will put too much burden on courier and logistics businesses and make them unsustainable. These businesses are already grappling with a multitude of taxes and levies in the course of their daily operations.
We request that this provision be expunged immediately in the interest of investments and investors in the courier and logistics sector of the Nigerian economy.
The provision in the Courier regulation which vests the Minister with powers to compel any licensed courier and/or Logistics Services Operator to undertake free delivery service for the purpose of Universal Postal Service Obligations/or any Social Service Delivery in National Interest needs to be reviewed. It borders on overbearing powers with little regard for the interest of investors.
This provision will undermine the confidence of investors in the courier and logistics business and should be immediately be repealed. It is a negation of the efforts of the federal government to attract investment, create jobs, and grow the economy. The reality is that many corporate organizations are already undertaking various forms of Corporate Social Responsibility projects without being compelled or coerced to do so. Some have set up foundations with ample resources to drive this process. What is important is to deepen the partnership between the public and private sectors.
Also of concern is the provision in the Courier regulation which stipulates that: “All courier items/articles such as Right Issues, Shares Certificates, Statement of Accounts, Cheques, Letters or Offer documents, etc weighing below 0.5kg brought to a Courier/Logistics service operator shall be recorded and referred to the nearest Post Office of the Nigerian Postal Service for processing and delivery. Failure to do so will attract payment to the Nigerian Postal Service of a penalty of 90% of the amount charged on the item by the erring Operator.
Again, this is an unfair provision. The citizens should not be compelled to patronize NIPOST against their will, irrespective of the size or weight of the items. Indeed, it is an infringement on the rights of citizens and in conflict with the principle of fairness” he said.
The Chamber asked the Minister for Communications and Digital Economy, Isa Patami, to immediately expunge it.
“We urge the Honourable Minister of Communications & Digital Economy and indeed the Federal Government to take urgent steps to clean up these regulations in the interest of the Nigerian economy, business continuity, private sector development, and job creation. There is a need to save the courier industry from a stifling and suffocating regulatory regime” he concluded.
