October 23, 2021

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Lagos Chambers of Commerce Frowns at Regulatory Task Bestows on NIPOST by Fiat

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NIPOST COURIER SERVICE/DESPATCH RIDERS

The Lagos Chamber of Commerce and Industry, LCCI, has condemned the appointment of Nigerian Postal Service (NIPOST) as the regulator of the courier market at the same time being an operator in the industry, describing the move as inequitable, repressive and unfair.

Muda Yusuf, the Director-General, LCCI, noted in a media statement that the mandate offered to the state agency to serve as regulator over competitors was out of tune with global best practices.

The media statement titled, “Comments on the 2020 NIPOST Regulatory Provisions for Courier Industry”, observed that NIPOST’s dual role contradicted government’s ease of doing business policy. The statement urged the Nigerian government and the National Assembly to swiftly address the situation, stating that it was contrary to the extant competition law of the country.

Yusuf commended the Minister of Communications, Isa Ali Pantami, for suspending the new license and renewal fees rolled out by NIPOST. He sought the removal of a section of the provision, requiring that operators should contribute 2 per cent of their total annual income to the Postal Fund towards postal development in rural and underserved areas.

The LCCI Chieftain submitted thus, ‘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.

It further stated that, “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”.

Yusuf explained further in the statement that the “provision will undermine the confidence of investors in the courier and logistics business and should immediately be repealed. It is a negation of the efforts of the Federal Government to attract investment, create jobs and grow the economy”, Yusuf said.

He also expressed worry over the rule that all courier items/articles like right issues, statements of account, shares certificates, letters or offer documents and cheques weighing 0.5kg brought to a courier/logistics operator be referred to the closest post office for processing and delivery.

The LCCI boss said the provision was unfair, and added that customers should not be forced to patronize NIPOST against their wish regardless of the size or weight of the items.

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