Stakeholders operating in Nigeria’s courier space have said that if the federal government passes into law the bill mandating courier operators to remit two percent of their annual turnover to the government, there would be thousands of job losses in Nigeria.
The bill mandating courier operators to remit two percent of their annual turnover to the government is part of the postal reforms bill which has reached the 2nd reading at the National Assembly.
The courier operators are lamenting that mandating them to remit two percent of their annual turnover at a time when operators are experiencing declining margins and huge running costs, would run them out of business and lead to massive job losses within the industry.
They further stated that operators are willing to work with best-practice where one percent of net profit is remitted annually or the government can introduce two postal contributions which would be borne by the consignor.
Reacting to the postal reforms bill, the Nigeria International Air Courier Association (NIACA) and Association of Nigerian Courier Operators (ANCO) distanced themselves from the bill which they say has not addressed their concerns as it does not capture their representation during the public hearings and meetings at different levels of government.
Speaking at a joint press briefing on Monday by NIACA and ANCO which drew representation from international and national courier operators as well as the media, Okey Uba, chairman of ANCO said the press conference was necessitated by the need for them to clearly declare their stand on the postal reforms bill currently being passed by the lawmakers.
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Uba appealed to the government to rethink the bill as they believe that such would compound the unending circle of problems already bedevilling the industry.
Muyiwa Adesiyoju, managing director of DHL explained that the remittance of two percent annual turnover implies that companies would be remitting part of their running costs to the government, not profit and this would imply that many courier companies would be forced to close shops.
Adesiyoju disclosed that members of both associations have in a few years declined from 300 to about 85 members as a result of the high cost of doing business, forcing members to halt operations.
He hinted that some of the challenges of courier operators in Nigeria include declining margins due to cost of doing business, poor infrastructure, cost of funds, FOREX rate, power, and security among other challenges stifling the industry.
He, therefore, urged the government to consider the peculiarity of the environment in discharging regulatory tactics.
Highlighting other gray areas of the bill, Shola Obadori, managing director of, FedEx highlighted other major gray areas in the bill.
On exclusivity for NIPOST to handle consignments weighing up to 1kg, Obadori urged the government to put into consideration safe and efficient logistics as well as maintain a level playing field to allow for competition and not monopolize that aspect of the business.
On licensing, he argued that it is unfair for the government to cancel the licence of existing operators on the grounds of reform and urged the government to consider recertification in order to keep them in business.
On stamp duty, he said that considering that the nature of their business could be voluminous, a digital approach would make compliance a lot easier and a more efficient system.
NIACA and ANCO reiterated that the agitation to improve and better the industry has been a long-standing battle and that as far as engaging government is concerned the associations have been very present and open to dialogue.
Whereas both associations have written several letters and had countless meetings without much impact, they hope that the government can go back to the drawing board and embrace ideas that would encourage inclusion and favourable market conditions for all stakeholders.
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