How NIPOST's Controversial Courier Fee Threatens Osinbajo's Ease Of Doing Business

The controversial courier & logistics license fees initiated by the Nigerian Postal Service (NIPOST) will not hold as the Nigerian government moves to review the charges. The courier fee had been met by uproar from Nigerians who voiced against the charges as it threatens the existence of micro, small and medium courier service.

NIPOST Courier Fee To Affect Ease Of Doing Business

AllNews had reported that the new courier license and registration fee is a setback for the ease of doing business in Nigeria, as the country has been climbing the ladder gradually due to series of implementation by the government. Last year, Nigeria moved 15 places up the World Bank's ease of doing business chart to rank 131, from 146th position in 2018.

With several entrepreneurs calling for the suspension or review of the courier fee, the office of the Vice President stated that it will review as demanded. This was revealed by Laolu Akande, the senior special assistant on media and publicity to the country's Vice President, Yemi Osinbajo.

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Reviewing the courier fee is vital to Osinbajo, as he heads the Presidential Enabling Business Environment Council(PEBEC), which is tasked to ensure ease of doing business in Nigeria for domestic and foreign investors. The activities of PEBEC had contributed to the rise of Nigeria on the World Bank's ease of doing business chart, and NIPOST's action could throw a spanner in the wheel of PEBEC.

Hence the need for the review of courier charge which has been heavily criticised, "We have just become aware of the recent increase in courier & logistics license fees by NIPOST, & the concerns generated. The Minister for Communications & Digital Economy is already taking active steps: those fees would be reviewed and this matter "ll be resolved in good time." Akande tweeted on his Twitter page.

AllNews report that the charges threaten to push small and medium courier services out of the market, while also compounding the financial challenges of larger logistics companies. The new fee for license and renewal is expected to affect investment into the logistics market, as many investors will not be willing to compete with a government firm that also acts as regulator.

NIPOST Under Probe Over Unapproved Controversial Courier Fee

An investigation has been launched into the controversial Courier License requirements demanded by the Nigerian Postal Service (NIPOST). The probe was initiated by the Minister of Communications and Digital Exonomy, Isa Pantami, who claimed to be unaware of the fees demanded by NIPOST.

While reacting to the criticism, Pantami said he didn't approve the fee as it wasn't in the regulation earlier approved. He stated that NIPOST falls under his ministry, so the power to approve regulation was with him, but he wasn't aware of the fee, hence the decision to halt implementation of the NIPOST courier license requirements.

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In a series of tweets, while addressing the controversial courier fee, Pantami stated, "Pls @NipostNgn, our attention has been drawn to an increase of license fee, which was not part of the regulation I earlier APPROVED for you. Your Chair and PMG were YESTERDAY contacted to put the implementation on hold and send a report to our ministry by Monday.

"The increase, is under investigation by my office, since yesterday. The Ministry and the Minister were not involved."

Pantami Against Fee Increase, Separate Regulatory/Service Work

In his response to the many questions directed at him on Twitter, Pantami said he doesn't support any increase in fee at this period, as the current economic challenges requires reduction in fee, not an increase, "Due to pandemic and economic hardship, I believe it is the right time to reduce, not to increase any tax or tariff."

Meanwhile, on the issue of NIPOST acting as a competitor and regulator, Pantami said both has been separated, "We have already approved the process of separating the Regulation from Service. The delay of implementation arises from the stages of following due process."