NIPOST, the managers of our good old “Post Office” recently released a memo that might change how delivery businesses run. The memo list new license fees that logistic companies must pay in order to run their businesses legally.
The Nigeria Postal Service (NIPOST) is a unit under the Federal Ministry of Communication and Digital Economy. NIPOST has offices in almost every city in the country and is where locals usually go to send mail and receive parcels.
According to the memo, international courier services like DHL, FEDEX and UPS are required to pay a fee of 20m Naira for a new license and 8m annually for renewal. The next category (Logistics with the country), are required to pay 10m Naira and 4m Naira for annual renewal. For regional delivery, companies will pay 5m Naira and 2m Naira for renewal. NIPOST listed 6 categories of courier and logistics companies. Below is an image of the memo gotten from the internet.
Many Nigerians on social media reacted to the new regulation. People are talking about the potential effect it has on Small Logistic Businesses (SME). NIPOST tag these small delivery businesses as Special SME and they are expected to pay 250,000 Naira for a new license and 100,000 for annual renewal.
With the birth of online shopping, the need for delivery services is on the rise. New small businesses and start-ups are innovating the delivery space and helping buyers and sellers connect in a new way. The new fee might not make life easy for small businesses starting with limited resources. 250,000 Naira might a huge price for someone with a dream and the passion to innovate logistics in Nigeria.
Earlier this year, a move by the Lagos state government to ban motorcycle taxi (Okada) meant a total U-turn for startups running motorcycle taxi. Companies like Gokada, Opay and Max had their own apps that connect Okada riders with passengers.