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NIPOST goes hard on logistics firms in Africa's biggest market.

New NIPOST rates mean you will soon pay more for delivery | Pulse Nigeria

Jude Egbas

<h1>The Nigeria Postal Service (NIPOST) has increased the cost of licences for logistics and courier firms, meaning that you will soon pay more for delivery.&nbsp;</h1>

International courier services like DHL, UPS and FEDEX, are expected to pay N20 million for a new licence and N8 million annually, while those offering national services are expected to pay N10 million for a licence and N4 million annually for renewal, according to the new NIPOST directive.&nbsp;

Logistics companies operating within regions are expected to pay N5 million for licence and N2 million annually.

For firms operating within states, the cost of procuring a licence is N2 million while renewal costs N800,000.

Courier firms operating within municipalities are to pay N1 million for licence and N400,000 annually.

For Small and Medium Enterprises (SMEs), the licence is N250,000 while the annual renewal of the licence is N100,000.

The SME category is for small courier firms with no more than five delivery vehicles in their fleet.

The new rates, if implemented, will be passed to the consumer who depends on dispatch riders to deliver much needed groceries and documents as Nigeria gradually eases COVID-19 era restrictions.

Reports say law enforcement personnel have started seizing dispatch bikes of companies yet to comply with the new, steep rates.&nbsp;

“My manager called me to say we cannot do deliveries or pick up items. He said dispatch riders were being arrested and that we need to register with N250,000 per bike before we can do deliveries or operate. I wonder why the Nigerian government is bent on making small businesses suffer,” Punch quotes popular online trader, Tessy Olisademe as saying.

The move will also lead to a rise in the cost of online shopping in Africa’s largest economy.&nbsp;

Small and medium scale businesses in Nigeria have often complained about a difficult operating environment and unfavourable government policies that have killed thousands of startups.

The federal government recently<a href="https://www.pulse.ng/business/stamp-duty-what-is-this-rent-increase-everyones-talking-about-explainer/3t0bczy"> imposed stamp duties</a> on rent, bank transactions and POS machines.

NIPOST's newest move has left millions of Nigerians groaning about multiple taxation, as the government looks for new ways to generate revenue in the face of the crash in the price of crude oil.

Minister of Communications and Digital Economy, Dr. Isa Pantami delivering his inauguration speech (Presidency)

Honourable Minister of Communications and Digital Economy, Dr. Isa Pantami while delivering his inauguration speech.

Nigeria's Minister of Communications and Digital Economy, Isa Pantami, has asked NIPOST to put the implementation of the new fees on hold. "Please NIPOST, our attention has been drawn to an increase of licence 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. Best wishes!", Pantami tweeted.

The minister also said the increase is being investigated.

<div class="embed"><blockquote class="twitter-tweet">The increase, is under investigation by my office, since yesterday. The Ministry and the Minister were not involved. Many thanks and best wishes! <a href="https://t.co/fVGMfaMR0C">https://t.co/fVGMfaMR0C</a>&mdash; Prof. Isa Ali Ibrahim, CON (@ProfIsaPantami) <a href="https://twitter.com/ProfIsaPantami/status/1286951168896380929?ref_src=twsrc%5Etfw">July 25, 2020</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

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"The power of regulation of NIPOST lies with the minister. Any change of fee must be specific and be approved by him before implementation. I know the economic challenges of NIPOST. However, looking at the economic hardship of our citizens, we need to suspend any move."

NIPOST to begin operation of electronic money order in February.

New NIPOST rates mean you will soon pay more for delivery

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