Why NIPOST regulatory reforms remain imperative in Nigeria’s logistics & courier industry?
By Ariemu Ogaga
Globally, the logistics and courier industry has experienced a lot of changes in the past few years, ranging from revolutionary change in new technologies to changing economic climates that have greatly impacted the way carriers do business.
The current state of logistics in Nigeria is still emerging and has a long way to go to match up to its global counterparts. In Nigeria, the sector is highly fragmented and still poised with some challenges such as poor infrastructure, inadequate IT infrastructure, and lack of industry readiness.
Not until July 2020, a seemingly lack of actionable regulation and ‘political will’ were topmost contributory factors that hindered growth in the sector. However, following a clear understanding that the sector might not reach its potential without having a regulatory framework in place, the Minister of Communications and the Digital Economy, Prof Isa Pantami with the assistance of Postmaster General of Nigeria/CEO in their wisdom and in accordance with Section 62 of the Nigerian Postal Services (NIPOST) Act 2004, approved new guidelines for the regulation of the Courier and Logistics sector in Nigeria.
The regulations apply to licensed Courier and Logistics service operators as well as companies seeking a license to operate Courier and/or Logistics services in Nigeria. But like many other government interventions, the policy has faced unwarranted condemnation by self-aggrandised non-state actors and businesses saying its implementation would rather portend hardship.
The agency explained that the regulations were not planned to frustrate ease of doing business rather they aim to promote the growth of Small and Medium Scale Enterprises.
It also said the minister gave the new regulations “serious considerations” before the new charges were arrived at, adding that genuine and serious operators would come back to celebrate this move by the NIPOST.
In all of these, the pertinent question to ask is, should the courier and logistic sector in Nigeria be regulated or not? The answer is simple. Although, many sectors of the business world have always complained about government regulation, and often denounce government rules as irrational impediments to profits, economic efficiency, and job creation, the fact is an unregulated business environment leaves room for consumer exploitation, and irrational abuse of due processes.
The point of regulation is not moot. The level of insecurity has made it necessary to identify players in the industry and to guard against the transfer of illegal shipment. The law would also ensure the boost of contractual trust in the sector.
NIPOST in its defense had consistently argued with a consumer-centred conscience that the new regulations were aimed at protecting genuine courier and logistics operators.
Indeed, there are good reasons for effective regulation. In pursuit of profit, many logistic companies have damaged the environment, abused labour laws, and even defrauded consumers.
Furthermore, some rules, just like the new regulations for courier services are essential for civilised competitive businesses to flourish. The truth is, only a few legitimate firms wish to engage in illegal activities which might in the long run damage their image.
For instance, months back operatives of the National Drug Law Enforcement Agency (NDLEA), arrested scores of dispatch riders for drug trafficking. One of those arrested was a motorcycle, belonging to a courier company, Sky Port, which was abandoned by a dispatch rider in Wuse Zone 4 upon sighting NDLEA’s outpost in the area. The motorcycle was later found to contain several pinches of crack cocaine, called ‘challie’ and some envelopes of Arizona marijuana meant for delivery.
Another online drug trafficker, Peter Nkejika, was arrested, following the arrest of a dispatch rider with some quantity of ‘loud,’ a highly psychoactive variant of cannabis. In all, five dispatch riders were arrested while six dispatch motorcycles involved in the distribution were seized.
The above is a major reason why the logistic and courier sector needs government regulation. Many of these suspects are sometimes falsely disguised as delivery drivers, while at other times, legitimate courier companies drivers knowingly and willingly deliver drugs on behalf of criminalorganizations for financial gain.
Government regulations are to ensure a responsible business environment. This usually happens in two ways, like what NIPOST is trying to achieve. The agency is a friend to both business owners and the public. While providing advisory, and other services to the business owner. The agency is also mandated to create and enforce consumer protection, worker-safety, and other laws. This happens all over the world and Nigeria should not be an exception.
