LCCI on the need to save Nigeria’s courier operators from stifling regulations

The Lagos Chamber of Commerce and Industry (LCCI) is advocating for the Nigerian government to address the stifling regulatory environment that is hampering the growth of the courier industry in the country. In a recent interview with CNBC Africa, Muda Yusuf, the Director-General of LCCI, highlighted the challenges faced by the industry due to the current regulatory framework, particularly the role of the Nigerian Postal Service (NIPOST) as both the regulator and operator. Yusuf emphasized the need for an independent regulatory institution to oversee all operators, including NIPOST, in order to ensure a fair and competitive environment for businesses in the sector. Yusuf expressed concerns about the current regulatory setup where an operator like NIPOST is also responsible for regulating its competitors, creating a conflict of interest and hindering fair competition. He stressed that such a practice is not in line with international best practices in regulation and undermines the growth and development of the courier industry. One major point of contention highlighted by Yusuf is the requirement imposed by NIPOST for courier companies to contribute 2% of their annual revenue to a postal fund, regardless of profit levels. This additional financial burden, coupled with existing taxes and regulations, poses challenges for businesses operating in the sector. Furthermore, NIPOST's directive that parcels under 5 kg must be exclusively reserved for their services has been criticized for creating a monopolistic hold over a segment of the courier market. The LCCI is calling on the government, including the Minister of Communications, the President, and the National Assembly, to intervene and address the regulatory inconsistencies that are impeding the ease of doing business in the courier industry. Yusuf emphasized the importance of establishing a regulatory regime that is transparent, equitable, and supportive of business growth. In response to criticisms that NIPOST's regulations are a bid to stay relevant in a rapidly evolving industry, Yusuf suggested that NIPOST should review its business model to enhance competitiveness. However, he stressed that there must be a level playing field for all industry players and that businesses should not be subjected to arbitrary regulations that hinder their operations. Yusuf pointed out that while NIPOST plays a vital role, it should not be immune to market forces and should strive to compete sustainably. The LCCI reiterated the need for a regulatory framework that promotes fair competition and innovation in the courier industry. By addressing the existing regulatory challenges and creating an environment that supports growth and development, the Nigerian government can help unlock the full potential of the courier sector and drive economic impact across the country.