LCCI sees 2% contribution to Postal Fund squeezing logistics industry

4 days ago 28
LCCI sees 2% contribution to Postal Fund squeezing logistics industry

The Lagos Chamber of Commerce and Industry (LCCI) says asking courier and logistics firms to contribute 2 percent of their annual revenue to the Postal Fund will cripple the industry, especially small and medium players in the space.

The chamber is reacting to the provisions in Courier Regulations which mandate logistics and courier firms to contribute 2 percent of revenue to postal development, and postal services in rural and underserved areas.

The LCCI says in a statement on Sunday that the provision will put too much burden on courier and logistics businesses and make them unsustainable.

“These businesses are already grappling with a multitude of taxes and levies in the course of their daily operations.  We request that this provision be expunged immediately in the interest of investments and investors in the courier and logistics sector of the Nigeria economy,” the statement signed by Muda Yusuf, director-general, LCCI, says.

NIPOST had earlier ordered international courier services to pay N20 million for new licenses and N8 million annually while those offering national services were expected to pay N10m for license and N4 million yearly for renewal. But Isa Pantami, Minister of Communications and Digital Economy had reversed than on public outcry.

The LCCI explains that a 2 percent contribution to Postal Fund will undermine the confidence of investors in the courier and logistics business and should be immediately be repealed.

It further says that it is a negation of the efforts of the federal government to attract investment, create jobs, and grow the economy.

The chamber also criticizes a provision in the Regulations which stipulates that “All courier items/articles such as Right Issues, Shares Certificates, Statement of Accounts, Cheques, Letters or Offer documents, etc weighing below 0.5kg brought to a Courier/Logistics service operator shall be recorded and referred to the nearest Post Office of the Nigerian Postal Service for processing and delivery. Failure to do so will attract payment to Nigerian Postal Service of a penalty of 90 percent of the amount charged on the item by the erring operator.”

The LCCI says that Nigerians should not be compelled to patronise NIPOST against their will, stressing that it is an infringement on the rights of citizens and in conflict with the principle of fairness.

The Lagos Chamber urges the Pantami and the Federal Government to take urgent steps to clean up these regulations in the interest of the Nigerian economy, business continuity, private sector development, and job creation.

“There is a need to save the courier industry from a stifling and suffocating regulatory regime,” the chamber further says.

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