It’s no longer news that the postal reforms bill has reached 2nd reading at the National Assembly.
Reacting to the postal reforms bill, the Nigeria International Air Courier Association (NIACA) and Association of Nigerian Courier Operators (ANCO) have issued a joint statement distancing themselves from the bill which they say has not addressed their concerns as it does not capture their representation during the public hearings and meetings at different levels of government.
The joint press briefing by NIACA and ANCO which drew representation from international and national courier operators as well as the media was necessitated by the need for them to clearly declare their stand on the postal reforms bill currently being passed by the law makers.
They are appealing to the government to rethink the bill as they believe that such would compound the unending circle of problems already bedeviling the industry.
They complained about declining margins due to cost of doing business, poor infrastructure, cost of funds, FOREX rate, power and security among other challenges stifling the industry. Urging government to consider the peculiarity of the environment in discharging regulatory tactics.
Among the major gray areas in the bill are:
- Mandating courier operators to remit 2% of their annual turnover to the government. With declining margins and running cost, this law would definitely run courier operators out of business and lead to massive job loss within the industry. They further stated that operators are willing to work with best practice where 1% of net profit is remitted annually or the government can introduce 2% postal contribution which would be borne by consignor.
- Issues of exclusivity for NIPOST to handle consignments weighing upto 1kg. They urge the government put into consideration safe and efficient logistics as well as maintain a level playing field to allow for competition and not monopolize that aspect of the business.
- Licensing: They argued that it is unfair for government to cancel the licence of existing operators on the grounds of reform and urged government to consider recertification in order to keep them in business.
- Stamp duty: Considering the nature of their business could be voluminous. A digital approach would make compliance alot easier and a more efficient system.
NIACA and ANCO reiterated that the agitation to improve and better the industry has been a long standing battle and that as far as engaging government is concerned the associations have been very present and open to dialogue. Whereas they have written several letters and had countless meetings without much impact, they are hoping that the government can go back to the drawing board and embrace ideas that would encourage inclusion and favorable market conditions for all stakeholders.
