Nigerian logistics companies face additional challenges as a result of the new NIPOST regulations
Nigerian logistics companies face additional challenges as a result of the new NIPOST regulations
Dr Isa Pantami, Nigeria's Minister of Communications and Digital Economy, has approved new postal regulations for the country (NIPOST).
This follows a stakeholders meeting chaired by Pantami on Thursday, March 11, 2021, to discuss NIPOST's new rulemaking process and regulations, as disclosed in a press release dated Tuesday, May 18, 2021 by Femi Adeluyi, Technical Assistant to the minister.
Pantami asserts that these new regulations will establish NIPOST as a key player in the digital economy, consistent with the National Digital Economy Policy and Strategy for a Digital Nigeria.
The specifics of these regulations are unknown at the moment. What we do have are the titles of these regulations, one of which may sound familiar: Courier and Logistics Services (Operations) Regulation.
Recall that in July 2020, there was a massive outcry in the Nigerian logistics community against the same-named NIPOST regulation.
The regulation proposed an increase in licensing fees for all companies operating in the Nigerian logistics sector, as well as a mandatory remittance of 2% of annual revenue.
Additionally, it established a SME license for municipal operators with fewer than five bikes operating within a state. We highlighted several other interesting provisions in the regulation in an article written by our reporter, Emmanuel Paul.
Numerous demonstrations took place, and the hashtag –#SayNoToNipostFee– trended on social media. Pantami eventually suspended the regulation imposing the fee increase.
NIPOST's dual role as regulator and player, a seemingly counterintuitive role, adds intrigue to these new directives. Perhaps this is why the second regulation, the NIPOST Rulemaking Process Regulation, was enacted.
As stated in the press release, this regulation aims to establish an inclusive, stakeholder-driven process that capitalizes on Nigeria's diversity in order to make efficient and value-adding decisions that foster the sector's sustainable growth.
What does this mean for the logistics community in Nigeria? Will all necessary parties be adequately represented in this rule-making process? How much transparency can we reasonably anticipate?
Indeed, the government's actions would provide instructive responses to these questions.
Repealing the NIPOST Act
Currently, the National Assembly (NASS) is considering plans to unbundle NIPOST through a bill sponsored by Senator Oluremi Tinubu.
The bill is titled "An Act repealing the Nigerian Postal Service Act CAPN 127 LFN 2004 and establishing the Nigeria Postal Commission to make comprehensive provisions for the development and regulation of postal services and other related matters."
Apart from repealing the NIPOST Act and establishing the Nigerian Postal Commission, if passed, the bill will implement the National Postal Policy and create a regulatory framework for the Nigerian postal industry.
This is supposed to result in the establishment of an effective, impartial, and independent regulatory authority and the promotion of a modern, universal, efficient, reliable, affordable, and easily accessible postal service with the broadest range and coverage across Nigeria. Reports to the leadership
While this appears feasible and may likely address concerns about NIPOST's impartiality, the bill's enactment date is unknown.
What remains are two recently enacted regulations and scant information. One bears the name of an expired regulation, while the other appears to be an attempt at inclusivity.
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