Stakeholders Pick Holes in Nigerian Postal Commission Bill, Identify Anti-competitive Clauses that Negate Business Growth

The Association of Nigerian Courier Operators (ANCO), has faulted the Nigerian Postal Commission Bill, which has passed three readings at the National Assembly and awaiting harmonisation and assenting into law by President Muhammadu Buhari.

The courier stakeholders raised concerns over Article 68(2)(b), which stipulates 2 per cent contribution to the commission’s fund by all courier operators, from their annual turnover, as part of their annual dues.

They also identified Article 10(1)(a) of the bill, which gives exclusive powers to the Public Postal Operator (PPO) that is owned by government and managed by the Nigerian Postal Service (NIPOST), to collect, accept, process, convey and deliver postal articles weighing up to 1kg.

According to them, the identified articles in the bill, were anti-competitive that could negate courier and e-commerce growth in Nigeria.

Reacting to the bill, the stakeholders expressed their worries about the exclusive powers given to the courier operator that is managed by government. They were also worried about the two per cent compulsory contribution to the Nigerian Postal Commission fund. They were of the view that the exclusive rights for PPO like EMS SpeedPost that is controlled by government, would amount to anti-competition that would negate the growth of courier business in Nigeria.

The private courier operators called on members of the National Assembly to revisit Articles 10(1)(a) and 68(2)(b) of the bill and amend same, before harmonisation and assenting into law.

Policy Consultant to ANCO, Dr. Chukwuemeka Ujam, said the bill, if passed into law without amending Articles 10(1)(a) and 68(2)(b), would ground private courier business in Nigeria.

According to Ujam, “Article 68(2)(b) requires licensees to contribute 2.0 per cent of their turnover to the commission’s fund. This is not a fair method of levy, as courier companies’ revenue encompass debts, several other taxes and levies by various states of the federation, like the Federal Airports Authority of Nigeria (FAAN) and airport charges.

“The industry is currently beset with a variety of taxes at national and sub-national levels, some of which include statutory company income

tax, VAT, WHT, FAAN/ SAHCOL/NAHCO charges at the airport, annual license renewal with the Courier and Logistics Regulatory Department of NIPOST (CLRD), LASAA signage levies, mobile adverts and similar charges in other states of the federation all of which are