BREAKING: Minister Halts NIPOST’s Courier Services License Fee Hike

The minister of communication and digital economy, Isa Pantami, has announced the Federal Government suspension of the recent increment of license fee for courier services by the Nigerian Postal Service, NIPOST.

The minister made the disclosure via his tweet handle on Saturday, insisting that the increase was not part of the regulation he approved for the agency on Friday, July 24.

“Our attention has been drawn to an increase of licence fee, which was not part of the regulation I earlier approved for you,” he stated.

He, however, said that the NIPOST chairman and Post Master General “were yesterday (Friday) contacted to put the implementation on hold and send a report to our ministry by Monday.”

BIGPEN reports the NIPOST’s proposed increase, has been generating outrage in the country particularly on the social media where many have called for its outright cancellation.

The new charges introduced by NIPOST are expected to cause an increase in the cost of courier services and delivery of goods.

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According to NIPOST, companies which provide international courier services like DHL, UPS and FEDEX, are expected to pay N20m for a new licence and N8m annually while those who offer national services are expected to pay N10m for licence and N4m yearly for renewal.

Earlier, BIGPEN recalls Nigeria Postal Service had on Tuesday via its twitter handle disclosed that the Minister had approved reviewed courier and logistics regulations.

“The honourable Minister of Communications and Digital Economy Dr. Isa Ali Ibrahim Pantami, has approved a new Courier and Logistics Regulations in accordance with the powers conferred on him by NIPOST Act.

“This is timely and coming on the heels of an upsurge of Small and Medium Players in the Courier and Logistics ecosystem. Hitherto, courier business was for big players. Provision was not made for MSMEs.

“The approval of the reviewed Regulations has now accommodated all types of emerging enterprises in the logistics landscape and will provide a regulatory framework for licensing and the provision of effective and efficient services.

“The essence of regulating the sub sector is to sanitise the industry and ensure the security and safety of customers items. It is a consumer protection mechanism that will make sure licensed companies deliver qualitative service. It is also meant to allow and assist the small players participate and grow.

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“The scope of the Reviewed Courier and Logistics Regulations includes amongst other things how to apply, licensing procedures and requirements, conditions for operation, charges and enforcement”, they said in a statement.

But Pantami, following the backlash which the new regulation had generated, said that his office and the ministry had initiated investigation into the fee increment.

According to him, preliminary investigation showed that the Management of NIPOST felt, it was within its power to increase fees without his final approval.

In a reply to queries by the Minister, NIPOST had claimed: “the issues of fees, penalties and day to day administration are devolved in Section 6 (3) on NIPOST.”

But, in his response, Pantami disclosed that the power of regulation of NIPOST lies with the Minister stressing “the Regulation approved doesn’t include the increase in licence fees they did”.

“Any change of fee must be specific and be approved by me before implementation, he insisted, adding, “I know the economic challenges of NIPOST. However, looking at the economic hardship of our citizens, we need to suspend any move”, he reiterated.

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Below is the infographic of the new regulations.