LCCI: Nigerian Postal Bill will Endanger Private Investments

LCCI: Nigerian Postal Bill will Endanger Private Investments

Dike Onwuamaeze

The Lagos Chamber of Commerce and Industry (LCCI) has warned that the Nigerian Postal Services Bill 2021 as passed by the Senate is replete with provisions that would be detrimental to private sector investments in the courier industry.

President of the LCCI, Mrs. Toki Mabogunje, during the Chamber’s, “Address on the State of the Economy,” yesterday in Lagos, described the provisions of the bill as an impediment to sustainable investment in the courier industry.

The chamber’s concerns about the bill included the requirement in Section 68 (2) (b) that licensed private courier operators should contribute two per cent of their annual turnover to the Universal Postal Service fund.

She said: “We have taken a critical look at the bill and we are seriously concerned about several provisions of the bill. The bill as passed by the Nigerian Senate is replete with provisions that are detrimental to private sector investment in the courier industry.

“This provision is most unfair to courier companies, many of which are struggling to survive. Turnover would include companies’ debts (some of which the courier companies may not be able to collect).

“Besides, these companies currently pay numerous taxes, which include Company Income Tax, VAT and levies by various states of the federation, the Federal Airports Authority of Nigeria (FAAN) and airport charges, throughput charges by the FAAN pension funds and the NSITF, the NHF, local government charges, signage fees of various states, etc.).

“The industry is currently beset with a variety of taxes at national and sub-national levels.”

Mabogunje also expressed the LCCI’s discomfort with the exclusive powers granted to the Public Postal Operator (PPO) in Section 10 (1) (a), (b), (h), (j) and (r) of the bill for “collecting, accepting, processing, conveying and delivering postal articles weighing up to one kilogramme and delivering postal articles with the tariff of less than five times the rate of postage applicable to the particular weight class.”

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