Government Increased Licensing Processes and Fees for Logistics Company

The introduction of increased licensing processes and fees for logistic companies is no doubt stifling. 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.

Given the failed efforts of government attempt in creating her state-own logistics and courier services in the past (in the case of NIPOST) just as all other government-run establishments. One should think that effort by budding and upcoming indigenous investors should be encouraged.

But the introduced license fees is a far cry from that. However, this fees as shown above will undoubtedly constitute a sunk cost that will create an impenetrable barrier to new entrants into the courier and logistic industry in Nigeria. Thus, encouraging an already existing army of crony-monopolists to take the rein of these sector, whilst increasing the cost of logistics and courier services in the country.

It’s therefore recommended that regulatory authorities put a stop to these fees and streamline processes to encourage a more competitive courier and logistic industry in Nigeria

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