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Lack of Regulation Hobbling Courier Business-Uba
Okey Uba is the managing director, Ebony Express, a fast growing courier outfit in Nigeria and secretary general of the Association of Nigeria Courier Operators (ANCO).
Uba who holds Bachelor of Science in Political Science from the University of Nigeria Nsukka (UNN); possesses simple and gentle personality.
He has attended several courses in courier management and has worked at the Nigerian Postal Service (NIPOST) from where he resigned to establish Ebony Express.
He spoke to peter ugwu highlighting factors that have inhibited the development of the sector in Nigeria and other sundry issues. *
Courier Sector 2013
The whole events centered on how to make the industry grow. There are certain challenges we have in the industry, viz-a-viz the issue of regulation.
Courier is a very wide industry; unfortunately, it is yet to be fully harnessed in Nigeria. And like I would always say: you really need an enabling environment that will guarantee return on investment (ROI), proper operations and the likes, before you can tap into the industry.
The operators cannot make headway in an incoherent environment. For the indigenous (courier) companies, licencing and renewal fees pose very big challenge, because they are on the high side in comparism to other sectors.
Expectations from the Regulatory Bill
I think it boils down to the general view of the Government. It is not as if the operators do not crave for a Regulator or, as if the industry operates without a regulatory department (as in the CRD capacity), but the truth is that you cannot give someone some pieces of meat and deny him the teeth to chew them or the necessary “weapons” to fight the war against irregularities in the sector.
When you do that it appears like the person does not know what he is doing. Meanwhile, the officials at the Courier Regulatory Department (CRD) of NIPOST are worth their onus, but they lack the equipment to work, which starts with the provision of enabling laws.
As a matter of fact, it is portraying them as toothless bulldogs. It also affects courier operators, particularly the indigenous companies.
They are the most affected, because the international operators can source their inbounds from abroad, while the domestic operators are left with nothing.
Most times, when you want to play the game according to the rules, you are shortchanged. When you are in an environment where some operators do not give a damn over what the rules say, definitely, you will be shortchanged.
Having gone to school, garnered reputations and experience, there are some practices you wouldn’t ordinarily get involved in order to survive in a business. It makes the sincere ones to suffer unnecessarily.
However, whenever the Government is ready to legislate on this, they should not just start comparing the courier with the telecoms. In logistics or courier industry, the most important ingredients are integrity and honesty. Is not the matter of capital capacity; it plays a secondary role in that part. In logistics, you are carrying valuables on behalf of the customers or consignees from a place to the destination and that is on trust.
It behooves on the Regulatory body to determine who is or should be in this business; those who will not view it as a ground to engage in fraudulent activities.
To make the job easier for the Government, probably, when the Commission is finally established, they tend to turn it to a political piece-cake, the technocrats who would have been relegated to the background. Those currently at CRD should be made to manage the affairs of the Commission; with full regulatory backing. Then, they can bit and mediate between the operators and the Government. As it is now, there is a limit to which they can operate.
How to Reinvigorate the Bill
Actually, you cannot shave a man in his absence. Meanwhile, I haven’t joined the industry as a player when the Bill was articulated.
So, I wouldn’t know how far they have gone. But, there are indications that the contents are not bad.
However, there are things that must be put into consideration before the passage of the Bill. For instance, classification of courier companies in Nigeria. We do not expect all firms to posses the same operational strength.
Therefore, you cannot put a flat-rate licencing and renewal fees for them. Like I said earlier, integrity and truth are paramount in the industry, thus, capital base should not be the benchmark.
In fact, I do not see what is holding the Bill from its passage, if not that in Nigeria you must path-away with something before someone does the necessary thing; if it implies bringing it back for us to cross the T’s and dot the I’s, then let them revert it back; it wouldn’t take us time to do.
Nevertheless, there must be the willingness on the part of the Ministry to assist the industry.
Today, everybody is into logistics and courier. If you are moving along the road trucks are tumbled with the goods in them; nobody is talking about goods damage insurance, compensation for the consignees or the consignor; so, many people who are into this business do not even understand what Goods In Transit Courier (GIT) Insurance means.
Most of them do not understand what time frame means. To me, that is not right. Things have to be done right; if you are interested in courier business you have to abide by the principles.
ANCO’s Contribution in Tacking the Challenges
Yes, the Association of Nigeria Courier Operators (ANCO) has been trying on its part to champion the course for the development of the industry.
We have our monthly forum where we try to educate and inundate our members on new grounds in courier; we educate them on international partnership; how to employ genuine and sincere staff; on courier management in general.
But, no matter how you try, without government support you will not have so significant achievements.
For instance, when someone has done something wrong, he is caught and charged to court, and there is no enabling law to prosecute the culprit, all you have done is in vein. We have been trying so hard to build up and educate our members; that has led to increase in our membership over the years.
But we need an unbiased umpire to move the sector forward. This will enable the smaller companies to survive. If they reach out to us in ANCO, we are willing to add our inputs to the whole matters. In fact, courier and telecom are not supposed to be in the same Ministry. That is what we are advocating for; proper regulations.
Call for Mergers
First, we have heard comments like the internet revolution is a threat to the courier sector. But if you put that into perspectives, you will discover that these are mere sayings. Nigeria, for example became internet compliance just about a decade ago.
The developed world, Germany, UK, US and others have been internet compliant all along.
Till today logistics and courier are moving forward, gaining more grounds and recognitions in those countries.
So, it is a fallacy to say that internet will strangulate the courier sector. Our problem is the lack of regulation.
Secondly, when people are shouting for mergers and acquisitions, you don’t just talk about that.
The reasons are that you do not force people to merge. They do that when they perceive the benefits of the partnership and can work cordially.
There have been cases of friends coming together to set up a courier firm, but in a short while it led to several companies, because the motives are different
Banks are not like the courier. People are obliged to do businesses with the bank, but in courier, even companies now set up their in-house dispatch department.
When you put the laws in place, naturally, there will be mergers and acquisitions. Then, there will be an arbitrator to mediate on your matter when you are shortchanged.
Climate Action Africa (CAA), a leading advocate for climate resilience and sustainable development, has announced the opening of applications for the Deal Room at the 2024 Climate Action Africa Forum (CAAF24). The Deal Room is a groundbreaking platform that aims to connect high-impact climate innovators in Africa with potential investors seeking to accelerate sustainable solutions.
The CAAF Deal Room is a strategic initiative that aims to create opportunities for innovators in the climate-tech domain focusing on emission reduction, energy, agriculture, transportation, circular economy, and building and construction.
The goal of the Deal Room is to select finalists who will have the opportunity to pitch their innovative ideas and solutions at the upcoming 2024 Climate Action Africa Forum, which will be held on June 19th in Lagos, Nigeria.
The Deal Room aims to boost investments in Africa’s green economy by galvanising a community of innovators, entrepreneurs, and investors to create applicable solutions that can mitigate the challenges of climate change on the African continent.
The Deal Room session will facilitate financing for solutions contributing to the growth and sustainability of Africa’s green economy. These deals may encompass prize money, equity plans, debt financing, mergers and acquisitions, and other investment options.
“Through the CAAF24 Deal Room, we aim to bridge the critical gap between promising climate ventures and the essential resources they need to thrive,” says Grace Oluchi Mbah, Co-founder and Executive Director of Climate Action Africa (CAA). “By facilitating connections between passionate entrepreneurs and dedicated investors, we can collectively unlock the immense potential of climate solutions in Africa.”
The eligibility criteria for applying include:
● The company must be African-owned and operate in any of the 54 African countries.
● It must be a for-profit company, between 1-5 years post-incorporation, post-MVP (minimum viable product), and post-GTM (go-to-market).
● The company should leverage digital technology to deliver its business model.
● Female ownership is an added advantage.
Those eligible to apply include venture capitalists, impact investors, climate tech startups, Green SMEs (small and medium-sized enterprises), philanthropic organisations, and government representatives.
Following the CAAF24 deal-room will be a post-event accelerator in partnership with the Silicon Valley-based Founder Institute and IDEA Africa. This Africa-wide initiative is specifically designed to further accelerate and enhance support for promising Climate Tech startups and founders who participated in the Deal Room.
The official unveiling of this accelerator will take place at the Climate Action Africa Forum 2024 (CAAF24), marking a significant step forward in driving Climate Tech innovations throughout Africa.
Applications for the CAAF24 Deal Room are open from April 22nd until May 17th. Interested applicants can register at https://deal.caaf.africa/register.
The Lagos Chamber of Commerce and Industry (LCCI) has said that the government needs to simplify and harmonize trade procedures and address bottlenecks in order to boost economic growth in the country.
President of LCCI, Mr. Gabriel Idahosa, gave the charge at a Quarterly media briefing on the State of the Economy yesterday in Lagos.
He said that the government has to create an atmosphere that promotes export growth and competitiveness, which is projected to boost export earnings, raise domestic revenue, improve citizens’ welfare, and increase business productivity.
“We recommend that reforms must include simplifying and harmonizing trade procedures as well as addressing bottlenecks such as port logistics, congestion, and transportation costs. This is expected to position the country as the commercial centre of the region and a springboard into regional value chains,” he stated.
On managing the persistent high inflation, the LCCI president said both monetary and fiscal authorities should focus on the factors driving the inflation rates by tackling the supply-side deficiencies instead of focusing too much attention on the demand-side management.
“We urge the Central Bank of Nigeria (CBN) to continue with its foreign exchange (forex) market reforms with intense discipline, as the high exchange rate against the naira is a major driver of the skyrocketing inflation rates.”
Idahosa acknowledged the improvement in the naira exchange rate in the last few days, moving towards the level of N1000 per dollar or lower.
“CBN needs to sustain its policy and regulatory reforms in the FX market, adopt policies that would attract more FX inflow into the economy as well as build market confidence in the performance of the FX market,” he added.
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Dufil Takes Donation of Indomie Noodles Cartons to Vulnerable Communities in Abuja and Environ
In line with its commitment to provide critical support to indigent members of communities around the country in the face of the ongoing economic challenges, Dufil Prima Foods Limited, makers of Indomie Instant Noodles, in partnership with Golan Helps Abuja Food Bank Initiative (GHAFBI) and Meluibe Foundation on Wednesday, April 17 distributed Indomie noodles cartons to vulnerable communities in Kuje and Kubwa Local Government Areas in Abuja.
With the goal of alleviating hunger and supporting communities across Nigeria, Indomie Instant Noodles has committed to donating a substantial quantity of noodle packs to various NGOs working tirelessly to address food insecurity.
These organizations play a crucial role in reaching remote and underserved areas, ensuring that nutritious meals reach those who need them most.
“We are deeply committed to making a positive impact in the communities where we operate,” said Olusola Olayinka Idowu OON, former Permanent Secretary, Budget and National Planning, and the CEO/Founder of GHAFBI.
“At GHAFBI, we believe that everyone deserves access to wholesome and nourishing food. Our partnership with Dufil Prima Foods to donate Indomie Noodles packs is a big step towards addressing food insecurity and supporting vulnerable communities in Abuja”, said Idowu who was also the former National Conveyor, UN Food System Dialogues in Nigeria.
Speaking in the same vein, Obialunanma Nnaobi-Ayodele, Executive Director, The Meluibe Empowerment Foundation, expressed her gratitude to Indomie Noodles for the partnership. “Our vision as an NGO is to change the world one step at a time, by providing relief and support to vulnerable communities.
This is achieved through collaborations and partnerships, one of which is what we have done with Indomie Noodles. We remain grateful for their support through this food relief initiative”, she said.
By partnering with NGOs, Indomie Instant Noodles works closely with local leaders and community heads in directly engaging with rural communities to distribute noodle packs and provide immediate relief to families facing hunger and ensuring that food assistance reaches those who are most in need, especially in hard-to-reach areas.
“We are grateful for the opportunity to collaborate with NGOs and community leaders to make a meaningful difference in the lives of people facing food insecurity”, said Temitope Ashiwaju, Group Corporate Communications and Events Manager, Dufil Prima Foods Limited. “Together, we bring hope, love and relief for all”.
The community leaders and some of the beneficiaries also expressed their immense gratitude to Indomie for the support, stressing the impact the products donated will have in alleviating hunger in their communities.
Speaking at the outreach centre, His Royal Highness, Muhammed D. Jibril, Community Leader of Gbazango Community in Kubwa Local Government Area said: “I am very grateful to Indomie Noodles for coming to our aid in these challenging times. I pray for more expansion and growth for the business and may God bless Indomie Noodles”.
Other communities who benefited from the product donations include Wunmi, Tondo, Godoji and Shazhi communities in Kuje Area Council of Abuja.
Dufil Prima Food’s donation of Indomie Noodle packs underscores its commitment to corporate social responsibility and its dedication to supporting communities in need. By providing essential food relief, Dufil Prima Foods is contributing to the well-being and resilience of vulnerable populations in Nigeria.
Indomie Instant Noodles remains dedicated to bringing joy to mealtimes and making a positive impact in communities around the world.
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