At different fora, postal service including the courier has been hailed as capable of delivering return on investment if well structured and managed.
However, there are divergent views on the issue of deregulating the sector to make it a money spinner. Some opinion leaders in the industry argue that why telecommunications and postal service are within government control is that the two sectors are sensitive to the security and economy of any nation and therefore should be left in the hands of the government to pull the strings of control. This school of thought also says that the sector should not be totally deregulated.
On the other hand, it has been stressed by the other school of thought on the need to liberalize the sector to make players in the industry reap the bounty potentials of the sector.
They posit that regulation in the postal sector is needed to ensure viable competition to correct market failures and protect consumers’ and investors’ interest even as they picked holes in the present arrangement where the Courier Regulatory Department (CRD) , an organ of NIPOST that is also a player in the industry, is meant to call the shots in the industry. They likened the scenario to a player officiating in a match where he is also an active participant. No doubt, they believe, the impartial disposition of the official will also be called to question.
What is therefore needed in this direction is for government to make a bold step and ratify the document that is supposedly now in the domain of the National Assembly and name an independent regulator for the industry to kick-start the much awaited competition in the arena since postal stakeholders have generally argued that competition is a healthy development in any industry. Further delay in giving accent to the postal commission document is injurious to national development as the postal sector has contributed immensely to national economic growth, generating revenue in several billions of naira as well as creating employment opportunities for thousands of Nigerians even in the present arrangement in where the CRD is still part of the NIPOST, also a player in the industry.
Without overflogging the issue, postal operators have also cried out loud on the harsh and difficult environment under which they do business. The environment, they complained is not conducive to the postal business in particular and other businesses in general.
Transport for instance, is an integral part of daily subsistence, economic and social activities in any country. The sorry state of much of the Nigerian roads and networks is holding the postal sector back and preventing it from competing adequately in the global market.
Courier is a perishable product that is time sensitive, anything that subtracts timeliness of delivery has therefore removed the essence of courier.
However, with the poor state of our roads including the so called express roads that are characterized with pot holes culminating in traffic bottlenecks most of the times, timely delivery of mails and logistics therefore suffer a great deal.
For government to solve this problem, it needs to enunciate a well defined and effective transport policy in addition to putting the roads in good motorable condition as well as expand the road networks in the country. This will ease transportation problem as the human and vehicular population continue to be in the upswing leading to strains on the roads. A well defined and effective transport policy must be an integral part of any the country’s overall poverty reduction strategy.
Stakeholders have also cried over the state of energy sector in Nigeria saying that the lack of it has increased cost of operation for the postal sector as most companies fall back on generating sets with the attendant cost of purchasing fuel and diesel. Most postal companies make use of Information and Communication and Technology (ICT) tools and these equipment need energy to function. The effect of this is that the cost expended on diesel and fuel needed in day –to- day running of the business is spread across the services rendered by the postal companies. The customer bears the brunt.
There’s also the issue of harassing of courier vehicles and motor- cycles by government agencies including the local government officials. Operators have also complained of extortion at the airports by the police, customs, NDLEA and other security operatives.
Such practices are far from international practices and Olushola Pearce, managing director, DHL Regional Services in his presentation during a courier event sometime ago highlighted the importance of inculcating international best practices into the postal sector arguing that until such is done, the sector will continue to suffer setbacks which will not benefit the nation, operators or the economy. He therefore urged for urgent steps to be taken by the government to put things in the right perspective.
Few connecting local flights at the Nigerian airports is also a problem for postal operators as such planes cover major cities where there are heightened business activities. The implication is delay in consignments getting to their various destinations on time.
The federal government should investigate these and other issues not mentioned here adequately enough with a view to addressing them squarely. Above all,
it should hasten up to appoint the independent commission that will regulate the postal sector. The time to act is now.
