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| Mr. Muda Yusuf, Director General LCCI |
The Lagos Chamber of Commerce and Industry
has urged the National Assembly to halt the progression of the Nigeria Postal
Commission Bill currently before it.
has urged the National Assembly to halt the progression of the Nigeria Postal
Commission Bill currently before it.
Muda Yusuf, the Director-General of LCCI, in
a statement in Lagos on Sunday, said that the bill, if passed, might jeopardise
about N300 billion investments in courier services business and could lead to loss of 100,000 jobs.
a statement in Lagos on Sunday, said that the bill, if passed, might jeopardise
about N300 billion investments in courier services business and could lead to loss of 100,000 jobs.
Yusuf said: “The passage of the bill in its
current form will put over 100,000 jobs in the courier sector at risk and will
as well put over N300 billion investments in courier services business in
jeopardy.
current form will put over 100,000 jobs in the courier sector at risk and will
as well put over N300 billion investments in courier services business in
jeopardy.
“This would further worsen the risk rating of
Nigeria and the country is already grappling with enormous perception problems
by investors.”
Nigeria and the country is already grappling with enormous perception problems
by investors.”
Yusuf said the bill was a negation of the
Ease of Doing Business agenda and the fundamental principles of the Economic
Recovery and Growth Plan of the Federal Government.
Ease of Doing Business agenda and the fundamental principles of the Economic
Recovery and Growth Plan of the Federal Government.
He said: “Regrettably, the bill has been
passed by the Senate, awaiting concurrence by the House of Representatives. We
appeal that the progression of the bill be halted and the hurtful provisions
expunged.”
passed by the Senate, awaiting concurrence by the House of Representatives. We
appeal that the progression of the bill be halted and the hurtful provisions
expunged.”
According to him, the chamber is worried
about the provision of imposition of an annual levy of 2.5 per cent on the
turnover of courier companies to be paid to the proposed Postal Services
Commission.
about the provision of imposition of an annual levy of 2.5 per cent on the
turnover of courier companies to be paid to the proposed Postal Services
Commission.
He said: “This will impose considerable
burden on courier companies and it is outrageous, having regard to the numerous
taxes and levies already being paid by the courier companies.
burden on courier companies and it is outrageous, having regard to the numerous
taxes and levies already being paid by the courier companies.
“These include the company tax of 30 per
cent, VAT, education tax, airport charges, FAAN charges, several taxes imposed
by the states, local government charges and signage fees of various states.”
cent, VAT, education tax, airport charges, FAAN charges, several taxes imposed
by the states, local government charges and signage fees of various states.”
Yusuf also expressed concern over the power
conferred on the proposed postal services commission to fix rates for courier
services.
conferred on the proposed postal services commission to fix rates for courier
services.
The director-general further expressed
worries over the monopoly privilege conferred on the Nigerian Postal Service
for delivery of items weighing 1 kilogram and below.
worries over the monopoly privilege conferred on the Nigerian Postal Service
for delivery of items weighing 1 kilogram and below.
He said: “This would amount to an over
regulation which should not happen. Courier service is not a social service.
regulation which should not happen. Courier service is not a social service.
“It is a business which should allow for each
player to design its business model for survival and sustainability.
player to design its business model for survival and sustainability.
“The best way to protect consumers is to
ensure a virile competitive environment among service providers, not by fixing
rates.”
ensure a virile competitive environment among service providers, not by fixing
rates.”
The LCCI boss said that rate fixing for
courier companies was not only counterproductive but would stifle investment in
the sector and give very adverse signals to potential investors in the economy.
courier companies was not only counterproductive but would stifle investment in
the sector and give very adverse signals to potential investors in the economy.
According to him, monopoly story of the
defunct NITEL is instructive and dictates that such a legislation that seeks to
confer monopoly privilege should not see the light of day.
defunct NITEL is instructive and dictates that such a legislation that seeks to
confer monopoly privilege should not see the light of day.
He noted that no sector of the economy was
subjected to such an arduous regulatory provision and requested that the bill
be urgently reviewed in the interest of economic progress and citizen’s
welfare.
subjected to such an arduous regulatory provision and requested that the bill
be urgently reviewed in the interest of economic progress and citizen’s
welfare.
News Agency of Nigeria
