MSMEs: FG offers 15% logistics services discount
… response to feedback from SMEs regarding the high cost of logistics and its negative impact on sales.
As part of efforts to improve business conditions, expand sales, and lower operational costs for Small and Medium Enterprises in Nigeria, the Federal Government through the Small and Medium Enterprises Development Agency has offered a 15 per cent discount on logistics to help small businesses cut their transportation expenses.
This initiative, in partnership with the Nigerian Postal Service, aims to enhance business conditions, boost sales, and reduce operational costs and will commence on August 26.
The Director-General of SMEDAN, Mr Charles Odii, said this while signing a Memorandum of Understanding with the Postmaster General of NIPOST, Mrs Tola Odeyemi, on Wednesday in Abuja.
Odii described the collaboration as a direct response to feedback from SMEs regarding the high cost of logistics and its negative impact on sales.
High transport costs severely impact MSMEs in Nigeria by escalating their operational expenses, which diminishes profitability and can limit their competitiveness in the market.
He said, “We are signing today an offer of 15 per cent discount on logistics for small businesses and maybe in another three months the postmaster can make it 50 per cent or review it better.
“This is the best time for this partnership, and in another three months, we are hoping that we can come back here and review what we have done.
“We will articulate clearly how much we helped small businesses in Nigeria save through our monitoring and evaluation department, and then we can continue to see how we can better this partnership.
He added that, “The discount offer will commence on Monday, August 26, and will be available to SMEs registered with SMEDAN in two ways: online pickups and walk-ins,” Odii said.
According to him, the feedback received by the agency through its engagements with SMEs revealed that in some cases, the cost of delivery exceeds the cost of items, discouraging sales and limiting commercial opportunities for SMEs in their immediate environment.
The partnership will leverage NIPOST’s national presence and infrastructure, as well as its ongoing reform and modernization efforts under the leadership of Tola Odeyemi, the Postmaster General and CEO of the agency.
On her part, the Postmaster General, Tola Odeyemi, said the partnership was long overdue and would contribute to the achievement of inclusive economic growth, considering that MSMEs, which represent over 90 per cent of businesses in the country and contribute half of the GDP, serve as the backbone of the economy.
Through this partnership, both agencies will utilise their offices and stations nationwide to initiate, process, and fast-track deliveries, ensuring that small businesses can move goods to remote parts of the country efficiently, timely, and affordably.
“So, we are here to partner with you, to partner with your mandates for small and medium enterprises in Nigeria to come on board our platform, as it is a platform for inclusive economic growth.
“I know that this partnership is one for the ages, one that will spur Nigeria’s economic growth. Any MSME that is registered with SMEDAN gets access to a 15 per cent discount, and it runs as long as Nigeria runs.
“Although a 15 per cent discount might not look much, you have to realise that NIPOST prices are already socially oriented,” she said.
The postmaster said that through the partnership, both agencies would utilise their offices and stations nationwide to initiate, process, and fast-track deliveries.
“It will ensure that small businesses can move goods to remote parts of the country efficiently, timely, and affordably.
“To ensure a seamless and positive experience for SMEs, both agencies will maintain a dedicated customer support unit to respond to complaints and address any issues that may arise.
“This unit will provide prompt assistance, ensuring that SMEs can focus on growing their businesses without logistical hurdles.”
