In a bid to improve business conditions and reduce operational costs for Small and Medium Enterprises (SMEs) in Nigeria, the Federal Government, through the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), is offering a 15% discount on logistics services. This initiative, in collaboration with the Nigerian Postal Service (NIPOST), aims to cut transportation expenses for small businesses, enhancing their ability to expand sales and thrive in the market. The discount program is set to commence on August 26.
The Director-General of SMEDAN, Mr. Charles Odii, announced the partnership during a Memorandum of Understanding (MoU) signing with NIPOST’s Postmaster General, Mrs. Tola Odeyemi, on Wednesday in Abuja. Odii highlighted that the collaboration addresses feedback from SMEs regarding high logistics costs, which have negatively impacted sales and profitability.
“We are signing today an offer of a 15% discount on logistics for small businesses, and maybe in another three months, the postmaster can make it 50% or review it better,” said Odii. “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.”
The discount will be available to SMEs registered with SMEDAN and can be accessed through online pickups and walk-ins. Feedback from SMEs indicated that delivery costs often exceeded the cost of items, limiting commercial opportunities. The partnership will leverage NIPOST’s extensive national presence and infrastructure, supported by ongoing reform and modernization efforts under Odeyemi’s leadership.
Tola Odeyemi, the Postmaster General, emphasized the importance of the partnership for inclusive economic growth, noting that MSMEs represent over 90% of businesses in Nigeria and contribute significantly to the GDP. “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,” she stated. “Although a 15% discount might not look much, you have to realize that NIPOST prices are already socially oriented.”
Through this partnership, both SMEDAN and NIPOST will utilize their offices and stations nationwide to facilitate efficient, timely, and affordable delivery services, allowing small businesses to reach remote areas of the country. A dedicated customer support unit will be established to ensure a seamless experience for SMEs, addressing any logistical issues that may arise and enabling businesses to focus on growth without hurdles.
