The Small and Medium Enterprise Development Agency (SMEDAN) has partnered with the Nigerian Postal Service (NIPOST) to offer small and medium enterprises a 15 percent discount on logistics services.
SMEDAN Executive Director Charles Odii spoke at a signing ceremony for the Memorandum of Understanding (MoU) with NIPOST Postmaster General Tola Odeyemi on Wednesday in Abuja.
Odii said the partnership is in direct response to feedback from Small and Medium Enterprises (SMEs) on high logistics costs and the negative impact on sales.
“We are signing 15 percent today, maybe in another three months the postmaster can make it 50 percent or review it better,” Odii said.
“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.”
Odii said the discount offer will be effective from August 26 and will be available to SMEDAN registered SMEs in two ways: online and in-person pickup.
The Director-General further noted that feedback received by the agency through its engagement with SMEs shows that in some cases, delivery costs exceed the price of the goods.
Odii said this discourages SMEs in neighbouring areas from doing business and limits their business opportunities.
He said the partnership will leverage NIPOST’s national footprint and infrastructure, as well as ongoing reform and modernization efforts under the leadership of the agency’s Postmaster General.
Odii called on SME owners to register with the agency to benefit from SMEDAN collaboration and other initiatives.
“MSMEs are the backbone of the economy”
Odeyemi said the partnership was long overdue and would contribute to achieving inclusive economic growth.
He acknowledged that MSMEs, which account for over 90% of businesses in the country and contribute half of the gross domestic product, form the backbone of the economy.
“So, we are here to partner with you (SMEDAN), 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,” Odeyemi said.
“Any MSME that is registered with SMEDAN gets access to a 15 percent discount, and it runs as long as Nigeria runs.
“Although discount might not look much, you have to realize that NIPOST prices are already socially oriented.”
The Postmaster General also said that under the partnership, both agencies will utilize their branches and offices across the country to initiate, process, and expedite deliveries. This will enable MSMEs to transport goods to remote areas of the country in an efficient, timely, and cost-effective manner, she added.
Odeyemi said the agency would also provide immediate assistance to MSMEs to enable them focus on growing their businesses without logistical hurdles.
