{"id":439701,"date":"2011-06-12T00:00:00","date_gmt":"2011-06-12T00:00:00","guid":{"rendered":"http:\/\/www.ghanamma.net\/2011\/06\/12\/why-nipost-cannot-continue-to-regulate-courier-services-by-adeoye\/"},"modified":"2011-06-12T00:00:00","modified_gmt":"2011-06-12T00:00:00","slug":"why-nipost-cannot-continue-to-regulate-courier-services-by-adeoye","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2011\/06\/12\/why-nipost-cannot-continue-to-regulate-courier-services-by-adeoye\/","title":{"rendered":"Why NIPOST Cannot Continue To Regulate Courier Services, By Adeoye"},"content":{"rendered":"
\n

With a section of the logistic service industry (freight forwarding) belonging to the Ministry of Transportation, while courier operators are regulated by the Ministry of Information and Communications through the Courier Regulatory Department (CRD), operators believe nothing short of a commission would address this dichotomy. This, alongside other challenges facing the sector, came to limelight recently when GEOFF IYATSE spoke with Managing Director of CourierPlus (a subsidiary of Intercontinental Bank Plc), Segun Adeoye.<\/strong><\/p>\n

Assessment of the logistics sector\u2019s utilisation<\/p>\n

The sector has much to offer, which people are not aware. The reason is that they can\u2019t point to the sector as a vibrant industry.<\/p>\n

Unlike other well-organised sectors, the supply chain industry operators are yet to come together so that people will appreciate what the industry can offer. There are many players who are just doing a small aspect of supply chain \u2014 distribution, warehousing and other areas. Hence, we cannot really feel the impact of the industry because everybody is doing a bit of it. But when they come together; when it is discovered that a company can do the entire gamut of supply chain; that is when people will begin to appreciate the industry.<\/p>\n

Is it not because of this reason that some operators have called for categorisation of licensing?<\/p>\n

Why not; if we can adopt categorisation of licenses? But when we have that as operated abroad, it has to be enforced. If you are talking to a freight forwarder, it should be one that is recognised. If you are talking to a distribution company, it must be company that has the resources to do the job. If you are talking to a warehouse specialist, he should be the recognised operator in that area. It should be different from a situation where somebody just wakes up, turn the space in his backyard into a warehouse and begins to warehouse for a big company that should need the service of specialist. That is what happens now.<\/p>\n

When you have segmentation and categorisation of licensing, standards must be set and enforced to the letter. It should not be an all-comers affair any longer.<\/p>\n

How would you assess the regulatory framework of the courier service specifically?<\/p>\n

It is not as strong as it should be. The regulator, the Courier Regulatory Department (CRD), which is an arm of the Nigerian Postal Service (NIPOST) is doing its best within its limit. Not until we have a commission empowered by law, we cannot have a proper regulation. There are quite a number of companies that are currently running courier services that do not have the necessary approvals to render such services but are doing that. People just pick parcels with their vehicles to dispatch. Even airliners deliver parcels; they do all sorts of things in the process. Yet, you can\u2019t blame them but the regulatory framework.<\/p>\n

The issue is \u2014 have they registered as courier operators? Do they submit themselves for regulation? They don\u2019t. There should be stronger regulation, and until we have a commission, which has been proposed via a bill currently in the National Assembly, we will continue in this path.<\/p>\n

Some people might believe transporters and airliners have more capacity to do this job than registered couriers, yet you said they should not.<\/p>\n

Should a drug manufacturing firm give transporters drugs that will be sold in an open market to deliver? Under what condition will the drugs arrive the destination? Is the environment conducive? What happens if the vehicle breaks down and the drugs are exposed to sunlight? It is not an issue of capacity; it is about doing the right thing.\u00a0 Why don\u2019t you give it to somebody who will handle it under a temperature-controlled environment?<\/p>\n

Don\u2019t you think the same lapses that rendered CRD\u2019s defective would resurface?<\/p>\n

There is no way the Department would have succeeded. Commission remains the only solution to the regulatory laxity. CRD is an arm of NIPOST, a player in the industry. How can a player in the market regulate other players? It is not done anywhere. Unless we have an independent body that is structured to attract professionals, set up a platform to operate with, there can\u2019t be remarkable change. A player cannot successfully regulate other players.<\/p>\n

In the absence of a commission, how about seperating CRD from NIPOST, after which it is strengthened?<\/p>\n

That could serve as an alternative to a commission. But who will do the real job of regulation? The current personnel of the CRD are traditional staff of NIPOST. How can you pick people of the same organisation to form a regulatory organ for the same industry? They will naturally be biased. When the Nigerian Communications Commission (NCC) was formed, were the staff of the NITEL moved there? No, they set up the Commission with experienced independent hands.<\/p>\n

This is the only way it can work.\u00a0 You cannot CRD from NIPOST; give it an Act to guide its operations and expect it to make any difference. You need to set up a commission, employ the right calibre of people to man the body. This is the only way you can achieve success.<\/p>\n

\u00a0<\/p>\n

If the government has not set up the commission all this while, is it not a pointer that it does not recognise the industry?<\/p>\n

It is not that it (the government) doesn\u2019t recognise the industry, they are not opened to the opportunities in the industry. We are evolving as an economy. Before 10 years ago, many people did not believe in the opportunities we have in telecommunications today. All we knew back then was oil and gas. But somehow, somebody saw the potential and gave it what it required to have what we have today. It is the same thing with this industry; people are not opened to what even the government can make from the industry. Unless somebody with vision sees its potential, its benefits will continue to elude us.<\/p>\n

The indifference to establishing the commission could be rooted in the belief that it is not a big deal to convey an item from one point to another or that the umbrella body of the operators has not done much sensitisation. What do think?<\/p>\n

Talking about the culture, I think it is a fact that courier business is about conveying an item from point \u2018A\u2019 to point \u2018B\u2019. Somebody could say what is the big deal in that? But another person could look at it and say I can add value to \u2018just picking from here to there\u2019. Blue chip companies, especially the telecom firms, we deal with know the benefit we have added to their operations. We help them to even plan their distributions to reach their target audience faster than their competitors. The reason is that it is our industry and we should know better.<\/p>\n

But someone out there who doesn\u2019t see beyond \u2018taking an item from one point to another\u2019 could downplay this task. He does not see the value this adds.\u00a0 There was an organisation we worked with; we did an analysis on its supply chain and suggested what it could do to save \u2018X\u2019 amount of money. We came in and made a huge difference. We have done this for a number of organisations. But those are organisations, which are in minority category, are those willing to listen.<\/p>\n

Whether the operators are doing well or not is a matter of time. The economy is growing and more people will see the value the industry is adding to other sectors.<\/p>\n

Courier is under Ministry of Information and Communications while freight forwarding is regulated by Transport. How is this crack in the industry being managed?<\/p>\n

It is a commission that should address the misrepresentation. Courier service is placed under communications because it is seen as postal service. You can see the mindset of the government. Somebody just feel that courier operators are merely dispatchers, the same thing NIPOST is doing; hence they placed it under communication.<\/p>\n

In real sense, it is under transport. This is because it is more of distribution. How many people send letters today? If you don\u2019t send letters, you can send e-mail or call. But you must send your products from one point to another.\u00a0 It is because there is no strong reliable regulatory body that courier is tossed everywhere. You can put NIPOST under communications but not courier.<\/p>\n<\/div>\n<\/p>\n

More here:
\nWhy NIPOST Cannot Continue To Regulate Courier Services, By Adeoye<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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