Small and Medium Enterprises Development Agency, on behalf of the Federal Government, is providing a 15% discount on logistics services to assist small businesses in reducing their transportation costs.
This move is part of an initiative aimed at enhancing business conditions, increasing sales, and lowering operational expenses for Small and Medium Enterprises operating in Nigeria.
In collaboration with the Nigerian Postal Service, this discount program is set to begin on August 26 with the goal of improving business conditions, boosting sales, and cutting down operational costs.
During the signing of a Memorandum of Understanding between the Director-General of SMEDAN, Mr. Charles Odii, and the Postmaster-General of NIPOST, Mrs. Tola Odeyemi, in Abuja, Odii stated that this partnership was formed in response to concerns raised by SMEs regarding the high logistics expenses impacting their sales negatively.
High transportation costs have a significant adverse effect on MSMEs in Nigeria, leading to increased operational costs, reduced profitability, and potential limitations in competitiveness within the market.
Odii expressed, “Today, we are initiating a 15% discount offer on logistics for small businesses, and perhaps in the next three months, the postmaster could consider increasing it to 50% or revising it further.”
He further added, “This partnership timing is optimal, and in the coming three months, we hope to review our progress. We will analyze the savings accrued by small businesses in Nigeria through our monitoring and evaluation department and look for ways to enhance this partnership.”
Odii emphasized, “The discount will come into effect on Monday, August 26, and will be accessible to SMEDAN-registered SMEs through online pickups and walk-ins.”
Based on feedback from engagements with SMEs, the agency discovered instances where delivery costs surpassed the item costs, leading to reduced sales and limited commercial opportunities for SMEs in their vicinity.
With the utilization of NIPOST’s national presence, infrastructure, and ongoing modernization efforts under the leadership of Tola Odeyemi, the Postmaster General and CEO, this partnership aims to expedite and facilitate deliveries across the nation for small businesses.
In her remarks, Odeyemi mentioned that this collaboration was long overdue and would contribute to achieving inclusive economic growth, acknowledging MSMEs as the backbone of the Nigerian economy, representing over 90% of businesses and contributing significantly to the GDP.
Through this strategic partnership, both agencies will leverage their nationwide offices and stations to initiate, process, and streamline deliveries to ensure efficient, prompt, and cost-effective movement of goods to remote areas for small businesses.
She stated, “We are here to collaborate and support the mandates for small and medium enterprises in Nigeria to participate in our platform, which fosters inclusive economic growth.”
Odeyemi noted, “This partnership is poised to drive Nigeria’s economic growth. Any MSME registered with SMEDAN will receive a 15% discount, a benefit that will continue as long as Nigeria thrives.”
While recognizing that a 15% discount might appear modest, she emphasized that NIPOST’s prices are already oriented towards social benefits.
Through this collaboration, both agencies will leverage their offices and stations nationwide to initiate, process, and expedite deliveries, ensuring efficient, timely, and affordable movement of goods for small businesses.
To facilitate a smooth and positive experience for SMEs, dedicated customer support units will be maintained by both agencies to address complaints promptly and resolve any issues that may arise, enabling SMEs to focus on business growth without logistical obstacles.