SMEDAN partners NIPOST, offers 15% logistics discount to small businesses

The Small and Medium Enterprises Development Agency (SMEDAN) has partnered with the Nigerian Postal Service (NIPOST) to offer a 15 percent discount on logistics services to small businesses.

Charles Odii, director-general of SMEDAN, spoke on Wednesday while signing a memorandum of understanding (MoU) with Tola Odeyemi, postmaster general of NIPOST, in Abuja.

Odii said the collaboration is a direct response to feedback from small and medium enterprises (SMEs) regarding the high cost of logistics and its 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 opened from August 26 and will be available to SMEs registered with SMEDAN in two ways: online pickups and walk-ins.

The DG further said 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.

According to Odii, this has discouraged businesses and limited commercial opportunities for SMEs in their immediate environment.

He said the partnership would leverage NIPOST’s national presence and infrastructure and its ongoing reform and modernisation efforts under the leadership of the postmaster general of the agency.

Odii urged small business owners to register with the agency to benefit from the collaboration and other initiatives of SMEDAN.

‘MSMES ARE BACKBONE OF ECONOMY’

On her part, Odeyemi said the partnership was long overdue and would contribute to the achievement of inclusive economic growth.

She acknowledged that MSMEs, which represent over 90 percent of businesses in the country and contribute half of the gross domestic product, serve as 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 realise that NIPOST prices are already socially oriented.”

The postmaster general also said through the partnership, both agencies would utilise their offices and stations nationwide to initiate, process, and fast-track deliveries.

This, she added, will ensure that small businesses can move goods to remote parts of the country efficiently, timely, and affordably.

Odeyemi said the agency will also provide prompt assistance, ensuring that SMEs can focus on growing their businesses without logistical hurdles.