In an effort to reduce the cost of logistics for SMEs in the nation, the Nigerian Postal Service (NIPOST) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have announced their partnership.
The Director General of SMEDAN Charles Odii revealed this in a post on his X account following a meeting with Tola Odeyemi, the CEO of NIPOST and the Postmaster General.
Odii says that as the cost of products delivery might occasionally be greater than the cost of the items themselves, logistics expenses have been a significant obstacle for many SMEs in Nigeria. He noted that this provided information for the problem-solving discussion with NIPOST.
The SMEDAN DG said he will reveal “the outcome of this partnership in the coming days, which will benefit small businesses,” even though the specifics of the agreement and how the SMEs will participate in it have not yet been made public.
Emphasizing the need to bring down the cost of delivery for businesses in Nigeria, the SMEDAN DG noted that the logistics problem has been affecting trading volumes in the SME industry.
According to a 2017 study by the National Bureau of Statistics, there were 41.5 million MSMEs in Nigeria employing almost sixty million people. These businesses constitute around 46.31% of GDP and about 96% of total businesses in Nigeria.
