Industry analysts have called for the repositioning of the Nigeria Postal Service, NIPOST to unlock the potential of e-commerce in Nigeria.
Reacting to recent report by Financial Vanguard on why local investors are not investing in e-commerce, a commentator who simply identified himself as Nedum said until the authorities put in place a structured logistics platform to address delivery challenges, e-commerce in Nigeria may never fare successfully.
According to him, “Distribution is fractured and on its knees,” and that, “Until NIPOST is totally overhauled and restructured in a way that slow delivery of a package from one end of Nigeria to another end of Nigeria will take at least three days, Business to Consumer, B2C and Consumer to Consumer, C2C kind of e-commerce will never be achieved in Nigeria.”
He said, “NIPOST to me is underutilized. The Federal government should do all it can to turn NIPOST around to operate like the mail/package service delivery services of any developed countries like the United States Parcel Service, USPS. This model can be copied.” “NIPOST,” he maintained, “has the potential to reshape Nigeria and create an environment where Foreign Direct Investments, FDI’s would start gushing into this country.”
He said: “With a revitalized NIPOST, Nigerian SME’s would be able to reach not just the Nigerian market, but tap into the markets of other African countries around us.” “NIPOST to me is the key to unlocking e-commerce in Nigeria. Reposition NIPOST and e-commerce will exponentially take off in Nigeria,” he added.
Recall that the Ministry of Communications Technology recently went into partnership with online retailer Konga.com to facilitate distribution of items bought on Konga shops through the NIPOST outlets in UNILAG. The collaboration was a pragmatic attempt at addressing logistics and delivery issues experienced by e-commerce operators in Nigeria.
Also speaking recently, Minister of Communications Technology, Omobola Johnson said NIPOST is not only being statically positioned to address e-commerce challenges but to also play a more divergent role in driving economic growth in the country especially in areas of financial and digital inclusion.
She said: “When we look at NIPOST today, we see the biggest retail infrastructure in the country, with over 3,000 outlets. We see NIPOST at the centre of three initiatives: the country’s financial inclusion strategy, digital inclusion strategy and e-commerce strategy. From a financial inclusion point of view, NIPOST has more outlets than any bank in the country.
The ministry of communication technology and the Central Bank are working together so that NIPOST can become an additional platform for any bank in the country. Private sector partners are also needed to help upgrade some of the NIPOST outlets and connect the 3,000 branches with modern technology. At this point, the outlets can either provide physical banking services or virtual services, performing the role of mobile money agents.”