Experts back FG 15 per cent logistics cost for SME

Some business experts have lauded the Federal Government’s 15 per cent logistics discount for Small and Medium Enterprises (SMEs).

They said this in separate interviews with the newsmen on Monday in Lagos.

Mr Nerus Ekezie, Former Director, National Association of Small and Medium Enterprises (NASME), said the reduction was a welcome initiative for the sector.

“Such policy is often usual in advance climes where their postal services convey SME products at a discount rate to help them grow.

“However I am indifferent to the new policy because of the weak institution to implement such a programme,” Ekezie said.

Ekezie urged the government to improve investment in NIPOST to enable the agency to modernise its operation and upscale its infrastructure in strategic locations.

According to him, this will enhance NIPOST’s efficiency and promote inclusive economic growth.

Also, Dr Muda Yusuf, Chief Executive Officer (CEO), Centre for the Promotion of Private Enterprise (CPPE), said the proposal would bring relief to SMEs.

“The shocks the SME sector has experienced in the last two years were quite enormous. Many of them have gone under, so this will bring relief to them,” Yusuf said.

Yusuf advised businesses to be hopeful about the policy in spite of the headwinds associated with the postal agency.

Similarly, Prof. Bright Eregha, a Professor of Macroeconomics at the School of Management and Social Sciences, Pan-Atlantic University, said the policy was novel and admirable.

Eregha said the offer would ameliorate transportation costs, impact business overhead and ensure economic growth.

Supreme News reports that the federal government, through the Small and Medium Enterprises Development Agency (SMEDAN), offered a 15 per cent discount on logistics to assist SMEs in reducing their transportation expenses.

This initiative, in partnership with the Nigerian Postal Service, aims to enhance business conditions, boost sales, and reduce operational costs.