Regulation For Delivery/ Logistics Bikes In Nigeria

By Samuel Omotoso Esq.

It was announced through the Guardian Nigeria on the 29^th of May 2022 that Dispatch riders operating in the FCT must register with the FCT Vehicle Inspection Office (VIO) latest by the first week of August in 2022 or face sanctions. This is in accordance with Section 62 of the Nigerian Postal Services Act, 2004 (“NIPOST Act”). Also, new guidelines for the regulation of the Courier and Logistics sector (“the Sector”) in Nigeria in July 2020 were approved. According to the Ministry of Communications and the Digital Economy, the Courier and Logistics Services (Operations) Regulations 2020 (the “Regulations”) is the regulatory framework needed to enhance the operations of courier and logistics services in Nigeria. So far the VIO and other road traffic service in Nigeria has not sternly enforced the regulations, however the FCT Directorate of road traffic service has released an official publication stating that enforcement of the regulation on delivery bikes will begin January 2^nd 2023.

The regulation expressly states the requisite requirement delivery (logistic) companies must possess before they can be duly registered and licensed under the NIPOST. The publication went further to state that the lack of registration of delivery bikes will lead to its impoundment.

So let’s get started. What do you need to know?

1. Let’s start by distinguishing courier from logistics.

Courier: It is simply a door-to-door time-sensitive and secured service and includes delivery of documents parcel, merchandise, cargo whose total weight is not less than 0.5 KG and not more than 50kg

Logistics: They are services which includes haulage, conveyance, dispatch or delivery of items or goods weighing not less than 50kg

2. What do you need to operate a courier or logistics service in Nigeria
3. A written application the company letter head addressed to the Postmaster General of the Federation.
4. Attach evidence or show information to show that your company has capacity. Note that I said “company” and not Business name (Sole Proprietorship, Enterprise). Ensure to instruct your lawyer or whoever is preparing the incorporation documents to insert “logistics and delivery” to the objects of the company or else the company will not be accepted for registration by NIPOST. If your company do not contain those details, you can use the post-incorporation route (ask your lawyer). To show capacity:
5. Certificate of Incorporation
6. Memorandum and Article of Association

• Business plan or company profile and operations manual

1. Good in Transit (GIT) Insurance
2. Evidence of Tax clearance
3. Evidence of share capital

• Evidence of facilities, and office location details

3. Collect, fill or upload the P306 Application form with a non-refundable application fee of N20,000:00
4. Submit the completed application form with the prescribed licensing fee based on the specific category of courier and logistics license of your choice after our ASSESSMENT AND EVALUATION PROCESS.

As at 2022, the approved fees for specific category of courier and logistics license of your choice.

1. International Logistics and Courier – N20,000,000 (Twenty Million Naira). Renewal – N1,875,000 (One Million Eight Hundred and Seventy Five Thousand Naira).
2. Nationwide Logistics and Courier – N3,000,000 (Three Million Naira). Renewal – N625,000 (Six Hundred and Twenty Five Thousand Naira).
3. Regional (Geo-political zone) –N2,000,000 (Two Million Naira). Renewal – N437,500 (Four Hundred and Thirty Seven Thousand Naira)
4. State – N250,000 (Two Hundred and Fifty Thousand Naira). Renewal – N100,000 (One Hundred Thousand Naira)

Furthermore, operating license will be processed within a month from the day all payments are made and confirmed.

Kindly also note that:

• A minimum engine capacity of 200cc is required for the logistics and courier service motorcycle.
• Registration and revalidation of the delivery motorcycles to regulated FCT mail service number plates. (Number plates are issues after registration with NIPOST is completed).
• Branding and Motorcycles with branded and appropriate delivery boxes which must contain the company name boldly written on it.

Having gone through the process of assisting in the registration of companies with NIPOST I would advise the services of a lawyer or any person who is well informed about the process as the process can be a bit complicated.