The Courier and Logistics Services Staff Association of Nigeria (CALSSAN) has called on the Federal Government to establish an industry-based regulatory agency.

While seeking government intervention through incentives and regulations in the sector, the union pointed to rising premium motor spirit (PMS) prices, a key factor influencing the industry’s dynamics.

According to a statement by the association’s General Secretary, Emeka Ekeh, a delicate balance must be made between economic viability, environmental sustainability, and consumer affordability to ensure the continued vitality of logistics and delivery services in the interconnected global economy.

Ekeh said that as fuel prices rise, governments should implement policies and regulations to mitigate the impact on businesses and consumers.

He said this could include incentives for adopting eco-friendly transportation methods, subsidies for fuel-efficient technologies, or the development of infrastructure to support sustainable logistics practices.

He stressed the need for free access to all toll gates and the removal of multiple tax systems, stating that stringent regulations or taxes on carbon emissions could further strain the industry.

Navigating the complex regulatory environment, Ekeh said, has become crucial for companies seeking long-term sustainability and growth.

Further making their demands, the union called on the government for the immediate implementation of a Courier Industry-Based Regulatory Agency.

The association also demanded the inclusion of the courier industry in the expected N30 trillion oil windfalls projected to accrue to Nigeria as a result of the current Middle East war.

To cushion the hike in petrol prices, it also demanded an exemption of articulated courier vehicles from all toll gate payments nationwide.

The workers’ union urged the government to consider immediate palliatives for the courier industry to cushion the effects of the current fuel price hike and to engage in dialogue on issues affecting the sector.

According to the union, one immediate consequence of soaring fuel prices is the substantial increase in operational costs for logistics and delivery companies, which could result in low customer patronage and revenue losses for industry players.

Ekeh noted that fuel expenses constitute a significant portion of their budgets, impacting everything from transportation to warehousing.

He stated that the escalating fuel costs have the potential to disrupt intricate supply chains, leading to delays in the timely delivery of goods.

As a result, he said consumers may adjust their buying patterns by exploring alternative products, postponing purchases, or actively seeking more budget-friendly options.

The change in consumer behaviour, Ekeh said, could trigger a chain reaction across various industries, shaping market dynamics and potentially impacting the overall economy.

This, he added, may also create opportunities for illegal operations.

“The government should please act fast to save the industry. This strategic approach not only aligns with sustainability goals but also helps mitigate the impact of soaring fuel costs on operational budgets.

“Investing in innovations such as streamlined trailer designs, aerodynamic fairings and other fuel-saving technologies becomes pivotal in balancing the economic challenges of high fuel prices while maintaining efficient and cost-effective transportation operations,” he said.