Kayode Ogunsanlu, graduate of mechanical engineering from Unilag is the executive director, Fenway Courier Limited. He is the immediate past treasurer of Nigeria International Air Couriers Association (Niaca). He spoke to emeka okafor.

Courier Business in Nigeria

 I feel the courier business in Nigeria is still pretty young and there are still rooms for improvement. New innovations are not being witnessed that much in the industry but there are still so many things we are hoping that if they are addressed that things will get better like infrastructural deficiencies we are facing now. If they are addressed things will take a different shape. But courier is a growing business .It is not a business you put your money into say in January and expect to recoup it in December.  It takes about five to six years to recoup anything meaningful. If you consider that the first courier industry in Nigeria started in 1977, it is still less than 30 years old business, so it is a young industry. I must say the future is bright especially with the ICT innovation enhancing the business. I think what people will need to do now is to go to the untapped area which I call home delivery. People can now order their groceries from the office and a courier company delivers them at home. So it saves people the time of going to the market. Eventually we will get there with innovations in the banking industry which is impacting on the courier companies.

Impact of ICT on Courier
In terms of revenue, I would say right now ICT is not yet a blessing in the sense that ICT tools like internet, mobile phones have taken close to 30-40% of the courier businesses. By that I mean for example why send a letter even through Nipost for #50 when you can send a text for #5. So for now ICT is not a blessing but eventually when you look at home delivery when you can order some items online, that is an area where ICT will be an advantage. For now certain revenue has been lost to ICT which may be recouped with the online shopping. Eventually it will be a blessing. It is still a thing for the future. Though ICT has improved services, it has also reduced a huge chunk of courier businesses.

Courier and National Economy
First and foremost is employment. That is very important and services we render -movement of sensitive documents, movement of bill of lading, medical supply. A country can improve or sustain itself if it has a vibrant delivery system; because what we deliver are not ordinary letters. We deliver urgent medical supplies and sorts that help to improve and sustain the economy. So it’s an industry that cannot be pushed aside because what we render is something that is important all over the world. There are some countries that have good postal services, they still have some of the largest courier services in the world. It is very important to the national economy.

Niaca and Anco
Initially the major difference there was that Nigeria International Air Couriers Association ( Niaca ) was set up for international courier companies but that does not necessarily mean foreign companies. They are companies that have foreign affiliations and deal with international shipments and Association of Nigeria Courier Operators (Anco ) as a body was meant for local operators in Nigeria. That was the major difference but I know from my previous position  in Niaca  that there’s a clause now in our article of memorandum which was changed about three years ago that removed that clause that if you don’t have foreign affiliation you cannot be a member of Niaca. That clause has been removed and this has opened the doors for those who could not join Niaca before that they can now join Niaca. That was basically the major difference.

Room for Merger
I know we had some talk at a time but the talks broke down but now we work side by side on a lot of issues. The acrimony is reducing. I think now it is more than of ego than any other thing. We still work together to achieve similar goals especially in arears that affect both of us. But a merger, I don’t see it happening for now.

Professionalism in Courier
In every business there’s need for professionalism but I remember at the  first courier summit held in Lagos with the honorable minister of telecommunications, it brought the idea of having a courier institute where people can go and obtain  a diploma in courier service and so on. That is what hopefully we are expecting should be part of the courier sector law that is being expected. That is a good idea. Right now there’s no where you go to and learn about courier business in a classroom. Most of us learn on the job with training here and there. Eventually if that institute is established it will help the sector but for now we rely on CRD training. I think what the courier industry requires is not only the expertise but the tools. The business is cash intensive and if you have the whole PhDs in the world  but you don’t have the money to back it up you will achieve nothing in this industry.

Future of Courier Industry
With the advent of ICT, there is a bright future for the industry. If you are in Kaduna and want to buy something in Lagos, you must not fly down to Lagos to be able to buy those things. With ATM cards you can buy and pay for things online and then ask a courier company to take delivery. Eventually we will get to that point which I think the industry is going. For now certain aspects of business is shrinking but we have a great future.

                                   Online Scam and Courier Business
It is affecting our business. For example we have some partners in the U.S who wouldn’t pick up anything from anybody except they know the client. They will go and inspect your office and meet you one on one. It’s that bad. We are turning away businesses here. If your partners cannot verify the source of your shipment they don’t pick it up. Again our business involves that you pick and deliver. There’s no law that says you should show receipt of what you have bought. So sometimes you may be caught up in this track. It is a tricky business but we try our best to inquire because we know we have NDLEA operatives who can verify our consignments, we are trying our best to reduce it. I think this past year I feel that particular crime has reduced in Nigeria. We are mandated by law to open every parcel and we do thorough checks on parcels. I think government is doing a lot to frustrate them. We are also helping the government to eradicate it because if people purchase goods and cannot move them, then it is useless to them. The other area where people now move money is through the bank. The law also says that as an individual if you deposit or withdraw certain amount of money the bank should raise a red flag. If we all follow what the law says, if we don’t pick up and the banks don’t let money come in then there won’t be any means to perpetrate that particular crime.

                                      Who is Fenway Courier?
Fenway courier is one of the oldest courier companies in Nigeria established in 1983. We have been here for a long time .Our founding managing director Chief Michael Ogunsanlu was the first chairman of Niaca in 1986 when it was found. So we have been here and have our strong presence in twenty-two states of the federation. The initiative to float the company was that of the late Michael Ogunsanlu, a chattered accountant and chartered secretary who worked in many organizations such as British Caledonian Airways and later joined IAS Cargo Airlines Ltd, where he carved his teeth in courier business. The name of the company is taken after my grand mother OMIFENWA as a mark of respect to her by my late father.
                                        
                                          Selling Point   

One of our key selling points is offering value added service at an affordable price.

                                           Financing Courier
To get finance from the banks in Nigeria takes a long period. This involves back and forth negotiations with the bank concerned. On the average, it takes over a year to get approval for loan from the bank in Nigeria. Banks should really help finance medium and small-scale companies. The banks are claiming to be mega banks loaning monies to people outside Nigeria while the home people are not considered. I think they have to make their funds easily accessible to help everybody especially to finance the courier sector that is cash-orientated. Some industries can work on credit but in courier you must have floating capital. With bank loans, a lot of companies will stay afloat and a good number of people will be employed.

                                           Moving Forward  

We are so dependent on so many people. For instance, if the aviation industry collapses, it will affect our industry. The road network is so bad, it is affecting our industry. We have trucks on the roads for two-three days on a journey that will ordinarily take maximum of 10 hours. A lot of factors that will help the industry move forward are really out of our hands. It is not in professionalism, it s not in buying more bikes and trucks. If the energy sector is working we don’t have to spend money buying generator and diesel which we use everyday to keep abreast of information. We can improve ourselves in training and others but if the basic infrastructures are there, you can think of easier expansion. With a more stable government, I think we have a bright future.