More

    US Tariffs Disrupt Postal Services in Nigeria and South Africa

    Africa’s two biggest economies—Nigeria and South Africa—are grappling with disruptions in their postal services following sweeping tariff rules introduced by the United States.

    The South African Post Office (SAPO) announced on Friday that it had suspended all parcel deliveries to the US, citing the heavy compliance burden created by Washington’s decision. 

    Only letters, documents, and exempted categories such as military mail will continue to be processed. 

    “Given the complex processes required to comply with the new regulation, we have no choice but to temporarily suspend these shipments,” SAPO said in a statement, noting that the move was regrettable but unavoidable.

    In Nigeria, the Postal Service (NIPOST) confirmed that effective August 29, all shipments to the US—excluding letters and documents—will now attract a mandatory prepaid customs duty of $80 (or its naira equivalent). 

    Don’t Miss This: Nigeria Immigration Service Raises Passport Fees to N100,000 and N200,000

    The directive stems from an executive order signed by former US President Donald Trump, which eliminated the long-standing de minimis exemption that had allowed small packages worth up to $800 to enter duty-free.

    The policy, first applied to China before being expanded globally, was justified under the International Emergency Economic Powers Act as a tool to combat tariff evasion and curb the inflow of smuggled goods, including fentanyl. 

    Trump’s trade adviser Peter Navarro said the measure would “restrict narcotics and other prohibited items” while boosting tariff revenues.

    Postal networks worldwide have been affected, with national operators in Japan, Britain, Germany, France, Italy, India, and Australia announcing similar suspensions or restrictions.

    Analysts warn that the new $80 fee could significantly raise costs for Nigerian exporters, particularly SMEs and e-commerce vendors who rely on affordable shipping for low-value goods. 

    In many cases, the duty may exceed the value of the items being shipped, making small-scale exports to the US uneconomical.

    Don’t Miss This: Air Peace to Launch Aircraft Maintenance Facility in Lagos

    Meanwhile, SAPO’s decision comes at a time when the agency is struggling financially. 

    The state-owned firm has been under business rescue since 2023, following years of declining mail volumes, mounting debt, and operational inefficiencies.

    With Nigeria and South Africa forced to adjust under pressure, experts say the policy poses new challenges for Africa’s fragile trade environment and could threaten the survival of small businesses that depend on cross-border logistics.

    Image Credit: Nairametrics

    Sign up for our free Daily newsletter

    We'll be in your inbox every morning Monday-Saturday with top business news, inspiring stories, best advice and exclusive reporting from Entrepreneur.

    Related Posts

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Latest

    Nigeria Strengthens Bilateral Ties with Israel Across Security, Health and Technology

    Nigeria and Israel have reaffirmed their commitment to deepening diplomatic and strategic relations, with fresh talks centered on security collaboration, healthcare support, technology exchange...

    MTN Nigeria Records N5.2tn Revenue, Reinforces Role in National Growth

    MTN Nigeria has reported N5.2 trillion in service revenue for the 2025 financial year, underscoring its continued influence as a key contributor to Nigeria’s...

    AfDB, AU Renew Push for Visa-Free Travel

    The African Development Bank Group and the African Union Commission have intensified calls for visa-free travel across Africa, describing the free movement of people...

    Expert Calls For Temporary Tax Penalty Waiver To Improve Compliance

    An economist and tax consultant, Dr Ernest Abegbe, has appealed to Nigeria’s tax authorities to grant a temporary waiver on Late Returns Penalties and...

    Congo’s Export Curbs on Cobalt Expose China’s Dependence on Foreign Battery Metals

    China’s dominant role in global critical mineral supply chains is facing fresh examination after export restrictions imposed by the Democratic Republic of Congo disrupted...