The Nigerian Postal Service (NIPOST) has announced a significant policy change that will impact the cost of shipping goods from Nigeria to the United States. Effective August 29, 2025, all postal shipments, excluding letters and documents, will be subject to a mandatory prepaid customs duty of $80 or its naira equivalent. This new charge stems from a recent Executive Order signed by the US government, which suspends the de minimis exemption on all postal shipments globally. This exemption previously allowed low-value goods to enter the US duty-free. The order was issued under the International Emergency Economic Powers Act and applies to all designated postal operators worldwide, not just Nigeria.
The impact of this new policy on Nigerian businesses, particularly Small and Medium Enterprises (SMEs) and e-commerce vendors, is expected to be substantial. The $80 duty, in many cases, could exceed the value of the goods being shipped, rendering small exports uneconomical. This poses a significant challenge for Nigerian businesses already facing high logistics costs and currency pressures. The added financial burden could discourage micro-exporters, reduce the competitiveness of Nigerian products in the US market, and slow down delivery times due to increased customs scrutiny. Dr. Femi Egbesola, National President of the Association of Small Business Owners of Nigeria, voiced these concerns, highlighting the potential negative impact on the already challenging business environment. He suggested exploring alternative shipping methods, such as private courier services, consolidated shipping, or US-based fulfillment partners, as potential mitigation strategies. He also called for government intervention to create export support mechanisms and engage in diplomatic efforts to ease these new trade barriers.
NIPOST clarified that this Executive Order is not targeted specifically at Nigeria but is a global policy affecting all postal operators worldwide. This means all countries sending postal shipments to the US will now be subject to this new duty. While NIPOST acknowledges the challenges posed by this policy shift, they have assured customers that they are collaborating with international partners, including the Universal Postal Union, US Customs and Border Protection, and airline partners, to mitigate disruptions and ensure a smooth customer experience. Despite these global regulatory adjustments, NIPOST remains committed to providing efficient and reliable postal and courier services. They are focused on minimizing service disruptions and safeguarding customer experience throughout this transition.
The repercussions of this policy change extend beyond just increased costs. Airlines and cargo carriers are adopting more stringent protocols for handling US-bound shipments, which could lead to extended transit and processing times, resulting in potential delivery delays. Upon arrival in the US, all items will undergo additional customs checks, potentially further compounding waiting times for recipients. This increased scrutiny and processing time will likely affect the overall efficiency of the postal system and contribute to delays in delivery.
This policy change originates from the Trump administration’s decision to end tariff exemptions on small packages entering the US. The administration justified this move by citing the use of low-value shipments to evade tariffs and smuggle drugs. Instead of the previous duty-free treatment for packages valued at or under $800, these packages will now be subject to tariffs based on their country of origin or face a specific duty ranging from $80 to $200 per item, though some exclusions for personal items and gifts remain.
This policy shift has triggered a global response, with several postal services, including those in France, Germany, Italy, India, Australia, and Japan, announcing they would no longer accept most US-bound packages. The sudden nature of the policy change and its wide-ranging implications have created a sense of urgency among businesses and individuals who rely on international postal services. The long-term impact on international trade and the flow of goods remains to be seen, but the initial reactions suggest significant adjustments will be necessary to adapt to this new regulatory landscape. The challenge now is to find sustainable solutions that allow businesses, particularly SMEs, to continue operating efficiently within this new framework while minimizing the impact on consumers and the global economy.
