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The ongoing reform of the Nigerian Postal Service (NIPOST) is expected to birth three commercial ventures–NIPOST Properties & Development Company; NIPOST Transport & Logistics Company and NIPOST Microfinance bank Limited; when it is eventually completed.
The Director-General of the Bureau of Public Enterprises (BPE), Mr. Alex Okoh made disclosure in Abuja on Wednesday while inaugurating the sub-committee of the implementation committee for the postal sector reform, restructuring & modernisation of NIPOST at the Bureau’s corporate head office.
According to him, the reform was not a privatisation exercise but to unbundle NIPOST into viable subsidiary companies which will operate on the principle of commercial viability, while the core postal service function will remain with NIPOST as the parent company.
He said the clarification became necessary to disabuse the minds of many Nigerians especially the workforce of NIPOST who may think that the commercialization, reform and modernization of the organization was outright privatisation.
Okoh further revealed that in line with the reform process, the Bureau had completed the registration of NIPOST Properties & Development Company and NIPOST Transport & Logistics Company at the Corporate Affairs Commission (CAC) while the process for registration at CAC and also that of obtaining regulatory approvals from the Central Bank of Nigeria (CBN) for NIPOST Microfinance bank had also commenced.
He reiterated that the benefits of the reform of the sector include, the provision of efficient postal services and utilisation of vast assets of NIPOST across the country; reduction in funding from the treasury in terms of subventions to NIPOST (c. N7.2 billion) and the operation and growth of ancillary services and business to enhance the overall efficiency of NIPOST to create more jobs.
He added that the Sub-Committee to be chaired by the Director, Industries & Communication, BPE, will include representatives of the Ministry of Communications & Digital Economy, Ministry of Finance Incorporated and NIPOST. “The Sub-Committee will be responsible for carrying out the following activities: Creation and adoption of an implementation plan and charting the course for implementation of KPMG’s Final report; initiate strategies to be adopted in the implementation of the NIPOST reform programme and the establishment of the three companies; implement the approved objectives of the NIPOST reform programme; and make recommendations to the Implementation Committee.
The Committee has a timeline of four months to complete its assignment.
The National Council on Privatisation (NCP) at its meeting held on 31st October, 2017, approved the reform of the Postal Sector and the restructuring and modernisation of the Nigeria Postal Services (NIPOST).
Further, Council also approved; the constitution of a Steering Committee to be chaired by the Honourable Minister of Communications & Digital Economy, to drive the reform process and review the Postal Sector Policy; the constitution of a Project Delivery Team (PDT) to serve as the secretariat of the Steering Committee and to develop quick fix reform strategies to make NIPOST commercially viable; and the appointment of KPMG as Transaction Adviser.
Abass Latifat
