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Finance - News around Africa - Profiles - October 24, 2018

Nigeria’s govt to split NIPOST into five firms

The Federal Government of Nigeria is set to unbundle its postal service – NIPOST into five companies, to stimulate profitability.

In an interview with newsmen on Monday, October 22, the country’s Minister of Communications, Mr Adebayo Shittu, revealed that the move was part of efforts put the postal service on the path of profitability and much needed reforms.

The new businesses include transport and logistics, insurance and banking, as well as property and e-commerce.

The five companies are expected to operate on some assets and resources currently owned by the postal organisation, which haver been underutilised or out of use at the moment.

The exercise, which is being carried out alongside the Bureau of Public Enterprises will also have an independent regulatory body for postal and courier services.

Shittu said, “The icing on the cake will be the reforms that we are bringing to NIPOST. By the grace of God, in the next few months, five new companies will emerge from NIPOST. One will be the NIPOST Banking and Insurance Company; we have the NIPOST Transport and Logistics Company; we have the NIPOST Property and Development Company. We also have NIPOST e-Commerce Services Company, and we have the NIPOST e-Government Services Company.

“We have the steering committee of which I am the chairman. The National Council on Privatisation is expected to give approval for the appointment of a transaction adviser, who will put all the structures in place. “

He added, “These initiatives will create more jobs for Nigerians. It will provide more services to Nigerians, particularly those who live in rural areas. It will also open new floodgates of revenue streams for the government.

“We have also secured funding for Galaxy Backbone Phase Two to provide interconnectivity to all Federal Government offices, agencies and institutions everywhere in Nigeria. Everywhere will be connected to one portal in order to aid our e-Government initiative.”

Our correspondent reports that there is a bill in the National Assembly that seeks to bring a number of reforms to the postal organisation.

The advent of digital communication systems, including mobile telecommunications and the Internet with various forms of social media, has left NIPOST struggling, thereby making reforms inevitable if the postal organisation must survive.

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