New Telegraph

NIPOST: BPE to carve out three entities

As part of efforts to unbundle the Nigerian Postal Service (NIPOST) to viable entities, the Bureau of Public Enterprises (BPE) said NIPOST would be carve into three commercial ventures.
They entities include NIPOST Properties & Development Company; NIPOST Transport & Logistics Company and NIPOST Microfinance Bank Limited.
BPE Director-General, Mr. Alex Okoh, confirmed this update in Abuja, asserting that the current ongoing reform at postal agency wasn’t geared towards privatisation of the entity, but to unbundle NIPOST into viable subsidiary companies, which will operate on the principle of commercial viability.
Okoh said core postal service function would 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 that the commercialisation, reform and modernisation of the organisation was outright privatisation.
He spoke in Abuja at the inauguration of sub-committee on implementation of postal sector reform, restructuring and modernisation of NIPOST at the bureau’s corporate head office, a statement issued yesterday by BPE’ Head, Public Communications, Amina Tukur Othman.

BPE director-general reiterated the benefits of the reform of the sector to include 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 said 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 activities which include 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 had a timeline of four months to complete its assignment.

It will be recalled that 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 Hon. 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.

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