The Nigeria Postal Service (NIPOST) may be facing a major transformation as the Joint Senate Committee on Medium-Term Expenditure and Fiscal Strategy contemplates introducing a bill to fully privatise the agency. The move is aimed at enhancing the performance and revenue generation capabilities of NIPOST.
Senator Sani Musa, the Chairman of the Senate Committee on Finance and also the MTEF-FSP joint panel, expressed this intention during the appearance of the Postmaster General of the Federation, Tola Odeyemi, to defend the agency’s 2024 budget proposal.
The proposed budget allocation of N18 billion for the payment of personnel cost to NIPOST’s 16,000 workers across the country sparked discontent among the senators. Senator Musa questioned the significant increase from the N13 billion allocated in 2023, especially considering the seemingly limited impact of NIPOST’s operations nationwide.
Despite the Postmaster General’s explanation attributing the increment to the recent rise in personnel costs by the Federal Government, the chairman remained unconvinced, emphasizing the need for effective and efficient utilisation of resources.
Amidst the deliberations, Senator Ireti Kingibe defended the preservation of NIPOST as a vital national entity, advocating for its transition into a revenue-generating agency with an emphasis on modernisation. She highlighted the potential for NIPOST to evolve into a digitalised platform offering electronic services, facilitating government service delivery, and even venturing into financial services.
Seizing the opportunity to express contrasting views, Senator Osita Izunaso argued against the current structure of NIPOST, asserting that it does not align with the objective of revenue generation to support the national budget.
Ultimately, the joint panel chairman emphasised the imperative for NIPOST to undergo a significant shift, emphasizing that the agency should have been fully privatised to maximise its impact. He outlined the committee’s expectation for the Postmaster General to present a robust business model demonstrating NIPOST’s capacity for substantial revenue generation through innovative strategies. Failure to meet this requirement may compel the committee to recommend the complete privatisation of NIPOST to the Senate.
