Account For N10bn NIPOST Funds - Reps Query BPE

The House of Representatives Public Accounts Committee, chaired by Hon. Bamidele Salam, has launched an investigation into the alleged expenditure of around N10 billion by the Bureau for Public Enterprise (BPE) to register two companies for the Nigeria Postal Service (NIPOST).

During the investigative hearing, Hon. Salam expressed skepticism about the legitimacy of the expenditure, stating that "No reasonable Nigerian will believe that N10.4 billion was spent to register the two companies."

He further noted that the companies, NIPOST Transport and Logistics Ltd. and NIPOST Property, were short-lived, folding up just a year after their launch in May 2023 following a Presidential directive.

In response, the BPE Head of Finance and Accounts, who represented the Director-General, Mr. Imam Rilwan, provided details on how the money was spent.

He revealed that N10 million was allocated to the two companies as start-up funds, while approximately N400 million was given to the BPE to facilitate their launch. The registration process and other related activities for the companies, which were approved in 2017, cost the BPE around N423 million.

However, Hon. Salam pointed out that spending money from government coffers before the funds were officially released violated the provisions of the Public Procurement Act. He has summoned the BPE Director-General, Ayodeji Gbeleyi, to appear before the committee on September 11 with all relevant documents pertaining to the transaction.