Senate Considers Bill to Privatize NIPOST

Senator Sani Musa, the head of the Senate Committee on Finance, mentioned that they are thinking about making the Nigeria Postal Service (NIPOST) private to improve its performance.
NIPOSTPremium times

During the session on the 2024-2026 Medium Term Expenditure Framework (MTEF), the Postmaster General of the Federation, Mr. Tola Odeyemi presented NIPOST's 2024-2026 input in the MTEF, FSP. However, tensions rose when Odeyemi disclosed that the agency projected a personnel cost of N18 billion for its 16,000 workers nationwide in 2024, up from N13 billion in 2023.

Expressing dissatisfaction, Senator Musa questioned the impact of NIPOST across the country and raised concerns about the increase in personnel costs, rhetorically wondered why the personnel cost would jump from N13 billion in 2023 to N18 billion in 2024.

The Postmaster General explained that the increment was a result of the recent rise in personnel costs, attributed to the Federal Government's payment of peculiar allowances to workers. However, this explanation failed to appease members of the committee.

Senator Ireti Kingibe (LP-FCT) then explained the need for NIPOST, as a partially funded agency, to transform into a vibrant postal agency.

” NIPOST should not be scrapped but should be turned to a revenue-generating agency.

“The only thing is that the agency was stuck in the 19th-century analogue operation instead of migrating to digital service for efficient services.

“There is nothing stopping NIPOST to digitalise their offices across the country to offer electronic services for Nigerians, deliver government services at all local government areas and even engage in financial services.”

Senator Osita Izunaso disagreed, stating that the current structure of NIPOST shouldn't be supported if the goal is to generate revenue for the country's annual budgets.

In response, Committee Chairman Sani Musa requested the CEO of NIPOST to provide the committee with her business plan to transform the agency into a more revenue-generating entity.

He said, “NIPOST should have been fully privatised before now because nobody is feeling their impact anywhere in the country.

“We are ready to recommend to the Senate in plenary, full privatisation of the NIPOST except the Postmaster General convinces us otherwise.

Latest Lagos Local News -