Buhari Approves NIPOST Partial Commercialization

#1 · December 11, 2017, 2:57 PM

Quote from Ndubuisi Ekekwe on December 11, 2017, 2:57 PM

President Buhari has Nigerian Postal Services (NIPOST) in his crosshairs and has approved its partial commercialization. This is a good move for the nation. I do hope that government does more to make it exciting for investors. One move will be to take over the pension obligations of NIPOST staff before it brings in partners. If not, finding investors will be extremely hard. Who wants to assume those pension obligations?

Besides, government may have to offer a period of exclusivity where another national operator like NIPOST cannot be approved by government. This will help the investment team that will take the first challenge.

President Muhammadu Buhari has approved the partial commercialisation of Nigerian Postal Services (NIPOST).

Communication Minister, Mr Adebayo Shittuhile who spoke inaugurating the Steering Committee (ST) and the Project Delivery Team (PTD) for the Postal Sector Reforms and the Restructuring /Modernisation of NIPOST, said the partial commercialisation was in line with the Second Schedule Part 1 Section 6 of the Public Enterprises Privatisation and Commercialisation Act 1999.

If NIPOST becomes operational, then the moment for ecommerce in Nigeria would evolve. NIPOST, if it works, will unlock more opportunities for entrepreneurs and startups in Nigeria in the broad ecommerce sector. Yet, this will be challenging to execute because this is Nigeria with our maze of issues. The lack of an efficient air transport is a concern.

People, it will be interesting to see how government plans to make this work since NIPOST exists on name only these days with no strategic assets, except the real estate. But the government moves are strategic: they are breaking the NIPOST functions, separating the operational duties and the regulatory ones. That opens the window for a regulator to design the sector without a conflict of interest as an operator.

Communication Minister, Mr Adebayo Shittu, is working. This man has a lot of energy. He needs our support.

President Buhari has Nigerian Postal Services (NIPOST) in his crosshairs and has approved its partial commercialization. This is a good move for the nation. I do hope that government does more to make it exciting for investors. One move will be to take over the pension obligations of NIPOST staff before it brings in partners. If not, finding investors will be extremely hard. Who wants to assume those pension obligations?

Besides, government may have to offer a period of exclusivity where another national operator like NIPOST cannot be approved by government. This will help the investment team that will take the first challenge.

President Muhammadu Buhari has approved the partial commercialisation of Nigerian Postal Services (NIPOST).

Communication Minister, Mr Adebayo Shittuhile who spoke inaugurating the Steering Committee (ST) and the Project Delivery Team (PTD) for the Postal Sector Reforms and the Restructuring /Modernisation of NIPOST, said the partial commercialisation was in line with the Second Schedule Part 1 Section 6 of the Public Enterprises Privatisation and Commercialisation Act 1999.

If NIPOST becomes operational, then the moment for ecommerce in Nigeria would evolve. NIPOST, if it works, will unlock more opportunities for entrepreneurs and startups in Nigeria in the broad ecommerce sector. Yet, this will be challenging to execute because this is Nigeria with our maze of issues. The lack of an efficient air transport is a concern.

Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.

Tekedia AI in Business Masterclass opens registrations here.

Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.

People, it will be interesting to see how government plans to make this work since NIPOST exists on name only these days with no strategic assets, except the real estate. But the government moves are strategic: they are breaking the NIPOST functions, separating the operational duties and the regulatory ones. That opens the window for a regulator to design the sector without a conflict of interest as an operator.

Communication Minister, Mr Adebayo Shittu, is working. This man has a lot of energy. He needs our support.

#2 · December 11, 2017, 5:27 PM

I just hope they get it right this time, if they need more ideas and inputs, we can offer them. We do not want another 'story that touches'; we haven't recovered from the dazed power sector privatisation.

#3 · December 11, 2017, 9:12 PM

Quote from Guest on December 11, 2017, 9:12 PM
Great news and good to see leaders are gradually thinking outside the box, yes the 'Nigerian box'. I hope such idea will be extended to municipal public water-supply for all, regulated trade and apprenticeship program for all technical services, local or village marketplace reforms, serviced land driven construction for housing, the creation of LGA parks and recreational facilities in all neighbourhood, etc.
Prof. tell the committee if possible, to work on reforming some current policy that will endanger the survival of any reform process that will take place outside the pension liability as you already mentioned. Other steps that need to be made is to create a 'temporary monopoly" for NIPOST to survive, run and fly before relaxing such policy. Firstly, the temporary ban on local service by the international courier company such as DHL, FedeX etc. All courier operation by such companies should end in Lagos airport collection centre, a special arm of NIPOST will be saddled with the delivery to homes/ industries in Nigeria. Secondly, the temporary ban on inter-state mail services by commuter bus operators for items less than ten kilograms. Thirdly, discounted offers for e-shopping for inter-city and inter-state shipping with NIPOST the only option online for shipment. Fourthly, the use of mail for all government correspondences like paystub, drivers licence, land papers, court summons, employment letters, birth certificates, international passports, tax papers, customs duty payment etc. Lastly, the introduction of other services like community banking, western union/ MoneyGram receiving centres, ATM, bill payment, community services etc. NIPOST should and must be the readily available service centre in any community in Nigeria, The only available government present in all communities in Nigeria period.
I guess my readers will have a question about how safe, effective and reliable is this new NIPOST service? Sorry dear, I am talking about a properly reformed and commercialised NIPOST with any shortfall in expected service will have appropriate and adequate repercussion like you can do to DHL or FedEx. Thank You.

Great news and good to see leaders are gradually thinking outside the box, yes the 'Nigerian box'. I hope such idea will be extended to municipal public water-supply for all, regulated trade and apprenticeship program for all technical services, local or village marketplace reforms, serviced land driven construction for housing, the creation of LGA parks and recreational facilities in all neighbourhood, etc.
Prof. tell the committee if possible, to work on reforming some current policy that will endanger the survival of any reform process that will take place outside the pension liability as you already mentioned. Other steps that need to be made is to create a 'temporary monopoly" for NIPOST to survive, run and fly before relaxing such policy. Firstly, the temporary ban on local service by the international courier company such as DHL, FedeX etc. All courier operation by such companies should end in Lagos airport collection centre, a special arm of NIPOST will be saddled with the delivery to homes/ industries in Nigeria. Secondly, the temporary ban on inter-state mail services by commuter bus operators for items less than ten kilograms. Thirdly, discounted offers for e-shopping for inter-city and inter-state shipping with NIPOST the only option online for shipment. Fourthly, the use of mail for all government correspondences like paystub, drivers licence, land papers, court summons, employment letters, birth certificates, international passports, tax papers, customs duty payment etc. Lastly, the introduction of other services like community banking, western union/ MoneyGram receiving centres, ATM, bill payment, community services etc. NIPOST should and must be the readily available service centre in any community in Nigeria, The only available government present in all communities in Nigeria period.
I guess my readers will have a question about how safe, effective and reliable is this new NIPOST service? Sorry dear, I am talking about a properly reformed and commercialised NIPOST with any shortfall in expected service will have appropriate and adequate repercussion like you can do to DHL or FedEx. Thank You.

#4 · December 12, 2017, 7:13 AM

Guest, this comment is indeed loaded. I can assure you that they are reading. On your quetsion "safe, effective and reliable is this new NIPOST ". I think if they allow private sector participants to run it, it will be. It goes beyond DHL, Fedex, etc. We need something that is affordable also.

Tekedia Forum

Buhari Approves NIPOST Partial Commercialization

Share this:

Like this: