The Nigerian Postal Service (NIPOST) has reported a revenue decline in 2022, with a total revenue of N3 billion, marking another annual loss in three years, according to the latest data from the Nigerian Bureau of Statistics (NBS).
According to the statistics agency, the revenue represents a 17% decline from the N3.6 billion that NIPOST reported in 2022, underscoring a steady decline since 2019 when it reported a 5-year high of N5.37 billion. The 2022 report marks a 44% revenue drop in five years.
The revenue decline was drawn from poor performances in several areas of NIPOST services.
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According to the NBS; the total number of Post Offices and Postal Agencies decreased by 19.43% from 2,794 in 2021 to 2,251 in 2022.
The total number of boxes installed in 2022 was 836,731, showing a decrease of 0.08% from 837,428 in 2021.
The total number of PMBs available in 2022 stood at 20,775, showing a fall of 8.44% from 22,689 in 2021.
The total number of postal articles handled in 2022 increased by 102.05% from 17.7 million in 2021 to 35.7 million in 2022.
Lagos state had the highest number of boxes installed in 2022 with 143,416, while Jigawa recorded the least with 1,800.
Nipost also reported that it handled a total of 35,676,118 domestic and international mains out of which 19,463,153 were mails received from abroad and delivered to Nigeria.
However, data analysis shows that EMS/Speedpost business was NIPOST’s major income generator contributing N838.8 million to revenues. But it underlines a massive decline from the N1.2 billion reported a year earlier and N1.9 billion 5 years earlier.
Also, NIPOST reported that it generated N209.7 billion from Courier Companies license fees, a whopping 800% increase from N25.2 million a year earlier.
Five years ago, this division generated a mere N12 million in revenue, highlighting a significant rise in courier services offered by private enterprises. NIPOST charges them a fee while also functioning as their regulator and competitor.
Additionally, a substantial source of revenue for NIPOST was its Business Venture Service, which saw an extraordinary 38-fold growth, soaring from N8.2 million to N323.5 million.
NIPOST has embarked on a series of reforms, geared towards optimal services and increased revenue, for several years now. A major move to reform the agency came during the past administration led by Muhammadu Buhari.
The reform initiated by former Minister of Communication and Digital Economy Isa Pantami, aimed to unbundle NIPOST by creating three new subsidiaries out of it. The proposed subsidiaries were; NIPOST Transport and Logistics, NIPOST Properties and Development, and NIPOST Microfinance Bank.
In January 2022, Pantami unveiled the NIPOST debit card and agency banking platform, which he said was targeted at keying NIPOST into e-governance and a sustainable digital economy.
However, these reform initiatives have failed to lift the veil off NIPOST – a development that has been largely attributed to massive corruption.
Experts have advocated subsidized postal services, to keep NIPOST afloat. The idea is to promote commerce through cheaper logistics, which will in turn boost the economy and put more money in the government’s purse through taxes.