FG Mulls To Unbundle NiPOST
In the bid to reform the Nigerian Postal Service (NIPOST), the Federal Government with the Ministry of Communications and Digital Economy have reached an advanced stage to unbundle NIPOST into three firms
The three companies are NIPOST Transport and Logistics Company, NIPOST Microfinance Bank, and NIPOST Property Development Company. The unbundling will enable NIPOST to concentrate on its mandate and leave the regulatory function of the industry to an independent body.
Founded in 1987, NIPOST has more than 12,000 employees and runs more than 3,000 post offices nationwide. Currently, NIPOST runs the following commercial business units including Express Mail Service (EMS) /PARCEL, e-Commerce & Logistics, Financial Services, Mails, Counters, Property & Workshop, and a Training School.
Indeed it was predicted that the development of the Information and Communication Technology (ICT) sector would negatively affect the postal service. However, digital transformation is leading to unprecedented positive changes in the postal service. For example, e-commerce has grown exponentially in Nigeria. The 2019 World Bank Digital Diagnostic Report on Nigeria identified Nigeria’s e-commerce market as one of our country’s biggest strengths according to Minister of Communications and Digital Economy, Isa Ali Ibrahim.
According to Statista, revenue in the eCommerce market in Nigeria is projected to reach $4,942m in 2020. Revenue is expected to show a compound annual growth rate of CAGR 2020-2024 of 15.9 percent, resulting in a projected market volume of $8,917 million by 2024 as user penetration will be 31.4 percent in 2020 and is expected to hit 49 percent by 2024. Furthermore, the market’s largest segment is fashion with a projected market volume of $1,823 million in 2020.
Speaking at the event, World Post Day and Launching of the Compendium of Nigeria Postage Stamps (1914 – 2014 ), the Minister shared that It is against the backdrop of the importance of digital transformation and the digital economy that the present administration under the leadership of President Muhammadu Buhari is positioning NIPOST to use digital technologies to address challenges and contribute to national development, especially in the rural areas where the private sector does not consider it attractive.
According to him, the “NIPOST Reform Bill is also receiving attention, and optimum effort will be made to ensure NIPOST transforms into a postal establishment that will contribute to the country’s economic development through social, financial, and digital inclusion of the underserved citizens.
“It is to this end that the Ministry under my watch has continued to encourage synergy amongst the parastatals. For example, there is a collaboration with the National Identity Management Commission, (NIMC) to provide outlets for National Identity Card Registration. These collaborations will be expanded to other government agencies as well.”
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