At last, the Nigerian Postal Service (NIPOST), the other major component of former Nigeria’s Post and Telecommunications Service otherwise known as P & T is about to go into extinction as a major reform process to break it down for efficient service delivery has begun in the Senate.
The federal lawmakers Tuesday considered a bill to re-enact the Nigerian Postal Service Act 2004 and this could mean the end of NIPOST which could be offered for sale like, the Nigeria Telecommunications, the other component of the former P & T.
If NIPOST is sold, this will free up more funds for the government which could be channelled into other areas in dire need of funding.
The agency popularly known then as P & T comprised of the postal unit and also the telecommunication unit from which the former Nigeria Telecommunications (NITEL) and NIPOST were formed.
Nitel which was beset by gross inefficiency and mismanagement was privatised after several failed attempts.
NIPOST also has endured a difficult time owing to the emergence of better and efficiently managed private firms that have snatched control of the market in the courier and postal services sector of the economy.
The advancement of technology with the emergence of electronic mails has increased the misery of the once-popular NIPOST.
The bill to unbundle NIPOST and create a regulator and also layout guidelines for the operation of the postal and courier industry as seen in the establishment of the telecom sector and its regulator, Nigerian Communication Commission (NCC) has scaled second reading in the Senate.
sponsored by Senator Oluremi Tinubu (APC, Lagos Central), the piece of legislation seeks reform of the Postal Industry and to make comprehensive provisions for the development and regulation of postal services in Nigeria.
When the anticipated law eventually comes into being, it will regulate the logistics section of the industry which is now populated by private firms’ dispatch riders that contest the right of roads with motorists, especially on Lagos roads.
Nigerian Postal Service (NIPOST) dated as far back as 1852, evolving from an exigency of the colonial administration to a Collection Office of the United Kingdom and eventually, to the NIPOST after the unbundling of P & T.
As of 1st of October, 1960, when Nigeria gained independence from colonial rule, there existed one hundred and seventy-six (176) Post Offices, 10 Sub-Post Offices and 1000 Postal Agencies which has now multiplied to over 955 post offices and more than 3,000 Postal Agencies in the 6 states of the Federation.
Remi Tinubu however observed that given the current realities, there is a need for a review of the NIPOST Act to guarantee improved efficiency and service.
“NIPOST has been touted as having so much potential not only for revenue generation but also for impacting the lives of ordinary Nigerians.
“However, the Agency’s struggles are well known. With its apparent inefficiencies, advancement in technology and the introduction of electronic mail there has been a decline in demand for traditional postal services, thus necessitating reform in the Agency mode of operation.
“The Global Postal Industry and indeed, every facet of human life has continued to evolve, thus requiring the Nigerian Postal Industry to rise to the demands of existing realities.
“Consequently, the subsisting Act which has been in place since 2004 has been overtaken by events and is not reflective of the times we are in.
“To set NIPOST back on track, we need innovation, integration and inclusion in keeping up with current trends and introducing ICT to ensure quicker and more effective service delivery.
“To do this, however, it is important to take a look at, and reengineer the Agency’s establishment Act, its powers and its functions,” the lawmaker said.
The Bill that is under consideration covers the implementation of a National Postal Policy, encourages local and foreign investment in the postal industry, ensures the protection of rights and interests of service providers in the sector, makes provision for postal services to areas and towns that were erstwhile, not sustainable, and promotes small and medium enterprises in the sector, amongst others.
The Bill also provides for the establishment of the Nigerian Postal Service and designates it as Public Postal Operator (PPO), a corporate body with a common seal whose responsibility includes the provision of Universal Postal Services in Nigeria.
The clear delineation of roles is expected to make NIPOST more commercially viable while ensuring more efficient service delivery.
The Bill will also establish the Nigerian Postal Commission, another corporate body with its common seal, which shall have the sole responsibility of regulating and supervising the Postal Sector.
What this means is that the Bill splits up the roles of policymaker, independent regulator and industry Operator which NIPOST is currently saddled with.
NIIPOSTwill automatically with the coming of the new law, cease to be the dominant operator in the courier and logistics services market, as the anticipated law will separate NIPOST the postal operator from the Regulator.
The bill further provides for administration and planning of a National Postcode System, in line with global addressing standards, for efficient mail delivery, and will also establish a Universal Postal Service Fund to be funded through appropriation from the National Assembly.
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