THE postmaster-general of the federation and chief executive officer of the Nigerian Postal Service (NIPOST), Omotola Odeyemi, came under heavy scrutiny by the Nigerian Senate on Tuesday, November 14, in Abuja, over poor revenue generation by the agency.
The Senate also warned that if the agency continues to operate at a loss, it will privatize it fully.
The Joint Committee on Finance Chairman, Sani Musa, gave this warning during the 2024-2026 Medium-Term Expenditure Framework public hearing at the National Assembly.
He expressed dissatisfaction with the agency’s lack of functionality and abysmal revenue generation, especially from stamp duties.
The committee also directed the postmaster general to provide the names of all staff members of the organisation, allocation, and salary to the committee for further investigation.
The committee also gave NIPOST two years to establish a plan to revamp the Service and change the business model to achieve self-sustenance rather than operating at a loss, a failure of which the Senate said it would enact legislation to ensure its total privatisation.
The lawmakers expressed dissatisfaction with Odeyemi’s explanation over the agency’s proposal of N18 billion as personnel cost for NIPOST 16,000 workers across the country.
Musa said NIPOST shouldn’t have increased its personnel cost from N13 billion in 2023 to proposed N18 billion for 2024, amid its poor revenue performance.
A member of the joint panel, Ireti Kingibe, a Senator representing the Federal Capital Territory (FCT), attempted to defend the continued existence of NIPOST as a partially funded agency of the federal government, claiming that every nation deserves its vibrant postal agency.
However, Osita Izunaso disagreed with Kingibe, arguing that the NIPOST, as it is currently structured, should not be encouraged if the country is interested in generating revenues to fund its annual budgets.
The Chairman of the joint panel further ruled that the NIPOST CEO should forward to the committee details of her business plan to reposition the agency as a highly revenue-generating agency.
He warned that NIPOST should have been fully privatized before now, arguing further that nobody was feeling its impact anywhere in the country.
The committee gave the Service an ultimatum to develop a business model on how the agency would generate adequate revenues for the country through creative ideas, as failure to do so would leave the Senate with no other option than to recommend its full privatization.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.