FG to Reform NIPOST, Plans to Establish 5 New Companies from it

The Minister of Communications, Adebayo Shittu, has restated the Federal Government’s resolve on the much-awaited modernization and restructuring of the Nigerian Postal Services, NIPOST, with plans to establish 5 new companies from it.

BREAKING: NIPOST to metamorphose into five companies@NIPOSTNIG https://t.co/rPfzOVigRI#ThisIsNigeria #GrassRoots pic.twitter.com/corqbYykNA

— GrassRoots.ng (@GrassrootsNg) July 25, 2018

The business units to be established include NIPOST banking and insurance company, NIPOST property and development company, NIPOST transport and logistics services company, NIPOST E-government services company, and NIPOST E-commerce services company.

The diversification (establishment of more companies) is part of the Government’s drive to make good use of the current infrastructure to meet up with the modern trends unlike its old order of inactivity and transforming it to an ultimate modern agency with improved quality of service delivery.

Mr. Shittu made this known at the official launch of the Nigeria information and communications technology (ICT) roadmap in Lagos recently.

The Possible Effects of  these New Establishments

It is worthy of note that the Nigerian Postal Services is a government-owned corporation with access to funding, manpower, and about 5,000 offices nationwide. With this number of outlets and manpower, the corporation serving as a government digital banking services company would grow the nation’s quest for financial inclusion as it would have access to the unbanked and underbanked areas.

https://twitter.com/NIPOSTNIG/status/1022010717501902849

Also, with a multi-billion naira infrastructure, the Nigerian Postal Services would promote public-private partnerships (PPP), most especially in the area of e-commerce as the private sector would be able to make use of its large network to serve the nation. And since businesses would be making use of NIPOST’s logistics and distribution, it would mean cheaper cost of goods and services for the consumers.

NIPOST will also be partnering with banks on its address verification system, so it can have the authentic addresses of citizens and ensure a quality delivery system.

The five new companies are expected to roll out fully by the end of the year and thousands of Nigerians are expected to be recruited in each of the companies by the year 2020.