The Nigerian Senate has launched an investigation into the utilization of N10 billion in restructuring funds allocated to the Nigerian Postal Service (NIPOST) by the Federal Ministry of Finance. This decision was prompted by the discovery of irregularities within NIPOST’s subsidiaries, specifically NIPOST Properties and Development Company, and NIPOST Transport and Logistics Services Limited.
In a resolution passed on December 30, 2023, the Senate revealed that it had identified alleged illegal transfers of federal government shares in these NIPOST subsidiaries to private individuals. Key individuals within the Bureau of Public Enterprises and NIPOST were reportedly listed as shareholders in these subsidiaries, as confirmed by Corporate Affairs Commission records.
The Senate, responding to these findings, declared the NIPOST subsidiaries in question irregular and illegal, recommending their immediate winding-up and deregistration. Going beyond this, the Senate called for a comprehensive investigation into the N10 billion earmarked for NIPOST’s restructuring and recapitalization by the Ministry of Finance. If evidence of “injudicious utilization” is found, the Senate emphasized the need for the responsible committee to recover the full amount.
An anonymous government official expressed concerns about the potential transfer of NIPOST’s property assets, estimated in trillions of naira, into private hands through share inheritance. The official highlighted the disregard for established legal frameworks and emphasized the need for swift, comprehensive, and transparent results in the investigation.
Reports indicated that individuals involved in the alleged malfeasance hastily reassigned their shares in NIPOST Transport and Logistics to government entities, including NIPOST (80%), BPE (10%), and the Ministry of Finance Incorporated (10%). Controversial shareholding arrangements were also uncovered, raising questions about the legality and transparency of the original share transfers.
The official criticized the involvement of the Bureau of Public Enterprises (BPE) in NIPOST’s shareholding, stating that it contradicts established procedures. The government official underscored the Senate’s unwavering stance, demanding a thorough investigation and rectification of the NIPOST scandal, emphasizing the importance of protecting national assets with integrity.
Responding to the allegations, a BPE official explained that the NIPOST subsidiaries were registered in 2020 when the Corporate Affairs Commission portal only allowed individuals as shareholders. The official noted that subsequent updates to the portal now allow companies to hold shares with representatives, and the shareholding of NIPOST subsidiaries has been corrected accordingly.