Nigerian Postal Sector Reforms: Great Expectations
Finally, it seems it has come to the turn of the postal sector to partake in the much-touted Nigerian government reforms programme. In recent newspaper advertisements, the Bureau of Public Enterprises (BPE), the secretariat of the National Council on Privatisation (NCP), is asking qualified firms and organisations to apply for advisory functions.
Specifically, the BPE asked advisers to apply to assist it draft a new national postal sector policy, advise and assist the government in reviewing and developing/designing a new harmonised legal and regulatory framework for the postal sector to allow for private participation and restructuring of NIPOST.
The Bureau is therefore looking for eligible consultants for Expressions of Interests (EOIs) for the purpose of providing advisory services for postal sector reform and restructuring of NIPOST. The advisory services required include, but are not limited to, "formulation of a new postal sector policy/strategy for Nigeria; design and drafting of a new postal sector reform bill; and restructuring of NIPOST.'
Going by the BPE's notice, a new law would be in place to regulate operations in the sector.
Private operators, specifically the courier operators, had for long called for the overhaul of the present law governing the sector. That law is the Nigerian Postal Service Act No 41 of 1992.
Under Part II, 2(5), the law stated, "Upon receiving an application for a grant of licence, the Postmaster General shall recommend the application to the Minister for a grant of licence and the minister may, on the recommendation of the Postmaster General, if he is satisfied from all the evidence and information supplied to him, that the applicant is suitable to operate courier service, grant a licence…."
Courier services operators have continually criticised this law for making a competitor, NIPOST, the sector regulator. That naturally was the first thing the operators would like the reforms to address.
The Managing Director of Tradeways Express, a Lagos based courier company, Mr. Larry Chinekezi speaking on the reforms noted that a lot of work had gone into the establishment of a Courier regulatory Commission and would like the reforms to look into that and probably start off from there.
Again, Chinekezi stated, "Whatever reforms that would take place in the sector should take care of standardization of entry processes." This is moreso because, for now, people just look for the one million naira registration fee required of new courier operators, get the licence and refuse to put the needed facilities in place.
The current reforms should however go beyond courier services.
The 1992 Act granted NIPOST the monopoly of ferrying mails in Nigeria. But this need not be so. Other operators could also be licensed to carry letters like NIPOST. After all, other operators were licensed to operate telecommunication services like NITEL.
In the United Kingdom, full liberalisation of the postal sector is expected from January 1, 2006. From that date, the mail market would be opened to full competition. This, the authorities believe, would create a more vibrant postal market in the country.
Towards this end, about 17 operators have been licensed to provide mail services. These include AMP, DHL Global Mail, DX Network Services, Express, and Intercity Communications. Others are Lynx Mail, Mail Plus, Racer, Royal Mail, Royale Research Limited, Securicor and Special Mail Services. Also on the list are Speedmail, Target Express Parcels Limited, TNT UK Limited, TNT Mail and UK Mail.
To oversee the process, a regulator, the Postal Services Commission (Postcomm) has been established. The Postcomm website stated, "Postcomm is the independent regulator for postal services in the UK. It is our job to protect the universal service and make sure that postal operators, including Royal Mail, meet the needs of their customers throughout the UK. We are also responsible for introducing choice to a market that has been a closed monopoly for 350 years."
That is the kind of regulator the postal services in Nigeria needs. A regulator before the operators. A leading courier operator who spoke with THISDAY on customary condition of anonymity Tuesday said the country needs more than just one postal service operator. "We need more than one post office," he said. According to him, that is the only way the customers can enjoy the sector as this would bring about real competition.
What was done in the telecom sector that brought so much accolades to the country could be replicated in the postal sector. A regulator in place. The rules spelt out. Then, a call for expressions of interest in licences to operate postal services. Then a reserve bid price. Then, an auction. Then the award of licence with the obligation that licencees must have post offices in a number of geographical locations in the country within a certain number of time.
And just like telecoms, there would be the issue of quality of service. If a postal operator could not deliver a national mail in say three days, next time a customer wants to post a letter, he chooses a competitor to do that. Customers are not bound to using an inefficient operator, like in telecoms where they endure because of the need to keep a particular number.
Infact, in the UK, just like in telecoms, several companies have signed something akin to interconnect agreements with the former monopolist, the Royal Mail. That way, where they do not have access to, the Royal Mail could help deliver the mail, upon payment of an agreed sum.
In this scenario, it would be the duty of the regulator to fix a price cap, just like the NCC is doing in the telecoms sector.
Even in the United States, the new Postal Regulatory Commission is responsible for such things as price caps.
The above and more is what a proper postal sector reforms should bring. More activities into the sector, more innovations by service operators. More choices for the customers. More revenues in taxes for the government; and more employment for the populace. Nigerians deserve all these. And more.
