Towards liberalisation of the postal industry

IMMEDIATELY Mallam Mori Baba took over the mantle of leadership in NIPOST, report had it that the first thing he did was set up a committee to study and recommend the best way to consolidate the gains recorded in the establishment, within the confines of the Universal Postal Union (UPU) standard as regards the best practice in the postal services globally.

This group swung into action and identified among other things, that for NIPOST to consolidate successfully, functions efficiently and effectively, it must conform with the UPU's standard; and having closely studied postal outfits in countries, like the United States of America (USA), Britain, Canada, South Africa, Ghana, and Uganda just to mention but few, the group discovered that the postal establishments as the national carriers in these countries, compete with private courier service providers, in the spirit of free market economy.

The study group discovered that as a result of NIPOST not functioning in accordance with UPU's standard, it has not been able to reap the benefit of operating under a regulatory body or commission.

The committee noted that the dual mandate (operator and regulator roles) of NIPOST has placed a burden on its operation as a player in the industry, as it is saddled with additional responsibilities of acting as a regulatory body, in the process, slowing down its speed of operation and effectiveness.

According to the findings of this group, the dual responsibilities of being a player and a regulator has made efficient running of NIPOST in accordance with UPU standard rather difficult.

Closely related to the issue of being a player, as well as a regulator in the postal industry is the issue of persistent accusation by private courier outfits, that NIPOST is hell bent at driving them out of the market in other to dominate the industry as a monopoly. Arising from this constant cry of marginalization by private courier companies, NIPOST tended to carryout this function or regulation from the point of apparent burden of being seen as an aggressor by the private courier operators. The result is apparent despondency in the industry, a situation which is not in consonance with the spirit of a competitive world being encouraged by UPU.

The study group then recommended that the management of NIPOST should take steps to push for the establishment of a regulatory body for courier services in Nigeria as with the case in those countries earlier mentioned; which is the standard practices worldwide as duly recommended by the UPU.

Upon this recommendation, the Mori Baba-led management swung into action instantly. The result is the consummation of a draft proposal for the establishment of Nigerian Postal and Express Commission (NPEC), and a regulatory policy frame work that will serve as a spring-board for the commission, known as National Postal and Express Policy (NPEP). In producing the draft framework, NIPOST took account of the establishment of similar bodies in those countries that have adopted the UPU policy on postal commission.

This has enabled the management of NIPOST to come out with standard documents, according to information.
NIPOST intend to send these documents to the Presidency through the Federal Ministry of Information and Communication, to be forwarded to the National Assembly, as an executive bill, seeking for an act to establish a regulatory commission for postal services in Nigeria. The regulatory body will be in the mould of the National Communication Commission (NCC), and the Energy Regulatory Commission, and to be anchored on the National Postal and Express Policy (NPEP), which will serve as a platform for the commission take off.

It has been suggested that the area of convergence as a form of reform of the present administration may not work-out well for the NCC and the proposed NPEC according to experts. Here, the antecedents that led to the separation of NIPOST from NITEL in the year 1985 could easily be referenced to serve as a guide.

Before the separation then, it was clearly seen that the two could not conveniently converge without affecting each other's efficiency. It was clearly seen that there was significant government attention to NITEL than NIPOST, hence the relegation of NIPOST.

Further according to pundits, even if convergence is thought of, it will be better offered after the proposed Commission would have been well-rooted, with all necessary structures established. This is particularly so when strictly viewed from the position that the two bodies, NCC and the proposed Commission would be subjected to the rules and guidelines of their respective world affiliate bodies.

It is expected that the Commission, when fully operational, will provide a level playing ground for the National Carrier (NIPOST) and other private courier services in the country. The Commission will then focus on bring out policies for all players in the industry as a whole. It is also expected that when the Commission comes on stream, the postal industry will be better sanitized for overall efficiency and effectiveness.