FG to set up postal sector regulator

The Bureau of Public Enterprises (BPE) said it has completed the design for the establishment of an independent postal sector regulator, together with the implementation programme.
Director General of BPE, Mrs Irene Chigbue disclosed this when she led her management team on a courtesy visit to the Minister of Information and Communication Prof Dora Akunyili.
She described as unacceptable a situation where NIPOST is both an operator and a regulator, stating that a commission, National Postal Commission (NPC) would be set up to regulate the industry. The director general added that being a statutory corporation restricts NIPOST's access to loan capital and also restrict business possibilities.
But she however noted that setting up of an independent postal regulator will require a lot of resources, adding that another challenge would be the establishment of an effective post code system given the unplanned rural and urban settlements in Nigeria.
The BPE boss said her organisation is in the process of instituting economic reform in the Nigerian postal sector and also to reposition NIPOST for optimum operational efficiency.
"NIPOST is currently being prepared for restructuring. In this regard, the modified business plan, draft memorandum describing the functions of each NBU and the financial due diligence report has been completed".
Mrs Chigbue however disclosed that there is no sector policy/strategy, stressing that existing law is outdated. She maintained that the incumbent operator, NIPOST cannot meet the demands of the market and services as operators and regulator. She stated that NIPOST has not been able to provide the basic services.
The director general pointed out that the objective of the postal reform is to ensure that postal service are available to all Nigerians at affordable cost and in timely and efficient manner; align the postal sector to global development in information communication technology; institutionalise commercial practices in the sector and introduce private sector participation and create an enabling and competitive environment with independent regulation, broaden the scope and depth of services provided to include savings mobilisation, micro credit administration, payment and funds transfer system for the entire country through vast past office network.
The BPE boss revealed that the reform process of the postal sector was initially scheduled for commercialisation in Part 1, Schedule 2 of the commercialisation and privatisation Act of 1999, but the position was later modified to partial privatisation when it became very clear that any attempt to sell a substantial stake in NIPOST without extensive restructuring would fail.
The director general told the minister that the new approach towards postal sector reform recommended three phased process. According to her, phase one is expected to review the postal sector policy and develop an effective policy framework for creating efficiency and effectiveness in the sector.
Phase two, she said, consists of an assessment of the existing legal, regulatory and organisational framework governing the postal sector in relation to the achievement of the Federal Government, while phase three of the programme involves the restructuring of the Nigerian Postal Service (NIPOST) into new business units (NBUs).
She said BPE has formulated a postal sector policy/strategy which has since been approved by the National Council on Privatisation to be forwarded to the Federal Executive Council (FEC).
"The draft postal sector bill is also ready and has since been approved by the NCP. It is currently awaiting FEC approval for an on-forwarding to the National Assembly", she said.