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Finance Act crippling NIPOST – Post master general cries out

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…Says N40billion making agency remain analogue

By Henry Umoru

BARELY twenty- four hours after President Muhammadu Buhari wrote the Senate seeking for the amendment of the passed Finance Act, the Post Master General of the Federation, Dr Ismail Adebayo Adewusi,Wednesday raised the alarm that the Act was seriously affecting and  crippling the financial status of the Nigeria Postal Service, NIPOST.

Adewusi told the Senator  Oluremi Tinubu, All Progressives Congress, APC, Lagos Central  led Senate Committee on Communications that the Finance Act 2020 predicated on Finance Bill 2019 passed by both Chambers of the National Assembly has an  injurious provision against  NIPOST operations in terms of revenue generation.

The Post Master General ( PMG)  who spoke when members of the Senate Committee on Communications visited the National Headquarters of the  Postal Agency, however  lamented that non release of N40billion estimated for transforming of its services from analogue to digital since 2005, made it remained backward in postal services.

Adewusi said, “Specifically the Act in one of its provisions, removed the legal mandate of NIPOST on stamp creation , which further worsened the interagency rivalry that had been existing between NIPOST and the Federal Inland Revenue Service ( FIRS) on stamp duties collection.

“While billions of Naira as revenues from Stamp Duties have  been lying idle with the Central Bank of Nigeria ( CBN) over the controversy of right of ownership between NIPOST and FIRS , the incapacitation of the Agency from creating Stamps , has further worsened its financial status.

“This is even as the Federal Government since 1998, stopped funding the agency as far as capital budget is concerned .

“The agency in the light of these overwhelming challenges , appeal to the Senate Committee on Communications to come to its rescue by amending  provisions of the Financial Act incapacitating it from carrying out its traditional mandate of stamp creation with attendant crippling financially.”

The Post  Master General who  appealed to the Senators to help fast track re-consideration and possible passage of the Postal Reform Bill, said that if passed would  help bring about the required transformation in the agency.

Adewusi who assured the lawmakers  that despite the daunting challenges affecting its operations,  efforts are already been made to reposition it digitally, said, “in doing this , the agency will soon be unbundled into subsidiary companies in the mode of Property Development and Logistics and Transport Company.”

READ ALSO: Tribunal affirms Senator Tinubu’s election

Meanwhile, members of the Committee in their responses, tasked the Post Master General to think out of the box in confronting the challenges.

On her part, Chairman of the Committee, Senator Oluremi Tinubu said ” though the issue of Finance Act will be looked into by way of amendments since laws are not cast in stones but other challenges should be confronted within by thinking out of the box.

” We are impressed with the move already being made in unbundling the agency into subsidiary companies that will go into e – commerce , banking , internet post etc, which are the trend globally.

“We are very much ready to support you on this wonderful initiatives with required legislations ”

The Committee had earlier visited the Nigerian Communications Commission ( NCC)  where submissions made by the Executive Vice Chairman, Prof Umar Dambata were more of achievements than lamentations.

Vanguard

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