Senate panel idenfies another threat to efforts to end recession

The Chairman, Senate Committee on Communications, Gilbert Nnaji has warned that any arrangement that allows the Nigerian Postal Service (NIPOST) to act as regulator and operator at the same time is a serious setback to government efforts to take the country out of recession.

Hinting on the imperativeness of the proposed NIPOST reform as he presided over the public hearing session organized for stakeholders’ inputs on the bill to establish the Postal Service Commission as well as the Nationwide Toll-Free Emergency Number Bill; Nnaji lamented that “the erosion of public confidence in the country’s postal system on account of the inability of the public postal operator (NIPOST) to deliver on virtually all statutory obligations including basic and core postal services”.

He added that “with the prevailing domestic and international market forces increasingly challenging NIPOST’S viability coupled with low levels of investment; and vast but obsolete infrastructure and facilities, it became apparent that the legislation currently guiding the affairs of NIPOST, i.e. the Nigerian Postal Service Act 2004, must be repealed and re-enacted to make room for vital legislations that will bring a wholesome reform to our postal sector”.

On the Nationwide Toll-Free Emergency Number Bill, Nnaji noted that “the aim of this Bill is to prescribe primary emergency telephone numbers for use in the country, and to implement a nationwide system for the reporting of emergencies to emergency service providers”.

Although the Nigerian Communications Commission (NCC) had expressed reservations to the bill on the ground that NCC Act has provided for toll-free number but Committee Chairman disagreed with the submission.

He maintained that as long as NCC was not living up to responsibility in that aspect, the Senate had resolved to give the Emergency Number provision a legal backing.

Declaring the event open, Senate President Bukola Saraki who was represented by the Senate Leader, Ahmad Lawan, commended the sponsors of the bills which he described as very critical and timely for Nigeria’s quest for economic diversifications among others.

Gbenga Ashafa sponsored a version of the NIPOST Bill while Isa Hamma Misau sponsored the Toll-Free Bill.

The Nigerian Postal Bill seeks to establish a regulatory framework for the Nigerian Postal Industry, by creating an effective, impartial and independent regulatory authority.

It is proposed as a catalyst to encourage local and foreign investment in the Nigerian Postal Industry.

On the general principles of the bill, Nnaji, during the lead debate argued that “the Bill is proposed as a catalyst to facilitate the reform of the postal industry.  It provides for a governing Board and a Commission to formulate postal industry policy with clear objectives on role of the postal sector in the national economy. The Bill provides for the Staff of the Commission to be headed by a Director-General in addition to other key personnel.  It makes financial provisions for the commission, creates power to grant licences, conditions of the licence renewal and revocation.  Sundry powers are also provided for the effective regulation of the industry in addition to the administration of post code system, tariff regulation and maintenance of technical standards”.

Describing as conflicting the present status of the NIPOST as an operator and a regulator at the same time, he hinted that “the Bill splits up the dual roles of policy maker, independent regulator and industry operator which NIPOST currently enjoys.

Whereas the NIPOST is to solely retain the role of industry regulator to ensure level playing field, its existing commercial arm would be incorporated as a limited liability company to operate in the industry independent of NIPOST, in addition to other operators.

According to him,  this split would facilitate a radical change in the business culture of the successor company of the commercialized arm of the NIPOST.

He equally called on business oriented Nigerians with expertise and interest in the sector to quickly approach NIPOST for public-private-partnership (PPP) because the Bill has a lot of viable business opportunities.