Wednesday, October 19, 2022

FG TO SPEND N10bn ON NIPOST RECAPITALISATION, ANALYSTS KICK

Economy experts have taken a swipe at the Federal Government’s plan to spend N10 billion for the recapitalisation of the Nigerian Postal Services, NIPOST, as contained in the 2023 Appropriation Bill.

Meanwhile, the same amount was appropriated for restructuring of the agency in the 2022 budget.

Commenting on the budgetary allocation, David Adonri Vice Chairman, Highcap Securities, a Lagos-based securities dealing firm, said that allocation for recapitalisation of NIPOST was unnecessary considering the disruptive effect of technology in the postal service space.

He noted that it would be impossible for the Service to survive within the technology environment and called for the closure of the agency.

“NIPOST has virtually collapsed; the idea of NIPOST appears to be obsolete considering the changes that have occurred in the technology space wherein NIPOST has withered away. 

‘‘The way technology has come in and the way the private sector has taken firm control of postage and courier services has made it almost impossible for a Nigerian government enterprise, which is always laden with corruption, to be competitive.

“The best thing, really, is for the government to close down that agency called NIPOST because it can no longer compete in the technology driven environment of today.

Also, as a result of being a government agency, it is already doomed for failure due to inefficiencies and corruption that usually bedevil government enterprises,” Adonri said.

The immediate past Director General of the Lagos Chamber of Commerce and Industry (LCCI) and the Founder/CEO, Centre for the Promotion of Private Enterprise (CPPE) Muda Yusuf, said: “A key imperative for fiscal consolidation is to refrain from funding institutions that the government can do without. 

There is no compelling argument in favour of continuous commitment of scarce financial resources for propping up moribund state institutions like NIPOST. It is difficult to justify the recurring budgetary provisions, especially in the light of the current weak fiscal position of the government.”

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