Emily Smith
Wed, Sep 13, 2023 1:30 PMNIPOST Revenue Declines to N3 Billion in 2022, Reflecting Years of Poor Performance
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The Nigerian Postal Service (NIPOST) has experienced a continuous decline in revenue since 2019, reaching its lowest point of N3 billion in 2022. The latest data from the Nigerian Bureau of Statistics (NBS) highlights a 17 percent decline from 2021, with a 44 percent revenue drop in the past five years. The decline can be attributed to poor performance across various areas of NIPOST services. Despite a decrease in the number of post offices, the agency saw an increase in international mail. The reform initiatives implemented in recent years have not been successful in addressing the underlying issues, which have been largely attributed to corruption within the organization.
The Nigerian Postal Service (NIPOST), a vital institution for mail and logistics services in Nigeria, has been facing severe financial challenges. According to the latest data from the Nigerian Bureau of Statistics (NBS), the agency's revenue has reached a record low of N3 billion in 2022, representing a 17 percent decline from the previous year.
This decline indicates a worrying trend for NIPOST, as it marks a 44 percent drop in revenue over the past five years. In 2019, NIPOST reported a 5-year high of N5.37 billion, highlighting the steady decline since then. The decline in revenue can be attributed to poor performances in various areas of NIPOST services.
The Nigerian Bureau of Statistics reported a decrease in the number of post offices and postal agencies in the country. In 2021, Nigeria had 2,794 post offices and postal agencies, but by 2022, the number had decreased by 19 percent to 2,251. This decrease could be a contributing factor to the decline in revenue.
Interestingly, despite the reduction in the number of post offices, NIPOST reported a 107 percent increase in the number of mail received from abroad and delivered in Nigeria. In 2019, the agency received 9.4 million mail items from international sources, which increased to 19.5 million in 2022.
One area that showed significant growth in revenue for NIPOST is the Postcash service. Postcash is an electronic money order service that enables the sending and receiving of money nationwide and worldwide. Revenue from Postcash increased by a staggering 3,424 percent from N458,546 in 2019 to N16.16 million in 2022.
Despite the efforts to reform NIPOST, including the creation of three new subsidiaries and the introduction of a debit card and agency banking platform, the financial situation remains dire. The reform initiatives, started by former Minister of Communication and Digital Economy, Isa Pantami, aimed to optimize services and increase revenue.
However, these efforts have not been successful in lifting the veil of corruption that has plagued NIPOST for years. The decline in revenue reflects the lack of transparency and accountability within the organization, hindering its ability to provide efficient and reliable mail and logistics services.
Corruption within NIPOST not only affects its financial performance but also undermines the trust and confidence of customers and stakeholders. The reform initiatives must go beyond surface-level changes and address the root causes of corruption within the organization.
The decline in revenue for NIPOST is a cause for concern, as it not only affects the financial sustainability of the agency but also hampers the growth of e-commerce and other industries that rely on reliable mail and logistics services. A comprehensive and effective strategy is needed to revive NIPOST and restore its position as a vital institution in Nigeria's postal system.
Source of content: OOO News 2023-09-13 News
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