Nipost, Operators Biker as Johnson Unveils ICT Draft Policy

Operators in the courier logistics business weekend rose against perceived marginalization in the new national draft policy on ICT unveiled by Mrs. Omobola Johnson, Minister of Communications, in Lagos dubbing Nigerian Postal Service (Nipost) both as regulator and operator, Nigeria CommunicationsWeek can report. Nipost however said there were no ambiguity in the operation of Nipost and the courier service operators. The draft policy which among others seeks: “To reflect convergence by de-emphasising the differences between the IT, broadcasting, telecommunications and postal sectors” but remains mute on the much vexed issue of Nigerian Postal Service operating as both a regulatory agency and service provider. Mr. Ralph Ozode, managing director and chief executive of universal postal service (UPS), noted that the draft document was too vague on the postal sector. Ozode noted that the postal sector was capable of contributing immensely to the national gross domestic product (GDP) if effectively managed. “The US postal sector contributes as much as 4 per cent to the national GDP, and we could derive so much in Nigeria if the sector is properly situated,” said Ozode. Mr. Sule Umar Bichi, managing director and chief executive of FedEx, operating in Nigeria as Red Star Express said what the postal sector requires in the draft policy is to create an enabling environment for all operators to play on a level playing field. “We expect the postal sector to be restructured to avoid overlapping interests which is a contentious issue at the moment. At the moment, there is a lack of separation of functionality between regulator and operator,” said Bichi. The FedEx chief executive noted that the draft policy would need to examine the issue of establishment of a postal service commission (PSC), similar to the telecom regulatory agency, NCC. Mr. Mori Ibrahim Baba, postal master general of Nigeria however rose in the defence of Nipost. He insisted that there were no ambiguity in the operation of Nipost and the courier service operators. “Nipost is offering a national service, and that does stop us from effectively regulating the industry. We do not stifle competition, only that we are working to clean the system of unregistered postal operators,” said Baba. Giving a scorecard of Nipost in the last 12 months, Baba stated that it has “performed credibly. We have attained over 70% of our targets. We deliver parcels and letters within 72 hours of posting, and that is a feat. Our EMS operation is as efficient as the private carriers.” He stated the transformation of Nipost was due to outsourcing of some aspect of its operations to private concerns. The draft ICT policy notes that Nigeria’s postal sector comprises of Nipost as the dominant operator and regulator of the industry. In addition, “there are some 250 licensed private courier service operators in the country, in addition to a large number of courier grey market operators. As at the end of 2010 the annual turnover of the industry was over Naira 350 million. The dual role of Nipost as a regulator and operator comprises its effectiveness as a regulator.”