NIPOST Generates N20.62bn in One Year

NIPOST
  • NIPOST Generates N20.62bn in One Year

The Nigerian Postal Service generated a total of N7.04bn from its core operations in 2017, data available to our correspondent have shown.

With another N13.58bn generated from electronic stamp sales, the postal organisation actually made a total of N20.62bn in the 2017 fiscal year.

A breakdown of the data showed that NIPOST generated N1.58bn from Expedited Mail Services, otherwise known as Speedpost.

From stamp proceeds, the postal organisation generated a total of N1.33bn, while it made N1.28bn from parcel clearance and delivery fees.

Other items that yielded revenue for NIPOST in the year under review included international mail income, from which it made N715.82m; and bulk post service, from which it garnered a total of N537.06m.

From fees charged on renewal of post office boxes, the postal organisation generated N448.04m, while it made a total of N361.44m from the sale of stamp/taxed items.

On premises and leased spaces, it generated a total of N172.7m; and from unidentified miscellaneous sources, the postal organisation made a total of N601.53m.

The addition of N13.58bn generated from electronic stamp sales takes the revenue profile of NIPOST to N20.62bn, N11.71bn higher than the N8.91bn made from all sources in 2016.

Electronic stamp sales is another name for the controversial stamp duty paid on electronic fund transfers, which the Central Bank of Nigeria had directed the banks to charge on electronic fund transfers with a value of at least N1,000 from January 1, 2016.

The fund is currently warehoused in a stamp duty/Treasury Single Account with the apex bank as the postal organisation makes efforts to legalise the duty, which has been challenged at the Appeal Court. It is not yet clear whether NIPOST has now gained access to the fund.

The Postmaster General of the Federation, Mr. Bisi Adegbuyi, had at a recent public hearing on a bill seeking the reformation of NIPOST and the creation of a new postal commission for the regulation of the postal and courier industry, anchored the fate of the postal organisation on new business opportunities created by electronic commerce as well as expanding its horizon to offer financial inclusion services.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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