Babatunji Wusu –
The House of Representatives has directed the Bureau for Public Enterprises (BPE) to account for approximately ₦10 billion spent on failed subsidiaries of the Nigeria Postal Service (NIPOST). This directive was issued during an investigative hearing in Abuja on Monday, led by Rep. Bamidele Salam, Chairman of the House Committee on Public Accounts.
Salam expressed disbelief over the claim that ₦10.4 billion was spent merely on registering the two companies, which collapsed within a year of their inception. “No reasonable Nigerian will believe that such an amount was spent to register these two companies,” he remarked.
The Senate had previously mandated the recovery of this ₦10 billion and ordered the winding up of the subsidiaries, following which the Corporate Affairs Commission (CAC) invalidated their registration in April due to irregular practices.
The two subsidiaries in question, NIPOST Transport and Logistics Ltd. and NIPOST Property, commenced operations in May 2023 but ceased functioning by May 2024. The BPE’s Head of Finance and Accounts, Imam Rilwan, explained that ₦10 million was allocated for the subsidiaries’ startup, while an additional ₦400 million was provided to BPE for preparatory work. The BPE then expended ₦423 million on various activities, including office rentals, necessary for the subsidiaries’ establishment.
Rilwan stated that the funds were used for renting office space and other essential services from 2022 until the subsidiaries took possession in May 2023. He also mentioned that all assets of these companies have been handed over to NIPOST.
Rep. Salam criticized the expenditure of government funds before their official release, deeming it a violation of the Public Procurement Act. He has instructed the BPE Director-General, Ayodeji Gbeleyi, to appear before the committee on September 11, bringing all relevant documentation related to the transaction.
**Background:**
In 2021, the federal government initiated a restructuring of NIPOST into three separate entities: a property company, a microfinance bank, and a transport and logistics company. The Ministry of Finance allocated ₦10 billion to kick-start this restructuring in May 2023.
A Government Integrated Financial Management System document revealed that ₦600 million was allocated to NIPOST, ₦5.5 billion to NIPOST Transport & Logistics Services Ltd, ₦3.5 billion to NIPOST Properties & Development Company Ltd, and ₦400 million to BPE for contingencies.
Concerns arose when it was discovered that key government officials, including Alex Okoh, the BPE Director-General, and Alex Adeyemi, a deputy director in the Office of the Accountant General of the Federation, held significant shares in these subsidiaries. This led to Senate Resolution No. 54 on December 30, 2023, which called for an investigation and the recovery of the ₦10 billion.
In response, the CAC invalidated the incorporation certificates of NIPOST Transport and Logistics Services Ltd and NIPOST Properties & Development Company Ltd in April due to improper procurement methods. The companies were deemed dissolved, and their assets and liabilities transferred back to NIPOST.
