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The Corporate Affairs Commission (CAC) has announced the revocation of the certificates of incorporation of two subsidiary companies of the Nigeria Postal Service (NIPOST).
The affected companies are NIPOST Properties & Development Company Limited and NIPOST Transport & Logistics Company. According to the CAC, the certificates of incorporation for these entities were acquired through improper means.
Following the revocation, the CAC has directed that all assets of these companies be transferred to the parent company, NIPOST.
Statement from the CAC:
“The General Public is hereby informed that the Commission, in exercise of its powers as stipulated in Section 41 (7) of the Companies and Allied Matters Act No 3 of 2020, has revoked the Certificates of incorporation of the following companies due to irregular procurement. These companies are NIPOST Transport and Logistics Services Company Ltd RC 1673881 and NIPOST Properties & Development Company Ltd RC 1673971. As a result of these revocations, the Companies are considered dissolved, and their Assets and Liabilities are to be transferred to the Nigeria Postal Services established under the Nigerian Postal Services Act Cap N127 LFN 2004.”
Senate Probe and Background:
The CAC’s decision to nullify the incorporation of the two NIPOST subsidiaries may be linked to ongoing controversies surrounding these companies since their registration in 2020.
Earlier this year, reports surfaced alleging that the N10 billion allocated by the government for the restructuring of NIPOST had gone missing. Consequently, the Senate initiated a probe into the disappearance of the restructuring funds, which were released by the Federal Ministry of Finance.
During the investigation, the Senate reportedly uncovered illicit transfers made to private individuals from the two subsidiaries—NIPOST Properties and Development Company and Transport and Logistics Services Limited.
Key Points to Note:
Prior to the Senate probe, the National Union of Postal and Telecommunications Employees (NUPTE), supported by the Senior Staff Association of Statutory Corporations and Government-Owned Companies (SSASCGOC), had opposed the unbundling of NIPOST.
In a joint statement issued last year, the unions expressed concerns that the commercialization plan by the Federal Government, facilitated by the Bureau of Public Enterprises, aimed to gradually phase out NIPOST under the guise of reform/commercialization.
The unions accused relevant authorities, including the BPE, Federal Ministry of Communications and Digital Economy (FMoCDE), and the Federal Ministry of Finance, of orchestrating a plan to strip NIPOST of its assets while neglecting promises of growth and improvement.
Despite presenting their objections to the reform process, the unions allege that authorities failed to address their concerns and proceeded with the establishment of the subsidiary companies without proper consultation.
The statement emphasized the unions’ position that the reform process was marred by fraud and irregularities, with the involved entities dismissing their grievances.
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