By NBF News

Deputy Vice Chancellor, Lead City University, Ibadan, Professor Olufemi Onabajo, has urged the Federal Government to establish an independent Postal Regulatory Commission to reposition postal service industry in Nigeria.

He made the suggestion at the public lecture titled: Repositioning the Nigerian Postal Service for Capital Market Delivery: Role of Regulation, he delivered at the launch of Journal of Communications and Governance at the Lagos Airport Hotel, Ikeja. The journal was published and sponsored by the Troop Pharmaceuticals Limited, Lagos.

Onabajo explained that the commission would help in eliminating the dual roles that NIPOST plays as the operator and regulator in the industry, adding that it would also position the Nigerian Postal Service (NIPOST) for optimal performance.

'It would be extremely difficult for any organisation to regulate itself since it is hardly going to enforce or create rules that would threaten its position in the market and favour its competitors,' he said.

Onabajo, however, cautioned the Federal Government against merging the postal regulatory body with the Nigerian Communication Commission (NCC).

Onabajo stated that the push towards commercialisation and privatisation of NIPOST would help in making the postal agency a commercially viable entity.

'The postal industry in Nigeria is estimated to worth N100 billion but currently generates only N5 billion through NIPOST. The lack of infrastructure, political interference and inefficiency has been blamed for non-optimal performance of NIPOST to achieve its potential,' he disclosed.

Onabajo enjoined NIPOST to change its business models in order to survive and enhance its continue relevance to the capital market in the face of continue reduction of mail volumes and rapid evolution of Information and Communication Technology (ICT).

'The increasing use of digital solutions and the Internet has made it imperative for post not only to secure the traditional mail business, also to quickly master the digital world and seize the emerging opportunities. There is need to grow the mail using the available technology to increase the capacity of the mail and increase the reach.'

'This is why there should be an independent postal regulatory body that will sanitize the postal industry and reposition it towards serving the Nigerian capital market better.'