CAC Revokes Two NIPOST Subsidiaries Certificates

The Corporate Affairs Commission (CAC) has revoked the certificates of incorporation for two subsidiaries of the Nigerian Postal Service (NIPOST) – NIPOST Properties & Development Company Limited and NIPOST Transport & Logistics Company Limited.

CAC Cites Improper Procurement: The CAC claims the incorporation process for these subsidiaries was “inappropriately procured,” leading to their dissolution. As a result, all assets and liabilities of the subsidiaries will be transferred back to NIPOST.

Action Follows Scrutiny: This move by the CAC comes after months of controversy surrounding the subsidiaries. Earlier in 2024, reports surfaced regarding the disappearance of N10 billion allocated for NIPOST restructuring. This triggered a Senate investigation into the missing funds.

Unions Raised Concerns: Prior to the Senate probe, labor unions representing NIPOST employees voiced concerns about the unbundling of the organization. They suspected the government’s commercialization plan was a disguised attempt to dismantle NIPOST under the guise of reform. The unions specifically questioned the creation of the two subsidiaries, fearing asset stripping.

Unresolved Issues: While the CAC’s action dissolves the subsidiaries, questions remain about the alleged financial irregularities and the fate of the missing N10 billion. The Senate investigation is likely to continue to shed light on these issues.