The House of Representatives has urged the Bureau for Public Enterprise (BPE) to provide a detailed account of approximately N10 billion allegedly used to register two companies for the Nigeria Postal Service (NIPOST).
This directive was issued during an investigative hearing led by Rep. Bamidele Salam, Chairman of the House Committee on Public Accounts, in Abuja.
Rep. Salam expressed disbelief over the expenditure, stating, "No reasonable Nigerian will believe that N10.4 billion was spent to register the two companies."
The companies in question, NIPOST Transport and Logistics Ltd., and NIPOST Property, reportedly commenced operations in May 2023 but were dissolved by a Presidential directive in May 2024, just one year after their inception.
Mr. Imam Rilwan, the BPE Head of Finance and Accounts, who represented the Director-General of the Agency, disclosed that N10 million was allocated to the two companies for their initial setup.
Additionally, about N400 million was provided to the BPE to facilitate the groundwork for the companies' launch. The registration and other preparatory activities, approved in 2017, cost around N423 million, which included expenses such as office accommodation.
Rilwan explained that although the Bureau paid rent for the offices in 2022, the companies only took possession in May 2023. Following their dissolution in May 2024, all properties belonging to the companies were handed over to NIPOST management.
Rep. Salam criticized the premature expenditure of government funds, highlighting that it violated the Public Procurement Act. He directed the BPE's Director-General, Ayodeji Gbeleyi, to appear before the committee on September 11 at 12 noon with all relevant documents related to the transaction.
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