House of Reps Questions BPE Over N10 Billion Spent on Failed NIPOST Companies

The Bureau for Public Enterprise (BPE) is facing scrutiny from the House of Representatives to account for approximately N10 billion allegedly spent on establishing two companies in partnership with the Nigeria Postal Service (NIPOST).

Bamidele Salam, Chairman of the House Committee on Public Accounts, called for an explanation during the committee's investigation hearing in Abuja, according to the News Agency of Nigeria (NAN). “No reasonable Nigerian will believe that N10.4 billion was spent to register the two companies. These companies eventually folded up one year after takeoff,” Salam stated.

The companies, NIPOST Transport and Logistics Ltd. and NIPOST Property, reportedly began operations in May 2023 but were dissolved in May 2024 following a presidential decision.

Imam Rilwan, the Head of Finance and Accounts for BPE, standing in for the Director-General, disclosed that N10 million was allocated for the launch of the companies. He further explained that the BPE received about N400 million to facilitate the establishment of the enterprises.

According to Rilwan, BPE managed to register the companies in 2017 and carried out necessary preparations for their eventual launch, with official approval for the registration process. He noted that the N423 million provided to BPE was used for renting office space among other startup needs, with the expectation that the funds would be recovered when disbursed in 2023.

Despite paying for the office spaces in 2022, the companies moved in by May 2023 and ceased operations by May 2024. Rilwan confirmed that all assets of the two firms were handed over to NIPOST management.

Salam responded by pointing out that spending government funds prior to their official disbursement is against the Public Procurement Act.