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Senate passes Bill to restrict NIPOST to postal operations

Published by The Nation on Wed, 09 Jun 2021


By Sanni Onogu, AbujaThe Senate on Tuesday passed the Nigerian Postal Service (Repeal and Reenactment) Bill, 2021, which effectively restricted the agency to only postal operations in the country.The Bill also unbundled the agency by creating a commission to regulate its affairs.The lingering controversy between NIPOST and the Federal Inland Revenue Service (FIRS) as to who is statutorily empowered to collect Stamp Duties on behalf of the Federal Government also appeared to have been laid to rest in favour of FIRS as there is no provision in the Bill as to who will to collect the tax.Section 2 subsection 1-3 of the Bill however effectively barred NIPOST from engaging in tax collection.The section reads: There is hereby established a body to be known as the Nigerian Postal Service (hereby designated as the Public Postal Operator) which (a) shall be a body corporate with perpetual succession and a common sealThe Postal Operator shall be charged with the responsible of providing Universal Postal Service in Nigeria.In carrying out its Universal Postal Service Obligations, the provisions of any enactment, law or regulation relating to taxation of companies, agencies or trusts funds shall not apply to the Public Postal Operator save for its obligation as a collecting agent of government.
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