CAC revokes certificates of NIPOST subsidiaries over ‘improper procurement’

The Corporate Affairs Commission (CAC) has revoked the certificates of incorporation of the Nigerian Postal Service (NIPOST) subsidiaries over improper procurement.

The subsidiaries include NIPOST Transport and Logistics Services Limited and NIPOST Transport and Logistics Services Company Ltd

In a statement on Monday, CAC said the properties were improperly procured, hence the revocation of certificates.

The development is coming three months after the discovery of an illegal transfer of N10 billion in restructuring funds released by the federal ministry of finance to the agency’s subsidiaries.

“The general public is hereby informed that the Commission, sequel to its powers contained in Section 41 (7) of the Companies and Allied Matters Act No. 3 of 2020, revoked the Certificates of incorporation of the below-mentioned companies because the same was improperly procured,” CAC said.

“These companies are NIPOST Transport and Logistics Services Company Ltd RC 1673881 and 2. NIPOST Properties & Development Company Ltd RC 1673971.

“By virtue of these revocations, the Companies are deemed to be dissolved and their assets and liabilities transferred to the Nigeria Postal Services established under the Nigerian Postal Services Act Cap N127 LFN 2004.”

On November 21, 2023, the house of representatives approved the winding up and deregistration of the subsidiaries of NIPOST, deeming their establishment irregular and illegal.

The house also directed an investigation into the N10 billion released by the ministry of finance for the proposed NIPOST restructuring and recapitalisation.

According to the lawmakers, if the funds were found to be misappropriated, it must be fully recovered.

This decision was part of the lower chamber’s efforts to enhance transparency and accountability in the public sector.