NIPOST Reboots Financial Service, Cross-Border Payments with Revival of Money Transfer Licenses, Surpasses N10bn Revenue

After years in the shadows of Nigeria’s financial technology boom, the Nigeria Postal Service (NIPOST) is staging what it calls a bold return to the financial services sector, announcing its readiness to offer both domestic and cross-border payment solutions.

This comes on the back of two key licenses—a Super Agent License and an International Money Transfer Operator (IMTO) License—recently renewed by the Central Bank of Nigeria (CBN), after a prolonged shutdown spanning almost eight years.

According to NIPOST’s Postmaster General and CEO, Tola Odeyemi, who spoke in a Channels Television interview, the agency has now cleared outstanding regulatory fines and is operationally prepared to begin offering financial services. Odeyemi disclosed that the IMTO license, which enables international remittance transfers, had been inactive for nearly a decade due to regulatory issues. But with all penalties now settled, NIPOST is attempting to re-enter a space that is already dominated by fintech firms and digital-first banks.

“NIPOST has two licenses, a Super Agents license as well as an International Money Transfer Operator license. Unfortunately, something had happened with that IMTO license, and it was shut down for about seven, eight years. But last year, we were able to pay off all the fines, and it’s now back up,” she said.

Bilateral Deals to Power Cross-Border Transfers

With renewed focus on financial inclusion, NIPOST says it has begun signing bilateral agreements with countries in West Africa to enable more efficient cross-border payments. Odeyemi pointed out that the agency’s target is to simplify money transfers within the continent, particularly in the ECOWAS region, where remittances are often slow, unreliable, or exorbitantly expensive.

“Sending money from Cameroon to Nigeria is harder than sending money from the U.S. to Nigeria. So, right now we’ve signed bilaterals with Togo, Benin, and I think a couple of other countries. There’s a particular agreement that right now is going through the justice system,” she said.

These bilateral arrangements are expected to support diaspora remittances and regional trade, which is critical given the volume of informal commerce across Nigeria’s borders.

Despite its past struggles, Odeyemi revealed that NIPOST has recorded a turnaround in revenue generation, surpassing N10 billion last year. She attributed the growth to ongoing internal reforms, including digitization of core operations and aggressive cost-cutting.

“We actually surpassed N10 billion last year, and that was just by digitizing some of our processes and plugging leakages. I think for the Nigerian Postal Service, N10 billion naira is a scratch,” she said.

But the agency is now pushing beyond its modest milestone, signaling its intent to transition into a broader public service enterprise that blends logistics, fintech, and identity infrastructure.

Odeyemi highlighted that NIPOST’s transformation includes deeper integration with Nigeria’s growing e-commerce market, development of its PostMoni platform, and expanding the National Addressing System to help financial institutions, security agencies, and even emergency services identify and reach individuals and businesses efficiently.

“If the Nigeria Police adopts NIPOST’s addressing framework, the Force can better combat crimes and improve emergency responses,” she noted.

But Logistics Failures Are Not Over

Despite this renewed ambition, not everyone is convinced that NIPOST is ready to take on such an expansive role. It is largely believed that the agency has woefully failed in its primary role as Nigeria’s postal and courier service, leaving many skeptical about its ability to run a nationwide financial infrastructure. Years of inefficiency, late deliveries, missing parcels, outdated systems, and poor customer service have all contributed to an enduring public perception that NIPOST is neither reliable nor modern.

In fact, many Nigerians, particularly those in the fast-growing e-commerce space, say what the country needs is not another state-run payment platform, but a revitalized postal service that can deliver goods and services promptly and professionally.

Online shoppers and merchants say the agency’s neglect of last-mile delivery and failure to modernize its courier operations is hurting Nigeria’s e-commerce potential. Platforms like Jumia and Konga have built their own delivery networks largely out of necessity, while private courier firms now dominate the space NIPOST was originally created to lead.

Calls have been made for NIPOST to focus on getting its logistics backbone in order, as this would offer the most immediate and tangible value to Nigeria’s digital economy. As more small businesses move online, the demand for reliable, cost-effective nationwide logistics continues to grow, but NIPOST has yet to meet that challenge.

“It took a week for my parcel to get from London to Nipost in Lagos. It took Nipost over a month to deliver it to my house. By then, the company had refunded me because the item was considered lost,” a Nigerian lamented on social media.

Against this backdrop, it is believed that NIPOST’s return to financial services may be premature, or even misguided, if its core mandate remains neglected. The agency’s aging infrastructure, lack of widespread technological capacity, and low consumer trust levels are considered serious obstacles to success in an already saturated digital finance market.

Moreover, while the licenses provide legal backing to operate as a financial services intermediary, there’s little evidence so far that NIPOST has the systems in place to compete with nimble fintech companies that offer slick apps, real-time settlements, 24/7 customer support, and trusted brand equity.

Government’s Broader Reform Agenda

The development follows ongoing reform efforts by Dr. Bosun Tijani, Nigeria’s Minister of Communications, Innovation and Digital Economy. Tijani, upon taking office, had requested public input on how to transform NIPOST into a modern institution fit for Nigeria’s digital economy.

Some of the suggestions included transforming NIPOST into a neutral logistics backbone akin to how the Nigeria Inter-Bank Settlement System (NIBSS) serves banks. Others recommended partnerships with e-commerce platforms, secure payment gateways, and real-time tracking systems for deliveries.

However, some have noted that NIPOST’s resurgence as a player in financial services may bring new revenue opportunities, especially as the country seeks to expand formal financial access to millions of Nigerians.