The Nigeria Postal service department came into being with the establishment of the Nigeria Telecommunications Limited (Nitel) on January 1, 1985. Nitel emerged from the merger of the Telecommunications arm of the defunct Post and Telecommunications department of the Ministry of Communications with the former Nigeria External Telecommunications Limited (Net), and through the promulgation of decree No. 18 of 1987, Nipost became an extra-ministerial department.
Outside the normal function of providing and operating facilities for collection, dispatch and distribution of inland and overseas mail at reasonable cost, Nipost also provides other services such as:
Pick Up Service, allows a customer to call either by phone or any other means at any designated post office to have his/her mail collected and delivered to a required address within two hours. The service is available from Monday to Saturday. The service has the advantage of speed and reliability while maintaining hand-to-hand check. Additionally, it saves the customer the trouble of leaving his office or home to the post office.
Postal Media, this service includes; Slogan Die Advertisement and Billboard Advertisement. Slogan Die Advertisement is a unique system through which publicity could be given through a slogan impression on all letters, processed in the post office, for a period of time on payment of specific fees by organizations and individuals who may wish to advertise their goods, services or celebrate an occasion . Billboard Advertisement involves the use of Billboards constructed in strategic positions in post offices nationwide, specifically for business publicity. For in-door Advertisement, Nipost uses the illuminated four-sheet poster. In addition, out-door billboard publicity could be constructed in the post office premises as long as it does not impair Nipost transactions. A negotiated fee is charged on Billboard Advertisement depending on space and duration of the publicity.
Mail/Passenger Services, this is a passenger transport service, which operates on existing mail routes in order to meet the organization’s aspiration of carrying human commuters in addition to conveyance of mail at moderate fee where excess capacity is available in the mail van.
Agency Service, this is an across the counter delivery service that Nipost performs for other organizations on commission basis. Agency service includes; Sales and Renewal of Drilling/Meter License, Payment of Pension to pensioners on behalf of government and other agencies, Sales and Renewal of Licenses, Sales and Distribution of Examination forms like Waec, Neco, Jamb and others,  Distribution of Company Shares and Application forms and Sale and Collection of Insurance policies among others.
Business Reply Services, under this service, a person who wishes to obtain a reply from a client without putting him to the expense of paying postage, may enclose in his communication an unstamped post postcard, envelope, folder or gummed label. He may also incorporate in his advertisements in newspapers and other publications a special design to be used as an address label or a folder. The client can post the card etc. in the ordinary way without a stamp, and the addressee will pay the charges on all the replies he receives. Delivery will normally be effected once daily. The business reply service is chiefly designed to meet the need of business firms and advertisers.
Sale of International reply coupon, this is similar to the Business Reply service. However, the service is only available to foreign countries and no license is required, hence, individual and corporate entities can use it. The user or sender will be required to buy the coupon at determined current rate at the post office counter and forward it to the addressee for presentation at the post office of destination to procure the equivalent stamp required sending a reply. The Coupon is universally accepted for exchange of equivalent postage stamps to any country in the world.
Licensing of Postage Meter Franking Machine, these machines can be hired or purchased from the manufacturers or their agents, by private persons or business firms for the purpose of franking correspondences with an impression denoting the amount of postage with date and place of posting. Users of this machine obtain a license from the local Head Postmaster and Payment in advance in respect of postage must be made from time to time at the licensing post office.
Post Office counter Space Rental, there are a number of counter spaces available for probable lease to customers like Banks, co-operative societies, clubs, Associations and similar organizations.
Post Office Space Rental, Nipost has quite a few rental spaces for temporary storage or other commercial uses in some of its post offices throughout the country, and such space is rented for a specific period and at a negotiated amount. The usage and construction of structures to be erected must not impair Nipost operations.
Stamp Duty, this service is principally a financial regulation but its implementation is exercised through the use of Postage stamps. Bulk users like Hotels, Power Holding Company of Nigeria, Water Boards, Landowners, Banks, The Stock Exchange Market and other big businesses can hire agents and Tax Meter Machines for the purpose of putting on impression denoting the amount of stamp duty with dates. Users of these machines must obtain licenses from the Local Head Postmaster and Payment in advance in respect of stamps used must be made from time to time.
Privately Operated postal Agencies/Sub-offices, Nipost appoints paid postal agents in areas where a post office is not available and there is established demand for postal services. The Postal agents can sell stamps to the public and deliver mail on behalf of Nipost. Postal agents have other businesses to perform on their own, in addition to the agency work. Where a postal agent has a high turnover, his agency can be upgraded to sub post office. Thus, in addition to sale of stamps and delivery of mail, it also sells postal/ money orders.
Post Office Identity Cards, Post office identity cards are issued to Nipost customers as a means of identifying them in their day to day transactions with the post office and thus avert incidences of impersonation and stealing.