Category: Infotech

  • Telcos seek cut of MTN’s fine

    Telcos seek cut of MTN’s fine

    •NCC: telcos must obey rules

    Telecommunications firms have  urged the Federal Government to further reduce the fine imposed on MTN by the Nigerian Communications Commission (NCC) over subscriber identity module (SIM) registration regulation infraction.

    MTN was fined N1.4trillion for keeping millions of pre-registered and poorly registered SIMs on its network.  The Presidency slashed it to N780billion.

    Speaking at a reception for Communications Technology Minister Adebayo Shittu, Associaiton of Telecommunications Companies of Nigeria (ATCON) President Lanre Ajayi said the fine could kill business, adding that ATCON campaigned vigorously for SIM card registration in the public interest.

    The NCC has urged firms to subject themselves to the country’s rules. Its Executive Vice Chairman/CEO, Prof Umar Dambatta said telcos must strive for greater discipline and respect for extant rules, guidelines and regulations.

    He said: “The Commission urges bodies such as ATCON, ALTON (Association of Licensed Telecoms Companies of Nigeria) and others in the industry to strive for greater discipline and respect for rules, guidelines and regulations among members as compliance to the Commission’s guidelines and regulations will lead to a more coordinated regulatory environment.”

    Represented at the event by Director, Public Affairs, Tony Ojobo, he said the Commission will always act responsibly, impartially, transparently and independently in the discharge of its statutory functions and for the common good of the consumers and the service providers.

    But ATCON said when it started the campaign for the introduction of SIM card registration, it was fiercely resisted by many, adding that the scheme would not have seen the light of day were it not for the persistence of its members.

    Ajayi said the intention of ATCON was neither to use it to raise funds for government; be converted to a tool to kill telecoms operators nor to create a tool that can be used to destroy the industry.

    He said: “Our singular intention was to protect the environment where we do business; we have watched with regret the poor handling of the issue; the politicisation, remarks based on emotion and not on the objectives of the fine. While some see it as an opportunity to make quick money by offering all sorts of services-legal, public relations, lobbyist, some politicians and public officers see it as an opportunity to show off the importance of their offices without an iota of consideration for the purpose of the fine and the impact its mishandling can have on the telecoms industry and the national economy at large.

    “We are of the opinion that MTN has suffered sufficient losses: loss of reputation, loss of market value, loss of revenue and have learnt their lessons. We plead that the fine should be reviewed downward to a figure not more than their profit for one year. This should be enough to serve as deterrent for future breaches while ensuring that they are kept in business to provide Nigerians services that we badly need at this stage of our development.

    “Our plea for leniency is based on our conviction that the breach was not done with a criminal intention to injure our national security but by sheer act of negligence. Our approach would have been different if otherwise proven.”

    Ajayi said ATCON does not tolerate unprofessional conduct and disrespect for rules, adding that as a demonstration of this, the association has launched its code of ethics with determination to sanction erring members.

    “Equally, we have no objection to the use of fine as a tool to ensure compliance to regulations but when an unanticipated scenario emanates where fines computes to humongous amount that is capable of inflicting damages on the industry and the country, it is only wise that the nation acts in self interest by seeking a review to ensure that the purpose of the fine, which is to act as deterrent to breaches of rules is served while an inadvertent self-infliction is avoided.”

     

  • Airtel unveils SmartSpeedoo

    Airtel unveils SmartSpeedoo

    Airtel Nigeria has unveiled SmartSpeedoo, a service that allows customers experience real data while browsing at affordable tariff and enjoy free megabytes.

    The solution, which can be activated by using *141#, was unveiled during a press briefing in Ikeja, Lagos.

    Speaking on the occasion, its Chief Commercial Officer, Ahmad Mokhles, said the company is passionate about creating innovative mobile internet platforms, value offerings and opportunities that will help telecoms consumers in Nigeria stay connected and be fully empowered to fulfill their dreams.

    He said: “Airtel Nigeria is intensely interested in democratising data tariff and we have taken a huge step forward in this journey in line with our major objective of becoming the provider of first choice for mobile Internet services.”

    Speaking on how it works, its Vice President, Data & Digital Services, Nitin Anand said customers using Smart Speedoo enjoy low rate in addition to free data the more they browse.

    “When a customer uses up to 10mb (megabyte) at 1kobo/kb (kilobyte), Airtel gives 10mb free; when the usage gets to 50mb, the browsing rate drops to 0.5kobo/kb, then the user gets 50mb free. When the customer’s usage reaches 100mb, the rate drops further to 0.2kobo/kb and the user gets 100mb free,” Anand explained, noting that the cycle continues every month, thereby giving Airtel customers the Free Surf experience.

    While commenting on the superfast 3G internet, which Smart Speedoo rides on, Anand noted that Airtel has the largest deployment of 3G Internet Provider (IP) sites in the country to enable the telco offer internet speed of up to 42mbps, which is very close to the long term evolution (LTE) speed.

    “Almost 80 to 85 per cent of all Airtel 3G sites in Nigeria are IP enabled so they can give you the speed of 42mbps, this speed is similar to the speed you get on LTE network. So, we can proudly announce that customers can get real data experience on the Airtel 3G network, which is equal to 4G speed,” he said.

    Its Head, Data & Portals, David Umoh explained that Airtel customers using the service do not need to remember USSD code to buy data or worry about airtime being used up when out of data while browsing, as SmartSpeedoo gives pop-up notifications to show usage.

    He said Smart Speedoo gives ‘free internet in everyone’s hand’ as it enables customers to be in control of their data usage while surfing at a very low rate, noting that the telco will continue to roll out more innovative services designed to further empower Nigerians and offer them Free Surf experience.

     

  • Broadband plan without support

    Broadband plan without support

    Amid pomp and ceremony, the former President Goodluck Jonathan administration unveiled the National Broadband Plan (NBP), which set  milestones for the country to achieve in the immediate, short and long terms. The plan may be mere wishful thinking considering the investment in infrastructure, reports Lucas Ajanaku.

    The Executive Vice Chairman, Nigerian Communications Commission (NCC), Prof. Umar Dambatta, is not a politician. Coming from the ivory tower, he is not likely to play to the gallery. So he knew what he was saying  when he said the government may not attain the 30 per cent broadband target set for 2018 in the National Broadband Plan (NBP) 2013-2018.

    For one, there is inadequate infrastructure on ground to support the plan. For another, there is no funding, especially from the private sector to push the plan. The  Federal Government’s plan to licence seven infrastructure firms (InfraCos) has bee prolonged. Under the plan, one InfraCo each would be licensed for the six geopolitical zones of the country; Lagos, because of its size and potential will have one.

    However, with only two InfraCos so far licensed for deployment in Lagos and Northcentral,  the EVC said the NCC is committed to driving the process  to completion, with about 24 months to go. According to him, broadband penetration in the country stands at seven per cent, a level below the average set by the International Telecommunications Union (ITU). Telecoms revolution has played very significant role in this area.

    Telecos such as MTN, Airtel, Glo and Etisalat have provided bulk of the mobile, broadband.

    Dambatta said:  “We have said this (the realisation of the milestones of the NBP) must be driven by massive investment in infrastructure, otherwise, this will not be attainable.

    “We are at the stage of developing the regulatory framework and we are doing that and once this exercise is completed we are envisaging that the licensing of the remaining zones with the provision of broadband infrastructure will take place within the next three or four months.”

    The Chief Executive Officer, Teledon Group, Dr Emmanuel Ekuwem, said the advantages of rapid, ubiquitous and affordable broadband deployment cannot be over-emphasised as broadband platforms promote the convergence of voice, data and audio visual services onto a single network. Broadband infrastructure is central to achieving the goal of financial/digital inclusion being championed by the Central Bank of Nigeria (CBN), enabling universal, sustainable, ubiquitous and affordable access to Information Communication Technology (ICT) by all and providing sustainable connectivity and access to remote and marginalised areas at national, state and local government levels.

    In 2007 South Africa approved the building of an information society,  based on the outcome of the United Nations World Summit on the Information Society which Nigeria also participated in the summit. The summit resolved that lCT infrastructure is the foundation for the development of an information society. (World Summit on Information Society (WSIS) Action Line C2, Information and Communications Infrastructure is an essential foundation for the Information Society.) The development of a Broadband Policy is in line with global trends and is critical to ensure realisation of the goal of an all inclusive information society that can enjoy the economic benefits associated with broadband in both urban and rural areas.

    Former Director, Regulatory Affairs and Special Projects, Airtel Nigeria, Osondu Nwokoro, who spoke on Policy and Regulatory Imperatives for Broadband Ubiquity at a public forum, said the launch of the NPB by the Federal Government is consistent with developments in other jurisdictions, adding that it is a step in the right direction and showed government’s commitment to pursue a broadband agenda for the country.

    Nwokoro, who now works for the scrap left by NITEL/Mtel, which has metamorphosed into ntel and is struggling to pull itself from the bootstrap, defined broadband as the easiest, fastest, and high speed internet access for data transmission and download. Compared to traditional telephone and modem, broadband supports real time internet radio, music, video, gaming, interactive services and others.

    The NBP defines broadband as an internet experience where the user can access the most demanding content in real time at a minimum speed of 1.5megabytes per second (Mbps).

    Broadband Commission for Digital Development said: “Access to broadband infrastructure and services must, therefore, be a top policy priority for countries around the globe, developed and developing alike, and least developed countries. Governments and business must work together to develop innovative policy frameworks, business models and financing arrangements needed to facilitate growth in access to broadband worldwide.”

    Wireless broadband was expected to contribute an additional N190billion to gross domestic product (GDP) last year while wireless broadband was expected to have a direct revenue impact (spend on usage and devices) of N598billon or 0.7 per cent of GDP at the end of last year, he said, adding that its ecosystem value will be N124billion comprising consumer retail (m-commerce; m-entertainment), financial services (m-banking), social services (m-learning, m-health, and m-governance) and corporate verticals (m-farming, m-enterprises, m-utilities).

    Head, Core Network Services, Cyberspace Network Limited, Osuere Peter said broadband is the totality that forms the entity for faster information delivery across a network. This network could either be digital subscriber line (DSL), fiber-optic, cable modem, satellite, wireless and broadband over power lines (BPL).

    He said customers could now carry on banking transaction activities via their fixed and mobile devices while e-commerce sites such as Konga, Jumia, Olx have also emerged.

    It has also led to the provision of public services such as driver-license application, international passport, national ID card registration and the general e-government solutions, adding that the implementation of regulatory framework and policies to promote electronic transaction such as the cashless policy of the CBN.

    According to the ambitious targets of the NBP, fixed broadband targets for cities (currently standing at 1.5per cent) was expected to go up to 10 per cent last year in the short term, 16 per cent medium term of 2018 and long term target of 25 per cent by 2020. Penetration level, which stands at 0.5 per cent, will move up gradually to 3.3 per cent, 5.3 per cent and 8.3 per cent respectively.

     

    Challenges

     

    Paucity of spectrum is a major challenge. The NBP acknowledges the place of spectrum in mobile broadband and proposed to publish plan for freeing up spectrum for LTE (long term evolution) rollout last year, conduct licensing of 2.5/2.6 GHz spectrum in 2014 and facilitate accelerated wireless infrastructure expansion and upgrade with operators. President, Association of Telecoms Companies of Nigeria (ATCON), Lanre Ajayi is not impressed with the way the National Frequency Management Board (NFMB) is going about its business.

    “We are disturbed that NCC has not been able to assign spectrum to operators for a long while. Past attempts to assign the 2.6Ghz have failed,” he lamented. It is also feared that the 2.6GHz spectrum availability could be delayed beyond this year while the 700/800 MHz digital dividend awarded to MTN has become a subject of controversy.

    Limitation of one InfraCo to one geopolitical zone, he said, has the tendency to breed monopoly such as NITEL. “We are concerned that licensing of InfraCos are being unduely delayed; we are particularly concerned that licences are being limited to one operator per defined geographic zone; we believe having just one operator in a zone creates monopoly and it may inadvertently bring us back to the dreadful days of NITEL. We canvass for multiplicity of licences per zone,” he said, adding that it will create competition and diversity on various routes where cables are to be laid thereby increasing network reliability.

    Nwokoro lamented that fixed infrastructure is not available in Nigeria and the cost and burden of putting same in place is daunting, adding that wireless is the only viable option for broadband penetration.

    Another issue is that of Right of Way (RoW), permits and other planning approval processes and associated charges between different ministries, departments and agencies (MDAs) at Federal, state and local levels remain a strong disincentive for infrastructure development.

    Though NBP proposes to secure RoW waivers with states and also pursue expedited RoWs, achieving this goal between the three tiers of government remains a daunting challenge.

    Other challenges are device ownership and access points, which are vital to adoption and utilisation.

    “NBP proposes to challenge OEMs (original equipment manufacturers) to produce sub $30 access devices to reduce cost of ownership and thus facilitate uptake by the broader subscriber base.

    “NBP also proposes to deploy local access points (in NIPOST premises and local government headquarters) to facilitate access within 2km for people, who cannot afford to own access devices,” he said.  But in spite of all the promises of the market size, major OEMs are unwilling to site assembly plants in Nigeria for device manufacturing, on account of unstable electricity supply, intellectual property rights issues and obstacles in the business environment. Only Rlg has braved the odds to do so.

     

    Way forward

     

    Mandate should be given to the National Frequency Management Council (NFMC) to articulate a spectrum roadmap to address timely available, cost-effective pricing and licensing spectrum band to support mobile broadband penetration.

    Another is resuscitation of the NFMB and expansion of its membership to incorporate private sector.

    Consideration should be given to the 900 MHz and 2.5/2.6 GHz spectrum re-farming to support mobile broadband on LTE while spectrum policy and regulation to support flexibility to supporting regional integration.

    Transition to a converged regulatory and spectrum environment by the merger of NCC and Nigeria Broadcasting Commission (NBC) consistent with international best practice must be looked into. This is where the National Assembly comes in. The sector analysts say instead of gallivanting all over the place, summoning individuals and corporate organisations under the guise of oversight functions, they should sit and enact laws that will ensure that the goals of NBP are achieved to promote access to e-literacy in the educational system; promote access to quality health services; increase efficiency in government processes; make Nigeria a competitive destination for investment; bridge the yawning digital divide; and promote inclusiveness of rural and marginalised communities.

    It is good that data centers are springing up across the country. Efforts must be made to have solutions that can bring together independent broadband technology platforms to function as a single unit.

     

  • ‘Paucity of funds inhibits broadband penetration’

    ‘Paucity of funds inhibits broadband penetration’

    Lack of funds to invest in the provision of broadband infrastructure is a major problem inhibiting its penetration in Nigeria, Executive Director, Numeric Technologies Limited, Alexander Anago, has said.

    He said there are a lot people pursuing individual interest in the industry, adding that if there is a common interest, there will be better broadband penetration in the country.

    Anago said there is need to improve broadband penetration for non private universities, saying students need to do research. “We also need to look in to secondary and primary schools for broadband penetration, because that is where the university students are trained from. If information is known from the primary schools, we will have more excellent students in the secondary and university,” he said.

    He urged the Federal Government to seek advice from organisations that are into information management to assist them in the implementation of the policies it has put in place to manage information.

    He lamented that the government has a lot of policies, but noted that it lacks proper information management.

    “This is not to say that there is a challenge with the policies, but with its implementation. Only Lagos State, out of the 36 states in the country has implemented its policies on information management,” he said.

    He urged the government to stop rolling out policies and focus on implementation, adding that the private sector must come together to execute the government policy in line with international standard in order to improve the economy.

    The major challenges on information management in Nigeria, he noted, are the people, awareness and capacity building, stressing that there is need to teach the upcoming professionals on how to manage information.

    “The private sector needs to help the public sector. In the private sector, we know the policies in government, we should help the government to review, improve and implement its policies. We need to have more laws on information management. The private sector can draft the bills and pass them on to the National Assembly, which will pass them into law,” he said.

     

    He urged the private sector to implement policies and prevent leakages of information. He said: “We should educate people and build capacity. The private sector should share its knowledge and let people know how to protect information management in the country,” he said.

    Anago urged the private sector to stop the idea of facing their organizations alone. “We should all come together to write a good frame work for Nigeria on information management, review it, get experts across the world to look at it and then pass the bill. We cannot be investing our money and the government is taking our taxes without doing anything. At the end of the day, we will find it difficult to reinvest. We need to have relationship to ensure that everything is done properly with the government,” he said.

     

  • Dell launches first virtual reality enabled Precision Workstations

    Dell launches first virtual reality enabled Precision Workstations

    End to end ICT solutions provider, Dell is formalising its commitment to the future of Virtual Reality, with the unveiling of a set of new Virtual Reality-ready solutions that are optimised for professional VR consumption and creation.

    Features of the new Dell Precision workstations and hardware configurations include minimum CPU, memory and graphics requirements to support optimal VR viewing experience and compatible graphics drivers.

    According to the Country Manager, Dell Nigeria, Akin Banuso, Dell Precision has been delivering immersive computing experiences for many years, including 3D immersive caves, simulation and military application, but the new Virtual Reality solution brings immersive visualisation to the masses by democratising the technology.

    Banuso said: “The implementations are endless and Precision aims to address the need for more rigor when professional creators demand the utmost in performance and reliability while building incredible VR content.”

    Dell also announced upgrade to its Dell Precision Tower Workstations to meet the needs of professional creators, with new increased performance, graphics, and memory for VR content creation.

    The newly refreshed Dell Precision Tower 5810, 7810, and 7910 Workstations and Rack 7910 have been upgraded with new Intel Broadwell EP Processors that have more cores and performance for multi-threaded applications that are ideal for professional modelling, analysis and calculations.

    Additional upgrades includes the latest professional graphics technology from AMD and NVIDIA, Dell Precision Ultra-Speed PCle drives with up to 4xfaster performance than traditional SATA SSD Storage and up to 1TB of DDR4 Memory running at 2400MHz speed.

  • African regulators to harmonise roaming

    African regulators to harmonise roaming

    The West African Telecommunications Regulatory Assembly (WATRA) said it is working towards harmonising the roaming activities of the Economic Community of West African States (ECOWAS).

    The group said guidelines are already being developed for a seamless interconnection and roaming of telephone users in the West African sub-region.

    Its Executive Secretary, Alhaji Maman Laminou who spoke during a courtesy visit to the Executive Vice Chairman and CEO, Nigerian Communications Commission (NCC), Prof Umar Dambatta, said WATRA has been taking its activities to several member countries in the last one year. Some of these activities include technology conversion and has been involved in the campaign for infrastructure sharing among operators. WATRA has also been involved in capacity building for members on Quality of Service (QoS), adding that many others issues will form discussions at the yearly general meeting of the group in April.

    The NCC said it is fully committed to the ideals of the group, adding that it will continue to lend a helping hand to the activities of the ECOWAS body.

    Dambatta told the visitors that the NCC broadband plan will cater for everybody including those in the rural communities, adding that the NCC hopes to leverage on WATRA’s expertise to actualise the eight-point agenda of the Commission which focuses on the turnaround of the telecoms sector.

    The EVC assured the visitors that the National Broadband Plan (NBP) will be pursued vigorously adding that attaining the 30 per cent minimum coverage by 2018 is possible.

    Mr Laminou congratulated Danbatta on his appointment as EVC of the NCC and pledged the support of WATRA to NCC at all times.

  • NITDA urges standard in software testing

    The National Information Technology Development Agency (NITDA) has called for standard in software testing in the country.

    Its Southwest Zonal Director, Mr Olayinka Adejuiba, made this call during a workshop in Lagos.

    He said if there is standard for software testing, it would guide software developers on how to go about software testing, create jobs for software testers and protect Nigerians who would be the end users.

    He noted that in ensuring software testing in the country, government can issue out policy that all software to be used in Nigeria must be tested.

    Mr Adejuiba said with software testing, software brought into the country will be correct, functional and can stand the test of time, especially in the era of cyber security issues.

    He said the issue of software has to do with basic decisions, nothing that using locally made software or the imported ones is a matter of preference.

    He said software developers are capable of developing software for use in the country, but noted that the most important things is to ensure that the quality of the software meets the required standards.

    “If we test our software appropriately, we will ensure that we do not have software failure, software would not be hacked, it would do what it is meant to do and we would be able to predict future happenings,” he said.

    NITDA Head of Standard, Guidelines and Regulations, Mr Lazarus Nikoti added that there is need for a framework for software testing in the country. He said a framework is needed because a lot of money is spent on buying and importing software into the country.

    “If the software is not properly tested, it will become a liability and would not fulfil its mandate. We need to put a framework in place to ensure that any software that is imported or developed in the country is tested. This would help us to know how they run on our systems, whether they will run well and if there is problem, it would be detected early enough. If the problem is detected late, it would cause a lot of hardship, loss of money, economic loss and would deny Nigerian developers of the necessary earning that they ought to have got from testing,” he said.

    Mr Nikoti said if we ensure software testing in Nigeria, there will be value for money, in that the software will perform the work it is meant for, it would be reliable and compatible with our system.

  • Fed Govt, ICT firms partner to create jobs

    Information Communication Technology (ICT) firms such as Airtel, Asus, Tecno, RLG, Intel, Dell, Lenovo, Microsoft, HP, and financial services provider, Diamond Bank, have partnered with the Federal Government to explore ways to create more jobs in the ICT sector.

    Speaking at a forum organised at the Federal Palace Hotel, Victoria Island, Lagos with Driving Economic Growth and Employment in Nigeria through ICT as its theme, Senior Special Adviser to the President on Job creation and Youth Employment, Afolabi Imoukhuede urged the companies to create avenues for manufacturing products in the country, rather than assembling alone. He also urged the youths to build their skills to enable them become employable in an increasingly competitive job market.

    “Our industries are not catching up as fast as our population growth. We want to help our youths create jobs or enterprise. We have about eight to 10 million Nigerian youths out of job and it is not because there are no jobs; we have to deal with employability skills; technology plays the enabling role to achieve this. We must increase and deepen our internet penetration. We need to go beyond just assembling, we want more backward integration,” he said.

    An official of Diamond Bank pledged the support of the initiative, promising that it will continue to provide financial platforms for businesses to grow and for schools to train pupils in the use of technology.

    The companies urged Nigerians to partner with them as they collaborate to achieve a desired economy.

    Intel Regional President for the Middle East, Turkey and Africa, Mrs Cigdem Ertem said the companies have come together to create a technology ecosystem that would create jobs and boost entrepreneur in the country.

    She said: “We are focusing on economic growth and development in Nigeria. Technology is the foundation to do anything in the world now, including advancing in global competition, growing businesses among others. People need technology to better their lives. We are talking about how we are going to achieve economic growth and grow employment in Nigeria through technology.”

    Mrs Ertem reiterated Intel’s commitment to making computers and internet more accessible and affordable to the population.

    She said the company is currently training 100, 000 teachers in ICT and expanding its ‘She will connect’ programme from its current reach of 800, 000 women in Africa being empowered in ICT, to five million.

  • Microsoft educates non- profits on productivity tools

    Technology company, Microsoft Nigeria on Wednesday educated non-profit organizations on the use of tools to enhance productivity.

     

    As part of its commitment to empower every individual and organization on the planet to achieve more, Microsoft conducted a Customer Immersion Experience (CIE) for four non-profit organizations on the use of the Microsoft productivity tools.

     

    The technology giant has before now empowered non-profits with Microsoft productivity tools with an intention to equip them with the necessary tools that will aid their productivity, but the introduction of the CIE was to aid the utilization of these tools.

     

    Speaking on the CIE program, Citizenship Manager, Microsoft Nigeria, Olusola Amusan identified that Microsoft is innovating in so many ways to solve the basic challenges that mankind faces with the use of technology.

     

    “The Microsoft Customer Immersion Experience (CIE) is a hands-on introduction to Microsoft’s suite of productivity tools. A true-to-life user experience; CIE takes you through everyday organization situations, such as working remotely, analyzing data and collaborating with co-workers; and lets you see how Microsoft products make it all easy, convenient yet secure.”

     

    Participants at the event – Junior Chamber International (JCI) Nigeria, Paradigm initiative Nigeria, The Future Project and Nigeria Leadership Initiative, left equipped with the Windows 10 and various apps on Office 365 i.e. Skype for Business, Yammer, One Note, Delve, Sway amongst others.

     

    Commenting on the programme, Digital Media Manager, Paradigm Initiative Nigeria; Olamide Egbayelo applauded Microsoft on the Customer Immersion Experience (CIE) initiative.

     

    “It’s been a productive meeting and I am glad I came, I have learnt some products that I never knew existed like the Delve and Sway. I really look forward to utilizing this software in enhancing productivity in my workplace, and also to reach out and teach others NGOs. This way, the tech for good initiatives can be embraced.”

     

    Microsoft also unveiled plans which revealed that later in the year, over a hundred Non-profits will be invited to register for the Tech4Good day where even more tools offered by the technology giant will be showcased.

  • Zinox advises Buhari on naira  devaluation

    Zinox advises Buhari on naira devaluation

    Indigenous integrated Information Communication Technology (ICT) conglomerate, Zinox Group, has advised President Muhammadu Buhari  to resist the push for the naira’s devaluation.

    To its Chairman, Leo Stan Ekeh, it is too late to further tinker with the value of the naira. The prevailing fiscal and monetary framework align with developments in the global oil market, thus making devaluation uneccessary now, he said.

    Ekeh said since the beginning of the year, the country has been facing reduced government earnings from the sale of crude oil because of the dip in prices at the international market, stressing that the development had prompted the Central Bank of Nigeria (CBN) to impose strict foreign exchange (forex) rules to save its reserves while battling the pressure from various quarters to devalue the naira.

    Speaking on the sideline of a reception organised to mark his 60th birthday at Lagos Sheraton Hotel, Ikeja, Stan-Ekeh said it was too late to devalue the naira as the move will only serve to further impoverish the masses and plunge the country into hyper-inflation.

    He said: “If devaluation happened mid-last year, it would have made sense and encouraged in-flows from investors but devaluing now would compound our already difficult situation and investors will only wait in anticipation of a further devaluation. It will rubbish our currency forever and strengthen the purchasing power of our trading partners.

    “If the government devalues the naira now, what do you think would happen to the already stretched wage earners? Would their salaries be adjusted to take care of inflation as is the standard globally? As I speak right now, a lot of states cannot pay the minimum wage and still owing workers their monthly salary.”

    The Zinox chief who lamented that his firm, like many other players in the economy, affected bythe forex scarcity because it has become increasingly difficult to meet foreign business commitments, said individuals and firms in the country have since adjusted to the realities of the hard times which he said has taught people to prioritise critical needs.

    He said: “It’s too late to devalue the naira now. I can see reason why President Buhari refused to consider devaluation. It is a move that will certainly erode the buying power of the middle class and push millions of Nigeria already living below the poverty line into abject penury.

    “The country is hugely dependent on imports as it were and with the status quo ante, any attempt to devalue the currency will only usher in inflation and leave the country at the mercy of the vested interests in the global economic set-up. They have been voluble and strident in their calls for devaluation.”

    Ekeh advised Buhari to explore other options to shore up the value of the naira and make the country less dependent on imports as it used to be in the past.

    “We should rather focus our collective energies on workable ideas and a sound framework on which to base the diversification of our present mono-economy to re-ignite the country’s long forgotten status as a continental exporter.

    “Again, this is the time to refurbish our school system and save forex from fees for the millions of Nigerians who do not have option than to school abroad. This is the time to create knowledge incubators around the country.

    ‘’This does not cost much as it will empower Nigerians to create digital wealth which has near zero-incubation period. It is the time to develop industrial clusters in major productive zones to supply the needs of Nigeria and reduce importation,” he said.

    Ekeh also predicted that if oil prices rebound to at least $50 per barrel, President Buhari will be one of the best placed in the history of the country to positively impact the lives of Nigerians.

    “At $50 per barrel, the quality of life of Nigerians today may be better than when oil prices reached record highs of $115 per barrel because Nigerians now have a new mind-set to live real and well which wasn’t the case until few months ago. If the prices inches to at least $50 per barrel, I am confident that President Buhari will be in a better position from a financial stand-point to positively impact the lives of Nigerians and guarantee rapid infrastructural development,”he said.