The Nation Newspaper

Category: Jobs

  • ‘Meter producers need govt’s support’

    ‘Meter producers need govt’s support’

    Before the country’s electricity sector’s privatisation, issuance of meters to consumers was a hydra-headed problem. It has defied all solutions in the post-privatisation regime. The development has left consumers and operators battling with the pains of ‘crazy billings’ and energy theft, among others. Kola Balogun, Chairman of one of  the only three meter producers, Momas Electricity Meters Manufacturing Company Limited, puts the blame on the Federal Government. He however proffers solutions to the predicament in this interview with AKINOLA AJIBADE.

    What is your take on the government’s plan to allow more players into meter production?

    The decision by the government to expand the metering space is good. The Minister of Power, Works and Housing, Mr Babatunde Raji Fashola, has done a good job by identifying the problems in the sub-sector. The plan, if well implemented, will reduce commercial losses which power distribution companies (DisCos), meter manufacturers and other stakeholders have suffered in recent times.

    For the government to implement metering policy well, there should be provision for meter asset providers (MAPs) and foreign manufacturers, among others, to enliven the sector. This will make room for more liquidity and competition. Once new players are brought into the sub-sector to ensure availability of meters and there is a commensurate increase in power generation and supply, consumers will not hesitate to pay their electricity bills because they will be convinced that they are not being over billed.

    What other benefits will stakeholders get from such initiatives?

    The initiative would provide opportunities for asset providers to come into the metering sub-sector of the power industry. Funding is the bane of the metering business and the industry in particular.When asset providers come into the industry, they will provide funds, which, ultimately, will improve the performance of the sector.

    To what extent will the idea reduce dependence on imported meters?

    The initiative will help in checking influx of imported meters into the country. It is a good idea capable of fostering the growth of the indigenous operators in the metering segment of the electricity industry. The only snag is, the ability of the Federal Government to implement it. If the government is able to adhere strictly to the metering policy in the country, through effective implementation, everybody will enjoy it.

    How can foreign domination of meter production and building of power plants in the Nigerian power sector end?

    We need to provide well-articulated policies for the sector. I’m talking about policies that are result-oriented, not failed ones. The government should enact a law that would compel foreign manufacturers of meters to set up factories in Nigeria. In Kenya, for instance, as a meter manufacturer, you must show when and where your factory is located before the government allows you to produce Semi-Knock Down (SKD); Complete Knock Down (CKD), or Original Equipment Manufacturer (OEM) meters for the people. Each of these divisions has its own operating licence. Besides, each stage has its own technological implications. SKD factory has the least implications, in view of the fact that small capital is required to set it up, while huge amount of money is needed to set up an OEM factory, as it involves technology transfer.

    Which of the three stages of metering production is common?

    The commonest one is OEM. Momas Electricity Meters Manufacturing Company Limited (MEMMCOL) has Original Brand Manufacturer (OBM) licence. It is the only company that has that kind of licence in Nigeria. By the virtue of OBM licence, the firm designs its own metering brand, which Nigeria  can refer to as its own brand because other meters in the country are not. One unique advantage of a company that has OBM licence is this. Anybody that intends to operate as OBM of meters in another country, must seek approval from previous holder of the licence. By this, MEMMCOL Nigeria Limited is in a position to give approval to people that wish to operate OBM licence.

    Investment requirement in the power sector is huge. How will new entrants survive, given that they are already struggling?

    The new players would not be able to survive unless they receive support from the government and other industry stakeholders. The reason is because metering is highly capital intensive and a lot of money is required to set up plants for manufacturing of meters. However, old and new players in the sub-sector would survive in view of the decision by the Federal Government to open it up for more players to come in. This will provide enough funding for operators to work with. And with enough funding at the disposal of the operators, they would be able to expand their businesses. People, who have good intentions of setting up factories for production of meters would not find it difficult to do so since they have enough money to play with. Some of us (manufacturers) that have established ourselves would also expand our production in order to create more jobs and further produce optimally. Instead of producing one shift, we would be producing 24 hours in a day.

    Are there specific jobs that the initiative would create in Nigeria?

    The idea would not create specific jobs. The jobs creation would be comprehensive. Direct and indirect jobs are going to be created. Skilled and unskilled workers would be employed. There would be opportunities to learn about metering processing and thereafter set up Small and Medium Scale Enterprises (SMEs). By so doing, people would be able to produce smaller metering components and in turn provide services in the sector, with a view to earn a living.

    Where do suppliers come into the metering sub-sector?

    If you look at the sub-sector well, it has the tendency to provide a whole gamut of activities for suppliers, financiers and others. Of importance are meter asset providers (MAPs), who are more or less the financiers in the sub-sector. By virtue of their responsibilities, meter asset providers do have a strong relationship with the power distribution companies (DisCos), ditto the manufacturers of meters. They ensure that the operation of meter’ manufacturing companies are well funded. They fund the activities of current and prospective producers of meters. For instance, if any foreign company intends to set up a metering factory in Nigeria, it must meet the asset providers for funds. Already, MAPs have some engagements with the DisCos in the country. They signed agreement with the DisCos to ensure that they provide funds for the manufacturing meters and also ensure that the DisCos receive allocation, let’s say 10,000 meters or 20,000 meters in a month, depending on the agreements reached with them. They also liaise with the DisCos to ensure that the meters are installed.

    What about the certification process for meters? How can this be resolved?

    There is the need to find solution to the problem of certification. They need to agree on where and when the meters would be certified-either locally or internationally. Are we sending the meters to the Nigerian Electricity Management Services Agency (NEMSA) for certification or not?  We need to set up a platform through which all these issues would be well addressed. When this happens, the meter asset providers would provide funds and also directed that the meters are produced to meet the specification of the countries or destinations which the meters are meant for.

    But NEMSA is the only certification agency approved by the Federal Government for such activities.

    Nobody is disputing that. What I’m saying is that NEMSA needs to recertify meters that are brought into the country. By so doing, NEMSA would be able to capture the data on the meters well. Not only this, the agency would be able to know whether the meters are for DisCo A, B or C. Through this means, the installers from the DisCos would be able to come to NEMSA to pick their meters.  There should be a structure for warehousing the meters and where the installers would come and pick meters and thereafter take them to the consumer’ premises for installations.

    Why is installation of meters is a problem in the country?

    It is a problem because the sector does not have enough installers and there is the need to train more people for that purpose. Also, a survey of the premises should be carried out with a view to tidy them up. Many premises are not tidy, a development, which suggests that many consumers are not ready for metering. If you should go to some houses, you will see wires and cables criss-crossing each other. By the time, such houses are given to installers to install meters, it becomes difficult for the installers. Mind you the cost of logistics is very high. Getting the instruments ready for installation and transporting them from one location to another is a problem for installers.

    What is the way out of these problems?

    The solutions are many. First, more people should be employed by the DisCos to instal meters. Secondly, the consumer premises must be tidied up by re-arranging wires and cables on the poles in an orderly way. Thirdly, data on the consumers must be made available by the DisCos. That means the power firms must carry out enumeration exercise to determine how many consumers need meters and how their buildings would be wired and rewired. Fourthly, tests must be carried out on the buildings to prevent electrocution. Before a metering service is carried out in any building, tests must be conducted to prevent leakage(s). Once a leakage occurs in any of the apartments, the person, who occupies the apartment would be thinking that his or her meter is running faster than normal and that some people are exploiting him or her.

    What are the effects of electricity leakage to the power firms?

    The firms are going to suffer technical and commercial losses. The consequence of such losses is grave for consumers and the companies. The development can cause fire outbreak and further make power firms suffer losses by not being able to collect tariffs adequately. Unless due diligence is carried out to detect the problems, the issue is going to have negative implications on the consumers and the firms. That is what the Minister  is trying to say. He said when there is an influx of new players in the sector, they would be able to catalyse the sector in order to make it more business like.

    Is it not a misplaced priority if the government neglects generation of electricity for development of the metering sub-sector? 

    No, it is not. In fact, the first thing the Federal Government should have done before privatisation was to put in place were measures that would have provided meters to at least 90 per cent of the consumers in the country. The reason is because metering is the last stage of the value chain and therefore, must be given priority. That is where the money is protected. The country is supposed to meter virtually all the consumers to the highest level of efficiency, because that is the area that brings money to the sector. Whatever investment a power company is doing upstream (at the highest level), the only protection, which the firm has, is metering. Anything other than metering means that firm is investing in an empty basket. Therefore, metering is the last hope of an investor in the power sector.

    Are you saying that metering is a more critical area in the power sector?

    Yes, it is. It is quite unfortunate that many people are ignorant of this fact. The sector is battling commercial and technical losses because it does not have effective metering programmes in place. Based on this, the sector needs to provide meters to consumers 100 per cent and thereafter tidy up the premises of the consumers whom the meters are meant for. The sector needs to tidy up the premises by using the right conductor to distribute electricity to consumers. The sector must ensure that good poles and transmission sub-stations are used. Having done this, we would be reducing technical losses, as much as possible.

    What can be done to improve supply of Maximum Demand Meters (MDMs) to companies and other high-end users?

    Maximum Demand Meters are meters used by higher consumers like industries and big hotels. For DisCos to improve the supply of such meters to big companies, it must identify those companies that need the meters for operation. The power distribution companies need to evaluate consumers with a view to knowing the thresholds of energy consumption needed in the sector.

    What is the threshold like?

    The threshold is used to know the percentage of energy required by a consumer. For instance, a two-bedroom or three-bedroom apartment needs a threshold of 100 amps, while companies need bigger amps, of 200 amps upward. When companies are advised to have smaller transformers by the power firms, it means such companies need Maximum Demand Meters for operation.

    How have DisCos been able to conduct enumeration?

    The power firms are unable to conduct enumeration exercise due to funding, which is the major problem facing the nation’s power sector. The energy distributors need to repackage themselves by evaluating their performance. The firms need to evaluate themselves with a view to ensuring that they are financially viable.

    How can energy theft be addressed in the sector?

    There are several ways of solving the menace of energy theft. First, there is the need to have a strong metering policy on ground to deal with the issue. Secondly, the DisCos must try and issue intelligent meters, through which energy audit would be carried out at any point in time. Thirdly, the DisCos must be encouraged to provide Transmission Metering (TM) facility, a development which would enable them to know whether consumers have been metered 100 per cent and detect stealing of energy.

  • How to secure a job at the UN Secretariat in 2018

    How to secure a job at the UN Secretariat in 2018

    Have you ever wondered how to get a job at the United Nations Secretariat?

    How your country is represented could determine your chances for a job at the United Nation’s Secretariat.

    Learn about the different quotas in the UN and find out if your nationality might be an advantage (or not) for your application.

    How to secure a job at the United Nations Secretariat 

     

  • ‘Govt spending will spur insurance sector’s growth’

    ‘Govt spending will spur insurance sector’s growth’

    For the insurance industry, 2018 may be the year to celebrate bigger feats. The Federal Government’s plan to bridge infrastructural gap and the recent positive projection for the country by the World Bank are enough a springboard to greater heights for the industry. The Managing Director, Law Union Insurance Plc, Mr. Jide Orimolade, in this interview with OMOBOLA TOLU-KUSIMO, sheds more light on this and other sundry issues in the industry.

    The Federal Government budgeted huge sum for infrastructure in 2018. What impact will this have on the insurance industry?

    It is clear that the government has been trying to rejig the economy. In looking at the 2018 budget, I would say that in terms development in the economy, there has been a recovery from recession. Things may not be rosy now in terms of the economic trend, but things will get positive soon for the country. I believe that the 2018 budget will assist the insurance industry. Government has been spending in the areas of infrastructure, creating jobs and putting food on the table for the masses. I recall that some of the policies made by this administration is that they want to feed most of the children in the public schools. For us in the industry, we believe that this will provide a lot of income.  It has boosted public and private partnership that is going on right now and I think going forward it will continue to happen. If you look at our rail system, the Chinese banks are providing the funding and because of the local content  in the country, they are not allowed to do insurance in their country. They are mandated to do their insurance here and this has created a lot of opportunities for the industry. For us at Law Union and Rock, part of the area we want to focus on this year is the public sector because we know that there will be a lot of demand for insurance. We are doing very well in engineering and in fact, leading in that area. We have been able to insure up to eight power plants in the Nigerian economy. Also, there is a gap in the power sector and government is looking at how to fill the gap this year. Government has already signed an agreement of about £5.5 billion with Chinese government on Mambilla power plant project. This is an area that we believe will bring a lot of income in 2018.

    How are you preparing to key into this window of opportunity government spending is opening up?

    We want to do our retail business aggressively. In terms of technology, we want to acquire new software that will enable people to sit in the comfort of their offices or their homes to start and finish an insurance transaction. It will also fast track our claims settlement. We want our customers to sit in their homes and offices and send their claims. For instance, if a customer has an accident, he or she can take the pictures and send them; our in-house people can quickly adjust the claim, pay and before you know it, the vehicle is back on the road. We believe that the customer will be happy and even recommend us to families and friends. The only way insurance companies can advertise themselves in the market is  in the ability to settle claims, not just settling the claims but settling the claims on time.

    Are you convinced  that such initiatives will change the perception of the public about the industry?

    There has been record of some ills pertaining to the industry in the past. We are trying to correct it. The industry as a whole has embarked on a rebranding project. The Insurers Committee which comprises of chief executive officers in the industry are in charge of the project. At the last meeting of the committee, we agreed that we are starting the first quarter of this year by kick-starting the project. We are spending a lot of money just to send a positive signal to the market so that people can believe in insurance. It is only in Nigeria that insurance does not contribute much to the nation’s GDP, unlike in developed countries where insurance contributes a lot to the growth of the GDP. But it is a good thing that the government has been able to embrace insurance. I believe that the 2018 budget is tailored in the direction that it can support the industry to grow. Like I mentioned, for us at Law Union And Rock, we have identified the gaps as contained in the budget in various sectors. We plan to key into them to be able to achieve our top line and at the same time our bottom line for 2018.  There are two things in terms of investment that can make an insurance company to report a good bottom line. This is the underwriting profit and investment income. These two items, for us are very key. Underwriting profits is the core business profit and so we want to do our business in such a way that we offer professional advice to our various clients, settle their claims on time and also ensure that our rates are very competitive in the market. With this, our underwriting profit will rise while we continue to grow our investment to be able to make an appreciable income in our bottom line.

    The World Bank has projected  2.5per cent growth for Nigeria this year. What does this means to your organisation and the insurance industry?

    First of all I am hopeful that 2018 will be a better year for the country. The World Bank has been able to project this in terms of growth of the economy. I think it is positive and something that will reflect deeply on the industry. Presently, the oil price within the region is at $70 per barrel. And with the calmness from the Niger Delta, things can only get better. Interest rate has been low so manufacturing companies will be able to have access to loans from banks and this will definitely add positively to the sector.President Muhammadu Buhari,  in his first address, spoke on how he intends to close the infrastructural gap that exists in the country.  He mentioned roads, rail system, power sector as  areas of focus for his administration. I believe that by the time all of these are fulfilled, it will make the industry grow. Other sectors will also witness growth and will in turn impact on insurance arm of the business.

    It is saddening that only 1.5 million out of 180 million Nigerians are insured. Do you see more people taking up insurance this year?

    This situation is worrisome. But I believe that with the economy that is presently looking good, the number of people that are insured will increase. What we are doing on our part which I believe other companies are also doing is to provide tailor-made products that the consumers can embrace willingly. Some of us just look at the premiums written and number of policy holders that we have in our books. But part of the things that we need to do as insurance operators is to do a lot of publicity on insurance and its advantages to the people. We need to show how much progress we have made in the industry in terms of prompt payment of claims.

    The issue of rate cutting has continued unabated and is slowing down the growth of the industry. Why has it remained so and what is the way out?

    Rate cutting has been an issue in the market and it has been affecting our underwriting profit. We have not been making enough underwriting profit which is very key in the sustenance of our business. It is time as an industry for us to look at our underwriting profit that is going down as a result of the rate we charge on our various line of business. The rates are not profitable and when you are doing what is not profitable, I think the right thing to do is to adjust. For us at Law Union and Rock, our underwriting profit last year was about N1.27 billion, but it has taken a downward trend by almost 30 per cent this year. So we have asked ourself if we are charging adequate rate on the business that we take. Meanwhile, claims are really going up. The question is will I still be charging the same rate? The industry is facing a bigger problem on a global perspective. For instance, hurricane does not happen in Nigeria, but insurance companies abroad are charging us the same rate they would charge other countries in other part of the world. Once claims expense goes up, the reinsurers increase the rates charged and apply same to us. It does not concern them whether the company is in Africa or Nigeria. Presently, the reinsurers are complaining that they are not making profit from businesses that we place with them and they are putting a lot of pressure on us. They are saying that we want to kill ourselves in the market with the rates that we are charging and they are not ready to go through that path with us. For the various businesses that we have to put in our books, we have to be able to seek the consent of reinsurers. So for me, I think it is high time underwriters did something about charging the right rate. We have to adopt a rate that is competitive and profitable to move us forward in the market.

    The National Insurance Commission (NAICOM) is trying to migrate the industry towards Risk Based Supervision (RBS). It has foreseen voluntary mergers and acquisitions as part of the change that will occur in the industry. Are we likely to see that coming from your firm?

    I know that one item on the agenda of the regulator is Risk Based Supervision (RBS). Although they are still at the  the foundation level, they have not told us when the implementation will start. But I believe that once the implementation starts, everybody will look for capital that will sustain their business. We have to be proactive and not wait for NAICOM. As underwriters, we have to know if the capital we have is adequate for our business or not. I must know if I need to bring in investors or merge with another company. But for us, I think we want to grow organically. We don’t want a situation whereby we look at another company and say come and let’s merge. We will prefer a situation whereby we will get fresh capital into the organisation and then with that fresh capital, we can say that in general business we are solid. The area that we are looking at right now is how we can have a life business to complement whatever we are doing so that we can become a composite insurance company.

    In 2012, your company’s retain earnings was negative. What strategies did you deploy to make your results positive?

    When I came in 2012 as the MD, the company had a negative retain earning. That happened as a result of over N1 billion loss position. Currently the company has been growing consistently and progressively. As you know, if a company has a negative retain earning, as it makes profit in subsequent years, it begins to write off 15 percent of the company profit to the retained earnings. As at the end of 2016, we wrote a marginal figure into 2017 and as at March last year the negative retain earning has turned positive and as we speak now it is still positive. This is as a result of the efficiency that has been coming into the operation of the company since 2013 and we hope to continue in this regard. In 2012, things were also really difficult in terms of shareholders’ funds. The company had about N4 billion shareholders’ fund but  within the space of four years, we have been able to grow the shareholders’ funds to about N6.3 billion. Our negative retain earning was at a loss position of about N2 billion in 2012 which made our retain earnings negative. But right now we are in positive position. We have been able to clean our books in terms of solvency margin. We have 200 per cent solvency compared to the paid up capital for general business. All these things were made possible because of the kind of board of directors that we have. We have guided our corporate governance carefully in the organisation. We also have a focused and hardworking management. So these are things that have been done. Our share price that has been trading at par of 50 kobo at the stock exchange for a long time has now grown to about 80 kobo. Our shareholders will be able to smile at the end of the year when they get dividend.

    How would you rate agency system?

    The agency system is a good system and if I rate it 50 or 60 percent, I might not have done right. The agency system has helped the industry to create employment for people who ordinarily could not have gotten jobs. We are providing opportunities for graduates and people alike who have competence in sales to provide such services to us for a commission. The agency system is a good system. We only need to fine tune it. We recognise the gaps that are in the agency system. We have seen situation when some few agents have tried to tarnish the image of the industry with some fraudulent activities. This is why we are not just taking people, we provide adequate training and carry out competency test and checks on them. This will ensure that the people we are taking in going forward will not be able to defraud us even when they are not working with us again. Part of the things we have done in our company to checkmate the problem is that we have put in place a proper customer service unit. This unit is to call each client the moment a sale is concluded. The unit through a customer service manager, sends messages and often speak with the client. We have put measures in place to ensure that we reach our clients ahead of their renewal. So the moment you have one Adebisi or Nkechi who is sitting on the other side of the telephone whom you know, it will be difficult for anybody with a fraudulent motive to defraud you. For instance, if the fake person calls you for a renewal of your policy, you have a place to verify. We will try and be ahead of them.

    There is the belief that some underwriters still give excuses in order not to pay claims. What are you doing to ensure that people don’t get negative signals from the industry?

    The issues that you seem to see among some companies in the industry are the fact that they don’t get their underwriting business process right. When you sell a product to a customer and you did not inform the customer well on the conditions attached to the contract, there is bound to be issues when it is time to pay claim. This is because he is going to tell you that he is not aware of the condition and would insist that you must pay him. There is a particular case of someone that wanted to export groundnut. There was delay while he was exporting and the groundnut didn’t arrive until six months after the due date. By the time it got to the point of destination, the groundnut was already spoilt and they didn’t even allow it enter the country of destination. It turned out to be a total loss for the owner of the groundnut. He consoled himself that he is covered. For us practitioners, delays are a standard exclusion. But the client was not aware and he was not given any policy document. So when he notified the company, he was turned down.

    This is a person who was said to have borrowed money to pay for the insurance transaction. So for such a person, he will tell you that insurance does not work. If he has been informed, he would have taken informed decision on whether he should go ahead and do the contract or take additional cover elsewhere. For us at Law Union and Rock, we have identified the gap in the market and we ensure that even on third party cover, there is a bullet point summary of what is covered and what is not covered.  With this in place, when there is a claim, we will both be on the same page and there won’t be issues. This is what we do at our end and we rarely have any complaint. I believe that as an industry, we must live up to the expectation of the public in prompt claims resolution. It is better for us to practicalise what we are doing so that people can testify to it.

    It helps even in the rebranding of the industry. It goes to show that we are serious. It shows that we are serious to grow our capital base. We are very liquid and we can pay a claim of N1 billion and even go to the reinsurance for recovery. We want a situation whereby our customers remain happy with us and we can get a lot of referrals from them. I believe that building the industry is in our hands, the operators. Outsiders can’t come and help us grow the industry. I also think that various bodies like the NIA, Chartered Insurance Institute of Nigeria (CIIN), Nigeria Council of Registered Insurance Brokers (NRCIB), Institute of Loss Adjusters (ILAN), Association of Registered Insurance Agents (ARIAN) need to be engaging ourselves on how to move the industry forward; how to do things in such a way that people will look at us and feel proud about the industry. This way, people won’t be forced to do insurance; they will take up a cover voluntarily. They will call to insure their gadgets, electronics, houses, cars among others. The upcoming generation will feel proud and say I want to work in an insurance firm without anyone forcing them.

    There are issues of fake insurance certificates. What are you doing on your part to ensure that prospective customers are not caught in this web?

    The Nigeria Insurers Association which is the umbrella body for underwriters, have done a lot with the creation of the Nigeria Insurance Industry Database (NIID). A lot of money and resources have been put into the NIID and all we ask of motorists is that they should double check that the policy is genuine on the NIID. They can also generate their certificate from there and it gives us more credibility in the market.

  • ‘Nigeria’s economy growing bigger, stronger’

    ‘Nigeria’s economy growing bigger, stronger’

    Binatone Nigeria Managing Director Mr. Prasun Banerjee, in this interview with TOBA AGBOOLA, speaks on how the company is surviving despite the tough economy. He talks about his brand and the innovations targeted at winning consumers.

    As a brand, what has your experience been like in Nigeria?

    It has been a wonderful thing. Although, last year was a little bit difficult, but we were able to cope and stabilise. I will say that we have come out of it and that is why you can see many good products being introduced into the market. We have a long term strategy and that is what has helped us. The same thing with the country. The government has put in place long term strategy and this will help the economy.

    Also, we have been in Nigeria for the past 40 years and we will be celebrating 60 years this year, globally. We have learnt how to keep our cost low so that our products can be affordable, with high quality. We ensure that what we import is of good quality, with two years warranty. So, our aim is to create good value for money. We have a trusted brand in Nigeria for well over four decades. Over the years, we have identified that Africans, particularly Nigerians, like style. They are proud of their homes and want the most beautiful things to take a pride of place in their living rooms. They like practicality, advanced technology, unquestionable quality and of course, an attractive price.

    How has the Federal Government’s policies on imported goods affected you? 

    We don’t have problem with the government policy as regards regulations. The only problem we have is the delay at the Apapa Port. This also caused delay for us and you know one needs to pay for demurrage at the end of the whole thing. But, the government is already addressing this challenge. Efforts are being initiated for improving ease of doing business and we are quite satisfied with the progress the Federal Government  is making to ensure a conducive business atmosphere.

    Government has come up with the procurement policy that says expatriates should not be used for any skill that can be sourced locally. How are you responding to this?

    Absolutely, we are doing that. We have very limited expatriates only wherever required, basically the Managing Director. Across all our  products and divisions, we have locals running the business.

    What is your expansion plan and what are the challenges associated with such efforts?

    We will be opening another assembly in the next two weeks. We want to go into various categories of products and of course, with innovation. In order to expand, one needs to invest, get space in the showroom, and in order to get this share of space, they need to do visibility exercises in terms of product display and demonstration. We have demonstrators, who we train on a regular basis on key features of the products and how to handle and sell them. Some merchants are our first point of contact with the customers. The trained demonstrators are one of the touch points that we have. In terms of availability, we were limited to certain class of retailers, now we have started expanding our retail network. We only had a few supermarkets and retailers in Alaba, but now we have big retail shops across Nigeria.

    We are working with the top retailers in Lagos, Port Harcourt and Abuja. The second touch point we have is in terms of the display. The customer gets to have a touch and feel of the product. He gets it near to his house; he does not have to travel far to get the product. So, our products are available in every supermarket and top retailers across the 36 states and the FCT. Abuja looks after the entire Central and North; Port Harcourt looks after the East; Onitsha looks after Onitsha and Enugu and Lagos looks after Lagos and the Southwest. We have a service centre that is well equipped with trained engineers to take care of consumers even when they have complications beyond the two years covered by the warranty.

    During this process of expansion, have you observed a need to branch into the hinterland?

    What we are doing is to expand step by step.  Once we see that a certain market has potential, we open a branch there. Onitsha was big for us; our next target is Kano or Kaduna to cover the entire North. We have a vast team of people here. I would like to also point out that all the fans that you see here are assembled in Nigeria. We have an assembly unit here in Nigeria and we are planning to assemble some other items here as well. We have given employment to many local people and we have also done good business and generated revenue for the government.

    How are you coping with competition, especially from new brands that are springing up?

    Competition will always be there. Whenever there is a demand for a category, there will always be competition. But we believe that we give good value for money in proposition. We give a product, which is affordable, has value for money and at the same time, gives peace of mind. Our core philosophy is to try and get the product across a wide spectrum of the society at very affordable price. We don’t just give value for money; we also give value to many. We are available, pan Nigeria and one of our strengths is giving the consumer peace of mind.

    One of the ways we do that is by placing two-year warranty on each of our products. We’re already dominant in cooling products for the home, we felt the pulse of the consumer to produce the world’s first 2-in-1 Music Fan. We are market leader in fans and have an assembly unit here. We are also looking at assembling other kitchen appliance products and also help the government to accelerate its made-in-Nigeria initiative.

    How are you responding to the demand for products that meet the energy challenges of the Nigerian environment?

    To take care of the energy challenges, we have rechargeable fans and we will be launching more fans with rechargeable capacity. We know that this is a challenge in Nigeria and there is an opportunity there. So, we are one of the pioneers of rechargeable fans in Nigeria.

    Are you also looking at making fans that could use solar energy?

    We have another company, which is based outside the United Kingdom (UK) and which does that. Discussion is going on but there is no product right now that is commercially available to take care of that challenge. But I am sure that if there are driverless cars, there should also be solar fans.

    How would you compare your market shares in Nigeria with the UK and other African countries?

    Nigeria is a very huge market filled with a young population. Nigeria is one of our home countries. It is a huge opportunity for us that our fans are coveted in every household in Nigeria. Our products are well accepted here in Nigeria. We are not premium products, we give value for money and value to the many products. They are products, which the middle class will always like to buy. For instance, Nigeria is the second biggest appliance market in Africa (after South Africa).

    All top international brands have strong presence in the market. Market is predominantly for mid and lower end products across all product categories. Of course, the Nigeria electronic market has always been doing great and remains a major market for Binatone to continue to explore. As far as Nigeria is concern, we are introducing very innovative products. We have launched many products and we still intend to launch. In short, there is big market in Nigeria.

    Which new products are you bringing to the Nigerian electronics market?

    Binatone has recently launched its innovative Tower Music Fan. Binatone’s new Music Fan brings all of this in its new product offering – the Binatone Tower Fan with digital music. The audio is available via Bluetooth to play any pre-loaded or streamed music from any smartphone and it also allows audio to be played via USB, SD Card, or even a 3.5mm audio. A stunning tower fan with a built-in digital audio system that will reclaim that nostalgic place in the home that first radios once held. The innovation we have experienced in the past two to three decades is unprecedented and what we can achieve with technology is becoming limitless, and this puts a larger than ever onus on product development teams to be able to focus and deliver truly meaningful innovations. Our product is unique, offering for the consumer. Two essential products in one saving valuable space in the home, the Binatone Music Fan is truly destined to be the new centre piece of any home with its style, music and coolness.

    How does the company hope to impact positively on the Nigerian economy?

    Despite the recession we have been growing in business, thanks to our product innovation and keeping our prices low. We have contributed both to the Nigerian exchequer as well as providing jobs to talented and meritorious Nigerians. Apart from direct employment, we also give a lot of indirect employment through the various agencies we hire, which assist us in our business development.

    How are you tackling counterfeiting of your products?

    Whenever you have genuine products, fakes will be present. So, it is something we have to work on. We have been working with Standards Organisation of Nigeria (SON) in identifying and destroying fakes and taking the perpetrators to court. Some cases are still in court. What we do is that whenever we see any product being converted to a fake, we try to exit that model and launch a new model.  We try to keep one step ahead of the fakers. I advise customers to buy from authorised agents and distributors of our products and from leading electronic outlets and supermarkets where there are no fakes.

    How is this impacting on your bottom-line?

    It is not really affecting our bottom line because as I said, we also try to stay a step ahead of the fakes. It is not really a big threat.

    Do you have challenges bringing in your raw materials?

    Initially, most manufacturers had that challenge, but in the last two months, there have been changes. Foreign exchange has been readily available and relatively stable. There is big hope for manufacturing in this country.  I think once the forex gets available freely, markets will again bounce back and boom. I don’t have too much to complain about in terms of bringing in raw materials because we are getting good support.

    What are you doing differently from others?

    We are not doing anything extraordinary. I am not a magician. I will say God is guiding us to go on the right direction. But one thing I know is that, when you produce quality goods, you don’t have to show off. Consumers themselves will determine what the market of the products should be. If I give you my products and you enjoy using them, then I think you will become my customer. If you buy a product and you are not able to use it, will you buy it a second time? The answer is no.

    How has it been managing Binatone?

    I have been managing the affairs of Binatone Nigeria for one and half years. During this time, we have been able to do good business. Although, there have been some economic challenges, but Binatone as I said earlier is a well-known British brand that has been in Nigeria in the last 40 years. It started with electronics and over a period of many years, it shifted its product offerings to fans, kitchen appliances, power products like UPS and stabilisers. We are leaders in fans. We have a wide range of fans. We recently introduced a tower fan with a Bluetooth speaker, which means that if you switch on your fan, you can pair your phone to the Bluetooth speaker and listen to music. The purpose is to launch this one of a kind product that is not available anywhere. We are happy that we are launching it in Nigeria for the first time.

    What are the things that drive you as a businessman?

    It is God. We are all guided by God. Every step we have taken has been guided by God. We have the faith that you can achieve anything you set out to do through God’s help. It is also our belief that you don’t ask your country what your country will do for you. You ask yourself what you can do for your country.  We make sure that we do our part. We belong to the country and it is important that we play our part.

  • Why I believe power sector ’ll be fixed, by Fashola

    Why I believe power sector ’ll be fixed, by Fashola

    The Minister of Power, Works and Housing, Mr. Babatunde Fashola (SAN), has said the government is gradually, but sustainably, addressing power sector problems to achieve uninterrupted supply. In this interview, he explains how the government is resolving tariff issues, generation, transmission and distribution challenges, milestones achieved and consumers’ responsibilities in making the sector work. Editorial Page Editor SANYA ONI and Assistant Editor EMEKA UGWUANYI met him.

    Tariff is a major problem of the power sector. What is the government doing to resolve the issue?

    People must understand that the Nigerian Electricity Regulatory Commission (NERC) doesn’t fix tariffs. NERC approves tariffs.

    How do you set tariff? Under the multi-year tariff order (MYTO), there are two broad tariff setting seasons – minor tariff review that must happen every six months, and major tariff review every five years. Minor tariff is just like the price of any other commodity that goes up or down, if it goes down, citizens must get its benefits, but if it goes up, the citizens must take the responsibility. Therefore, every six months, there is a threshold, that doesn’t mean that tariff must increase every six months, but there must be a review. You must look at the interest rate, inflation because you are buying a commodity and perhaps things have gone up, but not too high and not significant, it is within a threshold. The threshold, I think, is set at about five per cent. If it doesn’t exceed five per cent, you leave it. That must happen without anybody panicking, it happens as a normal event without any sensationalism, with people saying the government wants to kill the poor people. It must happen as a way of life and we must know that every five years, they will go to major review.

    What is the process of carrying out major tariff review?

    The process of a major review is that each DisCo must advertise in the newspaper, radio or television and none is compulsory, but it must advertise in at least one, the date it will hold meeting to discuss the tariff with its customers. That meeting that held in 2014 or 2015. I saw all the records – people who attended, email  addresses, telephone numbers, but people didn’t really understand what it was, so they discussed it generally and left. At that meeting everybody is free to say I can pay this or I cannot pay that. They (DisCos) must send the results of those meetings to the NERC because NERC has a duty to stand between the consumers and the investors. The law says the investor is entitled to recover all of his investments and some profit. We assume it in economics, but this one is a matter of law.  But there is a difference between profit and profiteering and that is where NERC comes in and says no, this is too high, set it at this. There are different classes of customers. They don’t pay the same tariff.  Different classes of customers are R1, R2 and R3, maximum demand consumers. R1 was not changed, it is still N4. It is fixed. But everybody just went out to protest that they have killed me with tariff. In that exchange that goes on, NERC ultimately approves what it thinks is a fair tariff. With this, there is a band, so the tariff for R2 customer in EkoDisCo is not exactly the same for R2 customer in Ikeja DisCo even in the same city. There are variations, a few kobo here and there. This is part of the public enlightenment we must put out. If you go through the tariff computation, you see variations between the same classes of customers from DisCo to DisCo, changing between a band.

    Let me tell you something that is related to that, metering. If you are R2 customer, clearly you cannot use the same meter as R3 customer. So to meter you they must come to each house and check your energy consumption. They cannot give R1 consumer R3 meter, you will be over-paying. If you give R3 consumer R1 meter, he will be under-paying and the system will collapse.

    But most customers are not aware   of the differences in metering categories. How will the DisCos address the issue?

    That is the logistics of metering. If they don’t meet you at home and your wife and children are not around, how do they assess your home? These are the real problems apart from funding because they must actually come and do the energy audit and know what a customer consumes and that is why you have estimated billing. A customer is on R3, but has phase I meter, so he is clearly stealing energy because he is using more power than his meter records. When a bulk sells power to you (DisCo) and you bulk it to a feeder, to a district, and you just know how much energy you passed through. If you don’t have the right meters, what do you do? You divide the number of houses by the amount of power bulked and that is what is causing estimated billing crisis. Agreed, they haven’t captured everybody, some customers are rejecting metering and some are beating them (DisCo staff) up, I have evidence. “No, you cannot install a meter in my house”. The barracks are even a different thing. We are working now with the Minister of Defence, who said he is supporting us because the President has ordered that he must meter all the military formations because that’s where government’s debt is really coming from. This is what servicemen should enjoy for serving their country. So, it is a journey. That is why I have categorised it a roadmap. First, get incremental energy, get to stable energy and to uninterrupted energy.

    What is our road to incremental energy? Every existing power plant that is not producing power, must produce. We have an installed capacity of 12,000Mw.

    Is it real that the country has that power production capacity?

    Yes it is. So, instead of seeking new power assets, we focused and said let’s make what we have work.

    Nigerians have been fed with figures of megawatts over the years without light, so what’s the difference?

    Precisely, that is why I changed the conversation. It is a journey – incremental power. Every one megawatt is defined. We cannot have 12,000Mw installed and be concentrating on new ones without optimising the existing ones– Egbema and Gbarain power plants are not finished. Olorunsogo, Omotosho, and Geregu are not optimising because gas is not enough. In some places there are transmission problem. This is what the ministry is now saying, let’s focus. Which transmission project will we award?  Is it the one that goes to a power plant that is ready to deliver power? Some have gas and the power is there, but they cannot evacuate, so, let’s build the transmission line. Some have the transmission, but don’t have gas, so, let’s build the gas pipeline. So, that is what is happening in places like Omoku plant in Rivers State. We will complete Omoku by March next year and it will give us about 270Mw. We will finish Gabarain this year and it will give us over 115Mw and Alaoji by June next year.

    Are these plants putting power into the grid?

    Yes, they are putting, but it is their capacity design that is not optimised. When I visited Geregu, it has six turbines of 115Mw each, but only two were working because no gas to fire the remaining four. I also told you that Egbin now has its six full turbines running, so Lagos power plant that has 245Mw capacity is sitting there idle and there is no gas to power it because Egbin has taken all the gas available. So, why should we build more? Rather, we want to focus on how to provide this gas. Now we are continuously working on how to solve this gas supply problem with the Nigerian National Petroleum Corporation (NNPC), Gas companies and others. That is why I’m so clear in my mind that the power sector will turnaround. The 7,000Mw we produce now doesn’t come from the sky; we are only making what was not working to work. Sometimes just by completing a transmission line, you get more power on the grid. Sometimes just by doing routine maintenance as we did in Afam IV plant, you get more power. The transformer of Afam IV plant shut down in January of 2015 and nobody touched it. By repairing the transformer, we had 100Mw back on to the grid. By completing one section of Ikot-Ekpene switching station, we evacuated some stranded power from Ibom Power and Alaoji plant. By completing a transmission station at Magboro in Ogun State, we switched on power there.  It didn’t have power for 10 years. By December or January next year, we will finish the one of Mowe in Ogun State and it will have power. We will come to switch on transmission facility in Odogunyan by December or January next year and that will boost or wheeling capacity. When people say transmission system is the weakest link of the supply value chain, it is a lie. Any part of the value chain can be the weakest link at any time. The DisCos had more capacity when the generation capacity was between 2,000 and 2,800Mw, but now the power capacity has exceeded what the DisCos can carry. Now, we must help DisCos ramp up their capacity until we reach steady power, which is the middle of our journey. The end of our journey will be behavioural, conservation of energy and paying for what you use. Don’t steal energy because if you waste anything, it will never be enough no matter how much you produce. I have clarity because I have been to most of these power stations, substations and all the DisCos. So, I know what is going on and I’m educating myself and I have a great team working with me – the advisory power team in the Vice President’s office, my permanent secretary and directors, among others. The important thing now is that we are focusing on what we should complete. We will get more power from Kaduna. The story of Kaduna is interesting, 215 Mw because most of the equipment to complete the project were stuck at the ports for almost 10 years. So, we are just clearing them now because nobody budgeted to pay. The first time government budgeted to pay the shipping companies and warehouses was in 2016 budget. So, work has resumed in Kaduna and the project will give Nigerians 215Mw. We will get 10Mw wind plant in Katsina State maybe by early next year because it had a problem. We are paying for insecurity there because they killed the contractor and the worker and captured the main contractor handling the project, so when he escaped, he ran back to his country and refused to come back. So, the project stopped, but it is back on track now. Zungeru project will give us 700Mw, but was locked up in court for three years before we came. We have got the parties out of court, but have lost three years. It will deliver by early 2019 another 700Mw. Azura in Edo State, they refused to sign the partial risk guaranty, but Buhari’s administration signed it. Azura project is on track and will be finished in June next year. So, we have to prepare to evacuate Azura and that was the memo I took to the FEC. We have to quickly build a 14-km 330kv line so we can evacuate power produced there to the grid.

    What went wrong with the planning? First, Nigerians were told no gas and why should gas powered plant be built where there is no gas and what has changed?

    I wasn’t there then. Those, who were there then would probably be the best persons to answer the question. One thing that I can tell you that has changed is that we asked some of these questions and they said they told them and they were asked to shut up and they didn’t want to lose their jobs and we said no. This is different and you should debate us on this issue, tell us why we must go left or right. I ask questions and that’s why you see me take my staff on retreat. It is team building because we are a team. You cannot be a part of the team and not contribute to it. So, I’m not a minister, who gives directives, I’m a minister who builds consensus with my team this is the best decision we should take on behalf of the government and you see that in all our correspondence going forward. I disagree with them and they disagree with me until we reach a consensus that this is best for Nigeria.

    Are you saying no more new project, but to fix existing facilities?

    That is contextual, let me explain it. We have privatised generation and distribution. So, no new thing is coming from there except two projects we met on ground and you will see why I need to qualify it. Afam 1V, there is a fast power programme there. It was built before this administration came, but the turbine had shut down but there is gas and transmission there. So, General Electric (GE) came with a proposal to finance the project and we will pay 80-85 per cent and deliver it. We make turbines and there is gas. Ultimately give us some counterpart support. When we finish, you sell it to private sector because people don’t want to take the risk of construction, so it is not as if government is building it. But we have already told the National Council on Privatisation (NCP) to start looking for people to buy it. It should be finished by December, that’s 240Mw because there is gas and transmission there and that sits well with incremental power. The other one is Mambilla, which has been in the pipeline. Except for those two in the ministry we are not doing any new generation. We are completing Kaduna, Kashimbilla, Guarara, Dandikowa, Katsina windmill, among others that we met. That’s part of the capacity that is not yet giving us what they are able to give. We are also completing transmission lines, using Transmission Company of Nigeria (TCN). We are also trying to complete some rural electrification projects, using Rural Electrification Agency (REA). There are many rural electrification projects from 1999 including various constituency projects. All of that will translate to more power.

    Mambilla is a huge project, considering the size, does the government consider bringing in private participation in its construction?

    Ultimately yes because it is consistent with the policy of private generation capacity, but let me say that this is where the role of my ministry becomes even most defined in terms of policy. Mambilla represents a policy, a policy of renewable energy, using water, a policy of energy security for the country that gives us 3,000Mw as a balance so that we are no longer solely dependent on gas. This is part of what the ministry’s work should be. If you want a comparison, look at the UK they are building a nuclear power plant that they have privatised, but the government is still actively saying energy for the future, we must believe it. When it is fully developed and ready, how many individuals have $5billion? Does Nigeria even have $5 billion? So, that is where the government must lead, on the back of our sovereign credit rating. We borrow this money and deliver this power and someone can come and manage it. If you look at Kainji, Jebba, Shiroro, they are big dams. It is government that built them, but they are now being managed by private hands. So, these are some of the things the government must de-bottle in order for them to happen. If there is opportunity to do the same with solar, we will do it. If we had invested in solar 10 years ago, this is the right time to switch to solar as the rainy season is ending, where your hydro is not as prolific anymore and the sun is now prolific this is what you move to naturally.

    On other sources of power generation, what is the government doing?

    One of the things I did was to develop an energy mix for Nigeria and we discussed it at our council on power in Kaduna in 2016. Our target is that by 2030 Nigeria should generate 30 per cent of its total energy production at any time from renewable and that is why we are focusing on finishing Katsina wind, launched the mini-grid regulations largely targeting solar and that is why we are working with Jigawa State government, trying to do a solar village in Jigawa because they have land. That’s why we signed PPAs with 14 solar developers. We are just trying to close the last mile of the financial transaction for the agreements, which are the guarantees against failures. The argument has been whether we should pay in dollars or Naira. We want to pay in Naira, but they are saying they want it in dollar. That’s what energy mix means to us. We have shown them all of the areas of the country where solar radiation is at its most prolific and we want people to go and invest more in solar in those areas. So that people will now know that this is the best place for gas and the best place for coal. We are working with someone, who wants to develop coal. He already has his licence and coalmine. We are just trying to conclude the PPA and price of coal so he will start developing his coal. Nigeria will never again have to rely on a single or two sources for energy. We must be able to use as much nature’s gift as possible. So, it’s just a journey for me. We see where we are going and the more members of the public understand these things, the more consensuses it is to get there.

    Sometimes power from the grid will be so weak to carry water-heater in the house, what is the government doing to reduce grid load?

    That is the basis for the mini grid we are building, disaggregate the power, reduce the dependence on the grid, especially for long distances. People must understand the nature of the grid, I have heard people say why not dispense with the grid? Show me one country that doesn’t have a grid. None, what we must not do more is try to connect small communities to the grid. Major load centres such Port Harcourt, Aba, Kano, Kaduna, Lagos, Abuja and big populous centres, the grid is still the most efficient way to feed such centres. But for smaller communities, it is not profitable to build a grid of 200kilometres of wiring to go and serve one small community. If the investor must recover his capital and make profit, the cost of power will be too high. So, that is why we issued regulations for mini grid. This is the first time we are having those regulations in the country. Will the result happen three months after the regulations were issued? Certainly not and that again is part of the incremental power journey. So, we have clarity where we are going.  As Nigeria’s population began to grow from 1985-86, when was the last time we built one big power plant? When was the next power plant built? Until Mobil, Agip and Shell were forced, under a gas flaring reduction programme, to build power plants, after that population went up again. Those are the gaps. The National Integrated Power Project (NIPP) by former President Olusegun Obasanjo followed. The NIPP started around 2005-2006. What additional power had we put on the grid and has population remained the same? So, those are the realities. Back to the question of planning, those are the things that must never happen again. Those are the things the power sector recovery programme wants to address; compulsory enumeration of consumers, we have to know how people are consuming energy.

    Maybe the name we call it, that is what it means to us, we want to recover power, that is our focus but that is not our end goal. You cannot have something that is not giving you  result and go and buy another one. Make that one work first. So, what are the problems, equipment stuck in ports? Go and get it out, contracts that are in court, negotiate and compromise, contracts that need to be finished, who is finishing them, Niger Delta Power Holding Company (NDPHC) or REA, get everybody back on track and that is where we are now. Which projects are you doing, why are you choosing this instead of that, these questions must be asked. So, if Azura is coming in six months time, the priority project must be the one that will evacuate Azura. Target your investment to give you the most optimal results. From where we started, is it something to hold on to? Certainly yes because we have clarity where we want to go, so it is not a story about megawatts anymore, it is a journey with milestones. When we just tell you that we have 7000Mw generation, it is a milestone. We are not asking for our plus, we know our work is not finished, but we are telling you that compared to yesterday you will just notice that there is difference. Now that we have 7000Mw, a new problem has occurred. We cannot sell all of it because the DisCos are behind us.

    Why are the DisCos behind?

    The problem is that they don’t have capacity to expand the way it is expected. We have talked about their challenges – exchange rate and liquidity, among others. The roll out that was expected has happened in the way we expected it. Some have happened. Secondly problem is that most of the equipment they bought was old enough, nobody can dispute that. That equipment must be changed. Some of that equipment had original manufacturers’ rating on the day they bought them. Does your 10-year car run at the same speed after 10 years? No, those are the realities. So, that equipment has been de-rated. Even in transmission, sometimes all we need to do is add a new transformer to double the capacity. Those are the things they supposed to do. In the area where the equipment are not de-rated, the population has grown, more people have built houses. So they must expand, that is the problem. How do we solve the problem? We have asked the DisCos to give us the number of transformer you need and their ratings, give us the number of lines – how many kilometres, how many volts? They are doing that work now. How much does it cost? When it comes, we have to take it and ask how we fund it. In company where the government owns 40 per cent, is that company losing money? I don’t have answer to that question. But we will be able to know what each DisCo needs and what it costs. When we dimension that, who are the suppliers, we are not awarding contract to anybody. The way my mind is working currently but I still have to get FEC’s approval and buy everybody’s idea. That is what we must do. So they will inject 2000Mw we are generating into the grid immediately.

     

     

  • ‘Textile challenges beyond grants’

    Until about two decades ago, the textile sector was the toast of the nation, accounting for the largest  employer apart from the government. Unfortunately, all that has changed as a significant part of its business in the sector was lost due to bad policies and unbridled importation of fake and substandard textiles. Nigeria Textile Manufacturer’s Association (NTMA) Director-General, Mr. Hamman Kwajaffa, in this interview with OKWY IROEGBU-CHIKEZIE, says returning the sector to its lost glory goes beyond monetary intervention, but a combination of interventions.

    Two years ago, a policy framework to stimulate the textile industry known as the ‘National Cotton, Textile and Garment Enterprise Policy’ was launched to create a conducive environment to encourage textile production in the country.  How far has this been implemented?

    The Federal Government’s objective on the ‘National Cotton, Textile and Garment Enterprise Policy’ was to provide the textile industry with the world-class facilities needed to set-up competitive textile units. We appreciate that but we have a challenge with the fact that we buy gas and petroleum denoted in dollars.

    In Nigeria, for instance, textile factories buy gas at $7.8 per SCM, one wonders why it should be so, while in other African countries it is sold for $2.5. The government should tackle the issue of gas being paid for in dollars by manufacturers. The amount spent on gas by industry operators  wipes out their bottom line. This alone has already rendered operators in the sector uncompetitive against manufacturers from the Asian countries that flood our markets with their cheap textile materials. Our appeal is for government to place manufacturers under strategic industrial sector so that they will not have to pay so much for gas.

    Also, the practice of paying dollars instead of naira for gas in this recessed economy is taking a heavy toll on textile manufacturers in view of the constant loss in the value of the naira when paired against the dollar. The government needs to look at what is happening elsewhere and adjust accordingly. This is one of the reasons why no matter how good a policy is if it’s not backed up properly with the right incentives it will fail.

    Locally-made fabrics are not competitive because of this as the cost of doing business here is astronomical compared to our competitors. One reason why we have remained uncompetitive is also due to the high cost of electricity because we use heavy machines. It is instructive to note that we only control five per cent of the textile market with the Asians controlling 95 per cent of the imported fake and substandard fabrics.

    Your association made representations to the Central Bank of Nigeria on the banned 41 items. What was the response of the apex bank?

    That singular policy of the Central Bank of Nigeria (CBN) was to say the least not well researched. The apex bank would have done everybody good if it took time to do a proper study of the manufacturing sector or collaborated with the real sector before coming out with that policy or ban on 41 items. The CBN ban included polyester, which is a primary product in textile industry, but erroneously termed as finished product. That classification is not correct.

    Nigeria can be referred to as oil producing nation, but we are not refining so the gains of the oil industry is lost due to our preference for importation. The only petrochemical in the country is at Eleme, River State, but it is producing little or nothing. The polyester produced there is very little and cannot go round the bulk of what we need that is why we import the material and other petroleum by-products for our production.

    If the CBN did its homework well before coming out with that list, it would have saved itself the embarrassment rather than mistakenly classifying a basic raw material as finished product. This is instructive for future purposes to get the cooperation and confidence of a particular sector before coming up with policies and laws that will affect it. The way out of the situation is for government to give practitioners a special window to access foreign exchange that could be used to import raw materials.

    Are you thinking in the line of producing your own electricity like other manufacturers in other sector?

    We believe that the government should handle that. It should not be left to manufacturers; it will be an over-kill to the already distraught sector. We have, however, called government’s attention to give preferential rate to heavy users such as the textile sector. There is no way we can survive or match the price of imports from Asia because they don’t face the same challenge like we do here.

    So, with these bare facts you can see that we are not in a position to compete with the imported fabrics from other African and Asian countries because our operating environment is not the same. These unhealthy environments also make it difficult for us to take advantage of the African Growth Opportunities Act (AGOA), which would have enabled us export our garments and textile to the United States (US). It is instructive to note that a country as small as Ethiopia is exporting fabrics to the US and Europe and this has been ongoing for years. For us here, we cannot export because nobody would touch it as a result of our pricing; this calls for government’s review and action. Again, Ethiopia has the most competitive power tariff at four U.S. Cents/Kwh, which is a fifth of the power cost in Nigeria. Recently, India, which is the second largest textile producer in the world after China, announced a $1 billion incentive package for the textile and apparel industry to create 10 million jobs in three years.

    What other challenges do you have running your business in Nigeria?

    The other challenge is that of using Nigeria as a dumping ground for cheap and sub standard Chinese fabrics. They come here steal our designs, to go back and mass produce them and send them back here. You can buy their six-yard fabric for N1000, but a Nigerian wax of the same metre can be as high as N4000 and the quality is not the same. And because of the economic down turn people are not mindful of quality again. They just buy the ones available without considering the durability of the fabric. The government needs to block all avenues that make smuggling attractive to people. For instance, we heard how Nigeria Customs seized fabrics worth N4 billion from 75 warehouse in Kano, only to hand it over to their supposed owners after paying the required duty.

    We felt that allowing them to retrieve the fabrics was not good for the economy or the textile sector. That is the only way to preserve our sector and the economy in general. NTMA would have preferred a situation where the cheap fabrics were seized as deterrent to would be offenders in future. As long as the textiles were allowed into the country, locally-produced ones would remain uncompetitive because people would prefer to buy cheaper things due to their poor earnings. It undermines the local industry, steals our jobs, deprives the government of revenue and drains the country’s foreign exchange reserves.

    The Federal Government through the Bank of Industry (Bol) gave your association a grant of N100 billion. Have you assessed it and how many of your members did?

    The N100 billion grants were released in 2009. It was a low interest single digit grant. It was not given as cash, so to speak, but was to be used to retool obsolete machines. The problem of the sector is beyond funding, the grant did not go round because out of over 50 people, who applied for the funds, only 15 were able to get it. Some of the companies that got the intervention funds are in Ikorodu, Surulere, Ikeja, Lagos, Kano and Kaduna. What the sector needs is the right policy for a robust sector that will be religiously implemented by the government. If the enabling environment is created and we have adequate capacity utilisation, our fabrics and textiles will also be  exported to the developed world such as the US under the AGOA, and the European Union’s Generalised Scheme of Preferences (GSP), which Kenya, Ethiopia, Lesotho, Madagascar and a number of African countries are already exploiting.

    Talking of policies, the government also mulled the idea of forcing the military, para-military and other agencies to patronise locally-made fabrics. How successful has been?

    We are waiting for its full implementation by the Presidential Advisory Council (PAC) on Made-in-Nigeria textile, though it came into law in July. There is supposed to be 40 per cent local content in value addition in terms of uniforms of the military and the para-military, including the National Youth Service Corps (NYSC). In addition,  the National Assembly, Federal Executive Council, Ministries & Departments are to wear only locally manufactured fabrics on Mondays and Wednesday. If the government can implement this, it will rob off positively on the sector. Nigerians are good followers, we are of the belief that if this is followed it will augur well for the sector and for the nation as a whole. It will no doubt increase capacity utilisation and keep the factories running once again. Before now the sector, which was the second largest employer of labour, employing over 187,000 workers, has come down drastically to 24,000. Many nations have travelled this route before and made a success of it. It must be noted here that the campaign to buy and wear will only succeed if the public sees the government’s conviction and, office holders put it into practice.

    Northern governors recently mulled the idea of revitalising the textile companies in the North. How far have they gone?

    It was cherry news no doubt for them to come up with that idea. It will be recalled that before now the northern states of Kano and Kaduna were the hub of textile manufacturing, but all that seem to have eclipsed. The plan, according to them, is to produce school uniforms, para-military uniforms, bed sheets and covers. It should be noted that the textile sector is a huge employer of labour. If they successfully pull through this plan it will lift the economy of the region. Before now, that part of the country was known for its large cotton farms and a prosperous textile industry, but gradually they lost it as a result of unbridled importation of fabrics and the neglect of cotton farmers or the agriculture sector. It is, therefore, a welcome relief that the political class is thinking in the line of revitalising the region and by extension, boosting its economy.

    What are you doing to support local production of vital raw materials?

    Before now we had cotton farmers in the northern part of the country, but gradually they have moved away to cultivating less strenuous cash crops such as maize and millet that are easier to cultivate. In this regard, the government will need to incentivise the farmers to go back to cotton planting. The government needs to make it worth the while of these peasant farmers by encouraging the mechanisation of the cultivation process and ensure that whatever they cultivate is quickly bought over from them.

    The government is working at ensuring the ease of doing business. Have you felt it in the textile sector?

    The government has come up with good policies on ease of doing business, but we believe that its implementation is key. The nation has never been short of policies the challenge here is implementation. There must be a conscious effort to protect the local industries in terms of what is allowed to come in, taxation and patronage. We want to see ministers and members of the National Assembly wear locally manufactured fabrics.

    What will you prefer the government to do to lift the sector?

    The government should work tirelessly on the power sector to ensure strategic and uninterrupted power generation and distribution. For instance, the policy, which ensures that the government to distribute uninterrupted power supply to neigbouring countries of Ghana, Niger, Cote d’I voire, etc to the detriment of its citizens beats anybody’s imagination. For instance, the textile factories in the north are made to import gas while the same gas is exported to other African countries.

    It is difficult to understand. How can you keep other economies running to the detriment of yours? The government should, as a matter of urgency, reverse itself and ensure that the local manufacturers are adequately provided for before we play the big brother to our neigbours. Its worthy of note that we import starch and one wonders why the Federal Institute for Industrial Research (FIRRO) cannot come up with adequate research on how to manufacture industrial starch. All things being equal the nation should not be importing starch under any circumstance.

    Does the nation have the required skill to boost the sector?

    We have the skill though, with the retooling of the factories some of our new machines will need cutting edge skill to operate them. In that case what we may need is to upgrade the skills of our members, but all in all, the nation’s textile sector has the requisite skill to pull through. Our problem is not having requisite skill, but that of the government doing what is right by ensuring the provision of an enabling environment for businesses to thrive.

    Does it translate to regaining your position as the second largest employer after the government?

    On our part we are asking that our market be returned to us. Our market has been overtaken by smugglers made worse by porous borders and lack-luster performance of different government agencies. Most of our members have their warehouse stacked with fabrics that are unsold as a result of the uncompetitive pricing. This scenario has led to job losses and factory closures. It is disheartening that we are known as importing and consumer nation when we have the capacity to be addressed as an exporting nation. We have many things working for us as a nation. Our size alone is a plus; we must take advantage of that to change the narrative. If the government goes ahead and does the needful regarding power, cost, infrastructure we will conveniently compete with other nations because we are sure of our products. Nigerians should be made to believe in the local industries because our quality is good

    How will the textile sector key into the government’s non-oil economy?

    Our sector, remember, used to be the second largest employer after the government, but bad polices and neglect brought the sector to its knees. Reliance on oil revenue as the sole foreign exchange revenue for the government is wrong. Now, our country is referred to as a cargo nation because of unbridled importation and the taste for imported products, but this should not be. Our belief is that the economy can be out of the woods and the desired non-oil economy can actually be achieved if the right things are done.

  • Why you may never get your desired job

    Why you may never get your desired job

    I know many young graduates and experienced journalists who want media jobs and other employment they may and can never get.

    The fresh graduates think their first or second-degree certificates are all they need to get their dream jobs in corporate organisations, while the old hands believe their years of experience will give them an advantage.

    What I have realised is that not many job seekers have what present day employers look out for. The skills required are more than being able to write or excellent verbal communication.

    In addition to the above requirements and some others that used to matter, all media related jobs now require mastery of new media skills. Similarly, most contemporary employers often look up the Social media timeline of prospective job seekers.

    It is not enough that you have been working in similar positions for years, there are new communication realities that make it necessary for journalists and other media professionals to know more than what they used to know and can do:

    At first glance, a vacancy for an experienced Communication and Administrative Officer by the African Cycling Foundation will appear to be an easy one too for an experienced Sports journalist or any other media professional until you read some of the requirements in the job description:

    • Manage day to day social media activities focusing on Twitter, Facebook, Instagram, YouTube etc.

    • Promote the organisation’s events and activities across social media channels.

    • Ensure each platform is scheduled and promptly filled with content in-line with the organisation’s strategic objectives.

    • Source and develop engaging contents, including stories, videos and pictures, to be updated across social media channel.

    For emphasis it was stated that the successful candidate must have the following skills/experience:

    • Strong knowledge of using social media in successfully engaging and growing audiences developing creative content, measuring the impact of activities and making informed recommendations for revising all social media activities.

    • Excellent writing skills, including grant proposal and report writing.

    • Sound organisational skills with the ability to prioritise tasks efficiently and remain calm under pressure.

    • Excellent knowledge of all Microsoft Office applications

    • Excellent attention to detail and a good eye for design.

    To apply for the position, applicants were required to send their CV with a supporting statement describing how they meet the specifications and what they would bring to the role.

    Among others, proven knowledge of social media use is obviously a major requirement for this job and only those who have it need apply no matter how long they have been performing similar tasks.

    Due to the change in the communication landscape, media professionals are now required to be digital savvy and anyone applying for jobs in the sector needs to update their skills and have evidence of being active on the platforms.

    Media houses want reporters who use the social media well enough not to miss any breaking story. They want journalists who have a good following online to extend the reach of their content.

    Instead of wasting the time of dreaming of top media and communication positions and applying for jobs they don’t have the capacity to perform, applicants should study vacancies to know new requirements employers are demanding for and how to have them.

    Social media is not a fad. It’s here to stay and forever change the way we source and disseminate information.

    More than being social platforms, they are professional tools which every professional must know how to use to promote their brand individually and at corporate communication.

    How many friends do you have on Facebook, followers on Twitter and Instagram; what you have done and can do on the platforms may be a major determinant of you will get that dream media or communication job or not.

    The choice is yours.
    Thanks for reading. I look forward to hearing from you if you need any assistance in how to use social media professionally:
    Twitter: @lotufodunrin
    Telephone: 08023000621

  • Vacancy: Imo Air operated by Dana begins recruitment

    Imo Air operated by Dana Air has commenced recruitment of indigenes of the state to occupy various positions in the airline as promised by Governor Rochas Okorocha, during the launch of the airline on 24 of January 2017.

    During the interview which commenced in the first week of February, over 400 Imo indigenes participated in the process even as the airline prepares to hit the ground running with a number of initiatives to better impact the indigenes of the state and the South East at large.

    According to the Accountable Manager of Imo Air operated by Dana Air, Mr Obi Mbanzuo, “we have commenced recruitment of Imo state indigenes to occupy various positions in the airline and the process will be in batches.  

    We intend keeping to the promise of the Governor and at the same time; we are trying not to over bloat our workforce.  As you may be aware, Dana Air was selected to manage Imo Air as a result of our consistency, on-time performance, world-class in-flight service, and shrewd managerial style and we intend sticking to this style just so we can match-up to the operational challenges in the industry.’’

    ‘Definitely, all qualified candidates will be absorbed and as an airline committed to giving back to the society; we are already looking at other areas to impact and contribute our quota to increasing the traffic to Imo state, to make the state an investment and tourism hub in the south-east.’’

    Governor Okorocha while reacting to the news of the recruitment said ‘the exercise is just a confirmation of the promises we made during the launch of Imo Air. I am happy about this, as people thought we were joking about this well thought-out idea. 

    ”The truth is, we want people to visit Imo State for both business and pleasure and going into an airline business was just a perfect business decision, considering that Imo state is the fastest developing city in Nigeria at the moment. And as you know, tourism and aviation are a perfect combination, one cannot work without the other.”

    “We are also monitoring the progress of work at the Cargo International Airport and hopefully in April or May, we will receive the first Cargo plane in Imo State. Imolites should expect more Imo-centric initiatives and very soon, the 10% discount for Imo indigenes will also be unveiled.  We are still working out the modalities and we want to prove to the world that this administration walks the talk and doesn’t just pay lip service to projects.”

    ”Let me also mention here that, Dana Air the operator of Imo Air; is part of a massive conglomerate which spans Automobile, Aviation, Pharmaceutical, Steel, Plastics, Water, Chemical, Banking, and Real Estate. And the idea is to have them invest in various areas in Imo state, particularly in Agriculture. This is our plan as we believe creating a favourable business environment for local investors will bring forth foreign investments and investors’.’ 

    Dana Air having flown a record 4.5 million passengers in the last eight years of its operation, entered into an airline partnership with the Imo State Government to boost tourism, business activities and employment opportunities in the state.

  • ‘Confidence key to attract investment’

    ‘Confidence key to attract investment’

    The telecoms sector is not insulated from the recession challenging the country. President, Association of Telecoms Companies of Nigeria (ATCON), Olushola Teniola, says the Federal Government must take steps to halt further erosion of investors’ confidence in the economy. He says there is need to also license the remaining infrastructure providers to accelerate broadband penetration across the country. He speaks on other issues affecting the economy in Lagos, LUCAS AJANAKU was there.

    Last year was particularly trying for the economy. How did the telecoms sector fare?

    The Information Communication Technology (ICT) sector totally witnessed a very mixed set of circumstances in Nigeria last year. The impact of devaluation of the naira to the United States Dollars (USDs), changes in National Information Technology Development Agency (NITDA) leadership, rise in inflation, delay in implementation of 2016 budget and loss of jobs characterised the year under review. It also created some opportunities – the realisation by the Federal Government that ICT is a sector that is critical to the diversification of the economy and the ongoing contribution of ICT to the growth of our economy. ICT recorded almost 9.9 per cent contribution to the nation’s gross domestic product (GDP) last year despite all the headwinds and also against a slow-down in the overall economy.

     ATCON vehemently moved  the Communication Service Tax bill pending before the National assembly. What is the situation of the bill now?

    I believe the Communication Services Tax (CST) bill is due for public hearing and we as an industry and other consumer interest groups under the aegis of the Association of Licensed Telecoms Operators of Nigeria (ALTON), Alliance for Affordable Internet (A4AI) and National Association of Telecoms Subscribers (NATCOMS), seriously stand against any attempt by government to destroy the growth of this industry by creating an additional tax on top of the already 26 taxes/levies that are imposed on the ICT industry. ATCON has provided alternatives for the government to consider. Alternatives such as increase in value added tax (VAT) across  board (not just applied to this sector) at no more than one per cent alongside incentives that will encourage further much needed investments in addressing quality of service (QoS), broadband roll-out and sustaining job creation. Any excessive tax will stall and/or stifle further growth in the ICT sector.

    There is also the Telecoms National Security Infrastructure Bill pending before the National Assembly. What is the situation too?

    Well, I have not seen this bill that you refer to, so I cannot make any meaningful comment on it. What we advocate is the Cybercrime Act to be fully implemented and executed to the lettters. In particular, we want the Police, National Security Adviser  and other security agents to assist the industry in the protection of Critical National Infrastructure (CNI). ICT infrastructure is now under CNI. This will help improve QoS and reduce the costs of repairs in the industry to a minimal level. The infrastructure that is rolled out to support broadband services needs to be fully protected from vandalism, theft and destruction and therefore, the enforcement of the CNI under the Cybercrime Act needs to be implemented without any further delay.

    Interconnectivity debt is a major issue in the industry. How do we address this?

    Trust is an important factor when dealing with sensitive transactions such as interconnection billing. The arbitration of these outstanding debt is, in my opinion, the best way to go and applied as best practice in other climes. The major issue is that settlement of debts must be done in a timely manner to not accumulate into a dire situation where an operator is not able to pay down or net off the outstanding to another operator. In these cases, only arbitration can resolve an effective way forward as an alternative to an operator denying the debtor termination access. Without this sort of scheme in place, it becomes difficult to continue to establish trust by the debtor operator in the industry.

    What advice do you have for the NCC on spectrum management because it is a scarce resource?

    The industry seeks further allocation and utilisation of spectra that will contribute to the growth of mobile broadband penetration in rural areas of the country. The options presented at the Spectrum Trading forum hosted by the NCC in last year should be explored and implemented this year, specifically considering the Nigerian terrain. The migration of analogue TV to digital TV should be a major focus during this year and this should free up more broadband-type spectra that will allow high-speed or superfast broadband to be easily rolled out.

    Over the years, there appeared to have been a slow-down in the pace of infrastructure expansion by telcos. Do you agree with this?

    Yes, I do. The reason is simple: the USD to Naira uncertainty has led to anxiety within the investment community and this has also meant that foreign direct investment (FDI) needed to fund network expansion and capacity upgrades under our members’ capital expenditure (CAPEX) programmes have had to be put on hold. We need the government to see that an enabling environment with clarity in policy formulation and execution that leads to transparency will encourage investors, both domestic and foreign, to bring funds to drive this expansion. The government needs to remove the fear, uncertainty and doubt that are prevailing in the economy this year or there will be further contraction in the economy, irrespective of crude oil prices on the global market.

    The real sector has been affected by the foreign exchnage (forex) drought. what about the telecoms sector?

    There are no legal ways of working around the forex issue and as previously stated, until the government allows telecommunication equipment to be on the preferred list of items that can access cheaper USD to the Naira, it is hard to see where the further growth will come from this year. Without expansion of networks or increase in capacity upgrades, the networks will not be able to sustain QoS or improve on it and revenue will stagnate or decline. Again, the government needs to show strong leadership on this critical issue.

    The National Broadband Plan  envisages 30 per cent  penetration by next year. With the current situation, is this target achievable?

    Nigeria plans to achieve 30 per cent broadband penetration by 2018. Well, with the right policies in place and an enabling environment anything is possible. Last year, some statistsics from the Nigerian Communications Commission (NCC) suggested a 20.9 per cent broadband penetration, though this is yet to be verified, it is evident that penetration is skewed in the trendy areas of Lagos, Abuja and piecemeal in Port Harcourt. Any further increase will need to be on the back of infrastructure companies (Infracos) and other network roll-outs outside these geographical regions to prevent a ‘have against have-not’ landscape occurring. This is the year when we need to have implementable programmes in place to ensure we are on track to achieve the 2013 National Broadband Plan (NBP) of 30 per cent broadband penetration by end of 2018. The industry needs all government agencies in charge of and responsible for infrastructure at state levels to work with and support the roll-out of much needed fibre optic metro infrastructure that supports the whole eco-system to deliver on the promises made in the NBP. Furthermore, the industry needs government policies in place that will attract much needed investments to support the capital expenditure programmes that needs to be undertaken to realise the country’s vision of a digital transformation (smart cities, e-Government and Internet of Things).

    What message do you have for the regulator of the industry this year?

    The focus for this year should be unlocking ‘local content’ in the industry and ensuring that a level-playing field exists to bring about increased employment for the growth in the skills set required to generate a digitally transformed industry. The ecosystem will bring about new players from the over-the-top (OTT) space and regulation that balances the interests of these players versus the investments already made by the telecoms players will need to be addressed. The investments required to fund the mobile broadband revolution must be addressed, so all incentives and an enabling environment should be put in place by the Federal Government, so that investors’ confidence is not further eroded.

    There was an attempt by the NCC towards the end of last year to cap data prices. It was resisted  and the regulator was compelled to suspend the move. Do you think there is such need in a liberalised market?

    Yes, it is the regulator’s rightful intervention and role to ensure that a level-playing field exists in the industry and to curtail any monopolistic and unfair behavior creeping into the industry, irrespective of the noises being made by the masses. The law does not dictate for ‘anything must go’ approach to destroy market values and more importantly, investments made to create the market in the first place.

    We, at ATCON, represent both the large and smaller players interests and also support fair competition that benefits the consumers and encourage the NCC to continue to do its work on the determination of whole pricing, seek wide stakeholder input and then, place mechanisms and instruments to safeguard the Nigeria’s reputation in the eyes of the international community.

    The NCC does not have a barometer for measuring the QoS, the data segment of the industry, though it has for voice calls.  Don’t you think the time has come to have similar thing in data segment?

    The key performance indicators (KPIs) set for voice should be maintained and with the advent of data services becoming prevelant, the NCC has the right under its enabling laws to also introduce relevant KPIs to address cost and quality of data services too.

    As an industry, how can the infrastructure deficit be bridged? 

    Without the tall buildings that exist in other climes in the United States (US), Tokyo, Hong Kong and London for instance, it is only through more towers housing more base transmission stations (BTS0 that will cover the many black spots present in the network coverage across the diverse terrain that makes up Nigeria that we can reasonably expect to fully resolve ‘drop calls’ for examples and other environmental issues that are inhibiting the improvement of QoS. In addition to the 60,000 BTS, we also need the infrastructure to be protected from unlawfull closures, destructions and sabotage.

    The NCC is planning to introduce national mobile roaming initiative. What is the significance of this initiative to the industry?

    National roaming is a fundamental part of the idea behind sharing active infrastructure. Though a new concept in Nigeria, it is widely practiced in the United Kingdom (UK) and other climes where ‘calls are handed over to another network’s cell’ where the signal level doesn’t meet a certain criteria or thresholds. This should aid in ensuring that calls previously dropped are now given a higher percentage of probability of not being dropped if the call is allowed to roam onto another network. We await the final report from the NCC to establish the modus operandi before we can be certain that a level of improvement can be assured by the networks to the consumers in areas where a high level of intermittent issues have been reported.

     Internet of Things (IoT), cloud computing and big data are expected to take strong footing this year. How will telcos drive these emerging areas of the ICT?

    Narrowband IoT will be experimented with this year by one or two of the incumbent mobile network operators (MNOs). Cloud computing will experience a growth in hybrid cloud computing on the back of more trust being placed in locally built data hosting centers certified to Tier-3 level. Telcos are challenged with Big Data in Nigeria, due to the veracity, validity and verifiable data issues that exist – further partnerships with OTT players may seek to address this.

    With increased CAPEX and operating cost (OPEX), coupled with other operational challenges, what are the survival strategies of operators?

    Adopting a business model that focuses on cost efficiency and creating opportunities for increased differentiation in the services and products that are offered to the target markets.

    Last year, most of the operators launched 4G long term evolution (LTE) networks. What impact will this have on the economy?

    The launch of 4G LTE networks in Nigeria signifies the beginning of high speed internet with speeds over 4Mbps being typical. This opens up further opportunities for more sophisticated services and applications to be developed and utilised by consumers on the move. It also provides a platform for IoT and Smart city type devices to be adopted in areas of security, water metering, farming and many other utility applications. This will in effect create new jobs in the economy.

    Many licensees of the NCC have closed shops and incidentally, the affected ones have been mostly indigenous firms. Is this not a source of worry to ATCON? How  can this be reversed?

    Yes, it is indeed, a great concern. However, we have also witnessed a trend of new age telecom and e-commerce businesses being launched into the eco-system alongside software companies focusing on knowledge-based technologies. Also, those companies that have adapted their business models to include true partnerships are the ones that are able to survive in the future.

    The NCC is yet to license the remaining Infraco. Is ATCON worried and why?

    Any further delay in awarding the remaining Infraco licences as well as the hurdles faced by the Infracos awarded in 2015 in rolling out in 2016 and still not being addressed will seriously hamper the accessibility, affordability and availability of high-speed internet and broadband services across Nigeria. In the area of licensing  Infracos, therefore, I will suggest that for the realisation of a National Backbone Network (NBN) the Open Access Model needs to be implemented to the ‘letter’ hence, the remaining licences need to be given out within the first quarter of this year. Also, issues surrounding the project execution in each geo-political region will need speedy intervention by the Federal and state governments’ collaboration to avoid experiences observed in 2016 with the Infracos that were awarded licences to cover Lagos and Northcentral regions. We must avoid the mistakes already made to ensure the success of the overall intent.

    Finally, what other things would you like to say about the industry?

    Well, let me talk more on the ICT policies and telecoms regulation. Local content must be a priority this year for the ICT industry in general and the government should further collaborate with the industry, the civic society and the academia to find the best fit for Nigeria in ensuring that capital flight is minimised in the areas of software, digital content and data hosting.

    Telecoms regulation will need to balance the OTT presence alongside the current industry setup of strong MNOs and a few internet service providers (ISPs) against the uncertainty of the Nigerian economic situation viz-a-viz infrastructure investments and capital deployed to achieve it. This year, the telecoms industry needs to see an immediate clarity on data price floor and other intervention instruments that will need to be explored and maybe introduced into the industry to ensure competition (or lack of) doesn’t stifle innovation for the long term growth of industry as a whole. This year is the year where the NCC will be looked upon by all industry players for a level playing field to exist in the emerging broadband data era in Nigeria.

  • ‘Govt should address inflation with palliatives’

    ‘Govt should address inflation with palliatives’

    Comrade Oyinkan Olasanoye is the first woman President of the Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI). In this interview with TOBA AGBOOLA, she speaks on workers’ challenges in the financial sector and sundry issues.

    What are your plans for your members in financial institutions across the country?

    This is the first time that a woman would be elected National President of this noble association. I am not unaware of the great challenges ahead of me, but I’m highly confident that I shall not disappoint my followers. The sixth glorious and painstaking years I spent as the First National Deputy President has equipped me for this great assignment, the tutelage has been very thorough and with God Almighty on my side, coupled with the support of all of you, I shall not fail. As we move to the next dispensation, I will work with all my members. We will engender healthy industrial harmony and relationship without compromising any of the principles and core values of ASSBIFI. We will ensure more visibility for the union/members by continuously being a potent voice for sound corporate governance and accountability. We will mobilise members to support corporate growth and avoid labour disputes. We will ensure training, seminars and more enlightenment on their rights, innovative unionism, improvement in welfare plans, legal rights and investment trainings.

    What is your expectation from the Federal Government this year. For instance, on the issue of minimum wage, among others?

    We expect the government to inaugurate the committee on the minimum wage as early as possible. President Muhammadu Buhari must, as a matter of urgency, constitute the tripartite wage review committee, comprising labour, employers and the government to negotiate a new minimum wage that has been long due for another five-year review. We also want palliative measures that will not lead to more inflation to be put in place.

    What is your take on Treasury Single Account (TSA), how is it affecting your sector?

    The Treasury Single Account (TSA) is seriously taking its toll on our members and the sector as a whole. All of a sudden, you said the government fund that is at our disposal, we should take it to Central Bank (CBN). It’s like putting someone in a big house and, suddenly, you withdrew everything that the person needs to survive in that house. Or it’s like you gave me clothes to cover my body and, suddenly, you collect it back, not mindful whether we are in the rainy season. How do you expect the person to survive? The thing is already affecting their (banks) balance sheet. CBN has come up with series of policies and some of them have a great effect on the stability of the banks. There is nobody in this sector that will support TSA. If it were something that was envisaged, that would give the banks the opportunity to plan. But all of a sudden, you came up with it. It’s not fair. And as you know, everywhere, the government is a big spender. So, there is no way it will not affect the banks. The only agent that could kick-start the economy and make it robust is the banking sector, and  if such money is taken from them and given to the government’s banker, the CBN, to keep, such a policy could harm commercial banks. The liquidity of the banks have been seriously affected and anything that can affect the liquidity of banks will also affect their lending ability to power the economy. The  policy on TSA, though with its advantages, is affecting the liquidity of the banks, and the high interest rate set by CBN is hurting the banks and business as access to credit is closed to small scale businesses and individual operators. The policies should be implemented by the government putting in place policies that will stimulate both production and consumption spending. For instance, banks should be allowed to get part of the TSA money from the CBN at an interest rate not higher than the customer deposit interest rate to enable them loan such money to business and individual operators.

    What is your union doing to protect the interest of workers in your sector?

    The union is following all due processes. We are liaising with the employers and the government on the various policies and their implementation. We need to have well- thought out policies that will benefit the average Nigerian and boost investor’s confidence. Without tackling the impact of the various policies, the battles cannot be won.

    It is a fact that we are passing through a serious challenge in the economy. There is downturn as a result of low price of crude oil, and, of course, that seriously affected the revenue of the country. And as you know, the country relies over 90 per cent on crude. We also experience insecurity in the Niger Delta and that makes the output also to decline. For us in the financial sector, it’s a big challenge. We are supposed to be the liquid that will oil the wheel of progress. We are supposed to be the one to lubricate the economic activities of the country. But, the low income generation has affected the purchasing power. As you know, there is high inflation now. The inflation stands at about 18 per cent. This is a big challenge. Notwithstanding, we are still encouraging our members not to give up in the struggle.

    Casualisation and outsourcing are major challenges in your sector. How do you plan to handle them? What is your position on retrenchment in the sector?

    The major issue with casualisation is the dignity of labour and the remuneration. Casualisation is like an ill wind that blows us no good. I have always said it. It is alien to this country. Anybody that encourages casualisation in Africa is satanic. The person should be examined, because in Africa, for instance, for every man that works, there are 10 or 12 or there about to feed.  Casualisation can work in Europe, because of the type of life they live. ‘It is me and my immediate family, nobody else.’ You do not have extended families. You can even decide not to greet your brother, but in Africa because of our communal way of living, for every one that works, no fewer than 10 persons feed from that person. It is discriminatory, demoralising and does not even benefit the institution at the long run. So, if you casualise people and do it the way we do it here, it is satanic. Here, you have two people working in an environment; they have gone to the same school probably, they have the same qualification, and so on because he/she is a permanent staff and the other unfortunate to be a casual staff, the disparity in their salary is so wide. That is bad. Part of the pains casual workers go through is that they never benefit from special packages like others. They don’t have the full entitlements on the job allowances, transportation, leave allowances, medicals, among other things. We will continue to fight it. Casualisation has also been blamed for robbery cases in the banks. Everybody who works in this sector must be employed as a full staff member. This has been the position of ASSBIFI since 2007.

    As for outsourcing, if you look at the Trade Union or Labour Act, you will discover that every sector has two unions – the junior and the senior. Now, when you outsource, even if you have a Phd and you are an outsource person, you cannot be our member because the position they will give you will be lower. They (outsource persons) may be doing greater assignment, the remuneration and the position they are given is that of a junior worker. So, naturally, they will belong to the National Union of Banks, Insurance and Financial Institutions (NUBIFI). But we are together in the fight against casualisation. Outsourcing is okay if it is well- defined and executed. That is why we are partnering the Ministry of Labour on how to come up with a document that will guide the outsourced workers. So that if you are outsourcing staff, you will still enjoy some benefits of a full staff. We will fight to have a voice in our work.

    Is there a link between mass sack in the banking sector and the dwindling economy?

    The banking crisis will lead to a decline in investments and consumer spending and workers will be laid off in all sectors to reduce cost. There is no way the dwindling economy will not affect the employees. One thing is very clear in Africa, especially in Nigeria, once there is a problem in any corporate entity, the employers will resort to retrenchment. You have seen overtime that it has not been the antidote to most of these problems. In fact, if you reduce the workforce, the problem may persist because it is not the antidote. There were years you have been recording huge profits and you have never increased workers’salaries in same proportion. So, when there is a challenge, it is expected that you share it together. It is impatience that leads to job cuts.

    No union or labour leader will support sacking of workers because you are going to decimate the capacity of the union when you reduce its members. The strength of the union is in their membership. When you sack, you make the union irrelevant. Retrenching workers would worsen the economy and engender untold hardships among workers, especially those in the banking sector. Employers should not be in a hurry to cut jobs just because of a single policy. Before the policy, banks were showing fabulous balance sheets.

    How do you see the campaign for decent work to achieve the desired result?

    Workers are yet to have participatory rights in decisions that affect them – no freedom to express their concern and working condition remain bad. There is no social protection for family. No sustainable development can be achieved without secure, productive and decent work. The achievement of decent work is crucial if we are to convince people that globalisation can work to their benefit. The importance of providing social protection for workers in the informal economy by the government in terms of education, health and well-being of the population are exponential.

    What is your advice for the government, especially on the economy?

    The government should put in place policies that that will benefit the average Nigerians and significant foreign investment confidence. All effort should be immediately put in increasing cash flow to the economy. The government should continue in its plan on diversification because that is the best way from this economic challenge. Massive investment is needed in the agriculture and solid mineral. It is obvious that Nigeria still faces difficult challenges in the years ahead to provide adequate infrastructure, to create jobs, and to develop the skills of its young population, but it is also clear to us in the labour movement that the country is also confronted by tremendous opportunity to harness her young population in a manner than can provide unique dividends to its people.

    There is, therefore, an urgent need for our leaders to think big and bold to realise the potential of the country’s human and natural resources to sustain her economic growth.

    I believe, and given that democracy has come to stay in Nigeria, and with the political will and commitment of our leaders, they will take decisions and the right steps, to take the country to greater heights.

    I believe government’s contribution of stable and quality jobs would make a healthy economy and just and equal communities by the implementation of inclusive strategies for full and productive employment, including for those working in the so-called informal economy that need rights and justice to defend their interests. All people have the right to work, to good working conditions and to sufficient income for their basic economic, social and family needs, a right that should be enforced by providing adequate living wages.