The Nation Newspaper

Category: Small Business and Entreprenuership

  • My battle against abandoned vehicles – 28 year-old CEO

    My battle against abandoned vehicles – 28 year-old CEO

    At age 28, David Sowemimo, takes the driver’s seat as the Chief executive officer of Cosulto DITT Limited, a company that combats the menace of abandoned vehicles and associated environmental challenges in Nigeria. In this interview with Justice Ilevbare, Assistant Editor, Online, the Oyo state born and Bowen University graduate spoke on the rationale behind the establishment of the company, mode of operations and efforts to ensure a cleaner environment.

    What is the rationale behind setting up of Cosulto DIIT Limited?

    Most of the pictures portrayed of Africa by the western world are of sickness, hunger, war, corruption and general backwardness. We are classified as belonging to the dark ages in the area of the environment, particularly the absurdity of abandoned vehicles that adorn our roads and communities. The painful thing is that our own people corroborate these claims through the wheels of our widely-travelled Nollywood movies, music videos and magazines. Like goitre in the neck of a man, everywhere our media products appear, you must find one or two derelict vehicles on the background. This saddens me. When the government of Lagos State came up with the vision to upgrade Lagos State to a Mega City status by 2020 and added the political will to it with amazing results in transportation, education, infrastructure and the environment, I said to myself, “this is the time!” That was what gave birth to the company.

    How do you carry out your operations?

    This depends on the laws of the land. But generally, when an abandoned vehicle is found, it is removed to the auto cemetery or the collection centre immediately if it constitutes an immediate danger to the public or marked for removal for the owner to remove immediately.

    If in 24 hours the vehicle is still on the same spot untouched, it is then removed to the auto cemetery or any other designated location. If the owner comes to reclaim his/her vehicle, he pays a fine and the vehicle is marked with a chip which alerts us if the vehicle is picked as an abandoned vehicle again. In the case where the owners cannot be found, publication of such vehicle is made on the authority of the government and if after the time approved by law, the owner is still not forthcoming, the vehicle is advanced for recycling. But we do all we can to locate the owners of the vehicles for possible reclaim.

    What have been your challenges since you started business?

    I would say our success story is written in the ink of the challenges we have surmounted. My first proposal to a local government chairman to partner with us was torn into pieces and thrown back in my face. I cried and lost appetite for days, but I did not give up. When the government of Oshodi-Isolo under the leadership of the then Hon. Afeeze Ipesa Balogun gave us the nod to conduct our pilot scheme with his council, we needed N5million naira to rent a 2000sq/m warehouse for auto-cemetery and purchase the necessary equipment.

    The architecture of the business is such that it does not lay any financial burden on the government. The banks said they won’t borrow us money, and thank God they said so because within three weeks we had N10million naira to execute the project without borrowing a dime! The biggest challenge came when the government of Oshodi/Isolo local government council changed. Hon Ipesa-Balogun left and Hon. Bolaji Ariyo came in. Our pilot was at its concluding stage and if this new man cancelled our contract, all our efforts would have gone down the drain. Amazingly, like a God-sent, he absorbed us and gave us every support we needed to succeed. This, we never forget.

    What is the extent of government involvement or collaboration in your work?

    The nature of this business the world over is that it is largely done in partnership with the government. Every level of government, from the local to the federal, has its legislated dictates of how to process abandoned and derelict vehicles within their jurisdiction and that is what we follow. At the moment, we are quite popular with the third tier of government, but their legislative rights are too weak, so we get harassed a lot by the police. We hope to work with state and federal governments someday. Then, respite will come.

    Why Oshodi for a pilot and what are your plans to spread to other parts of the country?

    Knowing Oshodi for what it is, our rationale was that if our kind of business can work in Oshodi and Lagos, it can work anywhere in Africa. I remember our first lawyer saying to us then that we young men were proposing to walk where angels feared to tread. I am glad we have been able to devise a model that is replicable anywhere in the world from what we gathered from Oshodi. No longer would criminals unleash terror on innocent citizens using abandoned vehicles as work station. No longer would the public suffer malaria that is caused by the water retained on these vehicles. No longer would there be avoidable floods. No longer will these vehicles be used by ignorant citizens as alternative to landfill sites. We were amazed by the facts we got from our pilot. We saw old women dancing and singing, thanking us for removing such vehicles from their community because it was in them many of their girls were impregnated and hoodlums unleash terror.

    As a young CEO, you have older people working for you. How do you manage them?

    Yes, I have much older people working with me but they don’t have a problem doing so. I sold the vision to all of them and they loved it. When disciplinary actions were taken on one of them the other day and he angrily left, he came back the next day and sighting me from afar, he started laughing. He got back on his truck and continued working. In our company, nobody presses anybody down. The goal is one. So, technically, they work for the vision, not me. We all work for the vision.

    What is your background like?

    I hail from Awe, Oyo State, Nigeria. I grew up in Ibadan and studied at Bowen University, Iwo, Osun State. I love to read books and to help people. I love Africa, I believe in Africa. I often say if the

    Africa we inherited from our parents is the Africa we leave to our children, our generation has failed. I am equally convinced that Africa’s problems can best be solved by Africans and that God has given us everything we need to lead the world. I was 27 years old when I started the company and did not have N5, 000 in my bank account at the time but I believe if God gives you a vision, He will make the provision. Nothing is impossible.

    What is your inspiration?

    I owe a lot to God, my wife, partners and mentors. We withstood the storms of actualising this dream together.

  • CBN earmarks N132bn for women entrepreneurs

    CBN earmarks N132bn for women entrepreneurs

    The Central Bank of Nigeria has said that N132 billion out of the N220 billion Micro, Small and Medium Enterprises Development Fund had been earmarked for women.

    The CBN Branch Controller in Bauchi State, Malam Musa Muhammad, said this in Bauchi during a sensitisation workshop for state governments, financial institutions and the organised private sector on MSMED Fund.

    Muhammad explained that the amount, which represented 60 per cent of the total fund, was earmarked for women considering the peculiar challenges women were facing in accessing financial services

    “The Revised Micro finance Policy, Regulatory and Supervisory Framework in section 4.2(IV), provides that women access to financial services should increase by 15 per cent annually in order to eliminate gender disparity.

    “In order to achieve this, 60 per cent of the fund has been earmarked for providing financial services to women,” he said.

    The controller said that the MSMEDF, which was launched in August 2013, had broad objective of channeling long-term, low-interest funds to the MSME sector of the economy through participating financial institutions.

    He said that the specific objective was to reach over two million MSMEs over a 10-year period in which 60 per cent was targeted at women entrepreneurs.

    “The CBN believes that developing the MSMEs is the key to economic advancement and wealth creation.

    “To ensure sustainable economic development programmes, policies and guidelines must be designed such that all factors and peculiar needs and requirements of stakeholders are noted and addressed,” he said.

    He said that the sensitisation workshop had become necessary having recognised the importance of state governments as stakeholders in the administration of the fund due to their closeness to the grassroots.

    Muhammad further explained that the fund covers social development with 10 per cent and commercial development with 90 per cent.

    He said that all state governments including the FCT will access a maximum of N2 billion each for the maximum of three years per circle at 9 per cent interest rate.

    According to him, the targeted groups include farmers, artisans, self help groups, cottage industries, financial cooperatives and traders.

    In a remark, Gov. Isa Yuguda of Bauchi State commended the CBN for the laudable gesture, particularly with the allocation of 60 per cent of the fund to women entrepreneurs.

    He said that the state government had already funded and equipped 10 micro finance banks in the state through which the fund could be accessed.

    Yuguda advised that the conditions for accessing the fund should be made flexible such that the aim would be achieved.

    He was represented at the occasion by Alhaji Isa Wafu, the State Commissioner for Cooperatives and Poverty Alleviation Meat sellers get N50m interest-free loan in Oyo state.

    Governor Abiola Ajimobi of Oyo State has approved the sum of N50 million as interest-free loans to butchers in the state.

    He disclosed this while speaking at the inauguration of the state secretariat of the Butchers’ Union located at Moniya in Ibadan. The governor, who said the loan would boost business activities of the butchers, urged them to make good use of the money and ensure it was repaid on time for others to benefit.

    It would be recalled that a grant of N20 million had last week been given to traders at the Scout Camp Business Complex at Challenge, Ibadan by the governor as part of the empowerment programme of his administration for small and medium scale entrepreneurs.

    The state government had set aside the sum of N1 billion as interest-free grant to traders in the state.

    Ajimobi stressed his administration’s belief in small and medium entrepreneurs as the bedrock of any economy, adding that supporting the butchers would also contribute more to the economic growth of the state.

    He enjoined members of the union to maintain clean environment while carrying on their business activities, in line with the urban renewal programme of the state government.

    In his remarks, the Chairman of the state chapter of the union, Alhaji Adekunle Alagunfon, lauded Governor Ajimobi’s administration for providing a conducive environment for members of the union to operate.

    He described the provision of loan to members of the union as highly commendable, pledging that his members would ensure judicious use of the money.

    The National President of the union, Dr. John Isemede, in his address, presented by his Media Assistant, Mr. Festus Alekeh, commended the unprecedented achievements of Governor Ajimobi, stressing that he had recorded great successes in the area of infrastructural development.

    He pledged the unflinching support of members of the union towards the re-election bid of the governor for a second term in office.

    “Let me quickly place on record the laudable achievements of the governor. Your record and successes in areas of infrastructural development will forever remain indelible in the history of Oyo State.

    “The governor has touched on virtually every sector of the economy. I can feel the pulse of the people of Oyo State and the joy in their hearts. This is why the national leadership of the union has unanimously passed a vote of confidence on Governor. We wish to publicly endorse the governor for a second term in office.

    “I hereby call on all butchers and other like-minded people in the state to support Senator Ajimobi in realizing his second term bid,” he said.

     

  • NCAPMA besieged by applicants for cassava bread fund loan

    NCAPMA besieged by applicants for cassava bread fund loan

    The National Cassava Processors and Marketers Association (NCAPMA) at the weekend said that its secretariat had been besieged with applications for funds by members who wanted to benefit from the Cassava Bread Fund.

    NCAPMA Administrative Secretary Dr Wahab Asiru told the News Agency of Nigeria (NAN) in Lagos that compilation of the applications had begun ahead of submission to the Bank of Industry (BoI).

    NAN reports that the Cassava Bread Intervention Fund is a N9.9 billion Federal Government initiative to be disbursed by the BoI and Bank of Agriculture (BOA).

    The BoI is to disburse N4.3 billion of the fund to support Small and Medium Scale Enterprises (SMEs) who are involved in cassava processing.

    Similarly, the BOA will manage N2.4 billion of the fund in collaboration with 13 key private stakeholders.

    The government, represented by the Ministry of Agriculture and Rural Development, has signed a Memorandum of Understanding (MoU) with BoI to manage the N4.3 billion cassava bread fund.

    The Fund will support SMEs master bakers and large industrial cassava flour mills.

    “We have received a sizeable number of applications from our members and we are compiling them to submit to the BoI.

    “We just check through the applications to ensure that they comply with the BoI checklist.

    “The BoI is to be commended as the conditions to benefit from the Fund is not too stringent.

    “The first batch of 35 SMEs will hopefully scale through the BoI verification exercise,” Asiru said.

    In a meeting earlier, the Chairman of the NCAPMA Board of Trustees, Mr Adebayo Ajayi, urged the BoI to do the work assigned to it judiciously for the success of agriculture and the whole nation.

    “We cannot tolerate corruption and greed as they have caused the failure of past government initiatives. We are happy the money was given to BoI, which is a bank for you and I.

    “It is time for farmers and processors to enjoy the fruit of our labour now that President Goodluck Jonathan has initiated the Agricultural Transformation Agenda (ATA).

    “It is a right step in the right direction; the cassava sector will soon reduce poverty drastically in the country,” Ajayi said.

    He said that 50 per cent of the disbursed funds would be given as a grant to the processors and marketers.

    The remaining 50 per cent, he added, would be a loan to be repaid back to the bank by the beneficiaries.

    A BoI representative, Mr Oluwa Idris, said that if the NCAPMA members could fulfill the bank’s requirements, they would receive their disbursement two weeks after their application.

     

  • Start small with geese farming

    Start small with geese farming

    Ever thought you can make profit from geese farming? Prince Arinze Onebunne, Chief Executive Officer, Jovanna Farms, is smiling to the bank doing the business, DANIEL ESSIET reports.

    Prince Arinze One-bunne, Chief Executive Officer, Jovanna Farms, Lagos, has been producing mini-livestock for more than five years. He encourages farmers to add mini-livestock to their integrated production system to meet increasing demand for food and nutritious meats.

    One money spinner he has discovered is geese farming. This is because they are among the fastest-growing avian species commonly raised for meat.

    Geese raising, he noted, can be incorporated into existing farming system to utilise farm waste products efficiently, hence providing small-scale farmers with a source of extra income and the much needed animal protein source for the family.

    Describing geese farming as a trendy kind of “agribusiness”, Onebunne said intending farmers can start small with two males and three females while still holding down a full-time job elsewhere.

    He said the birds have a large market with many end-products and uses.

    Generally, the birds supply nutritious meat, huge eggs and rich fat for cooking, as well as feathers for bedding and clothing, which makes them particularly appropriate for providing farmers with a supplementary income. The meat is fatter than other poultry meats.

    He said geese seem to be more resistant to diseases than other avian species.

    Onebunne said he is making waves because of his will to innovate in the livestock industry by rearing different breeds. At Jovana Farms, breeding animals for therapy, such as geese, peacock, grasscutter and antelope is a wonderful way to explore this possibility, he added.

    Geese are, however, the most rapid growing, having the longest commercial life. They are good foragers, reaching a marketable weight with little supplementary feeding and can practically raise themselves.

    Onebunne said geese possess terrific eyesight, good memories, and raucous voices; attributes that make for excellent sentinels. “What most Nigerians don’t know is that geese are very cheap and easy to maintain and they provide animal protein as well as cash income. Your geese probably won’t make you affluent by laying about 60 eggs a year, but they can earn their keep through derived products that will surely bring in millions of naira.”

    He advised young entrepreneurs to start with purebreds, crossbreds or rare breeds, which he sells at his Jovana Farms.

    Onebunne said geese farming is a promising business for small farmers because they are very good layers.

    Geese, he explained, are independent, larger than other poultry species and thus less vulnerable to predators.

    When kept in small flocks and allowed to roam the farmyard or field, they are adept scavengers, requiring less attention than any other domestic bird. Geese adapt easily to captivity, and if small quantities of supplementary feed are provided in the evening they will even return home by themselves.

    They can be raised on very small acreage, either as an independent operation or as an integrated piece with other farming ventures, such as a market garden or grazing ruminants. The size of operation, efficiencies, and time put into marketing are the primary things that will distinguish a successful commercial poultry.

    For him, almost anyone can raise geese. In general, there is a very low overhead to get started (it can be done without buildings or large mechanical equipment.

    Most successful farmers started small and grew their businesses.

    Key issues are bedding, space, heat, access to water and feed and predator control. Feed may be purchased as ready-made ” starter” from the local farm store or mixed with a ration by local feed mill.

    A clean set-up is the key to keeping them healthy. Feed generally contains corn, soymeal, sometimes oats or wheat, another protein source such as fish or crab meal, calcium and minerals.

    Limiting factors for geese farming are that geese are not fully mature until they are two years.

    Onebunne has a hatchery. He conducts farmer trainings. He also breeds other rarely bred birds such as ostriches, quails, ducks and guinea fowls.

    His aim in rearing birds other than hens is to show their viability as alternative sources of meat and eggs.

    When trained, he said, geese can serve as guards , protecting warehouses with their exceptional eyesight and wide field of vision. Combined with their strident voices, they make excellent guards against approaching strangers or predators since outsiders cannot calm them into silence.

    According to him, chicken and turkey farmers keep geese to ward off poultry-eating predators.

     

  • Expert calls for innovation fund

    The Manager, Technology Innovation Centre (TIC), Mrs Julie Momah, has urged the Edo State Government to establish an innovation fund to assist young entrepreneurs.

    She made the call in an interview with the News Agency of Nigeria (NAN) in Benin, the state capital.

    Mrs Momah said such fund would go a long way in boosting innovation and commercialisationof research findings.

    An innovation fund, she said, would also enable upcoming entrepreneurs to be more focused and resourceful.

    She noted that “lack of finance is a major challenge that confronts young entrepreneurs and innovative ventures.

    “But if the state government establishes a fund, it will encourage innovators in the state.

    “Young people will then be able to develop their brains and put their ideas into positive use, which will ultimately divert their attention from crimes.

    “I know that in the next five years, our level of technological advancement in the state will be high if government can give attention to the right people and create favourable environment for the people to operate.”

     

  • How foreign institutions support SMEs in Nigeria

    How foreign institutions support SMEs in Nigeria

    Apparently miffed by the poor performance of small and medium scale enterprises (SMEs) in the country, the World Bank, African Development Bank (AFDB), International Finance Corporation (IFC) have restated their commitment toward the growth of the sector. They spoke during a general meeting organised by the Nigerian Association of Small and Medium Scale Enterprises in Lagos recently.

    Also at the meeting include the Nigerian Stock Exchange, First Bank Nigeria Plc, Heritage Bank, Bank of Agriculture, and other stakeholders in the financial sector.

    The financial institutions in different presentations identified inadequate access to finance as the major challenge facing SMEs in the country.

    Representative of the World Bank, Mr. Michael Wong, explained that the government should provide a platform that would aid easy access to funds for the growth of SMEs in the country.

    He said, “Enterprise survey shows that labour is cheap but value added is low due to lots of constraints. Nigeria SMEs, access to finance is low compared to other African countries like Kenya. Most working capital is financed through internal funds.”

    He noted that the World Bank had concluded plans to launch another scheme to support SMEs in Nigeria.

    CBN representative, Jeremiah Abah, said SMEs contributed largely to the development of an economy.

    The African Development Bank (AfDB) signed an agreement to provide two sovereign-guaranteed multi-tranche lines of credit (LoCs) of respectively US $500 million to Bank of Industry (BOI) and of US $200 million to Nigerian Export-Import Bank (NEXIM) in order to support the modernization and expansion of export-oriented small and medium enterprises (SMEs).

    The LoCs will allow local SMEs to be more competitive, scale up their operations and ultimately create more jobs in Nigeria. The LoCs will include a technical assistance package to strengthen institutional capacity of BOI and NEXIM as well as their SME clients.

    Through this integrated financing package, the AfDB is supporting Nigeria’s efforts towards a more diversified economy away from oil and gas. The LoCs will supply multi-sector financing to address the challenge that SMEs face in accessing finance in the country. Therefore, export-oriented SMEs will be able to become more competitive, ensure sustainable growth of their operations and generate employment in the Nigerian productive sectors.

    Ousmane Dore, AfDB’s Resident Representative in Nigeria, said: “This AfDB combined programme will contribute to mobilize significant financial resources for Nigerian export-oriented SMEs, ultimately contributing to economic development, employment opportunities, foreign exchange and regional trade integration.”

    While lauding the contribution of the AfDB, Robert Orya, NEXIM Managing Director, said: “Thanks to AfDB’s support through this program, NEXIM seeks important economic development achievements, including approximately 55,000 new jobs for its SME clients, US $1.6 billion in foreign exchange and an overall contribution of almost seven per cent to non-oil exports, including a 10 per cent share in Economic Community Of West African States (ECOWAS) exports. This facility will provide a great opportunity for NEXIM to make available concessional long-term funding in pursuance of its strategic objectives of enhancing value-added exports and bolstering the capacity of SMEs for job creation and foreign exchange earnings.”

    On her part, Ms. Evelyn Oputu, BOI Managing Director, noted that: “The AfDB’s operation, contributing to capital market development and government revenue, is likely to generate significant additional lending to our export-oriented SMEs client at a time when it is sometimes difficult for commercial banks to finance this important sector of according to (IFC).”

    According to reports, recent data provided by the National MSMEs collaborative survey 2010, put the number of MSMEs in Nigeria at 17,284,671 with total employment of 32,414,884.

    Mr. Reginald Nworka, an SME Development Specialist with IFC, in an interview said the partnership is a great opportunity for people to improve their lives and escape poverty.

    He noted that what the initiative intends to achieve was to extract people from poverty circle and launch them to a realm of prosperity through empowerment.

  • Nine Nigerians receive small grant award

    Nine Nigerians receive small grant award

    Nine Nigerians have been awarded a total grant of 45,000 dollars to undertake various entrepreneurial projects under the U.S Alumni Small Grant Award.

    Mr Bill Strassberger, Cultural Affairs Officer, U.S Embassy in Abuja, presented the award to the recipients on behalf of the U.S Government.

    Strassberger said the projects would focus mainly on job creation and entrepreneurial opportunities for youths in northern Nigeria.

    He said that a total of 95,000 dollars had so far been disbursed to 19 Nigerian beneficiaries since the grant’s inception in 2012.

    According to him, the small grants of 5,000 each will be used to support alumni community projects intended to empower at-risk youths in the northern part of the country.

    He explained that youths would be trained in such skills as tailoring, bead making, fish farming, among others.

    “They will also be provided with start-up funds after the training to enable them earn a living,’’ he said.

    A recipient and Kaduna-based journalist, Elizabeth Anche, said that her project tagged ‘Dress for Life’, would target less-privileged young girls in four communities in southern Kaduna.

    Anche said 30 young girls would receive training in hair-dressing, manicure and pedicure under the scheme after which a small start-up grant would be provided them.

    Anche is a 2008 International Visitors and Leadership Programme alumna.

    Another recipient, Kingsley Banguell, said he would work with 25 youths in Lugbe community in Abuja to develop multi-media skills and tailoring under a project tagged, ‘Skills House Lugbe.’

    “They would learn photography, web-design, video production and tailoring; basically they do not need an office space to start-up a business.’’

  • Farmers task FG on N4.3 billion cassava bread fund

    Farmers task FG on N4.3 billion cassava bread fund

    Nigeria is said to produce more cassava than any other country in the world. It is the third most important source of calories in the tropics, after rice and maize. Millions of people depend on cassava in Nigeria and Africa in general.

    Cassava is grown by poor farmers, many of them women, often on marginal land. For those people and their families, cassava is vital for both food security and income generation.

    Following in the footsteps of past admin8istrations, especially that of President Olusegun Obasanjo, seeing that cassava not only meet the food security needs of the estimated farmers who grow it, but to provide a key to rural industrial development and higher incomes for producers, processors and traders, this administration came up with cassava transformation program.

    The cassava transformation project seeks to create a new generation of cassava farmers, oriented towards commercial production and farming as a business, and to link them up to reliable demand, either from processors or a guaranteed minimum price scheme of the government.

    The overreaching strategy of the cassava transformation is to turn the cassava sector in Nigeria into a major player in local and international starch, sweeteners, ethanol, HQCF, and dried chips industries by adopting improved production and processing technologies, and organizing producers and processors into efficient value-added chains.

    The cassava processing technology started in the late 50s from the Federal Institute of Industrial Research, Oshodi (FIIRO) with various products and equipment. It is clear that the mandate to process cassava and other crops was solely given to the institute, which they carried out judiciously without dabbling to crop production and other agencies mandates.

    The Federal Government as a way of stimulating increased domestic production and processing of cassava announced plans to cut wheat imports by introducing a new policy compelling cassava flour inclusion in wheat flour.

    Part of the government plan was to impose a levy of 15 % on wheat grain imports, which will increase the effective duty from 5 to 20 %. The gain from the levy was used to establish the Cassava Bread Development Fund.

    This led the Federal Government, represented by the Ministry of Agriculture and Rural Development, to sign a Memorandum of Understanding (MoU) with the Bank of Industry (BoI) for the bank to manage the N4.3 billion cassava bread fund that would support small and medium enterprises (SMEs), master bakers and large industrial cassava flour mills.

  • Nigeria’s booming daily contribution trade

    Nigeria’s booming daily contribution trade

    For most operators of micro, small and medium scale enterprises (MSMEs), especially those involved in the petty trades, the conventional banks out there don’t seem to offer much of an attraction for them. Therefore, one way they keep their businesses afloat is by patronising the micro savings daily contribution collectors who work within the neighbourhoods and environs.

    The micro savings daily contribution which dates back to centuries ago, and hitherto commonplace in rural hinterlands and villages, is today a phenomenon in major cities across the country, including Lagos, Aba, Kano, Abuja, Port Harcourt, Ibadan, Benin, Abeokuta, Ilorin, Yola, Warri, Zaria, to mention just a few.

    To say that a huge industry has been built around daily contribution is an understatement of sorts because the fad has really caught on as nearly everybody involved in MSMEs consider it a veritable source of savings that is not just convenient but also in their own terms and at little or no cost.

    Operators of the micro daily savings contribution who are known in local parlance as Alajo in Yoruba, Esusu collector in Igbo and so on, unlike in the past have since stepped up their games.

    So popular is the daily micro savings scheme that names like Alajo Somolu, ruled the roost in Lagos back in the days.

    These days, most of them have offices, business names, among other appurtenances.

    Speaking with a cross-section of some of the operators in Lagos metropolis and its environs, they confided in The Nation that the business can be very lucrative if well-managed.

    Firing the first salvo, Madam Adunni Williams, 50, who is the Chief Executive of Imole Ayo Daily Contribution, and who set up shop in 1998, said business has been on an upward swing.

    Going down memory lane, she recalled that she got her tutelage from a former boss, from whom she learned the intricacies of the job.

    “I learnt this business from my former boss, by name is Mr. Paul Ben, of Paul Ben Daily Contribution. He is so honest, trustworthy and a devout Christian. He does not take money as idol at all,” she began.

    Pressed further, she said of her former boss “He was so honest that whenever any of his customers passed away, he would make sure he located the family of the deceased and provide all the money he/she had been saving. He also gaves loans to customers, but this eventually led to the collapse of his business because many of his beneficiaries failed to pay back such loans. So these are the things I have learnt from and I have promised not to make such mistakes.”

    Although she only has a first school leaving certificate, she admits that the job does not require too much sophistication and so her limited education is not a hindrance at all.

    Mrs. Williams, who has been in business in the past 16 years, says what is required as start-up capital is about N200,000, mainly to rent a space for those who don’t already have one, printing of business cards, registration book, among other miscellaneous.

    On the return on investment, she said, “The rate of interest is very good and it depends on the more customers you have the more the rate of income for you.”

    Although the business requires a few hands to manage for those who have a wide clientele, the micro savings collector says she has not really given it much of a thought.

    “I don’t have any employee because in this business you have to be very careful and watchful so that you won’t be a debtor at the end of it. So that is the reason why I don’t have any employees for now.”

    Waxing philosophical, she said, “Money is always tempting and you know that this business deals with handling a lot of money.”

    The business is not without its own peculiar challenges. “The challenges in this business are so many. First, some customers intentionally save fake money. So you have to know the way and manner to detect it.”

    Expatiating, she said: “Some don’t count their money properly, which will some time lead to argument, whenever you do not notice it, so I have to count well and voice out the amount.

    “Loan giving is also one of the barriers in this business, because some will not be able to refund it back and the loss will be yours.

    “It is also a work that has to be handled by a hardworking person, some of my colleagues who also run this type of business have shutdown, because they are not hardworking. This business is not meant for a lazy person at all.”

    One way she tackles some of these challenges is by staying on the alert and looking well before she leaps.

    “In terms of fake money, I do check the naira notes one by one, if at all you give me millions I will check it one by one. In terms of loan I don’t just give out loan just like that, I do give half of the amount you ask for and the person I want to give loan must have been my customer for about six month. All this is just to avoid the risk and loss of not getting the money back.”

    On plans to expand her business, she said: “I have plans to expand this business into a microfinance business, and if the government can help, it will make things easier and smooth for me. I don’t give loan and take interest because it is contrary to the will of God.”

    Like his counterpart, Mr. Yinka Idowu, 57, runs God Firsts Daily Contribution, which he set up over 35 years ago, has two employees, whom he described in affectionate terms and superlative adjectives, “my two employees have served as great help to me.”

    He came into the business by chance.

    “I was a staff of Yaba College of Technology, in the Works and Services Department. I really didn’t set out to go into this business. I was drawn into the business when I realised that I don’t spend money kept under my custody right from my secondary school days because this business is not for people who spend lavishly. I didn’t learn it from anywhere, just like some people do. I only discovered that I am fit for it.”

    Mr. Idowu, who began the business with a little seed capital, disclosed that the business is one that is based on trust, stressing that it is the only ingredient that would stand you in good stead with your old and new clients.

    “My customers trust me because when the month ends, I pay them their money at the right time. If you don’t disappoint them, their trust will be in you. People who want to go into this business should be honest and make people trust them.”

    The business, according to him, requires no registration of any kind. “The business is not registered anywhere. I am the owner of the business, and I just started doing it without registration. I don’t think registration is compulsory in this kind of business.”

    On the profitability, he said: “It is very gainful, if it is not gainful, I won’t be doing it at my age. The income and profit come monthly, but I won’t disclose the amount,” he said, amidst laughter.

    On the challenges, he said: “There are many challenges that are associated with this business and I can’t mention all of them. Some customers would argue with you, that they have given you money, while they have not. Some would argue that they paid certain amount of money, which they did not pay. While some will not be able to pay back the loan they took.”

    He, however, attributes divine intervention to overcoming these challenges.

    “I have been solving those challenges because with God all things are possible. If you think you can overcome these challenges by your power, you will just fail. Or if you think you can meet somebody to cover you up, you are just deceiving yourself.”

    To avoid arguing over money, he says, “I jot the amount of money that all my customers give to me inside this book, which I usually call Confirmation Book. So I just bring it out whenever there is any form of argument between me and my customers.”

    Though still a start-up, his dream is to transform the business into a big one someday.

    “My plan is to turn this business to a micro finance business which by God’s grace will be possible for me.”

    Expectedly, Ogundiran Oluwatoyosi, who owns Bestway, a GSM phone repair centre, and who is a regular patron of the micro daily savings by scheme, spoke glowing of the business.

    “Yes, I do daily savings contribution and it is good because the amount of money I contribute daily is affordable for me and I do not think a conventional bank will take such token amount of money from me. If I wanted to save in a bank, I must have up to a thousand naira only, but this daily contribution I just have to save the token amount of money I can afford.

    “Even this area, there is no bank around here; I have to board a bus before I can get to a bank. So all this I have considered before dealing with them. And also my money is being paid to me when needed, is just that if I want to collect my money today, I have to inform the man before today. It is also less stressful because it is the operator himself that will come to my shop, I don’t have to start moving about before I save my money, and the guy has been honest with me.”

    Unlike Oluwatoyosi, Azeez Salami has an unpleasant experience. Salami who is shoe cobbler, recalled that his experience has not been too palatable.

    “I have engaged in it before, but now I do not because I was disappointed by the person I contributed with then. I was supposed to collect the sum of N150, 000 from him, for my wedding ceremony and to buy some materials which I needed to get for my business, but he never stopped giving me excuses until I was unable to get the money. I had to go somewhere else to lend money for the ceremony. So that is the reason why I cannot deal with them again. I prefer to save my money in the bank where I will be paid when needed.”

    Talk of different strokes for different folks.