Category: Sunday Interview

A thoroughbred insurance professional, philanthrophist and inspiration to many, Dr. Akin Aremu Ogunbiyi, Group Chairman, Mutual Benefits Assurance and founder, Akin Ogunbiyi Foundation, speaks with Gboyega Alaka on his stint in politics, insurance and  penchant to support growth and education.

 

T’S a testy time for the nation and the older generation, as the youth seems to have another idea of how the nation should have been or should be run. What is your take on this?

The current development really calls for serious reflection on the part of our leaders. They have led us since 1960 or 1956, even before independence; and we really can’t see any visible sign of development. So when the youths, realising the hopelessness of their generation and the fact that the current generation is being wasted; even the future of the generation yet unborn is not certain, I think they have every right to voice out. But I pray that our federal government and government at various levels listen to their clarion call. It’s not about their positions; it’s about the future of Nigeria. We’re at a crossroad; where the leaders really need to listen to what the youth are saying. If they are honest with themselves, they will know that they have failed the nation. And it’s not too much for us to call their attention to what is happening. But for anybody to feign ignorance or to pretend d everything is fine and it’s going to be business as usual, then I don’t think that is the right step to take.

You are 58; the Nigerian of your youth was the days when a naira exchanged for a dollar or thereabout; some of the world powers even predicted that Nigeria was on its way to becoming one of the future tigers; and then everything fizzled out. What do you think went wrong?

When there is no leadership, everything goes wrong. When you look at the five Asian Tigers: Singapore, South Korea, Malaysia, Taiwan; there is consciousness on the part of their leaders to want to develop. That is leadership. I think we haven’t gotten it right. Every other thing we are endowed with, but not good leadership. And that is the unfortunate thing.

And it is said that good leadership enhances management of resources.

Exactly. Even if you have the whole world, if you don’t have good leadership to enhance direction, it is nothing. Take for example the time that you referred to, when it was 50k to a dollar and thereabout; Nigeria was having five-year development plans; and they would plan and execute; they would review  in two, three years before coming out with another five-year development of plan. But can you imagine the federal government coming up with a 30-year plan! Today, we have varying degrees of exchange rate. If you are well-connected, you can still get the dollar at 100 naira from the Central Bank; it’s that ridiculous. Imagine a state selling gold to the Central Bank; gold that was taken illegally. So it is just the unseriousness of leadership. We have not been lucky enough to get good leadership.

Still speaking of good leadership, some well-intentioned people have got into government; but somehow, it’s either they miss their way or they are subsumed. Why is this happening?

The current crop of people in power doesn’t care about your knowledge, education, pedigree or anything; because they think the resources are their personal resources. I tell you, the more qualified you are to occupy political positions in this country, the more detestable you are to the forces who think they control power. But for crying out loud; if providence has put you there as president, governor, minister; why don’t you look for qualified people who actually can help you out. Nigerians are all over the globe, doing fantastically well in their respective areas of specialisation. The sad part, however, is that when they bring them in and they in turn realise that you’re not serious, they join you. There are just few people who are able to stand out; like Ngozi Iweala, like the former Minister of Education, Oby Ezekwesili; like the President of African Development Bank (AfDB), Akinwunmi Adeshina. Did you know that a Nigerian, Adebayo Ogunlesi owns Heathrow Airport in the UK?

With a first degree in Agric Economics, an MBA in Nevarra, Barcelona, Spain and a long list of other educational accomplishments, you come across as a well-read professional; what’s driving you?

Yes; I’m also an ECII, Chattered Insurance Institute of London, I am a fellow of the Chattered Institute of Nigeria (FCIIN), Fellow of the Nigerian Institute of Directors, Fellow, West African Insurance Institute, Banjul, Gambia…. I attended the best three schools in the world: Harvard University, Oxford University and Yale. You can say that I’m a man after knowledge, but that is because knowledge is power. The only thing that can emancipate a man is knowledge. Of course I’m into management, so I have to constantly update my knowledge. I did a one-year programme: Yale Global Executive Leadership programme in 2016, when I was thinking going into politics.

Yeah, you were going to contest for governorship under the PDP; and then you narrowly lost to your opponent, Senator Adeleke, by seven votes. That’s quite unprecedented. How does one lose by seven votes?

That’s the big question. But the truth is that they changed it; I actually won by over 200 votes. But in the knowledge of the PDP leadership, they said I’m too read; I’m too independent-minded and that I would be uncontrollable. So the following morning, they called me to Abuja and they took the thing from me. They told me, ‘Sorry, we’re not giving it to you.’ I said why? He said they didn’t know I would go that far. And I said, ‘Do you know that this guy didn’t have a certificate?’ They said they were aware and that that’s what they prefer. So I didn’t bother challenging. Who do you want to fight?

Any chance that you’re still looking to go into politics?

Yes I have hope, but not with this present leadership. I’m not the desperate type. I’m keen on serving my people and giving quality leadership, but not desperate in any way.

You gained your major professional experience in insurance; and then you went on to found an insurance firm: Mutual Benefits Assurance. A lot of people still feel insurance is a tough terrain to weather. What gave you that courage?

I’m actually an adventurist right from my university days. It was when I was in Part Three that the term Agric Insurance came into existence and I decided to research into it and take it up. In my Part Four, I did a lot of reading; I sought for books and that gave me the confidence that I could do it.  My department then said there weren’t enough books and were not going to allow me to do it, but I insisted and pushed so hard till they yielded. I did my thesis in Agric Insurance Development in Nigeria. I actually published about four articles on Agric Insurance during my undergraduate days. So that was the starting point. From there, I was meant to be a lecturer; I wanted to do my master’s in M.Phil; the agreement was that if they allowed me do the programme, I would have to do it to PhD level. I agreed. It was during that time that I stumbled on the pay slip of one of my lecturers: Professor Alimi, who finished his masters when I was in Part 1. He earned N600! I was like what! Is this what I’m coming to do? No way, I said to myself. So when I saw the advert of Nigeria Agric Insurance Company, I applied. They were looking for planning officers. I came first and they appointed me to NICON Insurance instead of Agric Insurance, which was the starting point. Within two years, I wrote their professional examinations and qualified in 1991 and like they say, the rest is history. Yes insurance is a tough call; but I thank God that we did it and God crowned our effort.

You never worked as marketer?

No, no, no; I was actually in Research and Planning department of NICON, where we did researches, publications et al. I was never a marketer. There are so many aspects of insurance; we have underwriting; we have claims management, risk management, survey…. From there, I got exposed to training executives from African countries, who come into Africa to do internship courses. I was in charge of their training and that gave me exposure. At that tender age as a management trainee, I realised this thing was doable. So, with the right push, and God on my side, I went to start my own. I left NICON as management trainee to become Acting Managing Director of a finance and insurance consultancy firm. I spent one year with them and I went to be on my own.

You left as a management trainee to become a managing director? Who employs a management trainee as managing director of a company?

When they saw my quality. Of course it was a lot of courage. Let me tell you a story: while I was at NICON; under two years, I finished my ACI (Associate Chattered Insurance Institute of London). But while I was waiting for my result, I went to register for ICAN, and my friends were like, ‘You this young man, you are too ambitious. What do you want to do with ICAN? But I said none disturbs each other, pointing out that I needed to utilise the long time in between the insurance exam and release of result. That was how I went into accountancy. I studied very hard and passed. But while I was studying for ICAN; my ACI final result came out and I became chattered insurer. And I told my friends that if I hadn’t registered for ICAN, I would have wasted the seven months in between April when I took the insurance exam and the following year. Around November that year, I saw an advert where they were looking for a good first degree, chattered insurer and a good knowledge of accounting. I said ‘this thing is meant for me.’ I had second class upper, I was chattered that July and had good working knowledge of accounting; I was doing my EC foundation exam. So I went for the interview. As the Lord would have it, I came first in the interview again. Same in the second, third, fourth interviews; and then the owner of the company said, ‘Sorry young man, I can’t give you managing director’, I said why, he said because you don’t have experience. And I retorted that but you wrote four years experience in your advert. I said you either give me the job or you forget it. He said, ‘You need experience, can I employ the man who came second to be your managing partner, while you act as managing director?’ And that was Mr Sangosanya, a wonderful chattered accountant. He was Fellow of the Chattered Accountants of Nigeria. When I saw his resume, I accepted. And I thank God I accepted. I spent one year there and pulled out.

You pulled out in one year? Would that be because you had issues with the system?

Well, let me say I had issues. I felt I wasn’t getting fair treatment from the owner of the business. I pulled out at the prompting of my wife, after I got home one day and my was like, ‘Are you sure you can work with this person? Do you think you can make any headway in this firm?’ She said, ‘I see that you work so hard; sometimes you don’t come home in three, four days, and then you are been treated like this?’ I was being paid N4,000. That was when I made up my mind; and when it was August, I told him I was going. So I left to go and start my own.

Would that be Mutual Benefit Insurance?

No, I didn’t start Mutual Benefit immediately. First I went to start an insurance brokerage firm, VTL Insurance Brokers. I owned 49 per cent of it, and I had a partner who owned 51 per cent, Akin Opeodu. He was running VT easing then; so we pulled together and founded VTL Insurance Brokers. From day one, I told him I was going to run the company for four years, fifth year; I would move on to start an insurance company.

What tips would you offer youngsters hoping to go into insurance, considering the popular opinion that it’s a walkabout job?

Let me respond to your question with a story. Some years back, we were recruiting about 200 marketers. While at the training, one of them, a woman stood up and narrated her mother’s response when she told her she had eventually got an insurance job after a five-year wait, which was that: (Se kii se awon to ma n rin kiri bi igbona yen; o o ti rise o) ‘Is it not those people who are always trekking about like heat wave? You have not got a job yet?’. And I said to her, I’m sorry that is how your mother feels about insurance, but can you go and tell her my story. There are lots of prospects for young people coming into insurance, which they can take up. In fact, I always encourage young people I come across looking for jobs to go and do insurance. Quite a number of them, in their hundreds have come into insurance through my experience. But it’s not a big man job; any aspect of insurance that you take up, you just have to work hard to excel.

Also, it’s a poor economy where people barely have enough to spare for insurance.

That may be true; anywhere in the world, nobody wants to part with money. But in the developed economies, insurance is compulsory. They will tell you, this is the law. If you don’t do it, you get fined. But here in Nigeria, it is optional. Even common third-party that protects people, we don’t want to do. It’s a tough call, but we’re managing.

Tell us about the Akin Ogunbiyi Foundation.

Akin Ogunbiyi Foundation is all about education. It’s about bringing out the value of education, empowering people and supporting people. In the last couple of years, we have done very well. In fact we have about 40 students that we’re sponsoring in Obafemi Awolowo University; I have about 50/60 students with the Institute of Insurance services in Banjul; and here in Lagos, I sponsor quite a number of them. I even sponsor people abroad. We sponsored a first class student up to PhD level and today we’re proud of him. He’s a senior lecturer at the University of Leeds.

When was the foundation founded?

It’s been in existence for ten years although we’re just giving it limelight now. In fact, we did, our first Educational Summit last year.

Where does the fund come from?

For now, it is purely from my pocket, with support from my wife.

What inspired you into founding it?

It’s all about passion and giving back. We thought of what we can do. Even if you gift somebody a brand new car, it is not as enduring as education. But if I empower one single soul with education, I’m sure he’ll be in a position to empower other people tomorrow. Like I said, we have over 50 in OAU, who are on our scholarship; we have in Adeleke Secondary School in Ede; we have pupils that we take from primary to secondary school; and then we have people who are doing professional exams that we support. Quite a number of other people walk up to me and I offer them help. There’s a lady, I can’t remember her name, who wanted to be an entrepreneur and walked up to me.

Tell us about childhood.

You can call me a village boy if you like. I was born and grew up in Ile-Ogbo; I went to African Primary School, Ile-Ogbo, secondary school, Modern School, Kuta Ile-Ogbo; from there I went to Luther Kings’ College, also in Ile-Ogbo. We were blessed to have some people, indigenes of Ile-Ogbo, who founded the secondary school. That gave us the opportunity of attending a secondary school. Otherwise I would have ended up at some teachers’ College. Then I went to college of Art and Science, Ife. To underline how local I was, I once applied for nursing and I went to UCH (University College Hospital), Ibadan, for the interview. When it got to my turn, the panel of ladies, said to me, ‘Young man, can we have your credentials?’ and I said ‘what?’ The reality was that I didn’t know the meaning of credentials, so I said to them, ‘Can you be kind enough to tell me what credentials mean?’ But they were impatient and told me, ‘Do you think we’re here to play? My friend get out.’ But I said, yes, I will go out but please, can you tell me what credentials are. And then a young man came and said, ‘Young man, I like your courage. Credentials are certificates.’ And I said ‘Ah! I brought them out and started begging them. I told them I went to a village school and that I never heard the word credentials before.’ Eventually, the lady budged, took a look and said: ‘Young man, we don’t need people like you here’. That was the first day I heard of College of Art and Science, Ife. I jetted straight to Ife from UCH to go and collect the form.

Was there anything that prepared you for leadership?

Yes, my father. He may not have been educated, but he was a very successful man. He was a trader and actually the Baba ‘sale (patron/chairman) of all the trading association in our village. So I guess I must have taken something from his industry.

The road into Nigeria’s courier industry is very forgiving, taking all who know how to make a quick buck or two on the go. Bona fide operators and government however bear the brunt, writes Gbenga Ogundare

In Nigeria, miracles come in handy packages for those seeking faith healing. Distance used to be a barrier before the 2004 reform in the telecom industry. Things have changed now. Healing, among other miracles, can be parceled and shipped over the long haul.

Foluke Adedayo had such shipment—four bottles of special water—to dispatch up north to a couple in Taraba—from the Ojoo area of Ibadan where she lived. The 30-year-old graduate had no reason embarking on that journey while at the same time the holy grail had to be delivered. Again, she had no idea courier service providers like GIG and DHL could reach as far as Bali. With its snail mail, the Nigeria Postal Service (NIPOST), for her, was also a no.

But Adedayo learnt that stand-alone interstate transporters take passengers and merchandises like hers to Jalingo and beyond, from a park close to her neighborhood. “That seemed easier and more like it,” she said.

Economically, it also made more sense. The bus fare to the north-central state from Ibadan was N15,000. But her parcel of water, dumped somewhere under a seat or beside a pedal, could travel that far—for just N5000.

Fair enough. She took the risk of the bottles of special water being stolen, broken, resold, mis-delivered, or lost in transit.

Because the consignment got to its destination in one piece, Adedayo, in a sense, got a bargain. So did the driver, a gate-crasher gaming the logistics industry in Nigeria.

The government, and the registered industry players, however, got the short end of the stick.

No-holds-barred market entry

Hundreds, if not thousands, of transactions like Adedayo’s happen daily across the nation, within and on the fringes of the courier industry. Its size can actually support all of these and more. According to Prof. Simon Emeje, the head of Courier Registration Department (CRD), under the regulating NIPOST, the industry is more than N1trillion big.

And it’s not just big; it’s wild, and poorly regulated. For that reason, entrance is almost free at the bottom of the ladder, and the opportunity for these low-hanging-fruit hustlers to make a kill abounds.

To make it easier for them, ethics and standards of handling, shipping, tracking, tracing, and delivery are not enforced. NIPOST’s policy, for instance, is about to enforce cheques, certificates, and other valuable documents get registered with the agency before a logistics company ships any one of them. That applies only to companies registered with the Corporate Affairs Commission (CAC) though. But for the moonlighting road transporters, all that is a waste of time.

Nevertheless, the reporter took the risk when he, too, shipped both his academic and NYSC certificates from the Egbeda area of Lagos to Saki, taking the NURTW route, in the first week of October.

Here were his odds: The academic certificate of a four-year degree programme could be lost; it could be torn; it could be delivered later than planned. But he took the plunge, still.

Even the interstate driver who shipped the parcel didn’t bother to observe due diligence. Not that the clueless fellow would have suspected any looming doom though, since he didn’t have the training and tool to detect if he was being used as an accessory after the fact of an illicit capital flow– like transporting stacks of notes for a criminal gang inadvertently. Or unknowingly helping to bus parcels of improvised explosives or some lethal substance across state borders for some terrorists.

What mattered most was that the reporter paid the driver N2,500. And his parcel, an envelope, was delivered to a recipient already waiting for that purpose.

Among the crowd of entrepreneurs and big businesses rocking the industry are bike-hailing companies hammered down by the Covid-19 pandemic; there are also logistics arms of big transport companies; there are e-commerce companies with their own or contracted delivery teams; and there are bus drivers, cabbies, and riders (members of NURTW and its counterpart the Road Transport Employer Association of Nigeria, RTEAN), all of them freelancers with whom the reporter, Adedayo, and other Nigerians are risking their valuable merchandises.

The registered courier service companies have some kind of regulation under NIPOST, as the ministry of communication and digital economy approves—except the NURTW and RTEAN players are not bound by it.

All the players also pay some forms of levies, taxes, license registration and renewal fees every year—except commercial bus drivers venturing into courier services. Obviously, there is no level playing field.

Pains with no gains

The state of nature and reckless service delivery this incursion created prompted NIPOST to attempt another reform in July 2020.  And Communication Minister, Isa Pantami initially nodded his approval.  Based on the reform, an SME seeking licensing is expected to pay N250,000. That’s about the least of the registration fees.

For the blue-chip companies in the industry, particularly the international operators, the license fee has been jacked up from N10million to N20 million. The renewal fee is now N8 million. For the national license, operators will now pay N10 million, up from the N2 million. Its renewal license now costs N4 million. For regional operations, the license goes for N5 million, with a renewal fee standing at N2 million. Those operating within a state or a municipality will pay N2 million and N1 million respectively. Their renewal fees also stand at N1 million and N400,000 respectively. Two percent of their profits will also be remitted as tax annually.

For a post-pandemic economy, the stakes seemed too high in this fresh regulation by NIPOST. So was the public outcry that greeted it. The government had to back off, with a bit of denial.

“Our attention has been drawn to an increase of licence fee, which was not part of the regulation I earlier APPROVED for you. Your Chair and PMG were YESTERDAY contacted to put the implementation on hold and send a report to our ministry by Monday,” Pantami tweeted.

The industry players seem unprepared for that repositioning. But the order suspending the regulation is only provisional. Nothing much might change when it is time for the roll-out of the policies.

So the bonafide industry players are gearing up to cough up millions of naira to start and sustain their courier operations while the interstate commercial bus drivers cutting corners will be spared of carrying this burden. Nothing can be more encouraging of chaos.

“All of us drivers are doing it,” said Yusuf, a 5-feet tall bus drivers plying the Saki-Abeokuta route to Iyana-Ipaja, Lagos. His brief and fast-paced explanation of their logistics side hustle revealed how hassle-free it is. He didn’t mention any tax or charges or monitoring or weighing or handling of any kind. “You just bring whatever you want to send. We can only bill you when we see the parcel,’ he explained to the reporter.

On safety of the merchandise, Yusuf said there is no harm whatsoever. Tracking: “We will give you the driver’s phone number, his bus number plate, and the phone number of the recipient,” he explained.

Sloppy playing ground

The steady foray of these unionised transporters into courier services might just indicate they enjoy something other than the gratification of meeting a crying need in society. According to Telecommunication Week, bus drivers and other quacks operating courier services bilk the industry of as much as N25 billion annually. To Okeh Uba, president, Association of Nigerian Courier Operators (ANCO), the naira cost of the intrusion is not that important. “The most important thing they are taking away is our integrity,” he lamented.

Reckoning with the fact that the NURTW, the RTEAN, and their members enjoy perpetual tax holiday and toll-free operations, one can easily detect the unfair advantage the government indirectly offers the union members. The law is on their side as well, confirmed the Federal Inland Revenue Service. Nigeria’s tax law excludes from paying taxes those unions which are members of the National Labour Congress and the Trade Union Congress.

Konye Ishie, founder of Blaq Diamond Logistics, said this is not just unfair; it is also outrageous.

“I think it’s wrong. They (NURTW unionists in courier services) should be taxed as logistics businesses.”

Even in the lead-up to the reform, taxes are almost suffocating the businesses, especially the SMEs.

Her company, based in Lekki, Lagos, pays monies ranging from local and state government levies.

“For every local government our bikes go to, we need to have its sticker, which is N1,000 per bike or a slight variation like N800,” she said. Other dues she pays include state carriage permits, Hackney permits.

“Fines for breaches are much too, ranging from N5,000,’ Ishie said, adding that those courier services operating as SMEs need all the support they can get from the government. “The government should not be milking them.”

Many authentic entrepreneurs like Ishie playing as industry’s registered operators are unimpressed by government’s half measures in sizing up, regulating, and maximising the industry’s potential.

Logistics, surely, is big business in Nigeria. Emeje’s N1trillion valuation may have sounded over-the-top, though. Captains of the industry believe measuring the market size is still difficult. “If we can’t measure our performance, we certainly cannot improve on it. Logistics is about figures not stories,” said Obiora Madu, the chief executive officer and programme director of Multi-Mix Academy.

Maybe that blame should rest on the shoulders of those in the industry. Like the regulator, those operators in Nigeria’s logistics are yet to get their act together, either.

If there are associations or bodies of professionals in the industry in Nigeria, it’s very likely they are not as organised. The one body any curious observer may readily point at is ANCO. The 31-member strong association (based on its online membership database, though Uba said they are 70) and boasts a six-member leadership.

The other professional body is Nigeria International Air Courier Association (NIACA), according to Uba.

Shedding more light on the tax injustice and the threats posed by unregistered interstate commercial bus drivers in the industry, he decided not to sound alarmist. With a lot of emphasis, Uba said the challenges aren’t necessarily about the freelancers and intruders. What matters to ANCO is the absence of an independent regulator, which creates room for intrusion, tax problem, and general chaos.

On data gathering, for instance, Uba, in an interview with Business AM Live in January, said, “ANCO plans to sanitise the industry by identifying and having a database of genuine industry operators.”

That’s still in the future. “We are working with the minister and Postmaster-General Adebayo Adewusi. And when the whitepaper is out soon, the industry will be better regulated,” he explained to the reporter.

So, for now, whatever anybody, including Emeje, says about the industry size and other metrics, is just an assumption, he said. “I don’t want to engage in any unempirical postulation about the industry size, losses, and all that.” It is very likely the N25billion loss that Telecommunication Week stated is thus speculative. No database anywhere to confirm either this or Emeje’s N1-trillion claim. And when Madu presented the 2018 report on the industry, its figures didn’t add up to what the CRD boss said in terms of size either.

Madu, however, admitted the industry, all over the world, is very liquid. “Logistics is the main indicator of economic advancement expressed boldly in trade facilitation and business competitiveness,” he said.

As of 2018, the value of the sector stood at N250 billion, according to that year’s Logistics and Supply Chain Industry report. A year before then, it was N200 billion, accounting for the value of goods, services, and available infrastructure for the industry’s subsectors: logistics, transport, and management.

If the industry’s valuation relates in any way to its supporting infrastructure, then Emeje’s figure is a fantasy. Madu and other analysts believe a logistics economy of such vibrant size requires, as parts of its infrastructure, transportation and distribution facilities, transport and distribution workforce, and road infrastructure. Other concerns are road congestion, road conditions, interstate highway access, vehicle taxes and fees, railroad access, water port access, and air cargo access. The reality is Nigeria is deficit in most of these.

Reform or be deformed

The National Assembly’s last attempt at oversight was 2004, after the one that separated the postal service from telecommunications (P&T) more than three decades ago. The postal industry has apparently become the laggard of the twins. On the other hand, the telecommunications sector has gone through series of reforms, including the creation of the Nigeria Communications Commission (NCC) in 2003. The sector remains one of the biggest contributors to Nigeria’s economy—N2 trillion in the first quarter of 2019 alone, according to NCC Executive Chairman, Prof. Umar Danbatta.

The Bureau of Public Enterprise, in conjunction with NIPOST, ANCO, and others, made some effort to rejig the courier industry in 2004, too. Senator Gilbert Nnaji, then, sponsored a bill— the Postal Reform Bill. The bill is meant to repeal the old NIPOST Act, and split the powers of the agency from being a player and regulator to just being a regulator. It also provides for a governing board, a commission, and a framework to liberalise the courier industry.

“The bill seeks to establish a regulatory frame work for the Nigerian postal industry by creating an effective, impartial, and independent regulatory authority,” said Nnaji when he led the Senate debate for the bill’s second reading, after the first that came up October 2015.

Both the upper and lower chambers eventually passed the bill. But President Muhammadu Buhari has yet to sign it to law—after about 16 years on the floor.

Had it been passed, the legislation would have, no doubt, taken care of a number of things: first, it would have checked the inflow of the intruders and freelancers like the NURTW and RTEAN operators, and even other all-comers with undocumented entry; it would also have lightened the burden on NIPOST, which has been serving as both regulator and player in the industry.

However, as long as the president delays his assent to the bill, the sector will remain in that bind. A lot more things will go awry, too. And the consequence cuts both ways.

The industry players struggling under the burden of multiple taxation and poor regulation as they are being undercut by unregistered operators say they are losing basically integrity.  Big as its loss appears, the business value itself may have no dollar worth put to it yet, especially the indigenous courier operators, according to Ubah. It, however, reflects in the bottom line in the long run, since clients will think twice about patronising an industry crawling with charlatans and quacks that will mishandle and compromise merchandises.

The loss is not just for those in mainline courier business. The e-commerce industry, $12billion big for now, and $75billion strong by 2025, according to McKinsey, has its share, too. Amazon and e-Bay are two of the e-commerce giants around the world. They thrive on the infrastructure and efficiency of the US Postal Service. But Nigeria’s experience is different. NIPOST is not efficient enough to support such. So online businesses have to start a logistics department, using van and motorcycles for delivering merchandises.

Jumia, one of Africa’s leading e-commerce businesses, has its own fleet of trucks spread across Algeria, Angola, Cameroon, Egypt, Ivory Coast, Ghana, Kenya, Morocco, Nigeria, Senegal, Uganda, and Tanzania.  Konga, too, has its own courier arm: KOS. All that balloons the cost of doing e-commerce business somehow, a problem NIPOST could have eased up.

“These obvious regional and national deficits in logistics infrastructure affect trade competitiveness negatively,” said Madu. This is part of the reasons many e-startups who aren’t that well-funded are dying standing up.

On the government side, the loss is equally significant, in terms of tax revenue. Currently, Nigeria generates over N1trillion in tax revenue every quarter. But annually, the country is losing about $15 billion in unremitted tax revenues, according to Babatunde Fowler, a former FIRS chairman. That’s over 60 percent of Nigeria’s N10.8- trillion budget for 2020. Parts of the losses surely take place in the courier sector which boasts little or no regulation, with lots of unregistered operators from other sectors, including road transporters and others.

The government says more than 80 percent of the current tax revenue is generated from non-oil sector, where courier service belongs. Which means there is still so much the government can make—if logistics, among the non-performing sectors, gets the attention it needs to max out its potential for all, both government and operators.

But that’s a big ‘if’—as far as generating what passes for tax revenue from the courier sector goes. Before, the most readily identifiable tax in that industry, if courier passes for one now, was stamp duty, the amount charged on each electronic payment above N10,000 in Nigeria. And NIPOST charged with the responsibility generated N66 billion weekly in 2019, the year a new law now shunted the responsibility to the FIRS.

For now, the service, its new boss Muhammad Nami said, generates N3 billion weekly, and its targeting N1 trillion annually.

Now that that NIPOST has been stripped of that responsibility, the courier industry regulator has lost its biggest avenue for revenue generation. And the 2 percent of operators’ incomes the latest regulation targeted for annual tax remittance will be fiercely contested.

Maybe as a regulator, the postal service doesn’t necessarily have to be a money spinner. Many will readily agree to that. But its roles can stimulate commercial prosperity if it lives up to its expectation in the industry whose processes— air, road, and water transport systems— belt practically every aspect of the nation’s economy.

And what many, including ANCO, NIACA, and other players expect from NIPOST is not too much: for the courier industry, a melting pot of Nigeria’s economy, to become vibrant and free of transporters, cyclists, and others playing the industry without registration. Anybody, surely, can enter the industry as long as they are duly registered, said Uba.

That is how to beef up integrity and honesty which form the main planks of courier services in every serious societies around the world.

• This story was done with support from the Civic Hive Media Fellowship and BudgIT

Frances Olisa Ogbonnaya, popularly known as ‘Tabitha,’ is one lady who is passionate about touching lives and lifting others up. After achieving a perfection of performance at Kiss FM, Lagos, she decided to move on to the political terrain, doing just what she knows how to do best. In this encounter with Yetunde Oladeinde, she takes you into her world, passion for creativity and why she decided to go into grassroots politics to contest the local government chairmanship election in Abia State next weekend.

TELL us about your experience in broadcasting?

I would say that having spent some ample time in other aspects of journalism, I will say broadcasting is the one I enjoyed the most simply because of its distinctiveness. In fact, it’s one of the most beautiful jobs on earth.

The fact that you impact positively the lives of millions most times from a studio room is intriguing. Despite whatever you are going through as soon as you step into that room called a studio, you drop your problems and worries at the doorstep and become more concerned about making the lives of others (viewers and listeners) meaningful. They will be all that matter to you. Broadcasting is indeed beautiful, and I am enjoying every bit of it.

What are some of the memorable moments?

Oh! That must be when I walked into a supermarket around Ojota and a devout listener of my flagship radio show, ‘The Podium’, recognised me. So, by the time I finished shopping and went to pay, I  realized that the person had paid for  all I bought and had left almost immediately. I couldn’t even get a chance to say ‘Thank you.’

I was left speechless!

Such moments and many others are quite memorable to me.

What were some of the challenges?

The challenges were not many except time management. As a mother , I had struggled  to balance my job and raising my children.

Since I worked in the Current Affairs Department, most of my programmes were socio-political in nature and they were usually better in the morning. So I was usually caught up in between the school run and meeting up with my programmes which were always live. And you can trust the Lagos traffic to be very unpredictable. So, that posed a lot of challenges.

What is your assessment of the sector at the moment?

The broadcasting industry has indeed grown larger with the emergence of many new radio stations with many digital or online broadcasting platforms, but just like with everything that has advantages, this unguarded growth has led to the entrance of a lot of quacks into the industry. Some actually think that all you need to be in the industry is some borrowed accents. Unfortunately, that it is not what it should be. Let me not even talk about the online platforms. Everyone now claims to be a presenter with a camera phone and stuffs like that.

But I know that with some right regulations, the industry will become one of the best soon. And then again, I seriously think that the government, through the NBC, is interfering a little bit too much in the industry and such meddlesomeness is stifling creativity.

You are also in politics. What has been the experience?

You would say I have just decided to go into politics, but having been a political correspondent for years, a political analyst and heading the Current Affairs Desk, you are also not far from the truth, if you say I have been in politics.

But with my little experience so far, I will say that the Nigerian political terrain is quite tough and not tailored to encourage women. But we will keep trying and demanding for legislative affirmations to afford women a fair playing ground.

What are some of the hindrances for women in politics?

The challenges facing women in politics are enormous. There are financial factors stemming from the fact that politics in Nigeria is unarguably capital intensive. And we have advocated that political parties should support women by making the nomination forms free for them and giving them other incentives.

There are many other challenges like socio- cultural factors. For example, a woman is naturally saddled with the responsibility of raising her kids. A man can decide to join active politics at age 25, but a very few women can do that because at that age, you are more concerned about getting married because there is the belief that women have a ‘time limit’ for marriage, and if you are married, you are more concerned about having kids to avoid menopause and other things. I must also add that there are too many issues derailing the woman from joining politics at a younger age just like most men.

Then again, there is the issue of state of origin facing a woman in politics. This is very prevalent in the South South or South East, even though it almost reared its ugly head in Ondo State, following the nomination of Nimi Akinkungbe (Née Ajumogobia) as an ambassador nominee. Literally, a woman in politics who is married to a person from another state appears ‘stateless’. It’s really a very bad situation.

I have experienced a similar situation where a spokesperson of the governor referred to me and a group of other women who became Abians by marriage as ‘non-truly’ Abians, simply to undermine our input politically. Even though I believe this does not reflect the views of the state government or the governor himself, but just to let you know some of the challenges women in politics go through.

As regards how I hope to surmount these challenges, first of all, it is determination.

I am inspired from time to time. I have told myself that you have to be determined not to just be speaking on television and in newspapers, but to offer myself for public work.

So, whatever challenges, I know I will survive them just the way I had always survived in the private sector.

What are some of the changes that you would like to see in politics?

I want to see ‘money politics’ minimised. I want to see that people’s votes count. I want to see the electoral umpire and electoral system become very credible. And most importantly, I want to see women duly represented in all aspects of government.

Do you have mentors in politics? What has been their impact?

Of course, I have many of them,  particularly in Nigeria. I love Senator Uche Ekwunife of Anambra State and her style of politics. I also love the current Minister of Women Affairs, Dame Paullen Tallen of Plateau State, and a host of others. On the international scene, I  love Angela Dorothea Merkel,the Chancellor Of Germany.

If you had to change something in the sector, what would it be?

I would love to see money politics being totally eliminated. If this is done, you will find a situation where politics would enable leaders with genuine interests emerge and make the political positions less attractive.

What advice do you have for young people who want to go into politics?

I advise young people, especially women going into politics in Nigeria, to expect anything. On this terrain, one minute can change a lot of things.  Most people say one thing, when they mean another. I will advise young people to get ready to change this narrative by playing politics of ideology.

What are the other things that occupy your time?

Apart from politics and my media business, the other thing that occupies my time is my family, Yes, as a mother, I try to spend quality time with my kids and husband. In addition, I try to listen to good music. I have no specific genre of music. I love any good music. So, don’t be surprised when you see me dancing to Egwu Ekpili by Prince Morocco Maduka or fuji music by Osupa Saheed, Pasuma and the rest.

How have you been keeping safe?

I would say that keeping safe is one message that I and my team have been passing. Personally, I try to keep safe by observing major safety measures.

What lessons has life taught you?

The lessons are just many, but this is a learning curve so far. Narrowing it down, life has taught me not to put my hope in any human being and that most times your help comes from the quarters you do not expect.

Talk of simplicity, communality and royalty combined and you may just have captured Oba Shefiu Olatunji Adewale, the Olu Epe of Epe Kingdom’s person in three simple words. But make no mistake, he does not suffer fools gladly and would not be drawn into unnecessary controversy, even as he hosts Gboyega Alaka in an exclusive interview session to mark his 10th coronation anniversary and 82nd birthday celebration.

You have been king for ten years. How does that make you feel?I feel very happy and accomplished. Even when I was crowned, the situation was not new to me -because I’d been in the process, assisting the obas before me. Also, I believe no one knows tomorrow; so my message to everybody is to spend their today well. When I was with the past obas, Oba Baba M.D. Kazeem and Oba Balogun Agbaje, I did my best to support them, even though I never had the intention of becoming oba.

You were Otun-Balogun, then Balogun, before you became Oba. Would that mean that Oba-ship in Epe is by promotion?

Yes, we have six wards in Epe and Olu Epe rotates within them in order that there is peace. The beauty of Epe is that wherever you are in the six wards, at one time or the other, the topmost chieftaincy title can come to you. When an oba demises, every member of the chieftaincy will move forward. The ward where the oba departed will now have the least position, until it goes round. The six wards are Isale Agoro, where we are now; Oke Balogun, Bado ‘Sale, Bado Oke, Popo Oba, Oke Oba, Lagbade, Oke Posun.

The perception out there is that Epe has two title obas: one for Eko Epe and the other for the Ijebu; can you shed some light on this?

It is true that we have two obas; the other is the Oloja, who has his own hierarchy. And then of course, there is the Olu-Epe, which is myself. Notably, there is peace between us. There was never a time that I moved to his territory or that he came to my own territory.

Tell us a bit of the history of Eko-Epe.

Our fore-fathers were formally in (Eko) Lagos. Princes Akintoye and Kosoko who were from the same ruling house in Lagos were fighting for the vacant title. Kosoko used to be on the stronger side, but Akintoye went to strengthen his chance by colluding with the British. Then Kosoko, knowing that the British were capable of anything, took the decision to leave Lagos for Epe for peace to reign. History tells us that the people that came with Kosoko on that trip were 1500 people. They and their descendants were the ones who formed the Eko Epe community that we know today.

Were they received by the people they met on ground?

Fortunately or unfortunately, they met no opposition on ground. In actually fact, Epe was being ruled by the Awujale at the time, but he gave Kosoko a letter to come and settle in Epe. He told Kosoko that the people that were here before had been sent away because they were not paying the yearly Isakole. So Kosoko met empty Epe when he came, even though their houses were still here. Now people usually ask me that going by this short history, who can really claim Epe? But as far as I am concerned, individuals can draw their conclusion. I won’t decide for anybody. All I know is that Kosoko was given a letter by the overlord to settle here. The Awujale granted us refuge with a document of autonomy to permanently occupy the land without any strings attached. We never paid Isakole or any form of taxes and he never dabbled into our affairs.

If the Eko migrants didn’t meet anyone on ground, how come we now have two crowns in Epe?

I said people were here, but by the time King Kosoko was coming, they had offended the overlord and he had sent them away. So it was Kosoko who brought them back by appeasing and settling the problem between them and the Awujale.

Have there been any supremacy tussle between the two Epe communities – whether overtly or tacitly?

I don’t know. All I know is that King Kosoko brought Eko Epe to Epe; and we are talking of 1851. Will you categorise a person who has been in a place for such a long time, stranger? In any case, if you say I’m Ijebu Epe, it’s left to you; if you say I’m Eko Epe, fine. But I have an Ijebu blood in me. And that is how it is with so many of us. Hardly can you see a household where you won’t see the two – courtesy of intermarriage. So for anybody to be talking of stranger or stuffs like that, you need to take another look at such person.  Possibly, he is an illiterate, who does not know his right from his left.

Do the Eko Epe and Ijebu-Epe landscapes interweave?

Well, hardly can you see the difference. Where you can call Epe is being occupied my community. You have Isale Agoro, Oke Balogun, Oke Posun, Lagbade, Popo Oba, Oke Oba. That is where Epe used to be. You can have mixed something in one or two of those places I have mentioned. Don’t let us go into politics.

Did Kosoko at any point in time return to Lagos to claim the throne?

No, he didn’t go back to claim the throne. The rift was settled and the coast became clear for him to go back. Of course they still accorded him that title of a prince. Some of those that came with him also went back with him.

What’s the official dialect? The popular impression out there is that Epe is an Ijebu enclave. Is it Ijebu that is spoken in Epe or Eko Yoruba?

The Eko people came from Lagos, so the tone or dialect of Lagos is what is still being spoken among them. Ijebu is the dialect of the other community.

Will it be safe to say that the Eko-Epe settlers are originally Awori and or Edo, because Eko, as history tells us, was originally peopled by Awori, and the Edo people who came in by conquest?

I don’t want to be dragged into such. All I can say is that most of the people that came with King Kosoko from Lagos were Muslims. The Muslim group came with him in solidarity because he was their president. That is why Epe is 95 percent Muslim.

What would be the most memorable things that have come to Epe since you became Oba?

There have been lots of development and progress since I became king. In terms of politics, we are nearer to the seat of government, to the extent that we even got the governorship slot, which is the topmost government position. There was also improvement in road construction, although it didn’t get to the extent that we wanted because of the disruption in the political set up.

We have seen the development within the town; but the roads leading to Epe from Ibeju and Ikorodu end, are not in good shape.

The intention of former Governor Akinwunmi Ambode, who is from this area, was to take the road to Ikorodu, but because of the termination of his regime, the road has remained where he left it.  The present governor has not done anything on road in Epe at all. If you go to the upper side – the government area, there is a road that is being done to connect the marina, but it has remained as Ambode left it. The situation is the same with several other roads. So if you ask me, I’d say infrastructure-wise, Epe is suffering.

While I will not like to drag you into politics, would you say that Epe got a fair share of government attention with the coming of Ambode as governor?

Well, before Ambode, what Epe got were just promises. It was he who translated them into action. And since his going away, we have not seen anything.

Have you reached out to the present governor?

The governor cannot deny knowing how Epe is, because he came to Epe when Ambode left; and he promised to continue the ongoing projects Ambode initiated. But as we speak, nothing is happening.

What would you like to see happen in Epe as we speak?

Firstly, I want to thank the government for the little they have been able to do. But the remaining ones, especially the internal roads, still need to be attended to. For instance, Audu Road that passes through my palace is expected to get to the government area up there. The plan has been on since I was a kid in primary school, but up till now, it has not come to fruition. I want it done. There is this other road from Araromi Road to the Marina. It ought to have been done but it is not done. That is the road that passes the house of the late Olu Epe, Oba Balogun Agbaje. It is a very long road. It even passes through Late Chief S. L. Edu’s house, and can make the traffic simple and easy. I don’t know why the state government is feeling shy of coming to Epe infrastructure-wise. Also, the road which Ambode started, that goes to Oke Osho Area, which ought to get to the link road that comes to Ijebu Ode through to Ikorodu is still as Ambode left it. I’m appealing to the government to do it. Ibeju to Epe is the same thing. That was how Ambode left it. I am appealing to the governor not to forget his promise to complete those two roads. And if you decide to go through Ijebu-Ode, you discover that the road is very impassable once you get to Mojoda area. All these have been hampering development. So I’d say, let’s start with the roads to make things easy for the people.

What would you say are the economic mainstay of Epe?

Fishing and farming are our mainstays. We have a lot of fertile farmlands. We have the Agric area performing to expectation. I believe it will not be a bad idea if they moved the headquarters of the Ministry of Agric to Epe, because they will be able to give it the proper attention and expansion it deserves. Presently, this potential is underused.

True, Epe is known for fishing; but has there been any government or individual effort to turn the business into a large scale exportable business?

Fishing is supposed to be the second business of Epe people, but this has been on personal basis. Government has not done anything tangible in that regard, whereas it can be a very lucrative vocation. If you go through Ejirin, you will get to Langbasa. There, is a very large area of water before you get to Langbasa; and if you go through this other area, you get to Agan, another large water area, where people can engage in fishing. So I’m again appealing to the government to really look into this. The same appeal goes to transportation. When I was young, individuals usually had ship taking people to Lagos from here, but now we don’t have anything like that. I am appealing to the state government to extend the ongoing water transportation network to Epe. From here to Lagos shouldn’t take more than one and a half hours, which is not bad. If that is done, many can even reside here and work in Lagos.

We already established that oba-ship in Epe is done by promotion and rotational; would that mean that you faced no competition before ascending the throne?

Like I said, the chieftaincy titles are spread among the six wards. Presently, we have the topmost title, as well as Otun Sarunmi, which is third to the last title in Isale Agoro. While in Oke Balogun, they have the Seriki. If you add that in Oke Balogun with the two in Isale Agoro, that will be three. Oke Balogun and Isale Agoro are one ward group. So there is a successive plan which leaves no room for unnecessary struggle. But some people, who can be funny, may still come out to try to foment commotion, which was what happened during my time. But because everybody is aware that Balogun becomes Olu Epe when he demises, it was clear that anybody who comes out of the blues to face the Balogun would only be wasting his time.

The world already knows of the Otedolas; can you name some other Epe notables?

Aside the Otedolas, we have Adebowale, who owned Adebowale Electronics. We have the man who owns Onward Stationery, Chief Obafemi Obagun; and many more that I may not remember now. But we pray that more of our sons and daughters prosper.

Do Eko Epe people still have links with Lagos Island and the throne? Can a Kosoko descendant in Epe still contest for the throne in Eko?

Epe is already autonomous with its own structure, so we don’t contest any chieftaincy in Eko. Of course we still have the Kosoko family in Lagos. Those in Lagos take care of Lagos affairs while those in Epe take care of Epe.

You rose to the position of a director as a civil servant with Lagos State, which ministry would that be?

I practically worked in all the ministries because of the posting system. As an administrative officer, the administration is one and whichever ministry you’re posted, you can fit in. I was also posted as Executive Chairman of Badagry Local Government during the military era. All these experiences put me good stead for administration of Epe. I also discovered that the Badagry situation, where we have Awori and Egun people co-existing peacefully, is not much different from that of Epe with its Ijebu and Eko Epe people.

Tell us about your childhood.

I grew up as a normal person. Fortunately, my dad lived in Ibadan and that was where I started my life. Ijebu-Ode too; I was born in Ijebu-Ode General Hospital. I didn’t even know that Ijebu Ode had been exposed to such modernity for such a long time.

You never really spent your childhood in Epe?

Wherever I was, I still always came to Epe. I had my peers in Epe. But we came finally to Epe when I was in standard four when my grandfather died and my father had to come home to see to the supervision of the house. I attended NA (Native Authority) School in Epe to finish my Standard Six. The father of the present deputy governor of Lagos State, Hamzat, was my classmate. The school is now LA (Local Authority) School. Thereafter, I went to Ahmaddiya Grammar School, Ibadan and then University of Ife, where I read English/History. We used to say it was the only university in Nigeria (smiles).

Do you have street urchins otherwise known as Area Boys in Epe and how do you manage them?

They exist, though very minimal because there are usually checks on them and their time is always occupied. During my own growing up, you had to go to Arabic School right after the early morning Subui prayer before proceeding to the main school. So by the time you finish all these and also go to quranic school in the afternoon, you had very minimal time to be rascally.

What message do you have for the youth?

They should always be reasonable and face their studies, because only God knows what they will become in the future. But if they waste their youth, this can prevent them from attaining their full potentials.