The Nation Newspaper

Tag: affordable

  • Affordable homes now a reality

    SIR: It was an interesting experience to physically walk through reasonable living spaces built in Nigeria for less than N3million. What is more interesting is that it has happened in the depressed Nigerian economy;  built with direct local labour in Nasarawa State and 90% of the input was locally produced in Nigeria. In effect, we have here a made in Nigeria home built by Nigerians for Nigerians.

    It had running water, power and built in a gated housing estate, with security and estate management. The roads where not tarred but graded. The roads had an inclined slope for water to run off into a network of gutters to avoid any flooding. There were two maybe three playing fields for kids; various touches of want would make a comfortable, secured estate of 270 affordable homes for Nigerians. I had to continuously remind myself that these units were available for less than N3m and mortgages were available for willing buyers.

    What further pleased me the most is that I recently confirmed that both the Honourable Ministers for Finance and her counterpart in Works, Power and Housing have both visited the site and met with the team who delivered these homes.

    I smile to myself as I dream of a Nigeria where a hundred thousand of these homes are built across Nigeria every year for the next 10 years. That is a million of these homes built across the nation. Before the readers jump down my throat about the possibility of a million homes, let me offer a scenario of 36 locations each building 3,000 homes a year each for 10 years. This will require each state to identify suitable land in each local government and get the development team to put programme in place for these estates to be built.

    Unfortunately, I wake up from this dream and the realities of a Nigeria resetting its economy, looking to stimulate sustainable growth through targeted investment and diversification; I let out a huge sigh and get back to our realities.

    Welcome the Family Homes Fund, a financing initiative by the Ministry of Finance, funding affordable homes for Nigerians, focused on a Made in Nigeria approach! Could it be that my dream is taking seed and might come true? A light at the end of the affordable homes tunnel? In the modern era, where every country is claiming back their identity and turning away from a globalised economy; (Brexit (UK), Brexit Plus Plus (USA)), perhaps the elements are aligned for a housing evolution in Nigeria. An opportunity for internal growth stimulus, employment for the masses, and ultimately Nigerians owning their own affordable homes. We can only just pray that the initiative comes to life and affordable homes become available.

    All in all, today, these homes are real; they exist in Masaka, Nassarawa State. Affordable homes for Nigerians in Masaka. Let us hope we can replicate this across every state in Nigeria. Let us all key into this and keep the affordable homes dream alive.

     

    • 1111,

    Abuja.

  • ‘We provide affordable housing for Nigerians’

    Nigerians have been urged to patronise property merchants who can deliver world-class building and apartments in a flood-free serene environment.

    The Chief Operating Officer, Admiralty Homes Limited, Mr. Olaiwola Salami spoke in Lagos on the need to build houses using quality materials.

    According to him, “the recent heavy downpour in the country had serious effect on residents, especially in Lekki and Ajah, where a number of buildings were affected due to the low quality of the materials used in the construction process.”

    He called on Nigerians to patronise efficient and modern day property development companies who can deliver buildings that will stand the test of time.

    “At Admiralty Homes, we are dedicated to providing our customers world class buildings that will guarantee them rest of mind for decades to come. We use the best quality construction materials which will give them a solid apartment. This is what we are reputed for,” Salami said.

  • Affordable housing: Shelter Afrique, CMB sign N3.3b deal

    Affordable housing: Shelter Afrique, CMB sign N3.3b deal

    Shelter Afrique (SAf), a Pan-African housing finance and development agency, has signed an agreement with a real estate development company, CMB Building Maintenance and Investment Company Limited.

    The agreement, signed at the headquarters of the financial institution in Kenya, will provide  a loan of N3.3 billion to the firms.

    SAF’s Managing Director Mr. James Mugerwa and Managing Director of CMB, Mr Kelechukwu Mbagwu, signed for their firms.

    The cash is for the construction of Pearl Nuga Court Estate in Lagos, and also provide mortgage for off-takers that may want to key into the scheme.

    According to Mbagwu, the deal represents a step in the right direction as it fits into the vision of the government and other stakeholders to provide affordable housing for Nigerians.

    While agreeing that the private sector has the most strategic role to play in ensuring that housing deficit is reduced to its barest minimum, Mbagwu said the fundamentals of the real estate sector remains strong and healthy despite the turbulent economic terrain of last year.

    He urged the Federal Government to support the sector’s growth by creating and enforcing policies and laws that ensure that private sector development thrives through financial capitalisations and easily accessible construction finance.

    Mbagwu canvassed the government’s support.

    The Minister of Power, Works and Housing, Mr.Babatunde Fashola, in his inaugural ministerial briefing assured that the Federal Government will lead an intervention to increase housing supply by not only undertaking construction of public housing, but also by formulating policies that will invariably lead to private sector participation and ownership  to reduce the country’s housing deficit.

    Stakeholders have since lauded this initiative, as they see in it a further boost to tackle the housing shortage that is being faced in the country, especially when it is considered that the country’s proportion of urban dwellers rose from 10.6 per cent of total population in 1953 to 19.1 per cent in 1963; 35.7 per cent in 1991 and 48.2 per cent in 2006.

    Besides, the 2006 National Population Census projected the urban population in the country at 50 per cent of total population by last year, a figure expected to rise to 60 per cent by 2025. The effect of this is that up to three out of five urban dwellers live without adequate shelter and basic services.

    CMB with over 12 years in real estate is receiving the support as part of the pan-African finance institution’s support of the real estate sector.

    Through such strategic partnerships, the financial institution offers products and related services, which support the efficient delivery of commercial real estate and affordable housing. Shelter Afrique has over 30 years in the industry and is in partnership with 44 African governments, the African Development Bank (AfDB) and the Africa Reinsurance Company.

  • ‘For affordable, accessible healthcare embrace insurance’

    ‘For affordable, accessible healthcare embrace insurance’

     Aside non-accessibility of healthcare services, another obstacle many Nigerians complain of is non-affordability.  In this interview with OYEYEMI GBENGA-MUSTAPHA, the Director, Managed Healthcare Services Limited (MHS), Dr Gabriel Idahosa, speaks on how Health Maintanance Organisations (HMOs) are bridging the gap.

    As  the director of an organisation that  is among those that were the earliest Health Maintanance Organisations (HMOs) registered by the National Health Insurance Scheme (NHIS), how will you assess the sector?

    The health care maintenance industry did not exist about 15 years ago and health care maintenance organisations do what is simply ‘pooling of resources’, because anytime an individual goes to the hospital he/she has to pay the bills if he does not have any other person to pay it. So, what health maintenance does is to bring a lot of people together who pay a fixed amount monthly or yearly with guarantee that if at anytime they need health care, they can walk to their healthcare provider and get services and whatever the bill is, it is the health maintenance organisation that pays. So, once you are subscribed to a plan of Managed Healthcare Services Limited (MHS), for instance, and you have paid your monthly or yearly subscription fee and you then need to see your doctor, you will get treated. All you need do is to present your NHIS card and thereafter get the treatment and go away. The doctor or hospital sends the bill to MHS to settle. It guarantees you access to healthcare and you don’t have to have the anxiety of having to pay each time you go because you already have a plan that covers you and your family. If your wife or child needs medical care and it is under your plan, you don’t have to worry about not being around the family, all they just need is to go to the hospital and get treated. It is something that has been done in other countries for a long time.

    About 15 years ago, Nigeria didn’t have it, MHS and a few other organisations were the pioneers who worked with the government, convinced the government to set up a regulatory body called National Health Insurance Scheme (NHIS), which regulates the industry and gives licences for operators.

    There is the issue of ease of use of healthcare facilities by subscribers. What is your take on this?

    MHS was one of the first HMO to get a licence and since then, has been one of the leading HMOs and it has, among its list, very large Federal Government and   private agencies. We have offices and staff in all the states of the federation and the Federal Capital Territory (FCT). So, whenever our client is out of his state of residence, he only needs to identify our service provider in any of the states to access healthcare services. So, even if a member is travelling outside the country, he only needs to identify a provider by MHS in the neighbourhood and go there and show his or her card or NHIS number, the hospital will contact MHS to confirm if he or she is registered with it. So, even if your provider is in Lagos, you can get another provider in any part of the country to attend to you once you show your card or number and they are one of our listed provider. It guarantees you freedom of access where ever you are. It is not a case of I am resident in Lagos and it is only in Lagos I can get access to healthcare. If you have a health issue outside Lagos, you don’t have to take care of it by yourself.  MHS gives you access and freedom of choice of location. Another initiative MHS is doing as part of the accessibility and affordability reform to get results is that it helps the companies to have a fix on what they will spend in a year. So, if a company has 100 workers and agrees on an amount with MHS, that company will know it cannot get bills from different hospitals its members of staff go to when they access treatment. The bills do not go to the hospitals either, the bills go to MHS. MHS has foreknowledge of the company’s budget for the year and it is not shocked, but rather deep into the ‘pool’ and settles the hospitals based on how much the company will spend on staff treatment. And for the staff, it gives peace of mind that the employers have paid for his or her treatment with MHS and they can go to any clinic to get treated anytime.This is a service that has been perfected and has become reliable for a large number of federal agencies and private agencies.

    Is it the same plan/policy for your clients who choose this?

    No. There are several types of plans. We have the basic plan, which is for people who just want to go to the hospital. There are other levels of plans where you can go for admission; and very high level where you can be entitled to evacuation to any foreign country for treatment depending on your level and what type of plan you can afford, that covers a whole range of services you enjoy as a subscriber to an MHS plan. There are various levels or plans these are – Basic, Silver, Platinum and so on. For some plans, you are entitled to all the treatments things. When you pay for a plan that includes over-seas evacuation; for example, when you enrol for the plan, it will be clearly stated in what you get, that you are entitled to all these things so it is up to the individual registering to make that kind of choice.

    How has the public embraced this initiative?

    The evidence of that is that we have a very large number of people that are from members of the public that are not federal agencies and there are a very large number of companies that have enrolled with MHS. In addition, because of the benefits we offer through this initiative, individuals register themselves and their family, groups like cooperative societies, and communities subscribe to the health plan as well. It has an extra benefit of operating within one’s budget that is why a lot of associations are subscribing their members. And it is funny that based on this, many people are joining such associations to benefit from this plan.

    Since the introduction of HMOs, how can you assess the state of wellness of Nigerians?

    Wellness in terms of physical wellness or fitness, HMOs have not done much. HMOs really are to champion preventive healthcare, so that not much money will be spent on treatment. There is the need for HMOs to create this awareness. Awareness for people to be better informed about what you need to do to be healthy. The HMOs have to do more of health education, which is the major activity of the HMOs. They should organise health sessions with the companies who are their customers and organise for communities who are not even their customers as part of their CSRs (corporate Social Responsibilities).They should go to communities or associations to deliver health care education because a lot of illnesses occur because of ignorance based on the food you eat, lifestyles. If you have knowledge of those things, you will be safe. HMOs know what to eat, the kind of exercises people need to do, type of lifestyle to lead, how you sit down, the type and correct posture when you sit i.e when you have back or neck pain. The basic information on health must be given. In fairness to MHS, it does these all the time for its customers or be invited by groups who are not customers to come and give health education to staff.

    Are you saying HMOs are principally after profits and are under serving Nigerians?

    An HMO is a health maintenance organisation not a disease curing organisation. In maintenance, you already have good health but HMO wants to ensure that you continue to maintain that good health.  The last thing an HMO wants to do is to go to a hospital, it will prefer that your health is good. For instance, when some take insurance for a car, it is not that they want to have an accident with the car but you really don’t want to have an accident with the car. It is the same thing. An HMO really doesn’t want to go to the hospital. So, at MHS, we try to give you the education that you need to have your good health so you don’t have to go to the hospital, but if after all of that you still have to go to the hospital, then we are ready to make sure that you don’t have an unhealthy body.

    In Nigeria, there is problem of compliance to an agreement. In 15 years, what has been the compliance level for individuals, associations and groups towards their subscriptions?

    Like every other business, there is a level of performance; it will take about 100 activities to determine some things. Whether it is paying bills or people going to work, you find out that people will be late, it happens also in the industry. Some subscribers may delay in payment, some may come and negotiate with you and say this is when they want to pay, some even pay in advance before you ask them to pay. I will say in the industry the compliance level is very high. We have about 90 per cent enrolees who pay on time.  We still have that small percentage of people who delay payments and are owing but the compliance level is very high, because it is about your health not about something else like house rent, or a car.

    President Muhammadu Buhari has presented a budget to the National Assembly. As an expert, which areas do you advise the Federal Government to look into so that the major health challenges can be tackled?

    HMO as an organisation believes that preventive medicine reduces the number of people who attend the hospital. So that should take a lot of our budget allocation. This is because if people are not sick, the government will not need to maintain the hospital with a lot of money, in form of facilities. A chunk of previous budget goes to public health facilities and institutions in form of salaries and commodities. So, the minister should ensure that he reduced the rate at which people go to the hospital. A healthy community will give a clear view of what our budget is meant to address. Everything about health is about the well-being of the people. There are three things we need to do when we talk of medicine – access, adequate human resources, infrastructure and affordability.

    Acessibility can be seen from three perspectives – the presence of a facility (physical structure) called a health care facility does not automatically mean a person has access to the health care facility. The healthcare industry means health care facilities from the primary, secondary and down to the tertiary/teaching hospitals that are functional and should have the necessary equipment and environment to ensure that they work. They must have the equipment in place, the manpower, and the environment to make them work effectively. You must put in place a budget to ensure that once you walk into an hospital, you get that treatment that is comparable with what we get in any other part of the world.

    The issue of health care tourism is a problem. We have many Nigerians getting treatment abroad, not because they can’t get the treatment here but because they have the feeling that the facilities are not there.

    The right healthcare personnel and availability of drugs are also important. If these things are addressed in such a way that people will have faith in our structures, that they will get the right treatment and the right personnel, then no one will go far.

    But it is not everybody that is expected to walk into  a secondary or tertiary facility…

    The primary health care level is where most Nigerians access care. The primary health care centres must be made to function. We know that it is the government that is meant to take care of the primary health care facilities but I will believe that the local government should take it from where the Federal Government reached. It should ensure that the primary healthcare facilities are well taken care of, while the Federal Government and even some states take care of the tertiary institutions and secondary health care facilities. Nigerians should get to a stage where they will feel comfortable that they will get that anticipated level of care.

    Some things that are necessary are adequate water resources and infrastructure. We must work within the context of infrastructure and institute an efficient healthcare management system that will enable us measure the  industry. For instance, on a particular day, the number of deliveries that took place, or say, we had a number of people coming to access healthcare facility, determining the particular causes of illnesses and the number of people with that illness. That will help us plan and when planning, we can say, since we have so many people coming up with malaria, can we have an effective intervention to prevent malaria or since we are having these number of deliveries? Can we plan and say what the population of Nigeria is going to be using these basic important healthcare indices and statistics. Getting these proper healthcare statistics is important in planning and the development of any nation.

    Many enrolees complain of not getting their cards. How are you resolving this at the MHS?

    The essence of the card is for the provider to see that the person is an enrolee of MHS. Each card has a number. If you don’t have the card but has a number and you tell the hospital or the MHS,you will be attended to. Most people will copy that number and leave the card at home than leave the card at home without copying the number. Two things we look for in the card are the number and photograph but if you have the number and they access their system and identify you with that number, they will give you the treatment. Most people normally will carry their cards.

  • Lafarge unveils affordable housing units

    Lafarge unveils affordable housing units

    Lafarge Holcim has unveiled a self-contained studio-flat at its Oregun, Ikeja, Lagos office in a move that may meet the desire of the majority, especially the low and middle income earners.

    The firm said the unveiling would serve as the bedrock upon which the firm’s planned delivery of a 500-unit of low cost housing in Gwagwalada, Abuja, is premised. The firm is executing the project with the Federal Government, which is contributing five hectares of land.

    The house types to be provided include two and three bedroom flats and studio types. Prices start from N1.5million for studio model, while others are between N4million and N6million.

    Its Head, Affordable Housing and Building, Mrs. Jumoke Adegunle, said the firm is taking affordable housing seriously. This, he said, informed its decision to come up with the studio model that are within the reach of singles and newly married couple, who are desirous to own their home, with little financial requirement.

    She said: “We are working on the possibility of delivering at least, 500 houses in Abuja in 2016. It is to be situated in Gwagwalada area of the Federal Capital Territory (FCT), in partnership with some developers.

    “As a long-term vision, Lafarge plans to come to the aid of individuals who would be home owners by assisting to help in building with this technology, which will not only be cost effective, but also saves time and offer quality.”

    The Project Contractor, who is also the Chief Executive Officer of Tye-Wall Construction Ltd., Mr. Tunde Isiolaotan, said the building was developed using modern technology known as “aluminum shuttering.”

    He said the use of this technology saves between 20 and 25 per cent of what it would cost to build in conventional ways.

    Isiolaotan described the house as ‘bulletproof’ as a result of prefabricated concrete blocks used in making the shell. Also, the electric cables, plumbing materials and other amenities are conduit except wash hand basins and toilet closets.

  • Lafarge unveils affordable housing units

    Lafarge Holcim has unveiled a self-contained studio-flat at its Oregun, Ikeja, Lagos office in a move that may meet the desire of the majority, especially the low and middle income earners.

    This unveiling will serve as the bedrock upon which the firm’s planned delivery of a 500 unit of low cost housing in Gwagwalada, Abuja, is premised. The housing project is in partnership with the Federal Government, with equity contribution of five hectare land for the development.

    The house types to be provided include two and three bedroom flats and studio types. Prices starts from N1.5million for studio model, while others are between N4million and N6million.

    Its  Head, Affordable Housing and Building,  Mrs. Jumoke Adegunle, said the firm is taking affordable housing seriously. This, he said informed its decision to come up with the studio model that are within the reach of singles and newly married couple, who are desirous to own their home, with little financial requirement.

    She said: “We are working on the possibility of delivering at least, 500 houses in Abuja in 2016. It is to be situated in Gwagwalada area of the Federal Capital Territory (FCT), in partnership with some developers.

    “As a long term vision, Lafarge plans to come to the aid of individuals who would be home owners by assisting to help in building with this technology, which will not only be cost effective, but also save time and offer quality.”

    The project contractor, who is also the chief executive officer of Tye-Wall Construction Ltd., Mr. Tunde Isiolaotan, said the building was developed using modern technology known as “aluminum shuttering.” He said the use of this technology saves between 20 and 25 per cent of what it would cost to build in conventional ways.

    Isiolaotan described the house as ‘bulletproof’ as a result of prefabricated concrete blocks used in making the shell. Also, the electric cables, plumbing materials and other amenities are conduit except wash hand basins and toilet closets.

  • Make housing affordable, NASFAT urges Ambode

    Make housing affordable, NASFAT urges Ambode

    The Women wing of the Nasrul-lahi-l-Fatih Society (NASFAT) has urged the Lagos State Governor Akinwunmi Ambode to provide affordable housing for Lagosians.

    According to NASFAT, the homes sold by Ambode’s predecessor were out of the reach of the poor.

    Speaking during a visit to The Nation as part of its activities for the 16th Women’s Week, NASFAT National Women Affairs Secretary, Alhaja Samiat Mumuni, said housing should be made affordable for low income earners.

    “How many civil servants can afford buying a home as much as N13 million? Housing scheme should not be for first class or middle class alone, the lower cadre  should be the utmost beneficiaries like what we had during the Lateef Jakande era,” she said.

    Alhaja Mumuni hailed Ambode’s alignment project in the ministries, urging him to encourage staff with better welfare.

    For the ministries to thrive, she said, Ambode should ensure all leakages in the civil service are blocked.

    She lamented the high rate of unemployment, calling President Muhammadu Buhari to urgently address the issue.

    She said: “The federal government should provide enabling environment for existing companies to generate more employment. The idea of companies relocating to neighbouring countries should be discouraged. Mr President should formulate policy that brings in more investors and not the one that will drive investors away.”

  • Firm, US agency partner on affordable drug

    Bayer Healthcare and the United States Agency for International Development (USAID) are collaborating  to make Microgyon® Fe Oral Contraceptive available and affordable in Nigeria.

    The company said the drug is now available in local pharmacies at a significantly lower price.

    The reduced price was announced  in Abuja, at the innovative public-private partnership between Bayer HealthCare and the United States Agency for International Development (USAID).

    The brand is the world’s most widely used oral contraceptive.

    The reduced price will enable middle-income couples to access a quality, affordable family planning product.

    The partnership is designed to make more affordable family planning choices available to women through the private sector and address the growing demand for contraceptives and the overall sustainability of supply.

    Family planning allows couples to plan their families as they desire, reduces the risks from unintended and/or high-risk pregnancies, and improves the health of mothers and their children by allowing time between pregnancies.

    USAID Nigeria’s Director, Health, Population and Nutrition Office, Dr. Nancy Lawenthal, emphasised the importance of public-private partnerships in helping governments meet their Millennium Development Goals (MDGs).

    “We are pleased that this important initiative between USAID and Bayer Healthcare is being extended to Nigeria. The private sector has an important role to play in contributing to sustainable development and in this case, by ensuring that Nigerian women have access to a sustainable supply of quality, affordable oral contraceptives,” he stated.

    Dr. O.I. Akinola, Obstetrician/Gyneacologist, and President of the OB/GYN Society of Nigeria (SOGON) said, “Combined oral contraceptives are 99 per cent effective when used consistently and correctly. It also provides women with a reversible method that is easy to discontinue and has a rapid return to fertility. The drug is being used by millions of women around the world and is well known and trusted by medical professionals.”

    Women interested in finding out more information about Microgynon® Fe should talk with their nearest private healthcare provider.

    The drug is manufactured in Germany by Bayer HealthCare and imported to Nigeria by CHI Pharmaceuticals.

  • How affordable is fuel to the average Nigerian?

    How affordable is fuel to the average Nigerian?

    Global consumer demand for petrol has steadily grown thanks to low oil prices combined with economic growth, according to the International Energy Agency (IEA).

    Last year, global oil demand was 92.6 million barrels per day, and demand for 2015 is expected to increase by 1.4 million barrels each day, to a total of 94 million. This phenomenon truly spans the globe; gas prices have decreased from the pumps in Pakistan to stations in Senegal. But while most countries have seen savings, the price of gas differs wildly across the globe.

    Carmudi, the leading online car platform, examined the fuel price and general affordability of petrol in eighteen emerging markets. In Africa, it comes as no surprise that fuel prices in Nigeria, the biggest oil producer in the region, are among the cheapest standing at $0.46 per litre or 5.6% of the national average income per day. Fuel prices look different for those East African countries with significantly lower average incomes. In Rwanda, where fuel costs $1.17, the average person makes only $1.55 per day. One liter accounts for over 75% of a typical daily income, almost a full day’s work.

    In Indonesia, where fuel subsidies have been cut by the government since early 2015, most people are forced to spend over 30% of their daily earnings to buy a single litre of petrol. In Sri Lanka a single litre of fuel costs $0.96, taking up to nearly 45% of the national average daily.

    Carmudi created an infographic using Q2 2015 prices and 2014 average income data compiled from sources including Nigeria National Bureau Statistics, Philippines Bureau of Labor and Employment Statistics, The Pan African Bank, Crédit Agricole, Trading Economics, Global Petrol Prices, and World Vision. 2014 income data were used for all countries except Vietnam (2015) and Sri Lanka (GDP per capita). Petrol price for Myanmar is Q2 2014.

    Fuel prices in Mexico, the world’s seventh largest oil producer, are similar to prices in several Asian countries such as Vietnam, where a litre is priced at $0.92 and $0.97, respectively. Despite the similar prices, the average daily income in Mexico is almost three times more than Vietnam. It takes 7.8% of a day’s wage in Mexico to buy a litre; whereas, in Vietnam it costs more than 25% of the average daily income.

    Fuel prices in the oil­wealthy Middle East are incredibly low, and that, coupled with the high average daily income, makes it the best place to own a gas guzzler. Prices range from $0.15 per liter in Saudi Arabia, OPEC’s largest oil producer (average daily income $143.60), to $0.26 in Qatar, the world’s third largest oil producer (average daily income $382.60), to $0.47 in the United Arab Emirates, the world’s eighth largest oil producer (average daily income $170.00).

  • Waiting for efficient, affordable internet services

    Waiting for efficient, affordable internet services

    Access to internet has defining impact on countries’ gross domestic product (GDP). This is because it destroys fetters, such as distance, race, colour and others. Though the mobile network operators (MNOs) have tried to close

    Three Nigerian journalists  travelled to Rhodes University, Grahamstown, South Africa for a three-day international conference. During the conference, they had no problems sending their stories and pictures from the venue of the event to their media houses in Lagos.

    “As soon as I finished doing my story and click the attach icon on my gmail address book, it pops up and gives me options from where to attach pictures. I click my desktop and press attach. It attaches in the speed of electricity, regardless of the size. As soon as I click on the send icon, it disappears too and show ‘message sent’ immediately,” one of them said.

    Back home, at a forum held at the Oriental Hotel, Lekki, Lagos, reporters made futile efforts to file  their stories to their offices located within the metropolis. Virtually all the modems of the MNOs were used but to no avail. Instead of displaying 3G which most of them claim is the technology on which their services are being rolled out, it is either WCDMA, EDGE or HSPA that was displayed. Then will come several hours of waiting just for the page to load.

    If internet experience in an urban area such as Lagos could leave such a sour taste, it could only be imagined what it is going to be like in the rural areas of the country where there are 447 local government areas. After more than a decade after the telecoms sector liberalisation that ushered in the telecoms revolution, a lot of rural communities are still largely “disenfranchised”.

    The story everywhere, from Calabar to Kano, Bauchi to Bayelsa, Abakaliki to Bornu, is the same. Not even in cities such as Abuja and Port Harcourt is the story different. Nigeria is the most populous nation in Africa with a population of over 168 million people as at 2012 according to the World Bank. Population has grown at a rate of 2.3 per cent for each year from 2000 to 2013. Nigeria is a country with a largely youthful population with 60 per cent approximately under age of 22.

    The Nigerian Communications Commission (NCC) said in line with these demographic changes, internet penetration has increased from less than 0.1 per cent in 2001 to about 32 per cent in 2012. The 2012 National ICT policy placed broadband internet penetration for both mobile and fixed broadband at about 6.1 per cent.

    The Federal Government launched the National Broadband Plan (NBP) which set very ambitious targets to be met within specific time-lines. Under the plan, fixed broadband targets for cities (which is currently standing at 1.5per cent) expected to go up to 10 per cent in 2015 in the short term, 16 per cent medium term of 2018 and long term target of 25 per cent by 2020. Penetration level which stands at 0.5per cent, will move up gradually to 3.3 per cent, 5.3 per cent and 8.3 per cent respectively

    For national broadband targets, current level is 35 per cent while short term target is 60 per cent (2015). For medium term (2018), 80 per cent is targeted while 95 per cent is targeted by 2020 as long term target.

    Penetration currently is six per cent. It is expected to go up steeply to 21 per cent, 42 per cent and 48 per cent respectively.

    But the road to achieving this target is laced with thorns as frequencies that are supposed to be freed to boost internet penetration are not available yet.

    Director, Regulatory Affairs and Special Projects, Airtel Nigeria Osondu Nwokoro who spoke at an ICT forum in Lagos, said the launch of the National Broadband Plan (NPB), 2013-2018 by the Federal Government is consistent with developments in other parts of the world, adding that it is a step in the right direction and showed government’s commitment to pursue a broadband agenda for the country.

    Nwokoro defined broadband as the easier, faster, and high speed internet access for data transmission and download, compared to traditional telephone and modem. Broadband supports real time internet radio, music, video, gaming, interactive services and others.

    He said with six per cent broadband penetration in the country, there is both a challenge and an opportunity to meet the goal of realising a five-fold increase in broadband penetration by 2017.

    According to him, the Broadband Commission for Digital Development charges that “access to broadband infrastructure and services must therefore be a top policy priority for countries around the globe, developed and developing alike as well as least developed countries,” adding that commission urges “governments and business to work together to develop innovative policy frameworks, business models and financing arrangements needed to facilitate growth in access to broadband worldwide

    Speaking on impact on the economy, he said wireless broadband is expected to contribute an additional N190billion to gross domestic product (GDP) in 2015 while wireless broadband will have a direct revenue impact (spend on usage and devices) of N598billon or 0.7 per cent of GDP this year.

    He added that its ecosystem value will be N124billion comprising consumer retail (m-commerce; m-Entertainment), financial services (m-banking), social services (m-learning, m-health, and m-governance) and corporate verticals (m-farming, m-enterprises, m-utilities).

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

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

    It has also led to the provision of public services like driver-license application, international passport, national ID card registration and the general e-government solutions, adding that the implementation of regulatory framework and policies to promote electronic transaction such as the Cashless Policy of the Central Bank of Nigeria (CBN).

     

    Daunting hurdles

    The Nigerian Broadband technology infrastructure has grown up to an appreciable level in some very specific places and at different degrees.

    Nwokoro said fixed infrastructure is not available in Nigeria and the cost and burden to put same in place is daunting. Wireless is the only viable option for broadband penetration.

    Another challenge is paucity of spectrum. According to him, NBP acknowledges the need for spectrum for mobile broadband and proposes to publish plan for freeing up spectrum for LTE rollout this year, conduct licensing of 2.5/2.6GHz spectrum in 2014 and facilitate accelerated wireless infrastructure expansion and upgrade with operators.

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

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

    Device ownership and access points which are key to adoption and utilisation are also key challenges.

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

    “NBP also proposes to deploy local access points (in NIPOST premises and local government, headquarters to facilitate access within 2km for people who cannot afford own access devices,” Nwokoro said, adding that in spite of all the promises of the market size in the country, major OEMs are unwilling to site assembly plants for device manufacture, on account of unstable electricity supply, intellectual property rights issues and challenges in the business environment.

     

    Solutions

    Mandate should be given to the National Frequency Management Council (NFMC) to articulate a spectrum roadmap to address timely availability, cost-effective pricing and licensing of the 700/800 MHz Digital Dividend spectrum band to support mobile broadband penetration.

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

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

    the gap, there is still a long way to go as access cost remains punitive while service quality is patchy, reports LUCAS AJANAKU.