The Nation Newspaper

Tag: consumers

  • Enugu Disco and Aba electricity consumers

    SIR: One of the essences of public corporation is to provide essential services to the public at a subsidized rate. However, if the underlying motive of privatizing the Power Holdings Company of Nigeria (PHCN), was to break monopoly, that motive is good as useless. For example, in Aba where the multi-billion Geometric Power Project could have provided a better and strong alternative, the project was highly sabotaged in a manner which strongly is not devoid of politics. Were Geometric allowed to come on stream, residents of Aba, the Small and Medium Enterprises-hub would have been rescued from the terrible claws of the Enugu Electricity Distribution Company, EEDC, which holds sway in the South-east.

    The activities of EEDC in Aba are both despicable and exploitative. It is highly inimical to commercial and artisanship spirits of the town. The attitude of the field workers of the establishment- who are arguably permanent staff- is irritating. They are impunity epitomized: disconnecting consumers at will even when there are clear evidences of payment of bills; failure to issue disconnection notices; indiscriminate re-connection charges without issuance of receipts as evidence of payment. These field workers are lords unto themselves and you dare not question their authority.

    The billing system is nothing to write home about. They implement what is called “estimated or crazing billing system” and the irony is that consumers may go some months without electricity but are duty-bound to pay bills. It is a common knowledge that the payment for products is to derive utility, which is the satisfaction derived from consuming a product. For EEDC, “utility” is a “strange concept”.

    The rural communities are not spared in this madness. They are under what is called “the bulk billing system” which runs upwards of N600, 000 .00 per month. More worrisome is the fact that these rural communities are peopled by predominantly peasant farmers whose means of livelihood are inadequate to sustain them. The situation has forced communities and individuals to drag EEDC to court. But this option is as well frustrating because of the delay associated with our judicial system. Some communities that do not consider legal actions as viable options have resorted to self- help by physically manhandling EEDC staff.

    EEDC is urged to rejig their activities in Aba as not to constitute a clog in the wheel of progress of the city as an SME hub of the nation.

     

    • Okechukwu Keshi Ukegbu,

    Aba, Abia State.

  • CPC alerts consumers new unregistered products

    CPC alerts consumers new unregistered products

    The Consumer Protection Council (CPC) has warned consumers to be wary of some new and unregistered products being introduced into the markets, saying many of such products are injurious to health.

    CPC’s South-West Zonal Coordinator Garuba Ahmad gave the warning in Osogbo, the Osun State capital, during the week.

    Ahmad said many unscrupulous persons, who were desperate to make money, were flooding the markets with adulterated and injurious new products.

    He, however, said the CPC had the duty to carry out market surveillance, from time to time, to check the introduction of such fake products into markets.

    Ahmad said fake products such as food and beverages worth N56 million were seized in the zone in 2016.

    He said many sachet water factories were also sealed off in the zone for failing to meet the required standards.

    “We ensure quality of products in the markets and also prevent circulation of fake and injurious products,” Ahmad said.

    He appealed to consumers to always check for National Agency for Food, Drug Administration and Control (NAFDAC) approved number, address of manufacturers as well as manufacturing and expiry date of new products before buying them.

    Ahmad also said the council received 128 complaints from consumers of which 110 were resolved.

  • NERC seeks fair tariffs for consumers

    NERC seeks fair tariffs for consumers

    The Nigerian Electricity Regulatory Commission (NERC) has affirmed the commitment to tariffs that will ensure a self-sustaining power sector.
    This was contained in a communique issued after the 14th monthly meeting of the Minister of Power, Works and Housing, Mr Babatunde Raji Fashola with operators of the power sector at the National Control Centre, Osogbo, Osun State capital.
    According to the communique, the NERC has put structure in place to apply sanctions where appropriate to ensure that operators comply with the rules.
    The commission charged electricity consumers to play their role in the success of the power sector through prompt payment of their bills, put an end to vandalism of power assets and stop assaults of electricity workers who seek to read or install meters.
    According to the communique, the Federal Government has commenced payment of an initial tranche of N374,551,000 to Abuja Electricity Distribution Company for outstanding MDA debts.
    The communique also stressed that confirmation from Independent System Operator (ISO) ýthat the intention of Paras Energy (a private generating company) to sell 60MW internationally will not jeopardise the power purchased by the Nigerian Bulk Electricity Trader (NBET) for use in the domestic market.
    The electricity operators also acknowledged the importance of the Power Sector Recovery Plan as critical to ensuring accountability for losses, improving customer services, customer accessibility, safety and performance in the sector.

  • What rights have consumers?

    What rights have consumers?

    Today is not your usual Sunday, but Easter Sunday. Happy Easter to all our readers and as we dine and wine, may we not forget the message of Easter, which is Jesus Christ reconciling we sinners to God through his death on the cross. May we enjoy the benefits of that sacrifice on the cross.

    Now to the main topic of today, which is ‘What rights have Nigerian consumers’?

    Mrs. Ronny Ajumobi bought a micro wave oven from Balogun Market, Lagos Island. On getting home, she realised that the micro wave oven was faulty as it was not working at all. She had paid N30,000 for the electrical equipment.

    Exasperated, she took the micro wave oven back to the seller. The seller, as expected, said it was not his fault but that of the manufacturer in which case Ajumobi would have to wait until he contact the manufacturer. Offering her another option, he asked her to bring money so he could repair the supposedly brand new equipment she bought from him.

    Disappointed and feeling there was no other way out, Ajumobi obliged and paid N2,000 for the repairs.

    One week later, she collected the micro wave oven back, but it was not performing efficiently. She then asked the seller to refund her the full money she paid for the equipment or exchange it with another brand, but the man vehemently refused, alleging that the kitchen equipment spoilt because the woman handled it carelessly.

    If you are Ajumobi, what will you do? Theoretically, it is said that a customer is the king of the market. Though in most developed countries that is the case while in Nigeria and some other countries it is not so. Customers are still treated anyhow and taken for granted. Our rights are trampled upon and the heart breaking part of it is that the majority of the consumers do nothing about it other than saying, “I leave it to God.”

    However, some people may not really be blamed. An uninformed consumer cannot effectively insist on her rights and seek redress.

    Consumers had little protection in the world market place before the 1950s but on March 15th. 1962, the then American President, John F. Kennedy, introduced the ‘Consumer Bill of Right’ to help consumers understand their rights and responsibilities. Hence, the celebration of World Consumer Rights Day, every March 15th.

    The guidelines of that Consumer Bill of Rights form the internationally agreed laws necessary for consumer protection, of good practice in their implementation and of other actions needed to promote consumer rights.

    As a consumer, you have the following rights and you must insist on them. First and foremost, you have the basic rights which guarantee survival, adequate food, clothing, shelter, health care, education and healthy environment.

    Now going further, as an everyday consumer who transacts business with people, interacts with people and lives in a community, there are certain rights which accrue to you and which you must not ignore.

    The right to information: You have the right to be protected against dishonest or misleading advertising and labelling and the right to be given the facts and information needed to make an informed choice.

    Do not buy any products without a label or name and address of the manufacturer. If they are hiding their identity, they are likely to be fakes.

    Many of us have made the mistakes of signing papers and documents without actually reading and understanding the contents. It is important to read and understand all provisions in documents, like warranties and guarantees before appending our signatures.

    The right to choose: I have been to a shop where I was asked not to touch anything before paying. I was asked to use only my eyes. I rebuffed them. Consumers have the right to carefully compare one product with another so as to determine which one will serve them better.

    Be wary of special offers like, ‘buy one get one free’ or ‘buy two take one free’ or ‘buy three for the price of two’. Compare them with the regular priced items to be sure that you are not paying for the said free items.

    Also check to see the expiry date if the price being offered is far cheaper than the original price.

    Safety: As consumers, we have the right to be protected against the marketing of goods or the provision of services that are hazardous to health and life.

    Apart from what the government is doing in this area, as a consumer, to protect yourself, especially if you have sensitivity to a certain ingredient, it will be very beneficial to read all labels and product circulars before using a certain product.

    If you are in a store and have doubts about a product’s effectiveness, ask for a person in store who knows how the product works and how to operate it.

    The right to representation: Consumers have the right to express their interest in the making and execution of government policies. Usually, different consumer groups depending on what the issues are represent the larger bodies in government policies. Be aware of how the consumer laws and regulations are being implemented in your locality.

    Right to redress: Every consumer has the right to redress, which is the right to be compensated for misrepresentation, shoddy goods or unsatisfactory issues. But rather than pursue that right when the need arises, we attribute it to ‘the will of God’ or ‘I leave it for God to judge’.

    After reading this piece, change your attitude and pursue your right. If you buy a defective product, go back to the store and request for a replacement, refund, or to have the defective item repaired.

    If the manager ignores your complaints, proceed to the agency that has jurisdiction over your case, like the Consumer Protection Council, the Standard Organisation of Nigeria (SON), the National Agency for Food and Drug Administration and Control (NAFDAC) or contact Consumer watch or any media house.

    Bring the necessary documents, like complaint letter and your receipt, and other documents you deem are vital for the mediation. Also, make sure you attend the mediation conference yourself.

    To be continued.

  • Consumers fault FG’s ban on tomato importation

    Consumers fault FG’s ban on tomato importation

    Majority of consumers are reacting cynically to federal government’s pronouncement on the importation of tomato paste, powder or concentrate, and the increased tariff on importation of tomato concentrate from five to 50 per cent.
    Their reactions stem mostly from the fact that, according to the Federal Ministry of Agriculture and Rural Development (FMARD), Nigeria’s domestic demand for tomato is 2.3 million tonnes annually while only 1.8 million tonnes is produced.
    The shortfall of 500,000 tonnes is made up of imported tomato paste, powder and concentrate.
    Another reason for consumers skepticism towards the latest government pronouncement on tomato, arises from what they term ‘the failure of such past government policies’ with many citing the recent ban on the importation of rice, frozen poultry in order to revive local rice, poultry farming but which only resulted in the hike of the prices of the products concerned.
    According to a research by the Agricultural Economics Department of the University of Ibadan, Oyo State, tomato constitutes 18per cent of all vegetables consumed by Nigeria’s 180 million populace.
    The federal government, had through the Ministry of Industry, Trade and Investment, banned the importation of tomato paste, powder or concentrate, and increased the tariff on importation of tomato concentrate among others from five to 50 per cent in order to revive the tomato sector.
    According to operators, the value of imported tomato paste in Nigeria is about $170 million and $50 million spent on triple tomato concentrate.
    The Federal Ministry of Industry and Trade and Investment in a document titled ‘Implementation of the tomato sector policy’, which was signed by the Director, Industry Development of the ministry, Mr. Adewale Bakare, stated that such action would revive the sector, create jobs and preserve foreign exchange.
    He said, “Government has overtime engaged tomato industry stakeholders on ways to deepen the industry and particularly, encourage the use of locally produced tomato fruits across the value chain. It is in that regard that I am directed to bring to your notice the decision of the government towards boosting production and attracting investments into the tomato sector.
    “These include ‘classification of greenhouse equipment as agricultural equipment to attract zero per cent import duty. Ban on the importation of tomato paste, powder or concentrate put up for retailing and others. Ban on tomato prepared or preserved by vinegar or acetic acid and others.
    “Increase in the tariff on the tomato concentrate and other concentrates (HS Code 2002.90.11.000) from five percent to 50 percent and additional levy of $1,500 per metric tons with the objective of increasing the current tariff from five percent to 50 percent (35percent +5 percent+10 percent) and an additional levy of US$1,500 metric ton.
    ”Banning is a good move but has the government made provisions on ground to meet local demand of tomato? Very soon there will be scarcity of tomato in the market,” regretted Mrs. Doga Odusile, a trader at Iddo Market, Lagos.
    Noting that there are few tomato factories in Nigeria, another trader at the market, Alhaji Idris Garuba, asked: “How many tomato factories do we have in Nigeria? Do we even have competent regulatory agencies to check mate the operations of those factories?”
    “That is always the problem of Nigeria. We make policies without thinking deeply of the shortcoming. Those producing locally cannot satisfy the demands of the entire populace and we all know what the law of demand and supply says,” said a staff of Manufacturers Association of Nigeria [MAN] who craved anonymity.
    In the words of Mrs. Grace Akintunde, a civil servant with Lagos State: “I tell you, people will still find a way to pay the tariff and then transfer the exorbitant prices on final consumers. This will further compound the already worsening condition of average Nigerians. God should just please have mercy on us.”
    “This is exactly what happened when government through the former NAFDAC chairman, Dr. Paul Orhii, decided to enforce the ban on the importation of poultry. While the importers and most government officials detailed to enforce the ban got richer, the price of poultry skyrocketed (both imported and local poultry) putting more pressure on the masses. Eventually what happened? Has the policy not failed? Is frozen poultry not on display everywhere?” lamented Dr. Afam Okechukwu.
    “As usual, another okay policy that would not work due to lack of infrastructure,” regretted Engineer Ibe. Speaking further, he noted that the policy will bring about a 100 per cent rise in the cost of imported tomato paste while there will not be a significant decrease in the importation.”
    Also while labour union officials in some of the local tomato canning companies are calling on the government to be given the latitude to plan for backward integration, most of the producers who plant tomato and can manufacture paste locally are lauding government’s decision on the ban.
    The President, National Union of Food, Beverage and Tobacco Employees, Lateef Oyelekan, had earlier stated in a press communique that local tomato companies should be given the latitude to plan for backward integration.
    According to him, the quantity of fresh tomato being cultivated currently in the country is not enough for local consumption and the quality is not good enough to be processed into paste.
    Oyelekan pointed out that “it would take years for the planting, harvesting and processing of the produce into concentrate.”
    Disagreeing with the stand of the Tomato Labour Union, Chief Eric Umeofia, the Chief Executive Officer of Erisco Foods Ltd, manufacturer of Ric-Giko tomato paste, countered that Nigeria has the capacity to grow and produce enough tomato paste for local consumption and even for exportation.
    Making references to his tomato plant, he said, “the plant has the capacity to meet our tomato paste local needs, hence there is no need for the importation of tomato paste or concentrate anymore. We have to increase our investments in order to meet the Nigeria export needs.”
    He averred that “full local of production of tomato paste in Nigeria will not only create millions of jobs, it will also save us an enormous amount of foreign exchange.”
    Also, Alhaji Abdulkarim Kaita, the Managing Director of Dangote Tomato Processing Company, Kadawa, Kano State, commended the federal government for banning the importation of tomato paste into the country.

  • “33” thrills consumers with friendship parties

    “33” thrills consumers with friendship parties

    Popular beer brand, “33” Export, has unveiled its Export Friendship Experience Parties, a run of experiential events meant to celebrate memorable moments made special through friendships.

    The event will host friends in popular bars and clubs across Nigeria, and reward consumers with memorable experiences in honour of the bonds they share.

    The series of events commenced on Friday March 10, 2017 in Lagos and Ibadan. They were hosted by popular comedians, DJs and a host of others who thrilled consumers with music, games and other engaging activities.

    Sharing his experience from the event held in Crystal Sapphire, Satellite Town, Lagos, Uzoma Thompson, who attended the party with colleagues said: “Spending time with friends over a few bottles of beer is not merely about drinking; it’s almost the only time we have to reflect on everything we have done together or achieved, even after work or weekends.

    “The event is a wonderful way for people to relate better and celebrate, especially when there is good music and comedy.”

    Speaking at the event held in Joybam Guest House and Bar, Ibadan, the Portfolio Manager, Mainstream and Stout, Nigerian Breweries Plc, Emmanuel Agu, reiterated the role of the brand in facilitating these memorable moments stating that “over the years,”33″ Export Lager Beer has become a brand that creates long lasting memories and experiences for our consumers”.

    He continued by saying that “the success of the “33” Export Friendship Experience Parties is built on the opportunity it provides friends from all works of life to connect and share friendship experience, so that no matter where they are, “33” Export Lager Beer will be found wherever their friendship leads.”

  • Power privatisation: Consumers renew push for review

    Power privatisation: Consumers renew push for review

    More than three years after the privatisation of the power sector, consumers are yet to enjoy improved electricity supply. This has prompted renewed calls for  the review of the exercise. Will the government bow to pressure and reverse the deal? Assistant Editor CHIKODI OKEREOCHA looks at the lingering crisis in the power sector, which appears to have put  the government and private investors on the spot.

    The Federal Government appears overwhelmed by the crisis in the power sector. The Minister of Power, Works and Housing, Babatunde Fashola, personifiedthe government’s seeming helplessness when in last November, he said the privatisation of the power sector was not up for review.

    This followed persistent calls by aggrieved consumers for a review of the sector’s privatisation, which, according to them, was not only flawed, but has evidently failed to yield the desired result more than three years after.

    However, beyond harping on the need to open up opportunities for more investment in electricity Generation and Distribution Companies (GenCos) and (DisCos), the minister’s clarification failed to provide a clear roadmap on how to turn things around.

    Fashola, who spoke at the Fifth European Union (EU)-Nigeria Business Forum  in Lagos, with the theme: “Harnessing Nigeria’s potential for economic growth”, insisted that his ministry would remain committed to the terms of power generation and distribution contracts it inherited.

    “If revisiting the agreement means cancelling it, I won’t support. The investors who took the risk must have the assurance that government will not flip-flop. A contract that fails has consequences not only for the investors, but on both sides. This government will respect and uphold the contracts it has committed to and inherited. If there are issues with the contracts, the umpire is the judiciary,” the Minister said.

    Although Fashola’s position that a review or reversal of the privatisation was not on the table may have been prompted by fears that a reversal would scare foreign investors, aggrieved consumers and other critical stakeholders have refused to be swayed. They have continued to mount pressure for a review, insisting that Nigerians have been short-changed by the investors.

    To bring about efficient service delivery, the Federal Government in November 2013 unbundled the defunct state-owned Power Holding Company of Nigeria (PHCN) into 18 successor companies and subsequently handed them over to private investors.

    The Bureau of Public Enterprises (BPE), which midwifed the process, projected that the private investors who bought 60 per cent shares in the power assets would increase electricity generation capacity to 20,000 megawatts by 2018.

    It was envisaged that the sales would reduce the losses of Aggregate Technical, Commercial and Collection (ATC&C) caused by poor maintenance of the network and poor revenue generation.

    This was why the 11 DisCos in a Service Level Agreement (SLA) with the BPE agreed to reduce losses significantly within five years. They also promised to roll out meters to ensure that customers are no longer exploited under the estimated billing methodology.

    On their part,the GenCos said they wouldl turn around the three hydro power plants and other gas-fired plants and expand their capacity to generate more power supply above 5, 000 megawatts (mw).

    The Nigerian Electricity Regulatory Commission (NERC), the electricity industry regulator, rolled out the interim rules and other electricity market code to guide the private operators in doing business as well as setting Key Performance Indicators (KPI) for the investors.

    But none of these has happened more than three years after. Rather than enjoy a significant improvement in electricity supply, Nigeria’s electricity generation capacity has worsened in recent years, setting the authorities and the investors on the war path with angry consumers.

    For instance, the immediate past president of National Union of Textile Garment and Tailoring Workers of Nigeria, Comrade Oladele Hunsu, observed that while Nigeria was generating more than 4,000 megawatts (Mw) of electricity before privatisation in 2013, electricity generation capacity is currently wobbling between 2,000Mw and 3,500 Mw.

    He lamented that several electricity consumers were yet to be metered years after the privatisation, adding that this underscored the abysmal performance of the sector.

    While describing the private investors’ failure to meter all consumers as illegal, he accused the NERC of failing to properly regulate the industry.

    Hunsu, therefore, advised President Muhammadu Buhari to review the privatisation, noting that only a transparent review to unmask those who bought the PHCN’s unbundled assets and their capacities would resolve the crisis in the sector. “We need to investigate how those DisCos and GenCos were sold and who bought them,” he insisted.

    The unionist said reviewing the process would not only save Nigerians the agony of paying for darkness, but also incentivise the real sector, which comprises manufacturing and agriculture. According to him, real sector operators bear the brunt of inadequate electricity supply, which has continued to stunt the growth of the nation’s Gross Domestic Product (GDP).

    However, the alleged failure of the exercise to set the stage for a major transformation of the sector to guarantee uninterrupted electricity supply to the manufacturing sector and Nigerians in general is not the only knotty issue prompting Hunsu’s call for a review.

    He expressed surprise that despite the investors’ obvious failure to turn things around, thegovernment is still determined to continue dolling out public funds to the investors as soft loans or bailouts to enable them run supposedly privatised entities.

    Peeved by such largesse, members of the  Senior Staff Association of Electricity and Allied Companies (SSAEAC) urged the Federal Government to shelve its plan to issue a N309 billion bond to finance the power sector.

    “Issuance of bond will amount to spoon-feeding the operators for their inefficiency. The bond will be at a cost to Nigerians, as the risk of default will affect the government sovereign guarantee and lead to energy crisis in future,’’ its President Chris Okonkwo said.

     

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    Speaking to reporters in Lagos, last week, Okonkwo asked the government to assess the investors’ performance in the past three years in relation to the terms and conditions of the privatisation exercise that handed over the power assets to them.

    He emphasised that the anticipated efficiency in service delivery from the private power firms by Nigerians has been met with deception and failed promises, pointing out, for instance, that the investors have failed to provide prepaid meters to consumers within 18 months as agreed.

    Okwonkwo described as sad a situation where consumers were not metered, even as tariffs had been increased twice since 2013. “The government should come in, apply the terms and conditions of the sale and see if we can correct the mistake,” he said.

    He also said the power distribution companies have displayed inefficiency in revenue collection with 30 per cent collection rate as against 60 per cent that the sector recorded before the privatisation.

    The SSAEAC chief said the financial and technical inefficiencies of the power firms were evident in the shortfall of funds they were reporting despite enjoying series of interventions from the government.

    He said the Federal Government through the Central Bank of Nigeria (CBN) prepared a bail-out of N2013 billion as part of the Nigeria Electricity Sector Intervention last March , but the shortfall in revenue collections had continued to escalate.

    “We think it is time to re-appraise the content of the agreement that handed over PHCN to the private sector and its implementation. It is time to hold those who bought the power sector down for what they had signed that they will do. We want to know if they are doing well or not,” Okonkwo said, insisting that if the private sector could not manage the sector, the government should take it over.

    Why power crisis remains

    There have been several reasons adduced for the perennial crisis in the power sector. From alleged investors’ lack of technical know-how and financial capacity to run the sector efficiently to the challenge of gas supply caused by vandals and consumers’ reluctance to pay their electricity bills, the sector is indeed, gasping for breath.

    For instance, The Nation learnt that apart from the investment Federal Government made in the sector prior to the privatisation, the investors have not made significant investment in the growth and development of the power sector particularly in smart metering technology, upgrade of their networks and other power infrastructure.

    According to a reliable industry source, the dearth of investment contributed to the incessant power outages and the regime of estimated bills that has pitched consumers against the power firms.

    The source, which declined to be mentioned, said that because of paucity of funds, DisCos refuse to take their total power allocation from the market operator (MO), preferring to take little, which they serve industries and commercial entities considered as paying customers. This arrangement, however, leaves most residential areas across the country in darkness.

    The activities of vandals who compromise gas pipelines have also been identified as another challenge. Vice President Yemi Osinbajo admitted this much when he recently said  getting gas to the power plants remained one of the major hurdles before the administration’s commitment to stabilise power supply.

    Indeed, the gas sub-sector, The Nation learnt, produces the raw material for production of electricity. But because the sub-sector has not been privatised, the supply of gas to GenCos and by extension, the supply of power by DisCos remains a pain in the neck. But the activities of vandals are said to have compounded the problem.

    The situation is said to have put the DisCos under severe pressure by electricity consumers since they (DisCos) can hardly wheel power to them as they can only give what they get from the GenCos and transmission value chain.

    Osinbajo said while the privatisation process had taken place for power generation and distribution, transmission was still in the hands of the government, managed by Canadian firm Manitoba.

     

    Huge debt as an issue

    In fairness to DisCos, many Nigerians do not pay for electricity consumed. The Association of Nigerian Electricity Distributors (ANED) recently said DisCos revenue shortfall in Nigeria has hit over N300 billion. It, therefore, urged all power consumers, including government agencies to pay up their debts.

    The association’s Executive Director, Sunday Oduntan, said that the revenue shortfalls adversely impacted on the ability of its members to make capital investment in metering, network expansion, equipment rehabilitation and replacement that are critical for service delivery improvement.

    “This is a cash liquidity crisis that threatens to completely undermine the electricity value chain and its ability to continue to serve its consumers,” Oduntan said.

    Service providers also complain of energy theft. For instance, a Director in Eko Electricity Distribution Company (EKEDC), George Etomi, a lawyer, said energy theft by all categories of consumers was the greatest threat to private investors and the reform in the power sector.

    However, it remains to be seen how the government intends to handle these issues. But one thismg is sure: unless there is improved electricity supply, the hope of salvaging the economy from the grip of recession may not be achieved.

  • Consumers opt for coal pot to cook

    Consumers opt for coal pot to cook

    As the price of Dual Purpose Kerosene[DPK], known as kerosene, and cooking gas continues to escalate, a majority of households have turned to coal pots, which are far cheaper and readily available.

    Investigations carried out by The Nation revealed that not only that the price of kerosene and cooking gas has escalated by about 30%, while cooking gas can be sourced by those ready to pay the high price, kerosene which is used by over 30million households in Nigeria has become scarce.

    As at the time of filling this report, a 12.5kg of cooking gas sells for N4,200 as against N3,000 while a litre of DPK which used to cost N200 is now about N400.

    As an alternative to DPK which majority of consumers depend on, consumers, even hoteliers, have resorted to coal pots. Coal pots which come in various sizes, consist of the metal pot and charcoal. The small sizes sell as low as N400, while the medium size sells for about N700 with the very big ones used by caterers sell for N1,200, and N1,600.

    Findings by The Nation revealed that charcoal which is used to fill the coal pot even sells as low as NI00 per bag while the very big bag that can last an average family for six months or even more sells for between N3,000 and N3,500, depending on the market.

    Speaking with an excited Mrs. BeatriceOnowu, who sells charcoal and coal pots at Oyingbo Market, Yaba, she said, “We thank God because business has really picked up for those of us in this business. More people are ordering our goods. Unlike before, now I finish selling two bags of charcoal in a day.”

    Mrs. Onowu who was visibly elated said that she depends on her business for taking care of her family since she lost her husband five years ago.

    Who are her major customers?the reporter probed. Pausing briefly, she revealed that caterers patronise her the most but “more families are now using coal pots because of the high cost of kerosene.”

    The Reporter further requested to know the down sides of using coal pot. But Mrs.Onowu who was eager to sell her products said there were no down sides as coal pots burn more than kerosene and gas. Pointing out the advantages, she noted that while kerosene stove emits black smoke while burning thereby staining the pot, coal pots does not emit any smoke.

    “If you already have a coal pot, with charcoal of just N100, one can cook for the whole family for up to three days. But kerosene of that amount will not go far while cooking gas of that amount does not even exist.”

    DPK hit an all-time high price of N400 per litre, worsening the pains of over 30 million households who depend on the product for cooking. In its place, millions of poor Nigerians, who use it for their stoves, lanterns, and other purposes, are now seeking alternatives to the very important and most commonly used petroleum product.

    They have now resorted to the use of charcoal, firewood to make fire to cook for their homes. More fortunate Nigerians use gas cookers, even though the price of gas has also been on the rise. The scarcity hit major cities across the country, with most retail outlets in Enugu,Abuja , Lagos, Ogun, Oyo, Osun,,Akwa Ibom, Kano, Kaduna and Abia states going out of stock.

    The Nigerian Petroleum Corporation, NNPC, blamed oil marketers in the country for the excruciating scarcity of DPK and cooking gas and the high price of the commodities across the country.

    Analysts have said that though it was normal during the Yuletide period, the price of the commodity normally goes up a bit because of high demand, they noted that the recent sharp rise from N3,000 to N4,000-N4,500  which has lingered was abnormal.

    Investigations revealed that most of the retailers were depending on the black marketers and middle men for kerosene and, of course, this adds to the cost.

    The Group General Manager, Group Public Affairs Department of the NNPC, Mr. NduUghamadu, said the oil marketers were responsible for the scarcity and the hike in the prices of the commodities.

    He denied that the scarcity was a ploy by the NNPC to push for an increase in the prices of kerosene, cooking gas, petrol or any other petroleum product.

    Speaking further, Ughamadu noted that NNPC had been consistent in bringing petroleum products into the country, but its efforts were not being complemented by the marketers, who, he said, had refused to bring in products.

    He pointed out that the LPG market was fully deregulated and though the NNPC was trying in this regard, it could not compel the marketers to bring in the product, especially as it was not a regulator.

    DPK has been deregulated and a majority of marketers, who hitherto reduced importation of the product, this newspaper gathered, have now halted importation due to difficulty in accessing foreign exchange.”The shutdown of refineries that produce DPK, through which the market is augmented, is another major problem,” a marketer noted

    “The Pipelines and Products Marketing Company (PPMC ) is now the major importer of the product and except the majors, most of the independent marketers, if not all, depend on loading from PPMC ’s depots. And this explains reasons for the scarcity,” he added.

    “The price of cooking gas which also skyrocketed, making it unaffordable to some middle income earners, some of whom have reverted to kerosene as a cheaper source of energy has also increased the pressure on kerosene and contributed to its scarcity , because it contributes to the high demand for the scarce product with limited supply, “ the marketer said.

    A factional secretary of the Independent Petroleum Marketers Association of Nigerian (IPMAN), AlhajiDanladiPasali, said that the product is in high demand. Pasali said that some industries use kerosene for one thing or the other in the process of manufacturing their products.

    In Kano, residents have dumped the use of kerosene for charcoal and firewood following the rising cost. The product now sells at N1,200 a gallon from just N500. Mrs. Kemi Oladifo, who is a resident of Tudunmurtala, a locality of Nassarawa Local Government in Kano, regretted that she used to buy like two gallons and sell to neighbours, until the price rose to over N1000, forcing her out of business.

    She said that most of those that used to purchase from her have now dumped kerosene for charcoal and firewood because they cannot afford N200 for a bottle. A beer bottle of kerosene now sells for between N160 and N200 in Oyo State.

  • Soaring commodity prices unsettle consumers

    A market survey conducted by The Nation has revealed that prices of commodities have been rising in most markets, causing enormous worry for many residents in Federal Capital Territory (FCT), especially low-income earners.

    A visit to Wuse and Utako markets in Abuja revealed that there has been a presistent increase in the prices of basic household commodities such as rice, beans, beverages, wheat, yam, red oil, garri and groundnut oil, among others.

    The reason for this increase in the price of commodities has  been ascribed to the ever rising exchange rate and high cost of transportation, among other factors.

    A trader at Wuse market told our correspondent that the increase in the prices of food itmes is as a result of the cost of transportation, adding that there has been low patronage following the price increase.

    He said that he makes little or no profit from some of his goods in order to keep the customers coming.

    Some of the items that have witnessed a sharp increase in prices include rice which was formerly sold for N10,500 a bag, now going for N18,000 or N19,000 depending on the brand, while a measure of beans formerly sold for N350 is now sold for N550 and above,  and a keg of 10 litres groundnut oil has soared from N4500  to N8,000 and above depending on the brand.

    Speaking on the development, a mother of two recalled her experience at the market. She disclosed that a sachet of milk she had been buying for N1,400 is now sold for N1,800.

    She said,  ”The price of  everything generally is now very expensive. It is not easy at all, if not that I come to the market myself I would have thought my househelp has been lying about most of the prices of these items, it’s really unbelievable.”

    Hussan Ibrahim who sells smoked fish disclosed that there has been no price increase in his product,  there has been low patronage, “fish dey cheap now, but dem no they buy well, na only dry fish no add money. Na as we dey buy before we still dey buy now we no add anything but garri, yam, rice, everything don cost.”

    He added that people complain of not having enough money to buy major foodstuff let alone buying dry fish.

    Hajia Memunat who often visits Utako Market said that due to the price rise, her budget can no longer cover the quantity of food she used to buy, and this has reduced her purchasing power.

    Some of the traders said that the price increase can be better explained by the manufaturers as it starts from them.

  • ‘24 % of consumers ignore brands online’

    Nigerian consumers are turning their back on branded content as 24 per cent ‘actively ignore’ social posts or adverts from brands, a report by a global research consultancy, Kantar TNS, has revealed.

    The report said brands  struggle to get people to engage them as many consumers feel bombarded by local brands on social platforms, with 34 per cent of them saying they feel ‘constantly followed’ by online adverts.

    In the report, which covered over 70,000 consumers, there is a global scepticism on purchasing brands online, with 57 per cent of respondents from Scandinavian countries (the highest), such as Sweden and Denmark, recorded, adding that they ignore content from brands.

    At the other end of the scale, 15 per cent of those in Saudi Arabia and 19 per cent of Brazilians avoid branded content.

    China and South Africa sit closer to the global average with 24 per cent and 26 per cent of respondents expressing cynicism.

    Meanwhile, the popularity of Instagram and Snapchat has soared in the last two years globally as people seek out real, personal and ‘in-the-moment’ content.

    Accordingly, about one out of five, representing 16 percent of Nigerian internet-users, are on Snapchat, an increase from 12 percent two years ago.

    Instagram has also seen a surge in popularity, with local use jumping to 41 per cent, up from 16 percent in 2014.

    Kantar TNS Global Director, Michael Nicholas, said: “The rise of Instagram and Snapchat taps into people’s desire for instant, entertaining content from friends, peers and influencers, often enhanced by fun filters and editing.

    “There is a real opportunity for brands to tap into this trend by creating “personalisable” and shareable content, such as videos and stories. The challenge is how to focus the right content to the right people, on the right platforms and at the right moments.

    “Some brands are getting it spot on; in the past year, we’ve seen the likes of Disney, Starbucks and McDonald’s use Snapchat’s filters to engage consumers in a way that doesn’t feel intrusive.This is key to overcoming many people’s fundamental negative perceptions of brand activity online.”

    However, the study found that influencers and celebrities hold the key to swaying people’s views of brands, especially the younger generation of Nigerians.

    Accordingly, two out of five (43 per cent) of 16 to 24 year olds said in the survey that they trusted what people say online about brands more than ‘official’ sources, such as newspapers, brands’ own websites or TV adverts.

    While young people are the biggest social media users across all platforms, the rise of the ‘Instagram’ is also gaining momentum.

    The report stated that 34 per cent of Nigerian internet users age between 55 and 65 use Instagram, a 35 per cent jump since this time last year.

    The appeal of in-the-moment photo-sharing is also growing in this group with 17 percent of those aged 55 – 65 on Snapchat, up from nine percent last year.

    The firm stated in the study that the rise in users of all ages spells opportunity for brands that can create engaging and shareable content.

    However, with 29 percent of Nigerians objecting to the idea of their online behaviour being tracked by adverts, they need to tread carefully.

    “Younger people are more influencer-oriented than ever before, trusting bloggers and peers rather than information from brands. The older generation’s ‘influencer network’is still primarily friends and family, but considering this group’s adoption of other trends, we may very soon see them going online for inspiration and information,” said Nicholas.