Tag: FDI

  • ‘More FDI ‘ll attract development’

    Country representative of Conway Incorporated, Chris Enyi, has urged the government to attract more Foreign Direct Investment (FDI) to promote economic growth and wealth creation.

    He said there must be an improved dialogue on global FDI, including exploring the conditions which attract corporate investors and proffering solution to the challenges they face.

    Enyi spoke during a briefing on the 2016 World Forum for Foreign Direct Investment to hold in April in San Diego, USA, organised by Conway.

    According to him, global corporate investors are usually attracted to where “stable, predictable and transparent investment climate are reasonably guaranteed.”

    He added: “The most effective use of FDI is to create long-term infrastructure. The two ways to fast-track FDI into countries can be through fiscal policies and free economic zones.”

    Enyi said the forum, inaugurated in 2003, provides a unique platform to network and discuss global location decisions amongst FDI deal makers.

  • How non-oil sector can drive FDI-Teriba

    How non-oil sector can drive FDI-Teriba

    As the nation grapples with the rising crisis of credit crunch, no thanks to the fall in the price of crude oil at the International market, the non-oil sectors, especially the information and communication technology (ICT) can help the economy to rebound, renowned economist, Dr. Ayo Teriba has said.

    Teriba, who sits atop at Economic Associates, an economic think tank that provides clients with the economic information required to spot new opportunities and risks in the Nigerian environment among others, spoke at a television magazine programme monitored in Lagos.

    According to him, policy makers and analysts gloss over the contribution of the non oil sector, especially the ICT sector, which he says has helped to generate millions of jobs as well to the growth of the Nigerian economy.

    While acknowledging the fact that year 2015 has been a challenging year for the Nigeria economy both from the external front because of the weakling of commodity prices especially oil price, he says the nation should look beyond oil.

    “One key issue is the fall in the oil revenue that means government has to look beyond oil and look towards non oil revenue in particular because of the very ambitious capital project the government will have to embark upon especially in infrastructure,” he said, adding: “I think that the government should accord more priority to attracting private investments particularly foreign investments into the infrastructure sectors.”

    The ICT and telecoms sector, he maintained, can help to shore up the nation’s dwindling oil receipts. “The best way to think about revenue generation is growth. If you are able to stimulate growth you can count on more revenue been generated and the best way to stimulate growth is to ensure that investment keep flowing into sectors that need them. If you have steady flow of investment that is going to lead to growth, that will lead to improved revenue for the government.”

    Expatiating, he said: “The telecoms operators have been a major source of revenue to the government and I do not think that government has previously raised any issue or conflict about their contributions to the government purse. The incident of breech of regulatory directive is an isolated development and I do not think that that should define the relationship between the government and the ICT companies.”

    Teriba who spoke against the background of the ongoing rancor between MTN Nigeria and the Nigeria Communications Commission, said: “You cannot because of an isolated event rubbish the cordial relationship that existed between these companies and the Nigerian government for over one and a half decade; we are talking 15 years.

    “In the ICT sector, we have one of Nigeria’s most successful example of liberalisation; Nigeria’s most successful example of attracting and retaining non oil investments. I hope that we would be able to replicate that success elsewhere for example in rail, housing, works, pipelines, gas distribution and others, and not make a mountain out of a mole hill.”

    The World Bank, and as a Visiting Scholar at the IMF Research Department in Washington DC, while  reviewing the 2016 budget proposal by the government, said it is laughable that Nigeria wants to borrow N2trillion, to be invested largely in capital projects.

    Raising some posers, he said: “Should Nigeria borrow money from investors at home and abroad or they should encourage the investors to come in to Nigeria to do business the way it was done in the telecom sector?”

    The bulk of the money to be borrowed, he argued, “Will be spent by the government and they are unlikely to have equivalent returns. However, a private investor will invest that money, meet the demand, solve the infrastructure bottle necks and make more profit because they take more judicious investment decisions. So, we should be happy that Nigeria can benefit from such venture.”

    “On following the global trend on attracting foreign direct investment (FDI), Teriba said: “The fastest growing economies in the world today accord a place of importance to foreign investments. For instance, India used to be protective.

    He reiterated that: “If government borrows N2trillion this year, it creates a burden of servicing the debt and the challenge of paying it back. However, if you get the same N2trillion in foreign investment, you never pay back, it’s irreversible. One of the companies that won the GSM license originally is no longer operating it. Ownership of that company has changed hands about two or three times but the operations continue. In that aspect, investment is better than you borrowing to fund capital spending.”

    “If we allow investors come in, they are not depositing their money in the bank but they are investing it irreversibly. If they want to leave, they have an option of selling their investment to another investor. But if you borrow you borrow N2trillion now, in one  or two years you have to pay back and as long as the debt is outstanding you have to pay hefty sums to service them. Whereas if you get investors they will bring in investment, they will pay you some fees and then they will be generating revenue; they will be paying us taxes, they will be generating employment and so on.”

    Most of the leading countries in the world, he observed, “give a pride of place to foreign investments. India in the first half of this year got more than $30 billion dollars from foreign investments; they came first, followed by followed by the United States and then China that also got very close to $30 billion in the first half of the year. “

    Nigeria, he stressed, “Should be trying to join countries like that. We should solicit these investments. As is it, presently, I do not see any strong appeal to investors in the budget proposals and I believe we can do better.”

  • Report rates Ministries of Finance, Health, Women Affairs low on FRI

    Environment Ministry tops with 69.36%

    The Centre for Social Justice on Wednesday unveiled the Fiscal Responsibility Index for Federal Ministries, Departments and Agencies.

    It scored the Ministries of Finance, Health and Women Affairs low on the index.

    The report which was put together by the CSJ with funding and technical support from the Open Society Initiative for West Africa and the Fiscal Responsibility Commission, studied how MDAs of government had complied with the provisions of the Fiscal Responsibility Act, the Medium Term Expenditure Framework, the national budget and the vision 2020 document.

    Besides, the index also covered sub indexes on policy based on budget comprehensiveness and transparency, budget credibility, budget implementation, monitoring and evaluation, accounting and external auditing.

    The report noted that a total of 16 MDAs were studied in the pilot survey with the Ministry of environment coming top on the index with 69.36 per cent.

    It was followed by Ministry of Lands and Housing (67.62 per cent), Works (67.49 per cent), Mines and Steel (66.86 per cent) and Agriculture (66.65 per cent).

    The report said while none of these agencies could score up to 70 per cent, they were able to cross the 66 per cent minimum threshold which is the accepted level of fiscal responsibility in MDAs.

    It said that about 11 ministries in the study scored below the 66 per cent benchmark line for fiscal responsibility.

    According to the report, the ministry of health, for instance, recorded the least score of 39.08 per cent on the index, while women affairs and finance ministries came up with 52.14 per cent and 55.59 per cent respectively.

     

     

  • Osinbajo: Why Buhari is against devaluation

    Osinbajo: Why Buhari is against devaluation

    Vice President Yemi Osinbajo on Thursday declared that devaluation of the Naira was not an appropriate option in the current economic realities in the country for the President Muhammadu Buhari’s administration.

    According to him, a further devaluation of the Nigerian currency is not healthy for the Nigerian economy.

    He spoke at the Presidential Villa, Abuja while receiving Ambassadors from Italy and Canada.

    Osinbajo, in a statement by Senior Special Assistant on Media and Publicity, Laolu Akande, said “I don’t agree on devaluation and it is not that I am doctrinaire about it. In the first place, it is not a solution-we are not exporting significantly. And the way things are, devaluation will not help the local economy.”

    “What we need to do is to start spending more on the economy and then things will ease up a bit,” he added.

    He said that the issues around the economy are no exact sciences and that what is important is to be reasonably flexible in dealing with them.

    He outlined federal government’s plans to set-up a $25B Infrastructural Fund which would be sourced from local and international sources including through Nigeria’s Sovereign Wealth Fund and the pension fund among others.

    The Vice President disclosed that already other sovereign wealth funds have indicated interest in the fund which would be used to address the nation’s decaying road, rail and power infrastructures.

    He said; “this is our approach to speeding up the country’s infrastructural development.”

    Prof. Osinbajo restated that the current foreign exchange restriction is a temporary measure to ensure that foreign exchange is not depleted substantially at a time when the price of oil in the international market is dropping.

    He said that the restriction is also to bring some stability to the country’s foreign reserves without which Foreign Direct Investment (FDI) might be affected.

    According to him, FDI is more forward looking than portfolio investment which is being affected by the decision to manage the foreign exchange resources of the country at this time.

    “I am not sure devaluation is the issue, but how to ensure foreign direct investment which is more useful,” the Vice President noted adding that he expects a bit more stability and direction in the next few months.

    He disclosed that the federal government would work with the Central Bank of Nigeria to ensure that legitimate businesses are not badly impacted by the current foreign exchange restrictions, especially those who have previous contracts and loan commitments.

    The Vice President received the Italian Ambassador in Nigeria, Mr. Fulvio Rustico and the Canadian High Commisioner in Nigeria Mr. Perry John Calderwood.

    He expressed the appreciation of the federal government to the two envoys on behalf of President Muhammadu Buhari and also looked forward to closer and deeper ties between Nigeria and the two countries.

    A delegation of top executives from Citigroup led by Mr. Jim Cowles also paid a courtesy call on the Vice President earlier Thursday.

  • NACC targets FDI in key sectors of economy

    NACC targets FDI in key sectors of economy

    The Nigerian-American Chamber of Commerce (NACC) is working on attracting Foreign Direct Investment (FDI) to the country through the key sectors of the economy like agriculture, healthcare, and construction, among others.

    The group wants to achieve this by improving bilateral trade and relations between Nigerian business interests and companies based in the United States of America (USA) in these key sectors of the economy.

    As part of activities lined up for the 2015 edition of its biennial US Trade Mission, NACC will also for the first time organise an Award/Gala Night in Atlanta, USA.

    Speaking at a press conference announcing the 2015 trade mission, the National President of the NACC, Olabintan Famutimi, said that aside providing members with opportunities of connecting with potential American partners, this year’s trade mission will also target Nigerians resident in the USA, with a view to getting them to invest in Nigeria.

    “What we have found out is that there are lots of Nigerians in Diaspora that have thriving businesses in the USA. A lot of them want to set up businesses in Nigeria, but they don’t know how to go about it, probably because of the negative publicity about our country. So anywhere we identify as having a high concentration of Nigerians who are now American nationals, we intend to educate and provide them with the necessary information they need to invest here,” he said.

  • FDI not under threat – Okonjo-Iweala

    The Minister of Finance, Dr Ngozi Okonjo Iweala, has said the Foreign Direct Investment in the real sector of the economy estimated at about 20 billion dollars is not under threat due to the fall in the price of crude oil and the devaluation of the naira.

    She, however, admitted that the falling oil price and naira devaluation had impacted negatively on the performances of the stock market in recent times.

    The minister spoke as Guest of the Nigeria Television Authority Live Programme – Good Morning Nigeria, monitored in Abuja on Thursday

    Okonjo-Iweala said foreign investors are still pursuing their investment programmes in the country with enthursiasm, citing Nestle Nigeria Plc’s 150 million euros investment in the economy and the plan by General Electronics to build one billion dollars plant in Calabar as examples.

    She also stressed the importance of Direct Domestic Investment to the nation’s economy, saying the performances of Dangote Group of Companies, Honey Well Nigeria Plc, Flour Mills of Nigeria Plc and investors such as Sir Authur Eze have been very encouraging.

    The minister dismissed the misconceptions about the management of the Sovereign Wealth Fund, saying it was unfortunate that the state governments did not key into the SWF idea on time.

  • ‘$68.1b fresh FDI coming from free zones’

    ‘$68.1b fresh FDI coming from free zones’

    The Federal Government is targeting about $68.1billion fresh Foreign Direct Investment (FDI) from eight newly licensed free zones, the Nigeria Export Processing Zones Authority (NEPZA), has said.

    NEPZA Managing Director, Gbenga Kuye,  said the enhanced efficiency of the agency, in line with the Transformation Agenda of President Goodluck Jonathan, had helped to fast-track approvals for zones, based on the new checklist and methodology put in place for assessing requests.

    Kuye who spoke in Abuja yesterday, said the investments attracted already, and the incoming ones that had been sealed, provide a solid foundation for a stronger economy and greatly improved the standard of living of Nigerians, adding that the current administration should be commended for the feat.

    He said: “Based on the new checklist and methodology put in place for assessing Free Zone requests, the President approved the following: Centenary City Free Zone (Business and Tourism Destination), with expected investment of about $18billion; Ogogoro Industrial Park, Lagos (oil and gas activities) $160million; and the Nigeria International Commerce City, Lagos, (formerly Eko Atlantic City) $38billion.

    “Others are  Badagry Creek Industrial Park, Lagos-$1.3billion; Nigeria Aviation Handling Company (NAHCO) Free Zone-$25.5million; Dangote Refinery/ Petrochemical Park-$9billion; Lekki Deep Sea Port (under Lagos Free Trade Zone)-$1.4billion; and Samsung Heavy Industries and Mega Construction Integrated FZE (under LADOL Free Zone)-$300million.

    “The Authority is currently at advanced stages for the approval of the proposed Kogi Industrial Park. We are also  consulting with the Cross Rivers State government on the establishment of an Automotive Industrial Cluster in the state.

    “This is sequel to a bilateral relation agreement between Nigeria and Japan, in which Japan has proposed to help develop an auto industrial cluster in Calabar. This is being done in conjunction with the National Automotive Council. Consultations are also ongoing for the revamping of the Idu Industrial Area located in Abuja.”

  • ‘Why Nigeria needs national carrier’

    ‘Why Nigeria needs national carrier’

    Nigeria needs a national carrier to develop its air transport sector as well as serve as a platform to strategically position herself as a continental leader, the Chief Executive Officer of Ethiopian Airlines, Mr Tewolde Gabremariam, has said.

    He said the establishment of a carrier would help to liberalise air transport, create jobs and act as an incentive for foreign direct investment (FDI).

    According to him, the best way to achieve such a national carrier is to utilise the right model driven by cooperation and partnership with carriers within the African continent

    He said without having a carrier, foreign carriers would continue to dominate market share in the continent, which is currently patterned on a 80 per cent basis in favour of foreign carriers as against the market share of 20 per cent for African carriers.

    Gabremariam said Ethiopian Airlines would be willing to assist the government to set up a national carrier if requested for.

    He said Ethiopian Airlines would be favourably disposed to having discussions with officials of the Federal Government on how to set up a national carrier.

    A national carrier for Nigeria, he said, would be strategic to accelerate socio – economic development of the continent, because air transport has the capacity to move thousands of passengers across national borders at a cost relatively cheaper than rail or road transportation.

    He said: “‘Nigeria needs a national carrier for strategic reasons. The national carrier would be useful in good times and at bad times.

    “The question that experts and industry watchers are asking is what kind of national carrier. There are different models to be adopted in setting up a national carrier. The Nigerian government would require cooperation and partnership with other African carriers. Ethiopian Airlines is interested in assisting Nigeria to set up a national carrier.

    “This is important because the national carrier would create jobs, attract foreign direct investment and enhance development. Africa needs home-grown carriers to develop air transport on the continent.

    “This is because air transport is cheaper to develop compared with other modes of transportation including road and rail.”

  • Hello…. Good news, bad news

    Hello…. Good news, bad news

    It all began more than a decade ago. Today, the telecoms sector has contributed about $35 billion in Foreign Direct Investment (FDI) to the economy, bridged the digital divide and created jobs in the formal and informal sectors. Despite the gains, the revolution has its other sides, writes LUCAS AJANAKU.

    SOMETIME in 1983, after completing his ordinary level school certificate examination in June, Mr. Emmanuel Kehinde left Ibadan for Sokoto, Sokoto State. His intention was to stay with a brother, who was then serving in 7 Mechanised Brigade, Nigerian Army. The family had agreed that Emmanuel would stay with his brother long before he finished writing the examination but there was no agreement about the date of arrival at the Caliphate. Four days after writing the last paper, he boarded a night truck and off to  Sokoto he went. Despite riding in  a Mercedez 911 truck, the journey was smooth.

    He arrived at the city garage very early the following morning and from there, he boarded a bus to Ginginya Barracks. When he arrived at the Senior Non-Commissioned Officers (SNCOs) Quarters, he met the doors of the two-bedroom apartment locked. Neither was his brother’s neighbour anywhere near the apartment. The duo  had been drafted to carry out ‘special duty’ outside the state.

    Like a fish out of water, Emmanuel was left in the lurch; he had to plan his return trip to Ibadan. He sold his audio cassettes and a Sony tape player to raise fare as there was no way he could communicate with his brother. Two communication options were opened to him then: one was telegraph; while the other was land line. The former would not guarantee immediate response; the latter was an exclusive preserve of the rich and families of the military personnel, who were at the heml of affairs.  Were there a functional ubiquitous communications system, Emmanuel and his brother would have reached an agreement on when it will be most appropriate for the two to see each other.

    But more than three decades after, things have changed so diametrically. Gradual reduction in devices’ prices has driven access and penetration. Today, the mobile phone is no longer seen as a social status symbol but as a means of  voice communication, internet access and even business transactions.

    Abubakar Ali is an itinerant mendicant and native of Gombi, Adamawa State, one of the towns worst hit by the mindless blood-letting of the radical sect, Boko Haram. A visually-impaired man, who was usually assisted by a young man he simply identified  as Sadiq, Ali clutched his mobile phone jealously as he fixed his ear piece. Just a little after the ever-busy Iyana Ipaja Bridge, he sat down and engaged in a passionate conversation with one of his kinsmen in the town which is also the headquarters of Gombi Local Government Area of the state.

    Ali, who spoke through an interpreter, said: “I have been talking to my family members. I wanted to know how everybody was doing. I have spoken with Hadiza and Zainab my daughters. I was told Bello and his younger brother, Hakeem, have gone to the farm with the donkey. Because of the problem of these Boko Haram people, mobile phones cannot work in some parts of our community because the base stations have been destroyed.”

    For Idrissou, also visually-impaired, who regularly stayed on the stairs of the footbridge at CMS,   Lagos Island, life would have been worthless without the mobile phone. A beggar from one of the troubled parts of the north, Baba has his ear piece on always, listening to one radio station or the other when making and receiving calls.

    “Since I am blind, I get people to help me load recharge cards. They also assist me to download some Quarnic recitations which I listen to. They also help me to dial the numbers I wish to call. It has been a wonderful experience but government should help those of us living with disadvantage with mobile phones that would cater for our peculiar needs,” he said.

    The liberalisation of the telecoms sector by the administration of former President Olusegun Obasanjo was one of the best things to have happened to the country since independence in 1960.

    Communications Technology Minister, Dr Omobola said the industry currently contributes 9.58 per cent to the Gross Domestic Product (GDP) and also aiding the econmic growths of other parts of the country.

    e-business platforms such as Wakanow, Jumia, Paga, Konga, i-Sec,  and iRoko TV, to name a few, have come up and are doing so great, contributing to the growth of commerce, job creation. Users of these platforms ride on the crest of the availability of smartphones which are cheap and internet-enabled. Thus, all that is needed for them to stay within the comforts of their living rooms, with mobile broadband provided by the four Global System for Mobile communication (GSM) service providers-MTN, Globacom, Airtel and Etisalat and the only surviving but struggling player in the near-moribund Code Division Multiple Access (CDMA) sub-sector, Visafone.

    Dr Johnson said: “The Nigerian Telecoms sector is one of the fastest growing sectors in the world and continues to attract significant (Foreign Direct Investment (FDI). An additional  $6 billion was added between 2011 and last year alone. Total mobile subscriptions increased to 134.5 million as at September 2014 from 95 million in 2011. Tele-density increased to 96 per cent in September 2014 from 68 per cent in 2011

    “The total mobile internet subscriptions increased to 73.8 million as at September 2014 from 45 million in 2011. Internet penetration increased to about 52 per cent in September 2014 from about 26.5 per cent in September 2011.”

    Executive Vice Chairman/CEO, Nigerian Communications Commission (NCC), Dr. Eugene Juwah said there has been a phenomenal growth in the telecoms sector, adding that it has done better than any other sectors in the country.

    He said: “In our country (Nigeria), for instance, we now have a total number of 134 million connected lines and a teledensity of 96 per cent with about 29,000 base stations for both GSM and CDMA service providers as at December 2013.”

     

    SIM card registration

     

    A SIM (Subscriber Identification Module) Card is the card issued by mobile phone operators which provides the individual user with the appropriate number recognised by that network. A subcriber inserts the card into his or her mobile phone to access the service provider’s network.

    Since the launch of the GSM services in 2001, SIM cards were offered to subscribers without the requirement to provide proper identification by the users.

    However, sometime in early 2008, security agencies approached the NCC to assist in resolving crimes perpetrated with the use of phones. Prior to the SIM registration, it was difficult to unmask criminal elements with the number of the phones that they used.

    Consequently, the NCC held a consultative forum involving various telecoms operators, consumer groups, security agencies, telecoms associations, dealers, the Nigerian Identity Management Commission, National Population Commission (NIMC), National Census Commission, the media and a host of other stakeholders.

    The participants agreed to the appropriateness and importance to have the record of register all phone users in the country. Another committee was subsequently set up to appraise the details of the implementation of the registration and submit its recommendations to the NCC.

    Upon reviewing the recommendations of the committee, the NCC Board approved the registration of all phone subscribers in the country.

    The registration began in Abuja on March 28, 2011, when Dr. Juwah launched the registration.

    On completion of the validation, harmonisation and scrubbing of the records of all registered SIM cards, operators were mandated to disconnect all unregistered SIM cards from their networks.

    Director, Public Affairs at the NCC, Tony Ojobo, said the registration helped in no small measure to unmask those behind commercial kidnappings, a time-honoured predilection of youths in the Southsouth and Southeastern parts  of the country. Though largely cricised for its imperfections, analysts say it was a good thing for a country that never had any data base at all.

     

    Mobile Number Portability  (MNP)

     

    With the registration of all the active SIM cards, the regulator declared the coast cleared for the introduction of other schemes that will consolidate on the gains of the  revolution. Two of these were the Mobile Number Portability (MNP) scheme and Mobile Money.

    Juwah informed that the NCC had selected a consortium of three companies – Interconnect, Saab Grintek and Telcordia – to manage the implementation of MNP. The consortium, according to him, has  responsibility to set up and implement the MNP Clearing House and administer MNP in the country.

    MNP allows a subscriber to abandon his/her inefficient service provider and still retain his/her old number. According to Juwah, MNP has been identified as one service that could further deepen competiveness in the telecommunications market, adding that with the growing reliance and dependency on mobile communications for everyday socio-economic interactions, it became imperative to give the customer more freedom to choose.

    He said: “The vision of the Commission is not only to provide access to telecommunication services to Nigerians at affordable cost but to also to continue to provide the required stimulus and appropriate environment for the introduction of innovative services that will impact on quality telecoms service delivery.

    “Our mobile subscriber numbers have become our identity and in most cases, we are required to provide our mobile (telephone) numbers while filling out forms in opening bank accounts, making hotel and airline bookings.

    “With the launch of MNP, consumers of telecommunications services will no longer need to acquire new numbers in order to move from one network to the other. They will simply take along their existing numbers to any network of their choice. The power and freedom of choice will henceforth, rest with the consumer. If a consumer is dissatisfied with the quality of services being provided by a service provider, she/he can simply port out of that network to any network of his/her choice without losing his/her subscriber number.”

    According to Juwah, with the launch of MNP, there will be no need for customers to engage in the usually painful exercise of trying to commit phone numbers to memory, neither will they need to frequently change complimentary cards, billboards, letter-heads and other corporate documents.

    He added that MNP will revolutionise the way calls are currently being routed since the National Destination Codes (NDC), that is, the network prefix such as 0802, 0803, 0805, 0809 usually identified with operators no longer play the role of unique identifier. He added that the NCC adopted the ‘All Call Query (ACQ)’ option for routing calls and SMS in line with international best practices, preparatory to the implementation of MNP.

    Though the scheme has not recorded any huge success, owing largely to lack of awareness, the NCC insisted that the idea is not about the total number of people porting from one service provider to the other but the fact that the freedom is there for subscribers. According to the regulator, the mere fact that operators know MNP scheme is in place, their attitude to upgrading their equipment and general customer care would change.

     

    Mobile Money

     

    Under the Connect Nigerians, Digital payments and Financial Inclusion Initiative of the Federal Government, it was discovered that more people have  access to mobile phones than to bank accounts with 75 per cent of adults living in urban areas and 39 per cent living in rural areas.

    The Central Bank of Nigeria (CBN) has licensed 18 Mobile Money Operators since the scheme began about four years ago.

    Approximately, one million subscribers have taken advantage of the scheme while there are about 67,000 registered agents across the country.

    Over 11 million transactions worth over $600 million have been conducted using the platform. Uptake has been slow but analysts say improved infrastructure, fine-tuning of legislation and increasing confidence in product by consumers will stimulate acceleration.

    “Mobile money is mostly used to buy airtime; it, however, has the potential to draw more patrons into formal financial services,” the minister said.

    However, the dearth of insurance, agents and lowlevel of awareness have been identified as  major challenges hindering the success of the scheme

    Executive Director, Digital Africa, Dr. Armstrung Takang, who spoke with The Nation in Lagos, said the project, which was designed to complement the cashless policy of the CBN has failed to grow because the agents, from whom money would be collected are not there while the people do not have confidence that when they lose their money online, there will be anybody to hold responsible.

    The issue of who is liable for loss of money in the course of using mobile money platform has always been avoided by the CBN and operators  of the 18  licensed firms.

    Takang said the absence of an insurance firm to bear the risk of victims using the platform was a great dis-incentive, adding that the existence of the Nigerian Deposit Insurance Company (NDIC) encouraged people to use the banks because they know that in the event of a failure, they will not lose their entire deposits.

    He said: “There is need to have insurance to guarantee confidence so that I can say to you that if you use your phone to transfer money and there is a problem and you lose money, I guarantee that you will not lose that money.  It is like when we have NDIC in banking. You and I will go and open an account. If that bank goes down, I know I can go to NDIC and I will get my money. If you lose money online, what happens? It is still a grey area.”

    Another problem is the lack of awareness. “There is no awareness that your phone can become a banking hall, your wallet and the money that is transmitted through credit on your phone is as good as the money that you get through the traditional banking halls. This is still lacking among majority of Nigerians,” he said.

    Even if the two obstacles are addressed, the absence of mobile money agents will be another contraints. Mobile money agents are the last on the value chain. It is from them that people will collect the cards sent through the mobile phone.

    “Another major aspect is that of having agents to collect cash when the cash is needed. The agents are supposed to be ubiquitous but they are not there,” he said.

    He called for the enactment of the enabling laws and provision of requisite security platforms in terms of technology to ensure that these transactions are safe enough to inspire confidence in those saddled with the responsibility to manage the scheme.

    The CEO, Etisalat, Mathiew Wilsher, said all the stakeholders, including the CBN, NCC and operators must come together and instutionalise an efficient framework for the success of the scheme.

     

    have always believed that the CBN, NCC, telecommunication operators and banks need to build efficient mobile money structure that will guarantee the project’s success. Mobile money remains a convenient, secure and affordable way to send money to friends and family.

    “As at today, mobile money remains a huge business opportunity for stakeholders, but there is the need to get the fundamentals right. It is only when the fundamentals, like knowing whether a bank-led or telco-led model is best for the country, that the level of success expected would be achieved. At Etisalat, we are committed to the mobile money project. We see a lot of business potential in this field. But, like I said, regulators and other stakeholders need to get the fundamentals right,” he told The Nation.

     

    Impact in agric, education, health sectors.

     

    The importance of the revolution has been tremendous in the agric sector. It has ended the long years of rackeering in the fertiliser  distribution scheme. Minister of Agriculture and Rural Development, Dr Akinwumi Adesina said the importance of the cell phones to farmers cannot be overemphasised.

    He said: “It is actually the cell phone that has provided us with the tool to directly access each farmer thereby denying corrupt middlemen from making fortune from their sweat. Some people think that our farmers are uneducated and cannot use cell phones. The evidence does not support that. Under the Growth Enhancement Support (GES) scheme, we made it possible for farmers to transact business in their own local languages using their cell phones.

    “We intend to use the GES scheme to distribute these phones. To be entitled to a phone, every farmer must be registered on the e-wallet platform. Paper vouchers will be issued to farmers who do not have phones. The government will provide a subsidy to the farmer through the voucher to buy the phone. The farmer takes the voucher to the local mobile phone operator and pays the balance which is the difference between the value of the voucher and the cost of the phone.

    “Once a farmer buys a phone and a SIM card, his new phone number will be updated on the e-wallet database and he will be able to receive his e-wallet voucher which will entitle him to purchase fertilizer and seeds at subsidised rates. Phones will be sold directly to farmers by local mobile phone service providers.”

    According to him, the total number of transactions done by phone with respect to the GES scheme stood at 4.9 million, relying on available data, based on farmers’ use of cellphones to access fertilizers and seeds last year.

    Adesina explained that out of the 4.9 million transactions, 1.2 million were in English, 620,000 were in Pidgin (English), 2.2 million were in Hausa, 854,000 were in Yoruba while 344 were in Igbo languages.

    According to him, in the first year of the GES scheme, 1.2 million farmers received their subsidised fertilizers and seeds through their cell phones, saying that the number is expected to grow to 1.5 million farmers by the end of the dry season.

    He gave the percentage of beneficiaries from the distribution of fertilizers and seeds through mobile phones, at 25 per cent from the Northwest, 12 per cent (Southeast) 13 per cent in the Southsouth, 10 per cent in the Southwest, 18 per cent in the Northcentral and 22 per cent in the Northeast.

    Adesina, however, said that 71 per cent of farmers sampled are yet  to enjoy cell phone facility because many of the farmers in rural areas are poor and are excluded from the benefits of the on-going mobile phone revolution.

    According to him, the use of mobile phones to distribute fertilisers and seeds to farmers has recorded tremendous success in countries such as Kenya and Malawi.

    Its impact on the education sector is supposed to be revolutionary. With mobile phones that are internet-enabled, online access to resource materials on virtually every subject matter becomes easy. Similarly, there is now access to e-book which could be read online while student could do quite a number of things on their mobile devices, especially in the tablets age.

    In the health sector, the mobile operators have launched one mobile health insurance policy or the other. A sector analyst says it is too early  to start feeling the impact of some of the health initiatives. But health tips sent through the mobile phone has been of tremendous success  in the Abiye health initiative that has put and to pregnancy from turning to a death penalty.

    Each ranger or health facility is equipped with means of vehicular movement and evacuation of patients ranging from customised motorcycles to tricycle and 4-wheeled ambulances. Speedboat ambulances were earmarked for the riverine areas. To facilitate communication, individual mobile phones on a toll free caller-user group platform were provided for the pregnant women and their care-givers.

     

    The bad, the ugly

     

    President, Nigeria Internet Group (NIG), Bayo Banjo, said there are some bad sides to the widespread adoption of Information Communications Technology (ICT). According to him, “one of them is this job called Yahoo-Yahoo, a lot of our young people and even older people are involved in this but of course, in any new innovation, there are always the bad sides.”

     

    Steady decline in students’ performance

     

    There has been steady decline in the standard of education with the country recording 70 per cent failure rate in the result of this year’s West African School Certificate Examination (WASCE).

    Head, National Office of West African Examinations Council (WAEC), Mr. Charles Eguridu said a total of 1,705,976 candidates registered for the examination, but only 1,692,435 candidates, consisting of 929,075 male and 763,360 female candidates eventually wrote the examination.

    Out of the 1,692,435 that wrote the examination, a total of 529,425 candidates, representing 31.28 per cent, obtained credit passes in five subjects and above, including English Language and Mathematics.

    He said the 2014 May/June result when compared to that of the last two year’s, showed a marginal decline in the performance of candidates.

    According to him, in the May/June 2012 WASCE, 38.81 per cent of the candidates that sat for the examinations obtained five credit passes and above including English Language and Mathematics. In 2013, the percentage declined to 36.57 per cent, as against the 31.28 per cent recorded currently.

    Details of the current results as presented by Eguridu, revealed that 791,227 candidates, representing 46.75 per cent, obtained six credits and above while 982,472 candidates representing 58.05 per cent, obtained five credits and above.

    Also 1,148,262 candidates, representing 67.84 per cent, obtained credits and above in four subjects; 1,293,389 candidates, representing 76.42 per cent, obtained credits and above in three subjects; while 1,426,926 candidates, representing 84.31 per cent obtained credits and above in two subjects.

    A total number of 161 blind candidates, he added, registered for the examination, out of which 150 participated. From this figure, 21 candidates, representing 14 per cent obtained credits in five subjects, including English Language. Visually-impaired candidates, Eguridu noted, do not write Mathematics and science practical’s in the WASCE.

    He further disclosed that 1,605,613 candidates, representing 94.87 per cent had their results fully released, while 86,822 candidates, representing 5.13 per cent have a few of their subjects still being processed due to some errors, traced mainly to laxity on the part of the candidates and the schools, in the course of registration or writing the examination.

    He blamed parents for the dismal performance of students in the examination. He alleged that parents  have abdicated their role model functions to the pursuit of money.

    He said: “With this presentation, most Nigerians would quickly place the blame at the doorstep of schools and government. But they will not be quick enough to compare what quality used to be in those days when parents were part of their wards learning. Contemporary parents no longer show commitment to the learning outcomes of their children. Parents are now too busy to monitor and guide their children towards hard work as well as complement teachers’ efforts.

    “Everyone seems to have forgotten that those who excel in life are those who do what others are unable to do, going the extra mile with their studies to achieve success. There has been a steady decline in the last two years, though records show that the decline is marginal, but with the slight decline, we cannot say the students have not done well. Nigerian students performed comparatively well, when compared to other students in other WAEC countries, particularly in Mathematics.”

    But the Deputy Vice-Chancellor, Tai  Solarin University of Education, Prof Joseph Olusanya, identified the widespread use of mobile devices as a major factor responsible for the declining fortunes of the education sector.

    He said: “Most of them are busy chatting on phone and playing with computers and laptops. Students nowadays depend on “orijo” which makes reading culture to be on a low side. They are fond of cutting corners,” he said.

    A school tutor at Prudent Comprehensive College, Mr Olawale agrees no less with the deputy vice chancellor.

    He said: “Parents are to blame because they equip their children with tools which they fail to monitor their usage. Experience has shown that while lectures are going on, student bury their heads on the desks browsing the internet, chatting on Facebook and posting goofy pictures on Instagram. It is now common to see students spend valuable time pinging on their Blackberry phones. The situation has been made worse now that the BBM application could easily be downloaded from Google Play store free of charge.”

     

    Armed robbery, kidnap-for-ransom

     

    While the NCC said SIM registration has reduced crime rate in the country, stakeholders insist it has not as some unscrupulous elements within the system still sell pre-registered SIM cards to criminals who use and dump them after perpetrating crimes, leaving no trace behind.

    Banjo said: “When mobile phones came, I remember I had to caution people who said, oh things will be fantastic, you can call the police, you can call this, you can call that but the reverse is the case. “Now the armed robber can use the phone to warn his people carrying out an operation that police are around. A criminally-minded bank official can call someone and say XYZ has just withdrawn N4 million cash, meet him at such and such places. So in any innovation, there is always the good and the bad side.”

     

    BTS and health challenges

     

    As ICT pervade all aspects of modern living there are increases in radio frequency radiation emitted by more and more Base Transmission Stations (BTS), especially those installations erected in residential areas.

    Although the World Health Organisation (WHO) studies are yet to find any clear risk or health hazards associated with electromagnetic fields based on current findings, there are indeed fears that BTS erected in residential areas poses health risks to those living close to them.

    Indeed, there have been a couple of cases where some people were diagnosed and cause of their illness traced to emission from radio frequency emissions. There are about 29,000 BTS across the country but between 70,00 and 80,000 are required to enthrone seamless telecoms service delivery. Increasingly, fears about the likely harmful effects of BTS are making people to be wary of offering their compounds as sites for BTS, regardless of the financial inducements.

  • FDI’s slow growth tied to oil,others

    The drop in Nigeria’s  Foriegn Direct Investments (FDIs) from $8.9billion in 2012 to $6.8billi last year has been attributed to poor attention given to key economic drivers in the country.

    The Vice Chairman, Institute of Directors of Nigeria(IoDs), Yemi Akeju,  who spoke during a media parley to herald the Institute’s 2014 Conference and Fellows Night in Lagos,  said  investment in key economic drivers such as oil, banking and others, needed to  be galvanised to encourage growth.

    He said the conference with the theme: ‘’Imperatives of good governance for promoting investment Opportunities’’ is coming at a time the country needed more investments for growth.

    He said the event would  see experts from  local and international financial institutions, power, oil and gas .among others sectors taking  a critical look at the economy vis’a-vis the  investment climate.