The Nation Newspaper

Tag: innovative

  • Crime of being an innovative indigenous firm

    The penchant of many Nigerians for foreign-made products is so much that one has reasons to sometimes believe that those Nigerians themselves are imported!

    As a people, many of us love our things foreign: from the crown of our head to the sole of our feet. The average Nigerian—especially those that qualify themselves as people with taste—would typically prefer an imported product over one made locally, even though the locally made product might be of superior quality. That is the extent of our love affair with everything non-Nigerian.

    However, if no one at all prioritises and patronises Made-in-Nigeria, it shouldn’t be the Nigerian government – which is supposed to be the biggest promoter of local industry. But as hardly anything in Nigeria is close to the ideal, instead of consciously supporting local industry, successive Nigerian governments seem to have perfected the act of killing local industry. And so far, the current government has not proven to be any better. For us as a people, the Latin saying, nemo dat quod non habet—”no one can give what they don’t have”—is true. Hence, we, “foreign Nigerians”, can only give what we have; therefore we have always put our kind in government.

    So, it did not come as a surprise—for a nation that imports toothpicks—when it recently appeared in the news that more foreign IT firms were about to make inroads into the Nigerian market. If it were about a decade ago when the Nigerian software space was not as mature as it is now, that news may have been negligible, but not now when the IT industry and specifically the software sector in Nigeria is coming into maturity and capable of being a top foreign  exchange earner for Nigeria. However, if a few weeks from now, a top official in the private or public sector announces in sweet-sounding words that a deal has been signed with more foreign IT firms, it would not come as a surprise.

    According to the Office for the Nigerian Content Development in ICT (ONC), Nigeria loses over N1 trillion in foreign exchange annually to the importation of ICT devices and software. Of the said amount, N250 billion is lost annually to the importation and maintenance of foreign software. There is no better proof that Nigeria is a top global dumping ground of foreign-made software than the banking sector, where more than 90% of Nigerian banks currently use foreign software from India, Jordan, Switzerland, Finland and other parts of the world for their various banking needs. Their reliance is not because local technology cannot meet all their needs, but because they lack belief in local firms.

    If private firms can be forgiven for depending on foreign solutions when there are capable local replacements, government cannot be forgiven for doing so. Nigerian governments at all levels have been the biggest culprit of favouring foreign software over local software. Examples of this abound: at the federal level, GIFMIS at the Office of the Accountant General of the Federation (OAGF) is powered by a software from Estonia, a country of 1.3million people (about 500,000 people less than the population of Ibadan); ITAS at FIRS is powered by a software made in Canada; IPPIS at OAGF is powered by a software from USA; Biometric Verification Number (BVN) at Nigeria Inter-Bank Settlement System (NIBSS) Plc is powered by software from Germany; RTGS at Central Bank of Nigeria is powered by a software from Sweden.

    Remita, the well-known local software deployed by the Nigerian government, has been shot at from many quarters, either out of ignorance or because the shooters are against the positive changes the solution has brought to Nigeria. What Remita has done is that it has prevented the formerly prevalent thieving of government resources and has helped to institutionalise transparency in governance. So far, the Federal Government has been able to save more than N3 trillion through this locally made solution, and there is nowhere any top official of the federal government goes that they don’t sing the successes achieved with Treasury Single Account (TSA) which Remita powers. But if anyone told you that the providers of the software that has practically single-handedly brought an end to corruption in Nigeria have not been paid for more than a year (even though it is being used to pay government till date), you won’t believe it. But that is the truth. Such can only happen in Nigeria!

    Why does Nigeria hate her own so much? In a shabbily put-together report on its false allegation of fraud in the implementation of TSA, the Senate documented that “In spite of the initial relative advantage the bespoke solution, as  Remita,  could  have  over  the   globally  accepted Commercially available  Off The Shelf (COTS) software like SAP, Oracle Financials, Epicor, Navision etc., a desirable strategy is a two-step approach that starts with locally designed bespoke software solution and transiting to the more sophisticated and tested COTS.”

    There is no evidence greater that the Nigerian government—not exempting one that shouts CHANGE from the roof of its voice—doesn’t see local technology as capable of fully solving Nigeria’s challenges. Nigeria also appears to be buried under rubbles of inferiority complex, which have deprived us of the sense of appreciation for what is ours. As was said of Nazareth, it has been asked of Nigeria: “Can anything good come out of Nigeria?” Yes indeed, a lot of good is already coming out of Nigeria, but Nigerian are their own greatest enemy.

    According to the Ease of Doing Business Index of 2015, Nigeria is one of the worst places to do business in the world, after emerging 170th place among 189 countries ranked. In Nigeria, you’re literally your own government. Therefore, many businesses have either died or are awaiting death. The least one expects of successive Nigerian governments that have failed to provide power, the most vital element of a thriving economy, is support for local businesses who have managed to survive despite myriad of challenges. But no, not only does the Nigerian government not provide a conducive environment for businesses, government appears to be all out to stifle local businesses who manage to survive the tough environment.

    One of the most common excuses for the rejection of Nigerian solutions is that they are often not up-to-par. Sometimes, that’s only a perception that impinges us from overlooking products that have potentials or those that meet the standard. What we forget is that no solution is ever up-to-par the first time, not even those we have grown accustomed to importing. The solutions we import into our country were first grown by their own countries. Had their countries jettisoned them as we do ours, there would never be anything good enough for us to use.

    As a matter of fact, the taste of Nigerians for imported products is affront on our collective capability as a people. It is saying that we are a nation bustling with more than 170 million people without potentials. We are indeed our own enemies because we have not learnt to appreciate and nurture our inventions. Our taste has grown too accustomed to eating the fruits of other people’s labour, we strangle out those who manage to be innovative among us.

    Nigeria should truly value her own and stop despising the days of little beginning. Instead of running down local businesses, we should make conscious efforts to be a part of the growth of what is ours. There isn’t any reason, for instance, why Nigeria should be exporter of IT solutions that have been used and trusted locally. There is no reason Nigeria cannot export its TSA solution to the rest of Africa and the world, and by so doing, earn handsome foreign exchange. As a people, we need to stop being the only hindrance between where we should be and where we are.

     

    • Chukwuemeka, an IT expert wrote in from Lagos.
  • Zenith Bank extends reach with retail, innovative products

    Zenith Bank extends reach with retail, innovative products

    Zenith Bank Plc, a leading lender, is looking beyond corporate banking, expanding its retail banking units. The bank is leveraging on high technology and innovative products to consolidate its net-worth clientele and the unbanked at the retail-end of the market, writes Group Business Editor, SIMEON EBULU.

    Defining  the goal and identifying the operating ones environment in any endeavour is a critical factor in determining the success, or otherwise of any enterprise.

    Zenith Bank Plc, a leader in the provision of financial services to businesses, is expanding its horizon to deepen its activities at the retail end of the business.

    The lender is engaging its cutting edge technology and innovative products to boost its service delivery, not only to its net-worth clientele, but also to the youth – that vibrant segment of the population in dire need of the excellent services already being enjoyed by the bank’s net-worth customers.

    This phase of financial inclusion will enable Zenith Bank to serve as many people as possible in the country, delivering a range of financial services to everyone who could use them and lift people from the zone of financial quagmire, usually typified by want and lack.

    Specifically, this would allow for a process, or situation that creates ease of access to, and usage of formal financial systems by customers, who will ultimately become drivers of the economy and eventually contribute their quota to the economic growth of the nation. It simply typifies a process where all members, youths, students, traders, name it, operating in the economic space, or playing field, do not have difficulty in opening bank account; can afford to access credit; and can conveniently, easily and consistently use financial system products and facilities without difficulty. It is the process which ensures that a person’s in-coming money is maximized, out-going is controlled and can exercise informed choices through access to basic financial services.

    Over the years, Zenith Bank, leveraging on the near limitless opportunities provided by technology, has successfully served customers at the high-end of the market and delivered impressive returns to shareholders in the process. This is validated not only by the consistent delivery of ascending impressive financial results, year-in- year out, but also by the retention of its customers, shareholders inclusive, who have kept fate with the financial institution from inception, in its over twenty five of existence.

    Its uncontroverted leadership position, earned in its diligent pursuit and implementation of globally acceptable Good Corporate Governance Principles, has earned the Zenith Bank awards both locally and internationally.

    The bank has equally established itself as a leader in corporate and investment banking, as validated with the KPMG’s ‘Nigeria Banking Industry Customer Satisfaction Survey of 2014’ confirming it’s position as the most customer focused bank among its peers in the country in both the retail and corporate segments.

    With Zenith Bank’s full scale entry into the retail playing field, potential customers, who’ve been watching from the sideline, on the perception (rightly, or otherwise) that the bank was only cut out to service the financial and entrepreneurial needs of the high echelon of the society, will now be able to access the efficient service delivery that hitherto have been the exclusive preserve, or available to only high net worth customers and corporate bodies. The era now is a Zenith Bank for all.

     

    What’s on offer

    The bank has designed and designated some specialised accounts to meet the specific needs of its target customers. A diligent engagement in these new products will make high flyers of this category of customers. These accounts which are within the retail banking space have their specific features and benefits. They include:

    • Aspire Account – this is targeted at the youth
    • eaZySave Classic Account and
    • eaZySave Premium Account – these have zero account opening balances.
    • Zenith Premium Gold and
    • Zenith Premium Platinum – these are COT free and interest bearing.

    The processes of opening these categories of accounts have been simplified and made enticing. Just take a look.

     

    • Product Description

    Aspire is a savings account designed for the tech savvy, brand conscious, entertainment and socially enlightened student who want flexibility, convenience, benefits and rewards.

     

    • Product Features & Benefits

    –  Ages: 16 – 34

    –  Zero account opening balance

    –  Choice card design: Aspire Ultra, Ace & Zeal

    –  Cashless banking (ATM, POS, WEB, Mobile)

    – Exclusive Z-Mart retail discounts and other periodic promotions at participating merchants nationwide.

     

    • Product Requirements

    –   Passport photograph

    –    Duly completed account opening form

    –    School ID Card or Admission Letter & verifiable means of ID

    You can open an Aspire account at your nearest Zenith Bank branch.

    Facebook: www.facebook.com/Zenithbank

    Twitter: www.twitter.com/Zenithbank

     

    • Product Description

    eaZySave classic account is designed to enable individuals with minimal forms of identification enjoy a value adding banking relationship.

     

    • Product Features & Benefits

    – Zero account opening balance

    – Maximum Single Deposit – ¦ 20,000

    – Maximum Cumulative  Account Balance                    – ¦ 200,000

    –  Debit card – Domestic Use Only (¦ 1,000)

    – Mobile Money:

    – Transaction Limit: ¦ 3,000/Per transaction,

    – Maximum cumulative mobile money balance: ¦ 30,000

     

    • Product Requirements

    –  Passport photograph

    – Duly completed account opening form

    – Registered mobile number

    You can open an eaZySave account at your nearest Zenith Bank branch

    Facebook: www.facebook.com/Zenithbank

    Twitter: www.twitter.com/Zenithbank

     

    • Product Description

    eaZySave premium account is designed to enable individuals with minimal forms of identification enjoy a value adding banking relationship.

     

    • Product Features & Benefits

    – Zero account opening balance

    – Maximum Single Deposit – ¦ 50,000

    – Maximum Cumulative  Account Balance                    – ¦ 400,000

    – Debit card

    – Inter-bank transfers

    – Internet banking

    –  Mobile Money:

    • Transaction Limit: ¦ 10,000/Per transaction,
    • Maximum cumulative mobile money balance: ¦ 100,000

     

    • Required Documentation

    – Duly completed account opening form

    – Verifiable means of identification

    – Passport photograph

    – Registered mobile number

    You can open an eaZySave account at your nearest Zenith Bank branch.

    Facebook: www.facebook.com/Zenithbank

    Twitter: www.twitter.com/Zenithbank

    There are yet other categories of accounts that are equally beneficial and fascinating.

    • Zenith Children Account (ZECA)

    Product Description

    Zenith Children Account is a special deposit account with focus on children education and their bright future. ZECA is more than a regular savings account. It offers a lot of benefits for both parent and child.

    • Product Features & Benefits

    –  Zero account opening balance

    – Age qualification: 0-16 years with automatic  transition to ZECA Teens (13 years) and  Aspire (16 years)

    – SO’s (Standing Orders) for school fees payment

    – Special Invitation to Zenith’s Annual Children’s Parade

    – Special end of year gifts

    – Withdrawal from any of our branches nationwide

    – Cashless  banking (ATM, POS, Web, Mobile)

    • Product Requirements

    – Birth certificate of child

    – 2 Passport photograph of child and parent/guardian

    – Valid means of ID

    – Utility bill

    This account can be opened at Zenith Bank’s branch close by

    Facebook: www.facebook.com/Zenithbank

    Twitter: www.twitter.com/Zenithbank

     

    The KPMG survey, which confirmed Zenith Bank’s status as the most customer focused bank, centred on the perceived quality of customer service delivery by banks from the customer’s perspective across the Retail, Corporate/Commercial and Small & Medium sized Enterprises (SME) segments. And for 2013 and 2014, Zenith Bank led as the preferred by customers.

    For the second consecutive year in the retail segment, Zenith Bank emerged as the most customer-focused bank, followed by others.

    In the SME segment, Zenith Bank moved from second position in 2013 to become the most customer focused bank with others following in the queue, while in Corporate banking customers still ranked Zenith Bank as the most customer focused for the 2014 review period.

    In addition to being the most customer focused bank, Zenith Bank’s performance on all parameters has been recognised by other bodies. A survey conducted by PricewaterhouseCoopers (PWC) to determine the most respected companies and Chief Executives in Nigeria, Zenith Bank emerged first among the banks. In arriving at the conclusion, PWC said a respected company is defined by these enviable parameters: “A good corporate citizen, which is socially responsible with high ethical standards; a trusted company, which promotes good values with a unique and excellent leadership style, coupled with strong management principles and structure plus a smooth succession plan as well as a very resourceful company with excellent business culture.”

    It listed other parameters to include a visionary and revolutionary company with strong focus, innovative with popular brands of high quality; engaging in human capital development and high capacity building and an indigenous company with high local content.

    PWC may have taken into cognisance Zenith Bank’s adherence to good corporate governance practices as well as global best practices and its emergence as a globally recognised brand. The bank’s personnel also believe likewise.

     

    Going forward

    Run by a stable board and management, Zenith Bank has created a professional environment where individuals are encouraged and can aspire to achieve their potential.   Under the management of Peter Amangbo, the bank has a pool of talents at both the middle and top management level, which has enabled it to remain competitive through the series of banking reforms in the country.

    The bank, Nigeria’s biggest by Tier-1 capital sees technology as an enabler and as a generator of new opportunities.

    In Amangbo’s words: “We are forward-thinking, benchmarking trends in technology to shape our future coupled with our practical delivery on a highly automated platform that makes us unique. As the country’s information technology (IT) infrastructure improves, our leading edge in IT keeps us well positioned in the global banking community to sustain our offering of exceptional E-banking services. This is complemented by our risk management system that creates a blend that not only grows our customers’ businesses but also strengthens them. Our credit management system stresses rational procedures and transparency,” he added.

    Zenith Bank blazed the trail in digital banking in Nigeria, scoring several firsts in the deployment of information and communication technology (ICT) infrastructure to create innovative products that meet the needs of its teeming customers. The bank is verifiably a leader in the deployment of various channels of banking technology, and the Zenith brand has become synonymous with the deployment of state-of-the-art technologies in banking.

     

    Financial results

    The bank has been posting impressive financial results over the years, rewarding shareholders with equally impressive dividends.   For instance, its five-year performance from 2009 to 2013 showed steady growth in profit and returns on investments.

    For instance, revenue grew from N277 billion in 2009 to N244 billion in 2010, N307 billion in 2012 and N351 billion in 2013. Profit before tax rose from N35 billion, to N50 billion in 2010, N61 billion in 2011, N101 billion in 2012 and N111 billion in 2013.

    No less heartwarming is the Return On Investment to shareholders, who have been benefitting from the growth witnessed in the profitability over the years.  Shareholders got a dividend of N11 billion in 2009, N26 billion in 2010, N29 billion in 2011, N50 billion in 2012 and N54 billion in 2013.

    Zenith Bank ended  the nine months  to  September 30, 2014 with  profit before tax of N87 billion, profit after tax of N71 billion. Total assets stood at N3.408 trillion and shareholders’ funds N523 billion.

    Zenith Bank Plc. was established in May 1990, and commenced operations in July of the same year as a commercial bank. The Bank became a public limited company on June 17, 2004 and was listed on the Nigerian Stock Exchange (NSE) on October 21, 2004 following a highly successful Initial Public Offering (IPO).  The bank has a shareholder base of about one million and is Nigeria’s biggest bank by tier-1 capital. In 2013, Zenith Bank listed $850 million worth of its shares on the London Stock Exchange (LSE).

    The bank has over 500 branches and business offices in all states of the federation and the Federal Capital Territory (FCT). In March 2007, Zenith Bank was licensed by the Financial Services Authority (FSA) of the United Kingdom to establish Zenith Bank (UK) Limited as the United Kingdom subsidiary of Zenith Bank Plc. Zenith Bank also has subsidiaries in Ghana, Sierra Leone, and Gambia. The bank also has representative offices in South Africa and The People’s Republic of China.

  • ‘Any business that is not innovative would die’

    ‘Any business that is not innovative would die’

    Thirteen years after he floated Advertange, an outdoor advertising company, Akin Adelegan has recorded some milestones albeit with its attendant challenges. He speaks on his foray into entrepreneurship, his management style and the journey so far in this interview with Remi Adelowo

    How has your entrepreneurial journey been since you established Advertange in 2003?

    Advertange is a child of necessity; I used to work, brother, at Benjamin Black and Co., where I was a pioneer member. But at some point, I had to leave though with his blessings to start my own thing and that was how Advertange came to be. Our strategy was to combine innovation and excellent delivery to our clients. The name Advertange was coined from the words Advertisement Advantage.

    What is your take on when you started off the outdoor advertising industry to what obtains now?

    Initially when we started off, it was more or less an all-comers affair. Virtually everybody was just doing all kinds of billboard and putting it anywhere. Back then, there were no regulations or proper structures to guide the industry. Though we have the Outdoor Advertising Association of Nigeria (OAAN), which tried its best to regulate the industry, but because OAAN members are also practitioners, it was difficult to instill discipline and curb excesses in the sector. But with the establishment of the LASAA and some other agencies now regulating the sector, we’ve witnessed tremendous improvement in the industry. Initially, the major objective of LASAA, which is to generate revenue for the state government, was quite destabilising for many players, but later, better explanations were offered on the aims and objectives of the agency and now everyone is better for it.

    What unique innovations have your company brought about in the sector?

    Advertange pioneered the use of reflective prints for billboards in the industry. And this came about because of the challenge of epileptic power supply in the country, most billboards lose visibility once it is 6pm. So, the challenge of illuminating billboards was quite bad. And that prompted us to come up with a low-budget way of making sure that the client can see his products beyond a particular time. And we thank God that almost everybody in the industry has embraced the reflective prints. Initially, many of our colleagues were a bit reluctant to embrace the idea, but later they saw the wisdom in the innovation and have tapped into it fully. The major breakthrough for Advertange was when it became the first outdoor advertising company to buy outdoor media for Airtel then known as Zain, which we got a lot of kudos for.

    We learnt your company just brought in some trucks for mobile advertising. Can you elaborate more on this?

    The outdoor advertising industry is still evolving in Nigeria, so all over the world, LED screens is the in-thing. For us at Advertange, we felt that rather than doing on the monstrous LED screens, we can do the LED, albeit in a mobile way. We are not the pioneers of this concept in Nigeria; Look Media brought it into the country. However, we felt we could build upon what was on ground by introducing sight sound, achieve more clarity and with a bigger screen. That was why we brought in about eight trucks, with four still on the way. In this season of political campaign, the demand for such trucks has been quite high, because politicians need it to sell themselves to the people in a very entertaining way. This mobile screen has the advantage of winning people’s attention without much effort. Beside its mobility, the truck can also serve as a static billboard. What most people don’t understand is that there are only very few areas where you can put LED boards in Lagos; so, what the truck now does is to fill that gap. And the truck can remain there for 24 hours. And for activation, rather than put 20 ladies dancing in a moving bus, the mobile truck can better serve that purpose. You can also play a home video on the truck, while it also has 5,000 watts. It is also interactive and you can also have a live transmission, like football matches, played on it. I believe that in the next few years, the mobile LED screens would be the in-thing in the industry.

    How has the response to the concept been?

    It has been very good. The first three units we acquired are currently engaged outside Lagos, while the talks are at an advanced stage with some companies to use the five new units we have just brought in. Currently, we are in talks with a major telecommunications company to engage the trucks for a major campaign in seven major cities in Nigeria.

    Running a company successfully for 12 years is no mean feat. What is your secret?

    I learnt something from my brother, Dapo Adelegan. He calls it the second curve. What that simply means is that when you get to a particular stage in business, you have to come up with something different. We have had our share of challenges in the past, but what we simply did was to go back to the drawing board and come up with something fresh and different. Any business that fails to be innovative will eventually die. It’s as simple as that.

    What is your manage-ment style like?

    Well, I’m the most simple CEO you can find. I’m usually dressed in my tee shirt and jeans, because I’m more of a field person. I learnt the administrative side of the business from my brother who knows his onions in that area. Talking about management style, I admire Richard Branson a lot. I prefer a very simple working environment where workers are allowed to use their initiative. We have a target every month and it is only when my staff have challenges in meeting up that they refer to me.  I prefer that my staff stay in the forefront, while I stay in the background. Each section here prepares their budget and I also allow them to meet clients and take decisions. Even when I’m outside the country, they have the freedom to take actions without my input. I believe in projecting the Advertange brand rather than Akin Adelegan.

    Tell me the toughest decision you have taken as a CEO.

    There was a time we had some challenges like lack of access to fund to carry out upgrade, which compelled us to disengage some staff, most of whom were already planning to start their businesses. So, what I simply did was to give them my blessings to start their thing.

    Have you had cause to summarily fire any of your staff?

    I won’t use the word ‘fire’, but I’ve had cause to ask some staff to step aside. Of course, like every business, we’ve also made our mistakes including making wrong investments, unnecessary flamboyance, taking certain things for granted and not properly servicing some clients. Now, our new style is to relate with our clients in a more respectable way. At the beginning of every year, we ask them to give us an appraisal of how we have performed in the previous year and that has really boosted our profile with our clients.

    What are your projections in the medium and long terms?

    Ultimately, we want to assemble mobile LED trucks in Nigeria. We want to build mobile LED trucks not just for advertisement, but mobile clinics, mobile kitchen and so on. We would be selling the trucks to interested people. Before the end of the year, we would be bringing a bus with an all-round LED screens rather than the paper thing we see on BRT buses now. That way, we can have more than 20 brands as the buses move around the town. We are in talks with the company that manufactures the mobile LED in China and by year-end or early next year, they would be here to round up the discussions.

    Has Advertange given birth to other subsidiaries?

    Advertange is the core company, but we have another company called Postafix, which is in charge of our printing business and we also some other joint venture businesses with other companies.