Tag: LCCI

  • LCCI trains SMEs owners

    LCCI trains SMEs owners

    The Lagos Chamber of Commerce and Industry (LCCI) has equipped Small and Medium Enterprises (SMEs) owners with the skills needed to make their products competitive.

    Its President, Alhaji Remi Bello, explained that the initiative was coming on the heels of the chamber’s commitment to SMEs’ development, stressing that the sector has been proven by developed economies as a tool to accelerate economic growth and development.

    Bello, who was represented by the Director General, LCCI, Mr. Muda Yusuf, during the graduation of 25 mentees of the chamber’s mentoring programme Scheme 2, however, decried the high level of mortality of small businesses, saying that they are veritable tools for achieving a virile economy.

    He said the programme was aimed at match-making young business leaders with experienced business owners to share their experiences with the mentees in order to make their products competitive anywhere in the world.

    “Today’s event is the graduation of the LCCI mentees and the whole idea behind this initiative is to develop the capacity of young Nigerians to be self employed and promote the culture of entrepreneurship among the young people?” he said.

    He pointed out that it is one thing to have some technical knowledge about a business and it is another to share the experience of others and this is where the concept of mentoring comes in.  In his words: “What we have done is match-make ?these mentees with mentors.

    We bring them in contact with experienced business men who are members of the chamber to share their experience with the mentees, in areas  such as identifying risks in business and how to manage these risks.

    We have been carrying out this initiative for the past two years. As you can see many of these mentees are up and running with their businesses.”

    Bello said the idea of mentoring has brought a lot of value to businesses and the chamber has supported the mentees in areas of marketing during its trade fairs by giving them free spaces to showcase their products as a way of encouraging them to do more. “We are also in partnership with regulatory agencies to ensure that these mentees are in line with the minimum standards of the Nigerian Industrial Standard (NIS) in order to make their products exportable.

    “We are also helping them in marketing their businesses because we know that marketing is one of the biggest challenges affecting small businesses in Nigeria, so the chamber through its various platforms renders support services to these businesses to encourage them.

     

    This is our own way to contribute our quota to tackle unemployment and making sure that our youths are gainfully employed,” he added.

    According to him, the Bank of industry (BoI) will also render financial support services after carrying out due diligence by looking at their businesses, business plans and prospects. He said the tendency of these mentees getting bankable loans from BoI is high as a result of the credible platform of the chamber.

    The Chairman, Ogun State Board for Technical Education, Mrs. Doyin Ogunbiyi, urged mentees to spread their talents all over the country. She commended the Chamber for setting the pace of creating the platform for the future economic drivers.

    “I want to use this opportunity to urge you fresh business leaders of tomorrow to go into the whole world to spread the gospel and also be employers of labour for the teeming population of the world,” she said.

    A mentee, Mr. Seun Afolabi, said the impact of the mentoring programme had been remarkable, adding that during the course of the training, he has learnt what the university could not give. He stressed that the mentors have given him a practical approach ?to solving pressing challenges hindering business growth.

    “I have been able to attend the Lagos International Trade Fair and it has helped me to take my business to the next level because I have expanded my horizon and built more courage to do more,” he said.

  • LCCI: unfair competition killing businesses

    LCCI: unfair competition killing businesses

    THE Lagos Chamber of Commerce and Industry (LCCI) has raised the alarm over the problems facing the manufacturing sector.

    Its President, Alhaji Remi Bello, said many sectors were faced with unfair competition caused by importation.

    He said the situation has continued to hurt the sector, especially in areas, such as smuggling, faking and counterfeiting, influx of substandard products and evasion of import duty payment.

    Others are under invoicing of imports and granting of underserved waivers.

    Advising the government on the need to improve non-oil revenue in the light of dwindling fortunes in the global oil market, he cautioned that the idea of giving targets to revenue-generating agencies could backfire.

    He said: “There is a risk that best practice principles would be compromised in the desperation to meet the set target. Already, this is beginning to manifest in the manner of import valuation by the Nigerian Customs Service. Reports reaching the Chamber indicate many instances of upward review of values of import in complete disregard to the values of invoices of such imports.”

    He also alleged that importers had been made to pay exhorbitant import duty and charges, a practice which has  affected investors, especially in the absence of an effective dispute resolution mechanism.

    He suggested non-oil areas, especially taxes, by improving the environment for businesses.

    Observing that the harsh environment would make it difficult for the government to realise the desired tax revenue, he noted that tax revenue could only be as good as the performance of businesses.

    He urged the government to nurture the private sector to get robust revenue in form of tax, insisting that emphasis on tax should be more on consumption than on production.

    He said: “There is too much emphasis on investors for purposes of taxation, especially in tax on their raw materials and other input; high tariffs on energy and business premises. We should focus more on taxing consumption.”

    On the insecurity, LCCI lamented that the problem was disturbing investments.

    He decried declining investors’ confidence in the economy. According to him, this is as a result of the negative impact of the country’s  image and perception. Others are risks of doing business in some parts of the country, relocation of businesses away from the troubled spots and setbacks for the tourism sector.

    According to him, there is the distraction of the government from other germane issues in the country, leading to the abandonement of many projects under construction in the north.

    Acknowledging the efforts of  the government in tackling the problem, he appealed that such efforts be further intensified. He said this is a time for all the citizens to rally round the administration to find an enduring solution to the challenge of insurgency.

    On the declining score on ‘Ease of Doing Business’, he drew the attention of the Federal Government to the World Bank report on the ease of doing business for this year where it indicated a drop of nine points to 147th position from 138th the country scored last year among 189 economies in the world.

    He explained that the areas scored are Starting a Business (-8), Dealing with Construction Permits (-5), Getting Electricity (-1), Registering Property (no change), Getting Credit (-2), Protecting Investors (-1), Paying Taxes (-3), Trading Across Borders (1), Enforcing Contracts (2) and Resolving Insolvency (no change).

    He said the report was disheartening, noting that the nation’s scores dropped on six out of the 10 metrics used in the ranking.

    He stressed that the declining ease of doing business as indicated in the report agreed with key findings of LCCI’s business environment survey and business confidence index over the last one year.

  • Policy issues affecting businesses, says LCCI

    Policy issues affecting businesses, says LCCI

    President, Lagos Chamber of Commerce and Industry (LCCI) Alhaji Remi Bello said prevailing macro-economic issues, triggered by the slump in global oil prices, have created challenges for the public and private sectors.

    He observed that the pressure on production and operating costs and weak consumer demand were already taking their toll on many businesses with investors’ confidence affected.

    Bello advised government and its agencies to avoid actions that would further complicate matters for investors.

    The LCCI boss, in a statement, said chamber was compelled to draw attention to some policy and institutional actions that could negate the current efforts to stabilise the economy and preserve jobs.

    Some of the challenges, he mentioned, were deliberate and arbitrary revision of the value of cargoes by the Nigeria Customs Service (NCS), driven by the quest to generate more revenue in line with new target.

    He said: “We do not believe that this is the best way to improve revenue generation by the NCS.  There should be a credible ground to dispute the value of invoice on imports. Most of the prices are global prices and are easily verifiable.

    “But in many of the instances, the actions of the NCS have no bearing with these global prices. Regrettably, there is no dependable dispute resolution mechanism in place.

    “Invoice values have been arbitrarily hiked by between 50 to 100 per cent.  Many importers, including reputable companies, have suffered from this arbitrary revision in value.

    “The result is that investors are compelled to pay higher duties and other charges without any justifiable reason.”

    He called on the Federal Government to address the issue and to urgently set up an independent dispute resolution mechanism to resolve valuation disputes within three days because of demurrage implications.

    He also called attention to the exclusion of certain transactions from the Retail Dutch Auction System (RDAS) window.

  • LCCI  gets new officers

    LCCI  gets new officers

    The Executive Head, Business Development Group of Vodacom Business Nigeria, Mr. Zakari Usman, has been appointed as Chairman, Information Communication Technology and Telecommunication Group (ICT&T) of the Lagos Chamber of Commerce and Industry (LCCI).

    He takes over from  Adejare Amoo who had steered the ship of the Group in the last four years.

    Usman brings to the job a wealth of experience garnered over the years as an expert in telecoms.

    Other members of the Executive Committee of the Group include Mr. Abidemi Thomas of Systemtech Services Limited, Vice-Chairman; Oluremi Hamid of Phlemin Integrated Global Limited, Mr. Nicholson Okwori of Vodacom Business Nigeria, Mr. Kunle Ogunde and Mr. Ohiri Agabus of RCI Document Solution Limited.

    Others are Mr. Ejike Onyeaso of IHS Nig. Plc; Mr. Uduikhue Lucky of DataPoint Microsystems Limited and the immediate past Chairman, Adejare Amoo of Corporatemind Associates Nig. Limited as ex- Officio and Funke Soyoye, Secretary, Information Communication Technology & Telecommunication

  • Sliding oil price significant, scary, warns LCCI

    The Director-General, Lagos Chamber of Commerce and Industry, Mr Muda Yusuf has said the sliding oil price is significant and disturbing, adding that it is at its lowest in four years.

    Speaking with The Nation, Muda said for an economy that is 95 per cent dependent on oil for its foreign exchange earnings; and 85 per cent dependent for revenue, this development should be a cause for concern.

    He said the single most important vulnerability of the  economy is its heavy dependence on oil.

    “Crude oil market conditions have profound implications for the Nigerian economy.  Current trend with oil price pose major downside risks to some key macroeconomic variables and the general economic conditions. The main impact points include: government fiscal operations, naira exchange rate, capital flow reversals, stock market, foreign reserves, inflation, interest rate among others,” he said.

    He added that the declining oil price means reduction in revenue inflows, adding that this has implications for the capacity of government at all levels to meet their statutory obligations.

    He said: “Most states are over 80 per cent dependent on statutory allocations which make the impact of declining oil price very profound.This is even moreso when the culture of big and profligate spending has been entrenched.  Already, some states are having issues with the payment of the salaries of their workers.  Many have issues with payment to contractors. Major adjustments in government spending [at all levels] are clearly inevitable.

    “The good news in all of these is the likely moderation of cost of fuel importation. This is well known to be a major burden on the finances of the country.The share of the nation’s resources committed to fuel importation and fuel subsidy is horrendous and perhaps scandalous. It is hoped that declining oil price would moderate this cost.”

    However, the major way forward to tackle the scenario, according to Muda, is for the government to focus more on the non oil sector.

    “The non-oil export sector is likely to profit from current situation, especially where production processes have high local content. Although the capacity of the non-oil export sector is low at the moment. However, there is hope that if the government concentrate on the non oil sector , there will be a boost to the government revenue and the economy,” Muda said.

  • Oil price fall: LCCI backs govt’s policies

    Oil price fall: LCCI backs govt’s policies

    THE  Lagos chamber of Commerce and Industry (LCCI) has thrown its weight behind the fiscal and monetary policy responses by the government to keep the economy afloat in the face of falling oil prices.

    In a statement, LCCI Director-General Mr. Muda Yusuf said the fiscal and monetary policy responses by the government and the Central Bank of Nigeria (CBN) were inevitable, stressing that some of the policies were long overdue.

    He said: “The economic situation has again underlined the critical imperative of economic diversification. An economy that is diversified has a better capacity to withstand shocks. At every turn in our advocacies, we have canvassed the need for the creation of an enabling environment to enhance the productivity of enterprises and consequently ensure economic diversification.”

    On the measures, he said they included fiscal and monetary policies taken to stabilise the macro-economic conditions to minimise dislocations.

    These, he said, include reduction in international travels and trainings by Federal Government officials, tax on luxury items, and review of oil price benchmark to $73 from $78 in the 2015 Medium Term Expenditure Framework (MTEF).

    Others are renewed commitment to fiscal prudence, upward revision of revenue target for Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service.

    Yusuf said on the monetary policy front, some items, such as electronics, finished goods, information technology, generators, telecommunications equipment, and invisible transactions, were excluded from the official foreign exchange window.

    The LCCI said the implication is that transactions involving the enumerated items would be funded at a higher exchange rate from either the interbank foreign exchange market or parallel market.

    He recommended that several budget heads needed to be further scrutinised to ensure cost effectiveness and better transparency in the management of public finance. According to him, they include the: consolidated revenue fund charges, service wide votes, presidential amnesty programmes, capital supplementation and debt services.

    Others are refreshments and meals, foodstuffs and catering, honorarium and sitting allowance, welfare packages, repairs and maintenance. All these budget heads have substantial amounts voted for them in the budget annually. Some of the provisions do not reflect the desired prudence in the management of public funds. Huge savings will be made if a proper scrutiny of the budget heads is made, he warned.

    Yusuf regretted that the biggest platform for corruption in the economy today is the management of subsidy on petroleum products. The pressure it exerts on the government treasury is enormous, he warned.

    He called for an accelerated reform of the oil and gas sector and the passage of the Petroleum Industry Bill (PIB), which he said will mitigate the challenge the subsidy management poses for government finance.

    Furthermore, he cautioned that the tax yield in the economy is not commensurate to the magnitude of activities taking place in the economy.

  • Golden counsel

    Golden counsel

    •The Federal Government will do well to seriously address LCCI’s reservations about its just announced austerity measures

    The call by the Lagos Chamber of Commerce and Industry (LCCI), for further review of the items in the austerity measures outlined by the Federal Government, deserves attention. The Chamber had come out with a detailed critique of the outlined plan, describing it as skewed against the poor.

    As captains of industry who know where the shoe would pinch, we support the patriotic call and draw the attention of the civil society, and the general public, to the proposed review. In general terms, the Chamber demanded that the government should be more transparent in managing the economy.

    It also drew attention to the fact that 60 per cent of the national wealth is cornered by a mere 10 per cent of the population; and requested progressive taxation that would make the rich support the poor. This fact cannot be lost on keen watchers of social inequality in the country. While the rich continue to flaunt their wealth, the poor are hit by abject poverty and squalor; with the various governments doing very little to curb the effects.

    For the avoidance of doubts, the measure released by the Minister of Finance and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, and spelt out in the Medium Term Framework, include reduction in the Oil Benchmark from $78 to $73, reduction in international travels and training, and upward review in revenue targets set for agencies like the Federal Inland Revenue Service (FIRS) and the Nigerian Customs Service (NCS). The government has also served notice that tax on luxury items would be reviewed upwards.

    While LCCI did not pick holes with the measure, it said the luxury items should be defined. The Chamber pointed out that the very large allocation to Consolidated Revenue charges deserves further breakdown, as no detail was given.  It also called attention to the huge allocations to the presidential amnesty programme, capital supplementation and service-wide votes.

    The Chamber noted that the votes for refreshment meals, foodstuffs and catering luxury items; and sitting allowances and welfare packages, do not reflect a nation being squeezed by economic crisis, thus necessitating belt tightening.

    Most importantly, we support the Chamber’s observation that management of the economy has been opaque. All measures proposed by the Nuhu Ribadu Committee, set up by the same Federal Government to institute wide reforms in the petroleum market, have so far been brushed aside. So have the recommendations of the Idika Kalu Committee on establishment of new refineries.

    The Nigerian economy has remained largely vulnerable and dependent on the vagaries of the international oil market because governments over the years have refused to review the structure of the economy and diversify sources of national wealth. This has been identified by successive governments as dangerous.  Yet, they have done nothing to wean the country from the deleterious effects.

    Corruption in the public space has caused our inability to respond effectively to shocks as we are experiencing now. Rather than call on the citizens to further tighten an already tight belt, government should seriously curb the luxurious taste of public officials and bring culprits to book. The inability of government to diligently prosecute accused officials of state, and get them appropriately punished, has failed to rein in current holders of public offices.

    If the loopholes are plugged, those aspiring to occupy high profile positions would realize that the day of reckoning would come some day. But, now, governors alleged to have stolen public funds and answering to charges in court easily use the same looted funds to make their ways to the Senate. Others are given offices in the Federal Executive Council. Former ministers are shielded from the long arms of the law and the cycle remains unbroken.

    This is another opportunity to review the structure and foundation of the economy and public fund management. Unless this is done, it would be impossible for the government to mobilize the citizenry to make sacrifices for national development. President Jonathan and his cabinet should make the due sacrifice first if the people are to willingly support his measure. A good starting point is accommodating the suggestions of the LCCI.

     

     

  • Oil price fall: LCCI backs govt’s policies

    THE  Lagos chamber of Com merce and Industry (LCCI) has thrown its weight behind the fiscal and monetary policy responses by the government to keep the economy afloat in the face of falling oil prices.

    In a statement, LCCI Director-General Mr. Muda Yusuf said the fiscal and monetary policy responses by the government and the Central Bank of Nigeria (CBN) were inevitable, stressing that some of the policies were long overdue.

    He said: “The economic situation has again underlined the critical imperative of economic diversification. An economy that is diversified has a better capacity to withstand shocks. At every turn in our advocacies, we have canvassed the need for the creation of an enabling environment to enhance the productivity of enterprises and consequently ensure economic diversification.”

    On the measures, he said they included fiscal and monetary policies taken to stabilise the macro-economic conditions to minimise dislocations.

    These, he said, include reduction in international travels and trainings by Federal Government officials, tax on luxury items, and review of oil price benchmark to $73 from $78 in the 2015 Medium Term Expenditure Framework (MTEF).

    Others are renewed commitment to fiscal prudence, upward revision of revenue target for Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service.

    Yusuf said on the monetary policy front, some items, such as electronics, finished goods, information technology, generators, telecommunications equipment, and invisible transactions, were excluded from the official foreign exchange window.

    The LCCI said the implication is that transactions involving the enumerated items would be funded at a higher exchange rate from either the interbank foreign exchange market or parallel market.

    He recommended that several budget heads needed to be further scrutinised to ensure cost effectiveness and better transparency in the management of public finance. According to him, they include the: consolidated revenue fund charges, service wide votes, presidential amnesty programmes, capital supplementation and debt services.

    Others are refreshments and meals, foodstuffs and catering, honorarium and sitting allowance, welfare packages, repairs and maintenance. All these budget heads have substantial amounts voted for them in the budget annually. Some of the provisions do not reflect the desired prudence in the management of public funds. Huge savings will be made if a proper scrutiny of the budget heads is made, he warned.

    Yusuf regretted that the biggest platform for corruption in the economy today is the management of subsidy on petroleum products. The pressure it exerts on the government treasury is enormous, he warned.

    He called for an accelerated reform of the oil and gas sector and the passage of the Petroleum Industry Bill (PIB), which he said will mitigate the challenge the subsidy management poses for government finance.

    Furthermore, he cautioned that the tax yield in the economy is not commensurate to the magnitude of activities taking place in the economy.

  • $9b Dangote  refinery hikes property prices  in Lekki

    $9b Dangote refinery hikes property prices in Lekki

    THE  Lagos chamber of Commerce and Industry (LCCI) has  thrown its weight behind the fiscal and monetary policy responses by the government to keep the economy afloat in the face of falling oil prices.

    In a statement, LCCI Director-General Mr. Muda Yusuf said the fiscal and monetary policy responses by the government and the Central Bank of Nigeria (CBN) were inevitable, stressing that some of the policies were long overdue.

    He said: “The economic situation has again underlined the critical imperative of economic diversification. An economy that is diversified has a better capacity to withstand shocks. At every turn in our advocacies, we have canvassed the need for the creation of an enabling environment to enhance the productivity of enterprises and consequently ensure economic diversification.”

    On the measures, he said they included fiscal and monetary policies taken to stabilise the macro-economic conditions to minimise dislocations.

    These, he said, include reduction in international travels and trainings by Federal Government officials, tax on luxury items, and review of oil price benchmark to $73 from $78 in the 2015 Medium Term Expenditure Framework (MTEF).

    Others are renewed commitment to fiscal prudence, upward revision of revenue target for Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service.

    Yusuf said on the monetary policy front, some items, such as electronics, finished goods, information technology, generators, telecommunications equipment, and invisible transactions, were excluded from the official foreign exchange window.

    The LCCI said the implication is that transactions involving the enumerated items would be funded at a higher exchange rate from either the interbank foreign exchange market or parallel market.

    He recommended that several budget heads needed to be further scrutinised to ensure cost effectiveness and better transparency in the management of public finance. According to him, they include the: consolidated revenue fund charges, service wide votes, presidential amnesty programmes, capital supplementation and debt services.

    Others are refreshments and meals, foodstuffs and catering, honorarium and sitting allowance, welfare packages, repairs and maintenance. All these budget heads have substantial amounts voted for them in the budget annually. Some of the provisions do not reflect the desired prudence in the management of public funds. Huge savings will be made if a proper scrutiny of the budget heads is made, he warned.

    Yusuf regretted that the biggest platform for corruption in the economy today is the management of subsidy on petroleum products. The pressure it exerts on the government treasury is enormous, he warned.

    He called for an accelerated reform of the oil and gas sector and the passage of the Petroleum Industry Bill (PIB), which he said will mitigate the challenge the subsidy management poses for government finance.

    Furthermore, he cautioned that the tax yield in the economy is not commensurate to the magnitude of activities taking place in the economy.

    The property market in the
    Lekki area of Lagos, Nigeria’s
    commercial nerve centre, is  experiencing an unprecedented boom, with rising demand pushing up property prices, The Nation has learnt.

    The development is said to be in anticipation of the coming on stream of the proposed $9 billion Dangote Refinery and Petrochemical Company in the area, as well as other petrochemical companies scrambling to buy land in the area.

    Since Dangote Group awarded the project management consultancy, engineering and construction management of its 400,000 barrels per day (bpd) (20 million tonnes) oil refinery and 600,000 tonnes polypropylene plant, the Lekki corridor of Lagos and its environs have not been the same again. The area, which used to have a narrow single-lane road and notorious traffic congestion, is fast becoming a global business haven with a new dual carriageway with three lanes on both sides.

    On account of these, the multi-billion naira investment and the economic activities it is expected to spur in and around the Lekki Free Trade Zone (LFTZ) was one of the issues that came up at this year’sTokyo Annual Conference of International Bar Association in Tokyo, Japan in October. The plant, which would be one of the biggest in Africa after completion, generated so much interest among foreign investors at the conference. The consensus was that it would be a big investor attraction to Nigeria and Africa.

    This is why property prices in that area have soared by over 100 per cent from what it was late last year. Experts in real estate attribute this to the influx of people to Lekki. This made the value of property in the area very high, as prospective property owners scramble for residential apartments and office spaces.

  • Data service quality’s headache

    Data service quality’s headache

    More than a decade after the telecoms’ revolution, the quality of data services provided by the operators has remained a nightmare to subscribers. Data consumers say the Nigerian Communications Commission (NCC) should do more to protect them from exploitation, reports LUCAS AJANAKU.

    From the way he behaved at the event, it was clear he had long waited for an opportunity to express his displeasure on the quality of services (QoS) he got from his service providers. So, when the regulator, the Nigerian Communications Commission (NCC), provided telecoms consumers an opportunity to interact with its officials at the last Lagos International Trade Fair, organised by the Lagos Chamber of Commerce and Industry (LCCI), at the Cricket Oval, Tafawa Balewa Square, Lagos, Mr. Taju  Onitiju used the opportunity to decry the poor quality of services and the depletion of his ‘credit’ through continous delivery of text  messages, which he had  sent. According to him, at the last count, sent messages were more than 500.

    As a manifestation of his frustration, he ‘ignorantly’ accused the NCC, which had sanctioned the operators, of complicity in the cleverly orchestrated fraud being perpetrated by the telecoms operators against their customers in the country.

    Director, Public Affairs, NCC, Mr. Tony Ojobo and Deputy Director, Consumer Affairs Bureau (CAB), NCC, Dr Atoyebi, took time to assure the audience, including Mr. Onitiju, that the regulator takes the issue of consumer protection seriously because it is one of its core mandates.

    Data users also suffer QoS challenge. While there is key performance indicators (KPIs) set down by the NCC with the consent of the telcos for voice calls, it is not clear if there is any such parameter in the data segment of the industry.

    The CAB, however, said it has been inundated with an avalanche of bitter complaints by data subscribers through its the Telecoms Consumer Parliament (TCP), Consumer Outreach Programmes (COPs) and Consumer Town Hall Meetings (CTMs). Thus, it was not a coincidence that the last TCP convened in Lagos by the NCC had Data Service Delivery: The Way Forward as its focus.

    Director, CAB, NCC, Mrs Maryam Bayi, defined data service as the distribution of internet service on demand to the user regardless of geographic or organisational separation, adding that it is also the ability of network operators to provide data services to consumers on demand.

     

    Benefits

    The importance of data services to global technological revolution and contribution to national economic and social development cannot be overemphasised. Data services, through broadband would facilitate services such as e-government, e-commerce, e-agriculture, telemedicine, e-education and a host of other benefits. A frequently cited World Bank study found that low-income and middle-income countries experienced “about a 1.38 per cent point increase in GDP (gross domestic product) for each 10 per cent  increase in (broadband) penetration” between 2000 and 2006.

    The World Bank further found that the development impact of broadband on emerging economies is greater than for high-income countries, which “enjoyed a 1.21 percentage point increase in per capita GDP growth” per 10 per cent increase in broadband penetration.

    Mrs Bayi said data services are able to eliminate redundancy and streamline costs. This is because critical data is housed in one location, enabling data to be accessed and/or updated by multiple users while ensuring a single point of reference for updates.

     

    Data service challenges

    Although data services have many advantages, it have some potential drawbacks. These include server downtime from data service provider, data loss in the event of a disaster, and inadequate security of the data, both in its stored location and in transmission among users.

    She said the CAB has, through its Complaint Management Database, identified four major complaints by the subscribers.

     

    Consumers’ headaches

    She said: “Sourcing from our Complaint Management Database, we have compiled the most prevalent consumer complaints on Data Service Delivery. These include inability to browse; abnormal depletion of data; unsuccessful data renewal; and unauthorised service renewal.”

    Inability to browse happens when internet service browsing is not active and a user is unable to connect to the internet. “Subscribers complained most often that they have Enhanced Data for Global Evolution (EDGE) on their phone, but they cannot connect to the browser and yet their data bundle expires at the end of the month because there is no allowance for data roll over,” Mrs. Bayi said.

    Abnormal depletion of data is another  nightmare of the subscribers. This occurs when there is minimal or no internet activity while the resulting data usage does not correspond with actual usage.

    Another issue is unsuccessful data renewal, which happens when the data bundle purchased had expired. Consumers so often purchase data, transaction confirmed as monies have been debited, but data renewal fails and there is no active data bundle.

    The issue of unauthorised service renewal is another sore point of the subscribers. For mobile subscription, it happens when consumers’ voice credit gets depleted on expiration of data bundle plan without consumers’ authorisation, thus resulting in drop in air time balance.

    Speed is another challenge. Some of the operators promise the speed they lack the technology to provide just as they lie about the technology deployed to roll out services to the consumers. The Executive Vice Chairman/CEO, NCC, Dr. Eugene Juwah lamented that the service quality being provided by the operators have become worrisome, lamenting that some of the operators providing services on 2G claimed they are doing 3G and even long-term evolution (LTE) or 4G.

     

    Operators react

    Reacting to the complaints, representatives of the telcos and internet service providers (ISPs) said  most of the complaints arose from the consumers’ ignorance about the working of their mobile phones while others are as a result of the operating environment challenged by a myriad of circumstances.

    Customers Service Executive at MTN, Akinwale Goodluck, blamed the quality of mobile sets used for some of the data hiccups, adding that grey markets continue to flourish because of the issue of affordability. According to him, the amount of data consumed is also important, stressing that the firm has embarked on education and enlightenment for the subscribers. He said the auto-renew of data service for customers was in their interest because if it was not done, data charges immediately go into their voice account, adding that MTN compensates the customer any time it discovered it has indeed, erred.

    An official of Airtel, Ibe Nwandu, said data connectivity is solely dependent on network availability and coverage. Since it is not easy to give what one does not have, coverage continues to be a challenge. To him, the customer is king, so the telco has threshold of notifying customers on their data services. He said the telco has provided options for customers to opt in and out, adding that the organisation would continue to work hard to improve customers’ experience.

    Head, Network Operations, Globacom, Mr. Aremu Olajide, said the firm has invested massively in equipment swap nationwide. According to him, more 3G cites are being built while fibre optic cables are also being laid to complement microwave.

    Olajide did not rule out occasional service disruptions, which may occur when there is fibre cut and transitioning to microwave that may take a little time to achieve. He said there is need for customers to know what they use their mobile phones to do, adding that the telco refunds after genuine complaints are established. He added that text messages are usually sent to customers in respect of auto-renewal.

    Like his counterpart in Airtel, Etisalat’s Director, Customer Care, Plato Syrimis, said coverage remains a challenge. Though the last operator to join the fray, he said, the telco is not giving excuses, but working hard to build more 3G cites. He also said the firm is taking the issue of consumer education seriously as it would help them to save their credits from being depleted unnecessarily.

    Director at Spectranet, Chief Ezekeil Fatoye, said the firm operates on the 2.3 gigahertz (GHz) spectrum  and began offering services on WiMax, migrating to LTE, which limited its coverage, as customers of WiMax could not migrate to LTE. He said customers affected by the technology upgrade were compensated, adding that the network has since been optimised and back, and running.

    Gbolahan Thomas of Smile Communications, said his firm was not guilty of any of the ‘charges’ arguing that the organisation has empowered the customers to do a lot of things on their own. He said the Smile Block is a technology that the firm has put in place to block sites such as YouTube that are heavy data depleting. He said there is also 24/7 customer care support lines, adding that its data renewals are effected through its army of agents present in every nook and crannies of the country.

    Lynda Amaechi of Visafone and Chukwuka Igoro of Cobranet said customer education is central to the issues around data usage and depletion. Lynda said customers could opt out of any of the telco’s services at will, adding that self service on IVR has also been strengthened to help customers.