The Nation Newspaper

Tag: Lifeline

  • Venezuela gets $5b lifeline from China

    Venezuela has received $5billion (£3.4billion) in financing from China, Venezuelan President Nicolas Maduro says.

    The money was for “development”, he said, but gave no details.

    The announcement comes three months after Mr Maduro travelled to China – a major investor in the region.

    Venezuela is suffering from an acute economic crisis, as the price of its main export, oil, has almost halved over a year. The opposition accuses the government of mismanagement.

    Maduro, who visited Beijing in January, said then that China would invest more than $20billion in Venezuela.

    He did not make clear in Sunday’s announcement if these latest $5bn were part of that larger sum.

    China’s influence

    Loans by China’s state-owned banks to Latin American countries rose by 71% to $22billion (£14billion) last year, according to estimates published by the China-Latin America Finance Database.

    The Chinese loans exceed the combined worth of those by the World Bank and the Inter-American Development Bank, according to the database.

    The $5billion will be a boost to Venezuela, which has been hit hard by falling oil price. According to reports, 96% of its export revenues come from oil.

    Figures from Venezuela’s oil ministry suggest the price of Venezuelan oil has dropped from $97 in April 2014 to $50 this month.

    Inflation in 2014 stood at more than 60% and there are widespread shortages of basic staples such a flour, cooking oil and milk.

  • Lifeline for leadership training centre

    Lifeline for leadership training centre

    The Sea School, one of the units of Citizenship and Leadership Training Centre, Lagos, is a Mecca of sort for most of the highbrow schools in Lagos. If they are not visiting the place for excursion, the schools ensure that their new prefects are taken to the island for retreat and leadership training.

    Aside being a tourist centre, the island, which is about two kilometres long, 300m wide, is a training centre for security agencies in Nigeria.

    The cool breeze;  serene environment, the almond trees that mitigate scorching sun; array of ships that dot the sea, make one appreciate nature. If one is upset before visiting the island, one’s nerves would be calmed.

    However, those beautiful vistas were in the yesteryear. The once dazzling school has become fetid. Things seemed okay at the Sea School until about three months ago, when the embankment collapsed and water began started to wash off part of the island.

    It was quite difficult to notice that all is not well with the Sea School until the Minister of Youth and Social Development, Boni Haruna, visited the school.

    His visit to the school opened a can of worms.

    Though there are new buildings being erected in the school, most buildings in the school are more than 50 years old, as most of them were built in 1965. To worsen the situation, the original Master Plan of the centre is lost or so it seems.

    The once prestigious school is currently in darkness. Seemingly, it has been yanked off the National Grid.

    At its inception, the centre enjoyed constant power supply, but the privatisation of the Dockyard changed the situation.

    The Director-General, Citizenship and Leadership Training Centre, Mr. Michael Oladele Fawole said: “Until 2005, Nigerdock was supplying electricity to the centre but when a new company took over Nigerdock, they refused to supply light to the school even though we promised to pay the bill. There is a village in between us and they knew it was going to be difficult to get them pay for light, the company declined our request. Since then, we have not been having light. Because of the situation, we have been using generator.

    “The centre spends an average of N300, 000 a month on fuel in order to power the school.

    “While the centre would want to host many visitors, the hostels are inadequate. It is so bad that students are accommodated in the new library.”

    During the visit, the minister had a dose of the hardship members of staff of the centre go through. As he sat in the office of the Coordinator of the centre, Mrs Lambert Oyebola Faleye, the minister was sweating profusely. It took him a while to sign the visitors’ book and when the heat became unbearable, he had to remove his jacket.

    Transporting people in and out of the island is also a challenge. The D-G further explained that the centre has three water buses, the three would have been enough if they had been functional, adding that “it is only one that is functional. We would have loved to have a 50-seater or 100-seater boat.”

    Grim as the situation on the island may seem, it is probably one of the safest places to live in the country.

    While many have become frustrated and leave the security of their lives and properties in God’s hand, the people on the island sleep with their two eyes closed. It is difficult to commit crime on the island and go scot free.

    Aside personnel from the military and other security agencies undergoing training on the island, marine police are constantly on patrol to prevent criminals from carrying out their nefarious acts.

    Bad as it may seem and despite all the challenges the institute is experiencing, the D-G said the centre has continued to make judicious use of its limited resources.

    “Despite all these challenges, we have continued to perform. I thank members of our staff who often times find it difficult to believe that we are handicapped. I think that there is a proof that we are trying our best,” he said.

    The minister, who was accompanied by some officials of Ministry of Environment to assess the situation, acknowledged the limited facilities and decayed infrastructure and inadequate funding of the centre and promised that the problems would be solved. He said about N2 billion would be expended on the centre.

    ”We will do the needful to change the way things are done here. We will also improve the working environment, improve the facilities and reposition the school,” the minister said.

    Haruna promised to provide a new layout for the school so as to know where to locate some of the infrastructure.

    “It is not unlikely that this school will be the same again. We will create an enabling environment for you because there is so much here that could be leveraged upon. I will make sure that the needful is done,” he said.

  • Wanted: Lifeline for a fading pastime

    Wanted: Lifeline for a fading pastime

    There are many students with budding talents in sports but there are no incentives for them to hone their skills. In many higher institutions, sports has been relegated to the background because some have no grounds/fields while others prefer academics to extra-curricula activities, writes EDDY UWOGHIREN (200-Level Medicine and Surgery, University of Benin).

    Then Victor Yimlang, a 200-Level Philosophy student of the University of Benin (UNIBEN) participated in the maiden UNIBEN Marathon last year, he finished third. To him, the third position was not his best. With sheer determination and the zeal to excel in subsequent races, he prepared for the contest. In the second edition of the marathon, held a few months ago, Victor came first.

    Seeing the energy and potential of the young athlete, who students nicknamed “marathoner”, the university engaged Victor in further training to improve his talent. Recently, Victor represented the school in Okpekpe International Marathon, organised by the Edo State government.

    Victor came fourth in the 10-kilometre race in which over 2,000 local and international athletes from over seven countries participated. Mnem Eshion, an Ethiopian, won the race, with a time of 28.36 seconds.

    For UNIBEN, Victor’s success was no mean feat, having supported him to hone his talent in athletics.

    Victor’s story reinforces the popular notion that higher institutions are breeding grounds for sportsmen and women, who can use their talents to develop the nation. But how many universities or polytechnics are looking in this direction and taking advantage of it?

    Some of the best footballers and athletes that ever came out of this country were discovered through youths tournaments, such as the Nigeria Universities Games (NUGA), Nigeria Polytechnic Games (NiPOGA) and the West African Universities Games (WAUG).

    This is no more the case, as sports administrators now prefer to shop for unmerited sportsmen in place of experienced ones to represent the nation in international sports fiestas. This, some argue, is responsible for Nigeria’s poor performance in crucial international tournaments.

    Sportsmen on campuses are not happy with the development, which they described as an ugly trend in the sports sector. According to them, Nigeria is legendary in leaving sports contests almost immediately after the kick off. This is the result of neglect of campus sports by governments and administrators, some students said.

    Relegation of sporting activities in the curricula of higher institutions is another factor students said may have been responsible for the crisis in the sector. Many higher institutions, they said, have either removed sports or have made it less attractive, thereby killing the talents of many students, who have zeal to excel in sports rather than academic.

    Quite a number of universities offer courses in Physical Health Education, Louis Osahenie, a student of the Ambrose Alli University (AAU) in Ekpoma, Edo State said, stressing that many institutions’ curricula are based on theoretical instruction, rather than practice.

    He said: “Most of the students read about the sports only in books and cannot practise on the field. This is because the facilities are not there. If having a distinct sport facility is among requirements for granting licence for university operation, many schools should have been shut down. My parents told me that, for a secondary or primary school to be accredited, it must have a large field for sporting activities but the story has changed. We now have schools being set up on small parcels of land without spaces for extra-curricula activities.”

    Emmanuel Odogwu, a Hockey player, blamed lecturers for killing sports on campus. He described some lecturers’ attitude towards sports as pathetic, noting that students, who engage in sports, are considered unserious.

    “Students like me, who participate in sporting events, are mocked by lecturers and this kills our morale. In fact, some lecturers have the habit of giving impromptu tests, especially when students are on the field for training. This puts us in a risky situation of either leaving the field to write the test or staying back and fail,” he said.

    Emmanuel cited an example. His words: “I almost missed the last NUGA at the Obafemi Awolowo University (OAU) because the exam clashed with the tournament. Academic calendars are no longer stable because of teachers’ strike but NUGA has a fixed period. This has made talented young people not go for such events because the university will not shift the examination because of sports.”

    How many universities have the capacity to fund sporting events? Marvelous Idahor, an Accounting student, asked. He said sports was becoming less attractive on many campuses because school managements only believe in academics and nothing else.

    He said: “Where will school managements get money to finance sporting activities when the subvention they get from the government is not enough to build adequate lecture theatres? A typical university wants to pay its staff and fund research, not sports.”

    Olumide Adebayo, an Anatomy student at the University of Ibadan (UI), said students also share in the blame, asking how many Students’ Union Governments (SUGs) include sporting activities in Students’ Week.

    “Students are indifferent to sports because of the academic workload they have to cope with. Some students’ associations are guilty of killing students’ sporting talents. They only organise football matches for males alone, leaving the females in the classroom. They forget that there are many girls with special talents for sports, such as gymnastics, athletics, volleyball and basketball. Some schools do not even have facilities for such sports,” he said.

    Many higher institutions are guilty of killing sports, said Mrs Felicia Igbafe, Head of Sports, UNIBEN Centre.

    There is a national policy declaring every Wednesday a lecture-free day for students to participate in sports, she said. This, according to her, is not being followed because of the workload students are subjected to.

    Victor suggested that both lecturers and students should be orientated on the need to promote sports. He said athletes should be further mentored after tournaments to ensure they remained focused.

    He said: “NUGA should be made to serve its purpose. Beyond the frills and thrills, the tournament must be seen as a breeding ground for sportsmen. It was during a sporting event that Alexander Oxlade-Chamberlain of Arsenal Football Club was discovered and mentored. He represented St. Johns College in Portsmouth, England. He has brought glory to the school. This can be done because a lot of talents are wasting away on campuses.”

    Prof Oluwaseun Omotayo, Vice President of African Sports Management Association, believes the establishment of a sport university would help to improve sport participation.

    In a proposal he submitted to the Federal Government, Prof Omotayo said, the sport university would help on training needed manpower for the sport sector, stressing that it would also make Nigeria hub for sport research and development.

    If nothing is done, he said, campus sports will continue to sink and Nigeria will keep performing poorly in major events.

     

  • No lifeline for landlines

    No lifeline for landlines

    Before the advent of the Global System of Mobile Communication (GSM), operators of the Code Division Multiple Access (CDMA), otherwise known as landlines, were a regular feature in homes and offices but not anymore. Today, a majority of the hitherto leading players have gone into extinction with the few surviving ones in dire straits. In this report, Bukola Afolabi takes a look at the challenges besetting the CDMA sub-sector

    These are not the best of times for the once popular landlines, also known as Code Division Multiple Access (CDMA). Enter Starcomms, Reltel, Multilinks, MTS, Intercellular, MTEL, Odua tel. and the late entrant, Visafone.

    In the heydays, when the CDMA operators held sway, it was thought that they would improve in some significant way the fortunes of the telecoms sub-sector. Nigerians patronised them with high hopes that they would offer more in terms of quality service.

    Run of misfortunes

    At first, they had smooth operation as they enjoyed patronage of many companies. But the song has since changed. Recently, news went round that Visafone, the only surviving operator of the Code Division Multiple Access (CDMA), had allegedly sacked 60 workers, which the company denied. Yet, the report brought into attention the fact that CDMA companies have not had a successful operation in the Nigerian telecoms market thus far.

    The CDMA segment of the Nigeria’s telecoms industry is gradually sinking into oblivion as clouds of uncertainty hang over the high hope raised by the proposed merger of Starcomms, Multilinks and MTS First Wireless.

    A deal gone bad

    The spectacular deal being put together by Capcom Limited, a holding company focused primarily on identifying, investing and building shareholder value in companies in the African telecommunications sector, is touted as a breather for the embattled sub-sector.

    But some transaction hiccups, including approvals, administrative bottle necks and legal knots to be untied, have all conspired to hobble the deal, some 10 months after Capcom declared its interest to provide Starcomms (the product of the merger of Starcomms, Multilinks and MTS) with a capital investment of cash and assets independently valued at $210 million.

    It would be recalled that Starcomms, one of the companies in the merger, had in December 2013, warned that the company was at risk of bankruptcy if the merger failed.

    Mr. Olusola Oladokun, former Interim Chief Executive Officer, Starcomms Plc, said, over the years, the company has been faced with numerous challenges due to the harsh operating environment and is experiencing difficulties in its operations.

    He disclosed that Starcomms’ debt profile currently stood at N15billion, adding that the company has stopped servicing its debts so as to conserve cash.

    Elsewhere, Multilinks is haemorrhaging after shutting down part of its CDMA business and focusing more on the fibre service operation.

    MTS First Wireless, on the other hand, had slipped into history until the merger deal surfaced. But it remains a very attractive bride because it is sitting on the best frequency band in the telecom industry

    It was gathered that the CDMA sector got into trouble in the first place due to a combination of factors, including corporate mismanagement.

    Shrinking market share

    Today, all the CDMA operators in Nigeria have just 2.5 million lines according to the Nigerian Communications Commission (NCC’s) figure for July 2013 with Visafone accounting for over two million of the sum total. In contrast, the GSM segment has in excess of 120 million lines.

    The real trouble with CDMAs

    To say that CDMA operators are hanging by hair breath is a gross understatement. Truth is, they are in a very bad shape.

    The same fraudulent and self-serving practices of some members of board and management and the overbearing influence of Chairmen or Managing Directors/CEOs of CDMAs, especially in family-controlled businesses, led to the collapse of a majority of the companies.

    GSM gain, CDMA loss

    Trouble began for the CDMA with the entrance of the GSM into the sector, thereby bringing competition between the Code Division Multiple Access (CDMA).

    Within few years, the wireless technologies with GSM began to enjoy the largest share of the market as many Nigerians began to abandon the CDMA for the more effective GSM.

    Statistics by the Nigeria Communication Commission revealed that as at January 2013, active telephone lines on the four GSM networks (MTN, GLO, Airtel and Etisalat) stood at 111.1 million, but this figure has increased to 118.4 million at the end of September, 2013.

    According to the statistics, MTN is said to be controlling over 45 million mobile subscriptions; Globacom over 26 million; Airtel 25 million while Etisalat has about 16 million subscriptions on its network.

    While the CDMA companies were battling with their networks, the GSM operators adopted a very aggressive approach in their quest to get consumers by crashing prices and bandwidth limit.  Prices of purchasing a GSM crashed to as a low as N100.

    This offered them the advantage over the CDMA operators who are constrained by many factors from doing the same, such as high and expensive data and charges. As a result, many of the companies began to die while the only surviving one, Visafone, is now surviving on a ‘life saving machine’.

    First was Starcomms Nigeria Limited. It went under as a result of many factors such as a legal battle with its shareholders. Though efforts were made by the management of the company to make sure it didn’t go under, through some feeble intervention, the effort is yet to yield any positive result.

    Capcom had attempted to bail out the company through the injection of a combination of assets and cash worth $210 million into Starcomms, which would give it a 90.5 per cent controlling stake in the company thereby cancelling N3, 448,646,872 in the company’s share capital, comprising 6,897,293,744 ordinary shares of 50 kobo each. Subsequently, 662,550,000 new, fully paid up ordinary shares to Capcom, constituting 90.5 per cent of the post scheme-reorganised, share capital, will be issued to Capcom. It is yet to be seen whether the moves will yield good results and bring back the existing unstable and dead operational activities of the company.

    For Reltel, the situation was no different. The company suffered from debt which hampered its operational activities.

    Shedding more light on the fate of the CDMAs, the Chairman of Association of Licensed Telecoms Operators of Nigeria (ALTON), Engr Gbenga Adebayo, had attributed the collapse to ‘harsh operating environment and lack of infrastructure.’

    The statistics released by the NCC had revealed that active mobile CDMA lines, which were 7.1 million in January 2011, dropped to less than 3.4 million by December 2012, emphasising the problem faced by the companies.

    However, many Nigerians have attributed the problems to lack of wide and effective coverage of CDMA lines.

    “CDMA’s lines do not have a wide coverage, unlike the GSMs. You can be in Lagos and talk to somebody in far away Maiduguri on GSM line but that is not so with CDMA and that is why many Nigerians abandoned using them. The companies are not everywhere; they were only present in a few states in the country.  It is also cheaper to recharge GSM lines. Most times, CDMA networks don’t go through, though the same also happens to GSMs, but GSM is better,” said Mr. Jude Ihiebale, a pay phone operator.

    He added: “The CDMA companies failed to improve their services and their mode of operation. Maybe they didn’t envisage competition and were not prepared for the coming of the GSM, so they were caught unawares and by the time they started realising the impacts of GSM, they couldn’t meet up with the yearnings of Nigerians.”

    Corroborating him, Mr Seye Popoola, a former sales agent of one of the now comatose CDMA companies, said “I agree that the CDMA companies failed to improve on their operation which caused their collapse.  I expected them to improve on their technology but it seemed they were too relaxed. The GSM came and took over the sector from them. I also agree that there were mismanagement of funds. The owners were only repatriating the money they generated to their countries rather than using it to improve their operations.”

    NCC’s data also revealed that while active mobile subscriptions on GSM networks stood at 91 million in January 2012 but increased to 92 million in February and 94.5 million at the end of March. The subscriptions further continued on an upward growth reaching 96.6 million in April and 97.5 million active subscriptions in May 2012.

    By June, July and August of 2012, the combined active GSM subscriber-base increased to 98.3 million; 99.4 million and 101.4 million respectively.

    However, for the CDMA, their numbers did not improve within the period under review. It declined from 4,031,820 lines in February; 4,013,690 in March to 3,904,846 telephone lines in April. It declined to 3,718,153 in May; further went down to 3,541,355 in June and in July, fell to 3,452,368 and finally to 3,347,716 at the end of August, 2012.

    Mismanagement was also adduced as one of the reasons for the collapse of the CDMA’s operation. Lack of transparency, bad corporate management, biased recruitment exercises and general ineptitude by its managers, diversion of funds by its executives meant for expansion, have all been blamed for the problems.

    Mr. Friday Ottor, a telecoms expert, opined that the improvement in technology which the GSM offers made many Nigerians to abandon the CDMAs.

    “You cannot compare the operational level of the GSM with the CDMA. The GSM is more technologically advanced than the CDMAs. Also, many of them come with many offers and there was constant improvement in the way it operates. The operators also offer various incentives so as to get customers which the CDMAs were not offering. You could remember that at the time GSM came into Nigeria, it was not what it is now.  Those CDMA companies failed to improve on their services and that resulted into their demise,” he said.

    Ottor added: “The problem was also made worse with the recent introduction of Mobile Number Portability (MNP) by the NCC on April 24, 2013 which allowed a subscriber of a particular network to port to another network, which the CDMAs did not offer. In my view, the operators of the CDMAs were the architect of their misfortune as they failed to move with the trend.”

    In spite of the problems facing the sector, there were those who are optimistic that the CDMAs still have a future in the telecom sector in Nigeria. Such ones are of the view that if the companies could concentrate and improve on their internet opportunities, they could as well bounce back and enjoy a sizeable share of the sector.

    Some experts believe that the CDMAs still offer better internet performances, especially because of the3G technology. They claimed it has more room for greater and faster data transfer systems than the GSMs.

    They also are of the view that the Point of Sale (POS) Terminals, the major driver of the cashless policy initiative of the Central Bank of Nigeria (CBN), work better with the CDMA technology than the GSM technology.

    This optimism was echoed through the Active Internet Subscription (CDMA) Data released by NCC which indicated that there was an increase of 3,819 subscribers, using the internet on the various CDMA networks in December 2013, while 169,149 internet users were on Multilinks, Starcomms and Visafone networks as at the third quarter of 2013.

    “From the 172,968 Internet users in the fourth quarter of 2013, Visafone recorded the highest, as its 147,399 customers were online. Visafone has an increase of 9,227, compared to its 138,172 internet subscribers in the third quarter,” the data revealed. It added:  “From the indication above, there is the need to facilitate the robust usage of the internet by creating local contents, since data has been predicted to be the next revolution after voice.”

    Echoing similar sentiments, a staff of NCC who would not be named confided in The Nation that though the CDMA sub-sector of  the telecoms industry may be facing some difficult times, it may yet rebound if the necessary investments are made by the prospective investors, many of who have shown interest in the sector.

    Pray, how realistic can this be in the face of stiff competition by the GSM operators? The future will provide answer to this riddle.

  • Lifeline for lubricants

    With the signing of a Memorandum of Understanding (MoU) between Ammasco International Limited and Nigerian Automobile Technicians Association (NATA),which gives Ammasco the right to produce customised oil lubricants, Asst. Editor Chikodi Okereocha reports that the deal is not only a shot in the arm of indigenous producers, who have been losing sleep over the deluge of cheap and sub-standard lubricants in the market, but also a boost  for the backward integration policy of the Federal Government.

    Lubricants Producers Association of Nigeria (LUPAN), an association with over 32 member- companies, has petitioned Dr. Olusegun Aganga, Minister of Industry, Trade and Investment, for what it perceived as the impending collapse of the lubricants sub-sector.

    In the petition, the body raised the alarm that investment estimated at over N680 billion may soon go down the drain because of the upsurge in the importation of sub-standard lubricants into the country. LUPAN said over 300,000 jobs were at risk unless the Federal Government curbs the menace. In the petition signed by its Chairman, Mr. Anthony Enukeme, and Executive Secretary, Mr. Obidike Emeka, LUPAN lamented the high tariff on base oil, which it puts at 10 per cent.

    The association said: “At present, imported lubricants and base oil, the chief raw materials in the production of lubricants, are housed under the same H.S CODE ‘2710.1939’ and accordingly, both attract the same tariff of 10 per cent. This situation sets the lubricant manufacturers at a disadvantage in the sense that after the payment of the 10 per cent tariff, importers of finished lubricants sell their products directly to the consumers without extra costs. The licensed blenders through the process of blending incur further expenses adding value to the base oil by introduction of additives and the employment of labour, high cost of energy consumed while running their respective blending plants and the high rate of interest accruing from loans from local financial institutions. This in turn raises the cost of the locally blended lubricants thereby making same unattractive to end-users.”

    The association noted that Nigeria remained a large importer of lubricants since the fire incident of 1995 at the Kaduna refinery’s base oil plant. The country, it noted, has since been 100 per cent dependent on the import of base oil, which constitutes about 90 per cent of finished lubricants.

    LUPAN, however, explained that sub-standard and adulterated finished lubricants from Dubai, Turkey and other countries have been on the rise, stressing that laboratory analysis report of most of such imported lubes revealed non-compliance to specifications and standards, both local and international. It described the lubricants as outright recycled oil with little or no additives in them.

    It further alleged that the lubricants imported with undervalued invoicing, deluge the markets and are sold at a cheaper rate than genuine locally produced ones thereby creating unfavourable conditions for the locally produced lubricants. This is despite the fact that the locally produced genuine lubricants go through further process of manufacture; consequently, selling at a higher cost than their foreign counterparts.

    “At present, the total demand for lubricants in the market stands at 582, 000 metric tons, MT per annum. However, the total installed capacity of the indigenous plants if fully utilised stands at over 965, 000 MT per annum,” LUPAN lamented.

    However, while the local producers await the minister’s intervention, they are not leaving anything to chance in their quest to reverse the trend. Consequently, AMMASCO International Limited, one of West Africa’s leading oil lubricant companies, has signed a Memorandum of Understanding (MoU) with the Nigerian Automobile Technicians Association (NATA) to produce local and customised oil lubricants. The deal, which has raised hopes of recovery of the already troubled lubricant sub-sector, would boost  the local production of the products, thereby promoting the backward integration policy of the Federal Government. This, in turn, would drive the country’s industrial revolution.

    Such hopes and expectations are not without some basis. Experts said the introduction of the backward integration policy in other critical sectors of the economy where the nation depends on heavy importation to boost local production and create more jobs, is that the success of the policy that worked magic in the cement industry, for instance, would be replicated in the lubricant sub-sector. “There are opportunities if we can push through the backward integration policy in other sectors. It opens up the space for local investors to come in,” President, Dangote Group, Alhaji Aliko Dangote, said, in reference to moves by the Group to key into the backward integration policy in the sugar sector.

    The policy, which sits well with the country’s dream of industrial revolution, has since helped it to produce cement to meet domestic consumption and also export. The hope is that this would be replicated in the lubricant sub-sector. As the Chairman of Ammasco International Limited, Alhaji Mustapha Muhammad, pointed out, “We are endowed with highly motivated and enthusiastic professionals driven by vision to excel in the production of quality products and services. We also aspire to achieve the position of a leading major oil company in West Africa, manufacturing high quality lubricants and allied products; servicing automotive lubricants, industrial lubricants, marine lubricants, as well as grease and specialties,” he said, assuring that the firm would do everything possible to ensure that NATA and the consumers derive adequate satisfaction from the customised products.

    Continuing, Muhammad said: “Our business is to do for NATA what we know how to do best. In Ammasco, we always aspire to get it right and we always work to churn out the best from our stable. I want to say that the signing of this MoU is a step in the right direction. We will not renege on our part as we are ready to make the best out of this deal. We appreciate the leadership of NATA for believing in us and in return, we will not fail on our own part.”

    President, NATA, Michael Omonayin, explained that the choice of Ammasco for the deal was born out of its track record in the production of quality lubricants that have continued to dominate the market. According to him, a critical market survey also put Ammasco on the leading position, adding that responses from various customers, many of who are members of the association, attested that Ammasco products remain the best in the market.

    Omonayin also described the deal as ‘a win-win for Ammasco and NATA.’ He said: “What has happened today is a step forward for both organisations. The benefits are mutual and I believe that this is just a start to the many projects we can carry out together. Ammasco was not chosen by accident, but after a painstaking survey and considerations, we came to the conclusion that Ammasco has all it takes to give us what we need. We pray and hope that this MoU will bear more fruits than expected.”

    NATA is a national professional body of micro, small and medium scale auto-repairers in the informal economy numbering over 2, 000, 000 members from all over the federation. Members include artisans without formal schooling and technicians with average formal education and belong to such sub-trade groups like vulcanising, auto-electrical repairing, panel fixing, auto-body building, motor engine repairing and servicing, welding and iron bending, auto-spraying and other auto related works. Members constitute over 75 per cent of all automobile technicians in Nigeria.

    Already, NATA’s deal with AMMASCO has received the nod of the  Standards Organisation of Nigeria (SON), which issued an International Standards Organisation (ISO) Certificate to Ammasco, recognising it as one of the leading oil lubricant firms in West Africa. The ISO’s endorsement is seen as a shot in the arm of Ammasco, providing it with a strategic tool to ensure increased, quality productivity in its stable. It also positioned the firm to access new markets, with greater opportunities to penetrate other African countries as it aspires to compete in free and fair global trade.

    SON’s Director-General, Dr. Joseph Odumodu said: “We are, indeed, impressed with the facilities we have seen on ground today. This attests to the fact that Ammasco has got ISO certificate basically on merit. The company has proven its worth in terms of upholding standards and professionalism and we expect other indigenous companies to learn from what Ammasco is doing. We are really impressed and we urge Ammasco to keep it up.”

  • SMEs get World Bank’s N800m lifeline

    International Finance Corporation (IFC) ,  a  member  of the World Bank Group,   is to provide N800million (about $5 million), to AB Microfinance Bank. In a statement IFC said the loan would  increase  access  to finance for micro, small and medium enterprises and promote  financial  inclusion, job creation and grow the economy.

    The statement said IFC provided  an  investment of a similar size in 2008, adding that the current investment would  help  AB  Microfinance  Bank  build  on  its  demonstrated success in offering  financial  services  to  new  market  segments  and entrepreneurs serving  the  base of the economic pyramid. These services will help  people  with  low incomes  to engage  in economic activities to sustain livelihoods and access basic goods and services, it added.

    The bank’s Managing Director, Mr Mattias Grammling said, “improving access to financial services for MSMEs would hasten growth in the informal sector, adding; “Our partnership with IFC will help soften bottle-necks on loan acquisitions and enable us provide growth opportunities for MSMEs and lower income clients to foster job creation and economic growth.”

    IFC Country Manager for Nigeria Solomon Adegbie-Quaynor said, “supporting the bank was consistent with IFC’s core strategy to improve financial inclusion and contribute to economic growth, adding; “IFC’s investment will provide term funding in naira to make local currency more readily available from AB Microfinance to entrepreneurs. This loan will increase access to finance and empower entrepreneurs and micro-businesses, whose credit needs are today primarily met outside the formal banking sector.”

  • Lifeline for the indigent

    The Interim National Legal Adviser of All Progressives Congress (APC) and the Principal Associate of M. A. Banire and Associates, Dr Muiz Banire, presented this year’s edition of The Blue Book , a law journal, in Lagos. TAJUDEEN ADEBANJO was there

    For indigent students of the Nigerian Law School, their worry is over.

    A God-sent helper is ready to dole out millions of naira to assist the would-be lawyers to complete their mandatory Law School programme.

    The proceeds of the public presentation of The Blue Book 2013, a law journal to be channelled towards assisting the students.

    The book was written by the Interim National Legal Adviser of All Progressives Congress (APC) and Principal Associate of M.A. Banire and Associates, Dr Muiz Adeyemi Banire, in collaboration with Osun State Commissioner for Special Duties and Regional Planning, Ajibola Basiru and Kunle Adegoke.

    Though devoid of a large crowd expected at events of such personality, the few who came were big wigs in the legal and political sectors.

    It was a day a lawyer took charge of proceedings with judges taking orders from him.

    Judges and lawyers shared jokes and threw banters.

    Many were in the traditional lawyers’ outfits of wig and gown; a few politicians and two traditional rulers went for native attires.

    Oba Rilwan Akiolu made a grand entry, enlivening the gathering.

    His intermittent interjections evoked laughter from the audience. Even when he kept quiet, the former police chief’s gestures were funny.

    Activist lawyer Mr Femi Falana (SAN) joined him in making the event comic.

    After prayers, the event began in earnest.

    Lagos State Governor Babatunde Fashola (SAN), represented by his Attorney-General and Commissioner of Justice Ade Ipaye, Oba Akiolu, Falana and some justices of the Court of Appeal were full of praises for Banire for his “giant legal strides”.

    Fashola said Nigeria and Lagos in particular were lucky to have M.A. Banire Chamber, which has continued to provide useful materials to guide the courts.

    Oba Akiolu described the book as educative and informative.

    “The book will open many issues that would aid administering of justice in the country. I strongly recommend it to everybody including people who are not in the legal profession,” he said.

    To Falana, the book is a wonderful intervention by the author. He also described the co-authors, Basiru and Adegoke as brilliant lawyers.

    “They (Basiru and Adegoke), he recalled, were expelled from the University of Ilorin (UNILORIN) and University of Lagos (UNILAG) not because they engaged in cultism rather due to aluta and we defended them probono. I am not surprised that they are donating the proceeds from the book to aid indigent students of Law School.”

    On the book, Falana said: “The book has simplified the rules of our courts in a way that we can promote the justice system; it has simplified access to justice. This will be very useful to our judges including those at the Court of Appeal and for me that is very commendable.”

    He urged judges to “interpret our laws so that justice can ooze out of our courts and what the authors have done is to ensure that access to justice is made simpler. If you are familiar with the book, you are sure of getting your law properly interpreted by the court. What the justices at the Appeal Courts have said today is that the book has been very useful and handy to them in navigating difficult areas of the law.”

    Justice Sidi Bage of the Court of Appeal, Lagos and Justice Helen Ogunwumiju, Presiding Judge of Court of Appeal, Benin Division, showered encomiums on Banire, saying the book has aided their judgments delivery.

    According to Justice Ogunwumiju, any judge that is grounded in civil procedure will escape harassment from lawyers in court, hence, the importance of The Blue Book.

    Earlier in his remark, Banire said the book is to supplement efforts of judges by providing opinions which have been found quite relevant in interpreting the law.

    Experiences, he said, have shown different interpretations on the same rules by the court, making stare decisis a principle rather difficult to implement.

    “The Blue Book is our modest contribution to enrich the fountain of justice from which we all, whether as litigants, counsel or judge, must always drink. Where the fountain is polluted, it is certain that none shall savour the stench emanating therefrom; hence, the need to preserve our source of livelihood and a great means of maintaining peace in the society,” he said.

    The book reviewer, Mr Kemi Pinheiro (SAN), hailed the authors for an in-depth annotation of the 2012 rules.

    “The Blue Book 2013 provides further evidence that the writer’s quill never goes dry. Those close to Dr Muiz Banire will no doubt be unsurprised that the Notary Public and erudite legal scholar still found time out of his herculean schedule in politics and the robust practise of law to co-author this trail-blazing book,” he said.

    According to Pinheiro, the book has taken giant strides forward and easily stands out as the Nigerian pre-eminent equivalent of the Blue Book which is used in majority of US Federal Courts and The White Book 2013 which provides updated commentary on the English civil procedure rules and the 2013 amendments thereto.

    Before his departure, Oba Akiolu was joined by Oyo State Deputy Governor Otunba Alake Adeyemo, Falana, Justice Phillips, Banire, Basiru, Adegoke and Elegushi of Ikateland Oba Saheed Elegushi to unveil the book.

    Justice Akeem Olatunde Oshodi gave the closing prayer.

  • ‘Why Gaidam gave N100m lifeline to ailing indigenes’

    The Special Adviser to the Yobe State Governor on Media and Information Affairs, Mallam Abdulahi Bego, has said Governor Ibrahim Gaidam gave N100 million to 21 patients with terminal ailments for medical treatment abroad on humanitarian grounds.

    Bego told reporters in Damaturu, the state capital, that “though the state government is providing free treatment for children under five years as well as expectant mothers, Governor Gaidam had to move a step forward to make the gesture to enable the sick get another chance to live”.

    The governor’s aide explained that the 21 patients would get specialised treatment on various ailments, ranging from kidney transplant, heart surgeries and bone marrow transplant.

    He said the governor’s gesture was based on the recommendations of the state medical council, adding that over N200million had been spent on similar cases in the last two years.

    Bego added that the free medical policy of the state government for expectant mothers and children has been reinvigorated for better service delivery.

  • N200b lifeline for coal sector

    •Enugu gets coal power plant

    The coal sector of the energy industry got a boost yesterday in Enugu. A foreign firm, Green Pheonic Energy International, will establish a $1.5billion (about N200billion) coal power plant in the city.

    The company’s Chief Executive Officer, Mr. Brain Ransom, spoke in Enugu when he visited Acting Governor Sunday Onyebuchi at the Government House.

    He said the proposed plant would generate about 200 megawatts (MW) of electricity.

    Ransom explained that the company would also be involved in water treatment and preservation of food crops.

    He said it would economically empower and develop the residents.

    According to him, during its operations in Enugu, Green Pheonic Energy will be about 30 years old.

    Ransom added that the company would visit several communities to identify their challenges and areas of needs.

    He said the company had visited Lagos and other places before Enugu, adding that he was excited by the work ethics of the youths in Lagos and Enugu states.

    Onyebuchi said Enugu State has major facilities for investors.

    The acting governor explained that from the time coal was discovered and the United African Company (UAC) was established, Enugu has been playing a major role in the socio-economic development of Nigeria as the capital of the defunct Eastern Region, East Central State and now Enugu State.

    He said the company would find Enugu as conducive as the early European settlers found it.

    Onyebuchi noted that the people are hardworking and hospitable to visitors.

    The acting governor said there are over 400 communities in the state, adding that they have primary and secondary schools.

     

  • Lifeline for the landline

    Lifeline for the landline

    After losing their pride of place in the nation’s telecommunications sector, fixed wireless operators using the Code Division Multiple Access (CDMA) technology appear set for a rebound with the planned merger of three leading operators in the sector. Bukola afolabi reports

     

    Once upon a time they were the beautiful brides of the Nigerian telecommunications sector. This was when the now moribund Nigeria Telecommunications Limited, NITEL, was going through its death pangs. It was also when the cell phone companies using the GSM technology were trying to find their feet. But all that seems like ages ago.

    After seeming to prosper for a season, fixed wireless operators using the CDMA technology are now on the verge of extinction. Their precarious situation is not unconnected with the overwhelming dominance of GSM companies whose operations in the Nigerian market in the last 11 years have experienced phenomenal growth.

    Available statistics from the Nigerian Communications Commission (NCC), testifies to the diminished fortunes of landline companies. In the first six months of this year, firms in this segment lost a combined 868, 786 active lines.

    A breakdown shows that in January 2012, CDMA operators had 4.41 million lines, declining to 4.01 million by February. In April, May and June, the number of active lines declined steadily to 3.9 million, 3.7 million and 3.5 million respectively.

    The dire straits in which the fixed wireless operators find themselves did not happen overnight. The decline has been noticeable over the past few years, and prompted experts to recommend mergers, acquisitions or consolidation as some of the viable ways to save them from total extinction.

    Once such voice was Ernest Ndukwe, former Executive Vice Chairman of NCC, who long ago admonished them to come together as one. He recommended mergers for them to be able to compete favourably in the tough Nigerian telecoms industry.

    “I think the way forward and what I will recommend is the consolidation of those companies. I think some of them should merge and make a bigger cake rather than the segmented way they are today. And I think, as an industry, there is a move towards that direction. Some call it consolidation in the industry. When that happens, I suspect you will see better days for CDMA in the country,” he said.

    Now, three operators in the segment- Multilinks, Starcomms and MTS, are set to merge. The merger, if consummated, would result in a new entity to be known as CAPCOM – making it the largest CDMA network operator in the country.

    Helios Investment Partners will hold 11 percent, while MBC will have 53 percent and Middle East Capital Group 25 percent in the new entity. Other shareholders in the new company include Oldonyo Laro Estate, five per cent; Bridgehouse Capital Limited, three per cent; Asset Management Company of Nigeria, AMCON, two per cent; and private equity investors, one per cent.

    The deal would see the new core investors injecting about $200 million, and a further N31.1 billion into CAPCOM. This is expected to spark a turnaround in the fortunes of the company and, to a reasonable extent, tackle the challenge of perennial lack of access to local and offshore funding identified as one of the fundamental hurdles holding back CDMA operators.

    Before now, CDMA operators had always complained about lack of funding which hindered their expansion capabilities even with the unified license granted them by the NCC. This development is causing stakeholders to be upbeat.

    One of those excited by the development is Titi Omo-Ettu, Managing Partner, Telecom Answers Associates. According to him, the merger arrangement is an indication that the problem of the sub-sector is not technology as earlier identified by some people because if it were so, then the new investors would not even come near CDMA.

    The national president, National Association of Telecommunications Subscribers, NATCOMS, Deolu Ogunbanjo, sees the merger as an indication that the battle to return fixed wireless operators to the path of profitability has begun. Besides, he believes it is an opportunity for more competition in the telecoms industry, in which the customers would be the eventual beneficiaries in terms of better quality of service and cheaper call tariff.

    Indeed, if the merger sails through, it would provide second wind for Starcomms, which has been struggling with its operations after losing significant market share to Visafone.

    In spite of being the pioneer of the CDMA regime in the country back in 1996, and commencing operation on July 8, 1997, the inability of Multilinks to make profit, even after it was acquired by South Africa’s Telkom, at a cost of $410 million in 2009, led to its sale to Starcomms. Sources say the South African firm was tired of injecting funds constantly into the business.

    In March 2010, Telkom had to underwrite a $1.2 billion loss for Multilinks. Though Multilinks made efforts to re-strategise for profitability – including reducing its call rate – it was unable to break even as it still had the problem of an underutilisation. It had 2.6 million subscribers, whereas its network had capacity for 10 million subscribers.

    The Telkom Group had acquired 75percent of Multi-links Nigeria first in 2007 for $276 million, before taking over the remaining 25 percent in 2009 for $125 million, giving it 100 percent ownership of the firm.

    While the nascent CAPCOM initiative has been lauded, Starcomms, one of the parties in the arrangement, has also not been healthy. For instance, in September 2010, an earlier proposal for the merger of Multi-Links with Starcomms did not see the light of the day as the Telkom board rejected it on the premise that the merger, at that time, would not reduce Telkom’s exposure in Nigeria but increase it as Starcomms was about $130 million in debt. MTS is also virtually dead, as many of its subscribers have since abandoned their lines.

    For now, industry watchers say that a minimum of $200 million investment is required to make the merger efficient when finally consummated. Seun Ogundero, a telecommunication expert, explains that the amount would just be sufficient for the acquisition of Multi-Links and MTS, recapitalise Starcomms and provide it with sufficient capital and liquidity to finance its existing creditors and working capital.

    It would also enable it to expand its existing network through the introduction of 4G/LTE technology to become a major provider of broadband services to Nigeria’s increasingly sophisticated market.

    That said, several factors continue to hobble the growth of the fixed wireless sector, one of which is the global economic meltdown that has reduced the inflow of foreign investment to a trickle. The impact is especially noticeable in the case of NITEL which has slid completely into oblivion after several unsuccessful efforts to revive it through privatisation. It has been unable to attract fresh investment from within and without Nigeria.

    Also, the aggressiveness of GSM operators has negatively impacted on the fortunes of CDMA companies. In spite of coming into the market earlier, the CDMA sector now has less than 10 percent share of the telecoms market which is dominated by GSM operators, who hold more than 90 percent of market share.

    These brutal facts have forced many CDMA firms to shut down their operations. With the exception of Visafone, which can be said to be providing services on a competitive scale, virtually all the other operators in this segment have either disappeared or are struggling to survive.

    Operators like Intercellular, ZOOMmobile, and NITEL, are either dead or struggling. Several years after the acquisition of Intercellular by Sudatel, which paid $50 million for 70 percent equity in the firm, the Sudanese national telecoms service provider is yet to restore life to the company.

    This is, however, not surprising considering that only $10 million of the acquisition money has been paid. Sudatel also reneged on its promise to invest $500 million over five years to enable Intercellular finance its network expansion, improve its services nationwide as well as compete effectively in the post-unified license era.

    The implication of all of this is that with the big GSM operators as the only dominant players, the growth of the sector in terms of investments, competition and more choice for consumers has been hampered. This is a sharp contrast to what obtains in other countries where fixed wireless services complement GSM.

    Omo-Ettu says notwithstanding the mergers of the CDMA firms, the trend of GSM leadership may not be reversed, basically due to funding. “Those who have big money own the business. The GSM operators started big while the CDMA operators started small. The Nigerian market does not favour the ‘start-small’ model,” he says.

    Would this planned merger signal the return of good fortune for the fixed wireless operators in the competitive Nigerian market? How well the segment gets funded, and how it is able to inject more modern technology, would determine whether this is a turning point or a one-off phenomenon.