Inconsistent electricity supply threatens telecommunication growth in Nigeria

Telecommunications in Nigeria has taken a quantum leap in the past 11 years with active subscribers growing beyond 90 million people. Chief Executive Officer of Teledom Group and a former President of the Association of Telecommunications Companies of Nigeria (ATCON), Dr. Emmanuel Ekuwem, however warns that poor power supply threatens further telecoms growth, Emma Okonji reports

Comparing the growth rate in telecommunications with the recent electric power supply in the country, Chief Executive Officer of Teledom Group and a former President of the Association of Telecommunications Companies of Nigeria (ATCON), Dr. Emmanuel Ekuwem, is afraid that such growth rate will soon begin to decline if the issue of poor electric power supply was not addressed by government.

According to him, Nigeria witnessed in the telecoms revolution, the quantum numerical leap from a paltry four hundred thousand telephone lines, both landline and mobile, to a little bit more than ninety million active subscriber lines.

The leap, he said, was really massive, phenomenal and marked a paradigm shift from the era of the monopoly of NITEL as a national carrier. "We must not forget how we moved within a decade, from endless queues to apply for and get service from NITEL to prompt provisioning of service on demand, from paying as much as N150,000, official plus non-official, to get the mobile service of the famous M-Tel to prompt SIM card activation for service within minutes of payment for the service; from long queues in the business premises of NITEL to make both trunk and international calls. We must not forget so quickly how we used to almost somersault to enter designated cubicle, in business offices of NITEL telephone exchanges to pick connected trunk and international calls," Ekuwem said.

He explained that all is now history, with the impressive growth in telecoms, but warned that government must act fast to overcome the challenge of epileptic power supply that is currently threatening the growth of telecoms in the country.

Achievements in ICT

According to Ekuwem, Nigeria made tremendous growth in the area of Information Communications Technology (ICT) and has translated from main frame computers with punched cards and dummy terminals to personal computers.

"We have desktops, laptops, palmtops, tablets, all-in-one PCs, smart phones and all kinds of exotic and exciting Internet and Internet Protocol (IP) network access devices. We have largely migrated from the era of stand-alone PCs to networked computers in local area network environments with access to full Internet.

"I remember the beginning of Internet access in Nigeria. It was by dial-up on Unix-to-Unix copy (UUCP) platforms. One could not go for speeds higher than 2.4kpbs. Trying to be ambitious by attempting to go for speeds of 4.8kbps and 9.6kbps resulted in difficulties in having a sustained dial-up handshake," he said.

He suggested that the Nigeria Communications Commission (NCC) and the National Information Technology Development Agency (NITDA) should jointly set up an ICT museum to enable Nigerians see how the digital world has moved from huge tapes/reels as storage devices through 5 inch floppies, 3.5 inch floppies, CD-ROMs, DVDs, USB flash drives, SD cards to pin-tip size storage devices.

The world has become a global village. Internet service is being provided by legacy Internet Service Providers (ISPs), telecom operators, universities, banks, multinationals, small, medium and large companies, among others. Access to full Internet backbone is largely by Very Small Aperture Technology (VSAT) and broadband submarine optic fibre cables. Thanks to Main One, Glo One, SAT-3, MTN's West African Submarine Cable (WASC), for bringing to the shores of Nigeria broadband Internet. We must give credit to SAT-3 for its pioneering role in this regard, in spite of its high cost and epileptic availability, Ekuwem said, adding that it is not yet uhuru for Nigeria as the country still has a long way to go. The exciting summary that I have painted to you does not make me oblivious of the long walk and the hard work ahead. What I am saying is that Nigeria, in comparison with herself ten years ago has done phenomenally well in the ICT sector. However, Nigeria in comparison with her peers in other parts of the world still has a long way to go. By Nigeria's peers I mean the much talked about Asian tigers. We need to redouble our efforts in ensuring availability of electric power supply, broadband infrastructure penetration of every home and office, human capacity building via formal and non-formal channels, Research and Development in ICT, availability of a critical mass of skilled manpower, encouragement of Nigerian content development, patronage of made-in-Nigeria ICT wares, application of ICT in education, health, agriculture, among others. We need to use ICT to automate processes within the Nigerian economy in order to boost productivity and increase our GDP.

Threats to Telecoms, IT Growth

Ekuwem is of the view that the greatest threat to the growth of telecoms and information technology sectors is the insufficient and epileptic public power supply in the country.

Listing the challenges of ICT, Ekuwem said that without electricity there would be no ICT. "As I often say, electric power supply is to the national economy what food is to the human body. ICT is to the national economy what the central nervous system is to the human body. So our national economy in general and ICT in particular are strong and vibrant to the extent of copious availability of electric power."

That is the number one threat. The second is policy inconsistency or flip-flops or outright somersaults by governments. No nation can develop on a saw-tooth waveform. That is every administration formulates its own ICT policy that may drastically modify or reverse outright the direction or thrust of the preceding administration.

It can also happen that different Ministers of Communications Technology who have served the same administration at different times may have seen ICT matters completely differently. So, we keep starting from scratch all the time. These tendencies very seriously threaten the steady growth of the sector. The third is the availability of critical expertise to drive growth and developments within the industry.

This must include formal training in primary and secondary schools as well as in universities and polytechnics and colleges of education. The syllabuses and curricula must be up to date. The teachers must be smart, the classrooms must be smart, the laboratories must be smart, the workshops must be smart, the libraries must be smart, the halls of residence must be smart; the staff quarters must be smart, the administration must smart and, in fact the entire teaching environment must be smart.

There must be a conscious national awareness that we are teaching, training, developing and equipping our children to compete in the global workspace with the Americans, Europeans and Asians of this world. There is no local standard in ICT and there can be no hiding place for the mediocre in the world of today. Our graduates must be world class.

We must popularise ICT and make it part of our culture and social fabric. There must be Research and Development in ICT by relevant government agencies and institutes as well as private organisations. Insufficient availability of competencies in ICT can threaten the industry.

The fourth threat is non availability of a manufacturing base in ICT; be they factories, assembly plants, software companies, technology integration companies, among others. These are part of the factors for growth, development and sustainability in the industry. They build confidence and provide platforms for job and wealth creation for global competitiveness.

They are veritable platforms for imagination, innovation, creativity and productivity. A strong manufacturing base in ICT will provide spin-offs into manufacturing capacities in other sectors of the national economy. After all, the need for automation of processes in the economy will logically affect all sectors of the economy with ICT providing the leap-frog platform.

The fifth threat is non patronage of locally made ICT goods. By local I do not in any way allude to the connotation of inferiority in the quality of finished products. I mean sheer geographic locality. That is all. There must be a commitment on the part of governments in the country to encourage our entrepreneurs to fabricate, manufacture, assemble and integrate technologies.

They can only do these with passion and enthusiasm if they have ready markets. We must kill this mindset of "whatever is imported is better". No, it is untrue. Fela Anikulapo-Kuti used to call it "colo mentality". We must know that buying made-in-Nigeria goods creates jobs, keeps jobs, strengthens the Naira and increases our foreign reserves.

Let ownership of factories and assembly plants become the new status symbols and not the number of containers of goods that one has imported into the country. Let containers be used for export and not for import.

The sixth threat is low level of awareness or knowledge of the power of ICT in national economic transformation. I commend the presidency for its transformation agenda. However, they must, as a matter of fact, know that ICT is a powerful national socio-economic transformation tool. How can we talk about the Asian tigers without ICT?

The Asian tigers leveraged ICT for rapid national economic transformation. So, this awareness cuts across the need for the application of ICT in automating processes in the national economy to boost productivity and increase our GDP. There must be mass broadband awareness campaign across the entire length and breadth of Nigeria.

You do not miss what you are unaware of. How can ICT be used to boost productivity in education, health, agriculture, law enforcement, national security, government, judiciary, tourism and hospitality, national defence, transportation? Make ICT common place and productivity will be common place.

Addressing the Challenges

Suggesting the way forward, Ekuwem wants government to compel Power Holding Authority of Nigeria (PHCN) to step up electric power supply and encourage more private sector investments in the country, especially in the area of telecoms and IT.

According to him, "government has done a lot to attract private investments in the ICT sector and should be commend. As I said at the beginning, the industry is investor friendly. International mega telcos who were reluctant to invest in Nigeria in 1999/2000 are living today to regret their decision. Those who came have reaped bountiful dividends from their investments. However, few issues like ICT policy, electricity supply, and patronage of made-in-Nigeria ICT goods must be adequately addressed."

"Government has a big role to play in growing of Small and Medium Enterprises (SMEs) in ICT. We need a government guaranteed SME fund to finance outbursts of creativity and the innovative spirits of Nigerians. We need to establish ICT parks to grow and nurture start-up and spin-off ICT companies to maturity for translation to industrial parks and autonomous locations.

"The international brands like Cisco, HP, Dell, Sony, Samsung LG, IBM, Oracle, Microsoft, Huawei, and ZTE must be persuaded to establish factories, assembly and product development centres in Nigeria. The Nigerian market is huge and it is the largest in Africa. They cannot, for whatever reasons, be benefiting from our rich market from other lands", he said.

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Malls boost Nigeria's economy

Nigeria's retail sector, which accounts for 17 per cent of the local economy, has seen a favourable change over the last years. The growth and relative stability of the nation's economy over the past years has also significantly contributed to the expansion of the country's middle class.

Investment conditions, interpreted as transparency measures, favourable economic climate and appropriate regulation/taxation are also playing an important role in the development of Nigeria's retail sector.

The 2003 ban on a wide array of imported goods that included clothes, shoes, selected foodstuffs, among others, by the Olusegun Obasanjo administration intended to stimulate local production, saw a good number of Nigerians flying to Dubai and to other regional commercial centers to do their shopping.But, all that has been gradually reducing, in favour of Nigerian-based retail shops that have gained in diversity and in sophistication and that have also benefited from increasing public affluence.

While the country cannot be said to be undergoing a consumer revolution, it is drifting towards such a revolution with shopping malls springing up in every nooks and crannies.

A cross section of people who spoke to LEADERSHIP said this development would be a healthy one especially in the area of affordable products and creating thousands of new jobs.

They however, added that it would make business tough for local retailers who may find it a bit difficult to compete favourably under this new arrangement.

"Many local retailers with small shops and unattractive shops and stalls will find it rather tough to compete with mighty malls like Palms, Shoprite, Spar etc., which prices and business environments are geared towards maximum consumer satisfaction and unforgettable shopping experience," Mr. Cornelus Nweke a shop owner in Wuse Market said.

" It is therefore imperative for small retailers to start bracing up for the challenges that are inherent in the construction and running of these mighty shopping malls and a consumer revolution. Any attempt by them to ignore this emerging trend may sweep most of them out of business especially with goodies like affordable consumer items for low-income earners, air-conditioned havens and variety of amusements that would be offered by these shopping malls," he added.

Lured by the country's growing population, increasing purchasing power of the elite and limitless investment opportunities, foreign and local investors are falling over themselves to set up new ultra-modern shopping malls.

Malls are springing up everywhere in places like, Abuja, Port Harcourt, Lagos, Enugu, Kano, Kaduna etc.

South Africa's Shoprite Holdings Limited is said to be the most aggressive of the international retailers operating in Nigeria. According to sources, the company planned to open as many as 700 outlets across the country.

Nigerians are also eagerly anticipating the entrance of three global retail giants; Wal-mart of the United States of America, Carrefour of France and Tesco of the United Kingdom.

Walmart is the world's largest public corporation when ranked by revenue, and the largest retailer in the world.

Carrefour is the second largest retail group in the world in terms of revenue and third largest in profit after Wal-Mart and Tesco.

Tesco Plc, on the other hand, with Cheshunt, United Kingdom as its headquarter, is the third largest retailer in the world after Wal-Mart and Carrefour.

Other important malls in Nigeria include The Lagos City Mall, the Silverbird Galleria in Lagos, Ceddi Plaza and Grand Square in Abuja.You also have The Tinapa Mall in Calabar, Cross River State.

Upcoming mall projects include the Ikeja City Mall in Lagos, The Polo Park Mall in Enugu State, a planned shopping centre in Ilorin, Kwara State and Spar International among others.

On what the entry of these multinational giant retail groups portend for Nigeria, an economist based in Abuja,Dr.Samson Adamu, said: "They will transform Nigeria into a proper modern economy; attract more foreign direct investments; expand the manufacturing sector; increase supplies of goods and services in order to meet the induced increase in demand; create new and quality jobs; improve living standards and influence further development of the capital market."

He added : "Retailers are critical economic agents who help to create demand because of their affinity with both the consumers and producers. In fact, retail sales are an important economic indicator because consumer spending drives much of the economy. Imagine the number of people and companies involved in producing, distributing, and selling the goods used on a daily basis like food, clothes, fuel, and so on.

"The development of the Nigerian retail market is contributing to improve local employment and training; it is also increasing tax collection of state and government authorities who are starting to realise the importance of formalising retail and shopping activities; it is generating additional demand for agricultural products; and it is showing local and foreign investors that Nigeria offers great business opportunities that with time and maturity should materialise in attractive returns."

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Super Eagles need more foreign professionals

Ex- International, Jonathan Akpoborie has said the Super Eagles need the experience of foreign professionals to excel.

He said this when speaking at the National Team's camp in the Metropolitan Hotel, Calabar on Tuesday morning.

While noting that the home-based professionals have the quality, he insisted that Keshi needs more Euro-based professionals to add experience to the team.

"I have watched the team keenly and objectively and I think it's very encouraging but I think we still need more foreign based professionals in the team because of their experience."

He added that "I don't have any person in mind but I trust that Keshi has the experience to call up those that will add value to the team."

Time to blend

The former International called on Nigerians to give the Super Eagles time to blend.

Akpoborie, who was at the camp to encourage the players spoke said he was delighted at what he has seen in the national team, urging Nigerians to give the Stephen Keshi led technical crew room to excel.

He said he sympathises with Nigerians' desperation for victory in all international engagements but warned that it is a new dawn and the crew and players must be given time to blossom.

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Video - Nigeria's youth addicted to smoking

Many Nigerians have little doubt about the enormous influence of tobacco companies.

With a pack of cigarettes costing around a dollar, experts see the problem worsening unless government acts quickly and decisively.

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President Goodluck Jonathan declares things are getting better

President Goodluck Jonathan Monday took stock of what has been achieved within one year of his administration. His conclusion: Nigeria is making progress in spite of the numerous challenges confronting her.

A major highlight of his address to mark Democracy Day was the renaming of the University of Lagos after the late Bashorun MKO Abiola, the acclaimed winner of annulled June 12, 1993 election, who died in military custody while trying to claim the mandate.

The school will now be known as the Moshood Abiola University of Lagos, although students of the institution protested the name change immediately after the broadcast.

Jonathan identified the problems of the country as insecurity, unemployment, lack of will to develop the potentials which abound in the country, insatiable appetite for imported good "and the propensity of few of the elite class to resort to foul language and violence in their quest for power".

But he assured Nigeria that the country was being steered in the right direction.

He gave a sector-by-sector assessment of economy, promising that in no distant time, visible changes that will touch on the life of the average Nigerian would be felt.

The president said the credit rating of the country has been stable in the face of global downturns which has adversely affected other economies.

He said for the first time in Nigeria, the external reserves this month hit an all time high of $37.02 billion while commitments to foreign direct investment into the country have hit N6.6 trillion which described as an indication of the confidence that investors globally have in the economy.

“There are challenges, yes, but we are working hard to address those challenges. And, by God’s grace, we will succeed. My confidence is bolstered by the results which we have achieved in different sectors within the last twelve months. Our democracy is stable. Its foundation is strong and firm. Its future is bright.

“We need a lot more introspection, even as we look forward. We must take steps to heal the wounds of the past and work together, as a people with a shared destiny under one flag. We must strengthen our collective memory, draw strength from our history, and build bridges of unity to take our country to greater heights,” Jonathan charged.

He noted that his administration was strengthening agencies to fight corruption and had already moved to amend the laws to enable them discharge their functions with more effect, adding that checks instituted by his administration had led to saving N100 billion from wasteful spending while efforts are on to sustain the fight.

On the ports and business environment, Jonathan said that reform has led to reduction of agencies at the ports from 14 to seven while new measures have led to reduction in the time goods were cleared from months to seven days.
He added that the aim was to attain 48 hours clearing period which was the global standard. The ports, he saidd, now work 24 hours a day.

“I want to reassure all Nigerians that this administration remains committed to waging a sustained battle against the menace of corruption. In the last one year, we have taken specific steps to reduce opportunities and avenues for corruption, and to strengthen the capacity and integrity of our institutions.  For example, our ports reform programme has reduced the number of agencies at the ports which hitherto frustrated the speedy clearance of goods at the ports.

We have also cleared the stretch of trailers and lorries blocking the Apapa Expressway. We have put an end to the fertilizer and tractor scam that once dominated the agricultural sector. Our review of the pension payment system has also blown the whistle on corrupt practices which are now being addressed.

“Within the last one year, we set up a committee to identify leakages and waste in the Ministries, Departments and Agencies. I am confident that the implementation of the recommendations of that committee will help to eliminate corruption channels within the system, and improve the efficiency of the public service. In January, we announced a policy of deregulation in the downstream sector, but this was misunderstood by naysayers and reduced narrowly to a fuel subsidy removal initiative, whereas the policy was designed to completely eliminate the grand corruption in the downstream sector, and create the necessary incentives for private sector investment.

“We have strengthened the leadership of the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC). Both agencies are being re-positioned for more effective service delivery. We will continue to strengthen the law enforcement and anti-corruption agencies for optimal performance.  We will also need the support of our courts. The courts have to do more,” he explained.

Jonathan who paid tributes to the Nigerian military for subjugating themselves to civil authority unlike in some smaller African countries which has now seen to an unbroken 13 years of civil rule and a further proof of the confidence in democracy in spite of the perceived differences.

In an apparent justification of the naming of University of Lagos after Abiola, he said: “When General Abdusalami Abubakar handed over the baton of authority to President Olusegun Obasanjo, in 1999, it was a turning point for Nigeria. We did not arrive at that turning point by accident.

Many Nigerians laid down their lives for the transition to democracy to occur.  Some were jailed. Media houses were attacked and shut down. But the people’s resolve was firm and unshakable. 

This is what we remember. This is what we celebrate. On this day, I recall especially the martyrdom of Chief M. K. O.  Abiola, whose presumed victory in the 1993 Presidential election, and death, while in custody, proved to be the catalyst for the people’s pro-democracy uprising. The greatest tribute that we can pay to him, and other departed heroes of Nigeria’s democracy, is to ensure that we continue to sustain and consolidate our democratic institutions and processes, and keep Hope alive.”

He appealed to Nigerians to have faith in his leadership as he was committed to making the necessary changes that will turn the fortunes of Nigeria, pointing out that he promised Nigerians free and fair elections in 2011 and achieved it which had repositioned the country in the comity of nations and will likewise deliver on any of the promises he has made to the nation.

On the remaining leg of addressing electoral violence, he said his cabinet had taken decisions on the recommendations of the White paper on the matter and will soon expedite action on Electoral Offences Tribunal as a way to check the violence which attends elections.

On the security challenges, he said things took the nation by surprise but stated that he has built and will continue to improve the security infrastructure of the country so that the security agencies would be better able to deal with the situation, adding: “I want to reassure you that we are making progress. But we can also do a lot more. We must. And we will.”

He enumerated measures he is taking on the economic front, particularly reforms in the agricultural sector where he aims to make Nigeria not only self sufficient in food production but as net exporter of finished and processed agricultural good.

“Today, progress has been made. The country’s credit rating is positive, in contrast with many nations being downgraded.  In 2011, our economy grew by 7.4 per cent. As at mid-May 2012, our foreign exchange reserves had risen to $37.02 billion, the highest level in 21 months. We have stabilized and improved our fiscal regime. We brought the fiscal deficit down to 2. 85 per cent of GDP from 2.9 per cent in 2011. We reduced recurrent expenditures from 74 per cent to 71% and reduced domestic borrowing from N852 billion in 2011 to N744 billion in 2012. We cut out over N100 billion of non-essential expenditure and increased our internally generated revenue from N200 billion to N467 billion. 

“For the first time in over a decade, we now have a draft Trade Policy which provides a multi-dimensional framework to boost our trade regime and facilitate the inflow of investments. We have generated over N6.6 trillion worth of investment commitments. The total value of our trade is also much higher than the value estimated the previous year due to deliberate government policies. To facilitate the ease of doing business in Nigeria, we have a policy in place to make visa procurement easier for foreign investors, with safeguards to prevent abuse.

“The goal of our administration is to ensure that every Nigerian can find gainful employment. Given my dissatisfaction with the prevailing unemployment situation in the country, our administration has embarked on an ambitious strategy of creating jobs and job-creators through the launch of several initiatives mainly targeted at the youths and women.

“In October 2011, we launched the Youth Enterprise with Innovation in Nigeria Programme, designed to encourage entrepreneurship and provide grants for small and medium scale enterprises. Over 1,200 Nigerian youths have benefitted from this initiative.

We have also launched the Public Works Women and Youth Empowerment Programme, which is designed to employ 370, 000 youths per annum, with 30 per cent of the jobs specially reserved for women. Let me make it clear here that our YouWIN programme is designed to nurture and mentor young entrepreneurs to become major players, employers and wealth creators in business.

“We are gradually reducing the footprints of government in business activities through privatization, liberalization and deregulation based on our recognition that the private sector should be the engine of growth in our economy. To ensure that the private sector is well positioned for this task, our administration has embarked on key structural reforms in the Power Sector and at the Ports.

“To improve reliable power supply, our administration is judiciously implementing the Power Sector Roadmap, which is at an advanced stage, to fully privatize power generation and distribution while reducing the cost of electricity to rural households and the urban poor.

“The commitment of this Administration to the provision of regular and uninterrupted power supply remains strong and unwavering.  We all agree that adequate and regular power supply will be the significant trigger to enhance this nation’s productive capacity and accelerate growth.  It is for this reason that I remain optimistic that the reforms we have initiated, the decisions we have taken so far and the plans we intend to faithfully prosecute will yield the desired results,” he said.

While insisting on the privatisation of the power sector, he reasoned that it was right for them to repair all the power stations and the transmission lines before handing over to private investors through strict adherence to the privatisation policy of the regime.

“Our approach is two-pronged:  First, is the immediate repair of power plants, as well as transmission and distribution infrastructure in the short term.  The second is the building of institutions and the provision of enablers to attract investors. We have revived and are accelerating the completion of the National Integrated Power Projects. We are also building about 4000km of transmission lines and hundreds of substations.

We have completed the design for the construction of both Mambilla and Zungeru Hydro power plants which will add about 3, 000 MW to the national grid.

“By mid 2010, the national power output was about 2, 800 MW. By the end of 2011, we reached a peak of more than 4, 000 MW. A National Gas Emergency Plan has also been launched to redress the problem of gas supply which arose essentially due to poor planning.

“For long-term power availability, we have strengthened a number of key institutions such as the Nigerian Electricity Regulatory Commission, the Bulk Trader, the National Power Training Institute of Nigeria, and others.  We are also working with the World Bank to provide guarantees for gas and power providers.  The signing of MOUs with World Leaders in power equipment – General Electric of USA and Siemens of Germany as well as US and China Exim Banks for financial investment, is a clear indication of the level of confidence which the world investment community has in our power sector road map.

“In the Oil and Gas Sector, our Administration has charted a new course that will ensure enduring transparency and accountability. We are re-drafting the Petroleum Industry Bill (PIB) to ensure it meets the aspirations of all Stakeholders given the current realities and future expectations in the global energy landscape. Work on the PIB will be concluded in June 2012 and formally submitted to the National Assembly. Additionally, Special Task Forces dealing with Governance and Control, Petroleum Revenue and National refineries are finalizing their work to ensure probity across the oil and gas sector, and self-sufficiency in refined petroleum products.

“In the Downstream Sector, the Nigerian Content Development Act, since inception in 2010, has boosted the local production of line pipes, in-country fabrication tonnage and engineering support services. As a result, retained in-country spend has grown from approximately US $1bn to a current estimate of US$4bn, and over US$3 billion Foreign Direct Investment has been brought in for upgrading and building new yards, altogether generating over 120,000 direct and indirect jobs,” he explained.

He said the policy of the agriculture was “directed at promoting local production, substituting for imported foods, and adding value to our locally produced crops. We are recording successes already. Government’s policy to ensure rice self-sufficiency by 2015 is already paying off. New rice mills are being established by the private sector to mill locally produced rice.

Ebony Agro Industries located in Ikwo Local Government Area of Ebonyi State has rolled out its high quality parboiled rice. In Kano, Umza rice mill has taken off and can hardly meet demand, while in Benue State Ashi rice has hit the market. Consumers are buying more of Abakaliki and Ofada rice too”.

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