Joshua’s
journey…
In the Bible, the story is eloquently told of how the Almighty
had called up one of the servants of Moses at the death of
the latter, who led the Israelites out of the land of Egypt,
to prepare to take over the leadership of the journey, which
Moses began, into the Promised Land.
Joshua,
in spite of receiving God’s assurances of direction
and protection, must have wondered why the Almighty told him,
three times, that despite these assurances he needed to be
strong and of good courage.
Why would
He Who has given you every assurance of support, protection
and provision consistently remind you of the need to be courageous
and strong? The Almighty is full of wisdom, He is infallible
in all ways; certainly He knew the journey He had sent this
untested young man would expose him to the most vicious of
enemies, the most daring of empire seekers and even the most
rebellious of soldiers. Thus, the warning became absolutely
necessary lest he lost focus when it mattered most and fail
in the all-important mission.
Yar’Adua’s
journey…
The task of rebuilding the nation of Nigeria in the 21st Century
is akin to leading the stubborn children of Israel into the
Promised Land in the day of Joshua. While the children of
Israel had the unique attribute of being the Chosen people
of the Creator in their time, Nigeria as a nation has one
of the most blessed land masses of modern civilisation.
Each day
that passes by sees Nigeria draw closer to that promise of
becoming a great nation; yet despite how close it seems to
getting there, the road before these people appears tortuous
and strewn with dangerous debris and harmful weapons making
the journey ultimately longer. Could it be a mirage?
Only the
Israelites who passed through that rigmarole journey to the
Promised Land after they left Egypt might understand the turmoil
Nigeria is passing through. Take for instance, the issue of
power that has travelled through several governments and yet,
it remains a defying subject to a nation with the amount of
intellectuals that Nigeria has.
Like the
children of Israel of old, who had to go through the long
and arduous route to the Promised Land where the journey would
have been done in a shorter time but because of their disobedience,
the Nigerian story is complex. Greed, avarice, inept leadership,
apathetic followers and an apparently general visionless drive
have all combined in various dimensions to make the country
a difficult estate to manage.
Several
times in the past, the people of Nigeria have come to the
edge of the precipice only for a twist in fate to change the
entire fortune of the people and return them back to the path
of continued journey to the Promised Land. And in the days
leading to 2007, the nation once more treaded that same old
dangerous path. The hue and cry of who would bell the cat
filled the air. Everything promised to go wrong. Oh! Yes,
some did go wrong.
Then from
nowhere, a man born into a certain royalty appeared on the
scene and he asked to be sent where none have been found worthy
of praise and honour. The emergence of Yar’Adua as president
of Nigeria in 2007 is still an evolving story, like the man
himself.
Not even
those who think they know something about the man know well
enough about him to predict correctly what his moves are likely
to be in any given situation. As someone put it jocularly,
‘if Nigerians bring too much and unnecessary pressure
to bear on the man, he is likely to throw-in the towel and
quietly return to his farm in Katsina.’ That is how
far the citizens of this country think they know of Mr. President.
Yet the
events of the last 12 months have revealed somewhat a different
man, altogether. He has stood firm where most other persons
would have caved in to pressure from within and without. He
has remained resolute in his commitment to the agenda he read
out to Nigerians a year ago. Who can fathom the infinite capacity
of this modest man who admits not knowing much of his country,
even as a governor? Yar’Adua certainly knows more than
he needs to succeed as Nigeria’s leader.
The weighty
question, which perhaps only Yar’Adua can answer remains:
what is Yar’Adua’s ICT Agenda? This question remains
unanswered, and continues to dog his administration’s
every move, 12 whole months after.
Some Hints About Joshua
Joshua,
born in Egypt, was a Biblical Israelite leader who succeeded
Moses. His story is told in the Hebrew Bible, chiefly in the
books Exodus, the Numbers, and Joshua. He was one of the 12
spies sent on by Moses to explore the land of Canaan who would
later lead the conquest of that land.
Joshua
supposedly lived sometime in the late Bronze Age, around 1200
BC. However, he is associated with problems concerning the
evidence for the Exodus from Egypt. Various reconstructions
of the Biblical data about the Exodus have not yet matched
the archaeological evidence. Accordingly, archaeologists dispute
the historicity of the many details in the Biblical account
of the Exodus and often treat it as legendary embellishments
of an earlier (still unidentified) event.
However,
others have taken the account to be legitimate and have based
their scholarship on this, including Richard A. Gabriel who
has viewed Biblical narratives from what he calls a "military"
perspective, including the Conquest of Canaan by Joshua. Still
others refer to the ancient letters of appeal by Canaanite
leaders to Egypt seeking assistance against the invasion of
the Hapiru, who some scholars dispute, are the ancient Hebrews.
According
to the Bible, Joshua was the son of Nun, of the tribe of Ephraim,
which would become known as the most militaristic of the tribes
of Israel, largely through Joshua's campaigns. He was born
in Egypt during the Israelite enslavement, and was probably
the same age as Caleb, with whom he is generally associated.
Joshua
shared in all the events of the Exodus. He was Moses’
apprentice, and accompanied him part of the way when he ascended
Mount Sinai to receive the Ten Commandments (Exd. 32:17).
He was also one of the 12 spies who were sent on by Moses
to explore the land of Canaan (Num. 13:16, 17), and only he
and Caleb gave an encouraging report. He was commander at
their first battle after exiting Egypt, against the Amalekites
in Rephidim (Ex. 17:8-16), in which they were victorious.
Joshua
was appointed by Moses to succeed him as leader of the Israelites
upon Moses’ death. The first major part of his book
is when he commanded the subsequent conquest of Canaan. As
the Israelites came to the Jordan River, the waters parted,
as they did for Moses at the Red Sea. The first major battle
was in Jericho, a heavily fortified city just five miles west
of the Jordan River, northwest of the Dead Sea, which he took
by following God’s instruction, ordering his host to
march around the city for seven days, whereupon the city walls
fell, just as God said they would.
The Israelites
then slaughtered “every living thing” inside Jericho
and completely destroyed the city except for Rahab and her
family, who had aided the two spies sent by Joshua to check
out the city. Although they had been forbidden by God to take
any of the spoils, Achan disobeyed and took some garments
and silver, hiding them in his tent. When Israel tried to
conquer Ai, a small neighbouring city just West of Jericho,
they were defeated and 36 Israelite warriors were killed.
Achan's sin was exposed, he and his family and his animals
were stoned to death, and the favour of God was again restored
towards His people.
Next,
through clever ambush tactics, Joshua defeated Ai. The Israelites
faced a Southern alliance of the Amorite kings of Jerusalem,
Hebron, Jarmuth, Lachish, and Eglon. At Gibeon Joshua defeated
them by causing the Sun to stand still at Gibeon, and the
moon in the valley of Ajalon, so that he could finish the
battle in daylight. Then Joshua faced a northern Canaanite
king, Jabin of Hazor, whom he defeated at the Waters of Mermon,
possibly referring to Lake Huleh.
Yar’Adua: 12 Months After
So much
appears to have happened in the last 12 months, yet it seems
like yesterday since the President promised to turn around
the misfortunes of Nigerians. The President Yar’Adua
scorecard is a bag of huge expectations. Where is the former
Katsina State Governor leading Nigeria to, especially in the
ICT sector? BY DENNIS ONWUEGBU and SEUN IGBALODE
Although
the politician in former President Olusegun Obasanjo did not
permit him to openly admit, his eight years rule recorded
its highest success in the telecommunications industry. The
world recognised that those years were the Nigerian years
where the country stood out among nations where telecommunications
was concerned. With the benefit of hindsight, it would seem
plausible to say that Nigeria just started its telecom journey
in 2001!
At his
second inaugural speech as president, Obasanjo celebrated
the various successes of his first four years; curiously and
inexplicably telecom did not get a mention even though this
remained the best window to the wall for his eight-year reign.
Unfortunately, the former President like most leaders especially
from the Third World, hardly recognise the immense value that
Information and Communications Technology in general brings
to the life of their people and economy.
It is
clear that with higher teledensity and telecom penetration
and access, a country’s GDP gets correspondingly higher
boost. Similarly, effective and efficient communications system
reduces the cost of doing business in a country. These factors
have manifested clearly in Nigeria and other Third World countries,
where ICT has taken a strong foothold – even if not
as it is already in the Western economies in the last decade.
For a
country that once wore the ignoble robe and reputation as
one of the world’s most corrupt nations, doing business
in Nigeria before now was more difficult than the Camel passing
through the eye of a needle. But this has changed somewhat
since the telecom revolution took off in 2001 and the attendant
successes recorded in the sector ever after. Efficiency in
keeping business appointments, greater transparency in certain
areas of doing business with government, due largely to ICT
deployment, and simpler processes in increasing number of
state institutions are fast becoming the order of the day
in Nigeria.
Computerisation
of tax processes in a number of states, computerisation of
the civil service operation at the federal level and in some
states, and the planned harmonisation of the nation’s
citizen information data bank through the National Information
Management Commission (NIMC), are signs that ICT is changing
the face of government and business operations in Nigeria.
However,
all the mentioned gains and such other benefits that can be
seen in the activities of the private sector are achievements
founded in the last eight or more years when the enthusiasm
and euphoria of democracy was burning as never before. What
has become of that passion of ICT in the last one year of
President Umar Musa Yar’Adua?
Like Obasanjo,
President Yar’Adua did not have any blueprint for ICT
in his programme as President of a sovereign Nigeria in 2007
when he came to power. There was a seven-point agenda upon
which the President rode to Aso Rock; but that too hardly
made at the time. Even if those points meant anything to the
politician and the electorate, there was no any mention of
ICT, its gains or any plan to consolidate on those gains.
Perhaps,
a clear indication that Nigeria could be in for a slow march
with its new President in the ICT sector was exhibited during
the electioneering campaigns for the office of the President
in 2007. While most of the candidates for that election reflected
on the gains of the time and advertised on functional websites,
where they interacted with the people, even if some of the
sites were behind time in terms of the information posted,
there was no known website for the Yar’Adua campaign.
The only
medium through which the electorate would get to meet their
future President was the television adverts and radio jingles,
newspaper advertorials and feature articles, handbills and
posters; traditional methods of campaign that have since given
way to much more modern and far reaching and cost effective
methods like the Internet, SMS, etc.
Even those
perceived by many to be among the “most unserious”
of the candidates were hoisted on the net. Early birds like
former Jigawa State Governor, Saminu Turaki, who later stylishly
dropped out of the race, had a website up and running and
he ignited the Presidential race through his campaign on the
mobile phone with its recharge card refund for every listener
to his campaign recorded in the country’s major languages.
What happened to that of the man who would become Mr. President?
There was none and there was no explanation for it even after
he was declared winner of the Presidential Election.
Much has
been said about the man said to have been drafted to the race
at the last minute drafting and how his integrity record speaks
for him; but nothing so far has been said of his love or disdain
for ICT. Rather, in this all-important aspect, the Nigerian
President seems to have drawn a blank. Perhaps it was the
President’s avowed pledge to tackle Nigeria’s
power and energy problem that kept his attention from putting
ICT on the drawing board; after all, if Nigeria solves the
power and energy problem, ICT can find its feet, that perhaps
might have been his thinking.
One
Year After:
In the last one year, activities in the nation’s priced
sector, ICT, have continued to attract global attention. Financial
records regarding the sector may have continued to look up
with more and more Nigerian banks and other financial institutions
willing to lend to players in the sector. Yet, the aggressiveness
that accompanied the sector in the Obasanjo years seems to
have slowed down tremendously.
Earlier
investments made in the sector and expansion programme of
various operators are purely private and have enjoyed little
or no government nudge. And this has left many questions unanswered
over what the government’s intentions may be with regards
to the sector that has performed so well in the past.
Ironically,
the only few times that the government have made utterances
concerning matters in the sector, it has always been followed
almost immediately with rebuttal or leaving the situation
with more crisis than the government may have intended. Is
this a function of ill-advised government decisions or none
advices at all?
Power
Sector
At inception of President Umar Yar’ Adua he announced
his intention to declare a national emergency over the energy
sector of Nigeria after his first 100 days in office. Hailing
the new President, Nigerians were quick to say that this President
may after all, have the magic wand to the lingering power
and energy crisis that has bedevilled the nation for so long.
The excitement of the citizens is understandable. The electricity
supply situation has reached such a high level of national
embarrassment that it seemed only a national emergency can
turn around the misfortune of the sector.
However,
one year after, the President has still not declared any emergency
on the sector. Instead, he has recanted his earlier position
to provide 30,000 megawatts of generated power in his four
years in office. In the new thinking of the President, only
about 11,000 megawatts of electricity is feasible in four
years. What are the things that informed the President’s
new thinking?
One of
the only few outbursts made by President Yar’Adua since
becoming Nigeria’s leader was on the power issue. An
obviously disturbed President announced to the nation that
his predecessor, President Olusegun Obasanjo spent a whopping
$10 billion on the energy sector in his eight years in office.
A few days after, the President was countered by a former
senior special assistant to the President on electric power
reform, Folusake Somolu who said the actual amount spent was
$5 billion not $10 billion as the President had told the nation.
The final
straw that broke the camel’s back came from the Honourable
Speaker of the House of Representatives, Dimeji Bankole who
said both the President and the former aide were wrong with
their figures. The Speaker said the real sum spent in the
sector for those eight years was closer to $16 billion than
any of the earlier two figures. And from that point, things
have been rowdy with regards to how the nation spent this
much money on the sector without much to show for it.
Even though
the figures have continued to change from one former official
to the other, the exposition from the probe of the House Committee
on Power is clear that there is more work than the President
may have anticipated when he made his promise of 30,000 megawatts
in four years. Even the new target set by the President is
still a doubtful figure given the enormous work involved in
building new power plants and upgrading the infrastructures
to carry generated power.
Since
the beginning of the Yar’Adua administration, the National
Energy Council that the President waited to define a proper
roadmap for his government to follow, has not been able to
proceed as fast as it was anticipated. Concerned with the
slow pace of work by the NEC, the President set-up a Presidential
Committee on Power with a mandate to submit its report within
a 30 days period. Predominantly made up of private sector
players of the Nigerian economy, the committee handled its
assignment with the urgency that it required and three days
ahead of its deadline, the report was submitted to the President
who has since promised to swing into action with the report
now ready.
Notwithstanding
the speed with which the report was made available to the
President, there are several contending issues in the sector
that observers believe will slow down the speed at which the
Government will proceed with its reform programme. And these
issues must be sorted soonest if the country is ever going
to maximise its economic potentials in no distant time.
One of
such factors is a debt burden of nearly $300 million owed
by PHCN to suppliers like Agip and AES, among others. Similarly,
PHCN has been accused of ineptitude when it comes to fulfilling
its financial obligation to partners including privately generated
electricity that is fed into the national grid. Such an attitude
is seen as part of the greatest discouragement to investors
in the sector, an action the government must correct if it
will attract genuine investors to the sector. Other subjects
that the Yar’Adua government must deal with include
properly funding and supervising the Independent Power Projects,
commitment to the proposed Multi-Year Tariff Order (MYTO)
which will attend to the issue of proper pricing and encourage
more participation in the sector, and a drastic improvement
in PHCN tariff collection from the company’s present
70 per cent.
Among
the sectors that feel the impact of the inefficient power
system most is the telecommunications companies which subscribers
continues to increase in geometric progression while power
supply diminishes in geometric regression. For instance, a
rough calculation shows that the telecom operators in Nigeria
spend well above N4 billion every month. This year alone,
if nothing drastic is done to improve on the situation, the
figure may exceed an average of N5 billion each month as new
players join the market and networks expansion continues to
meet the subscribers’ need.
According
to the Chief Executive of Celtel Nigeria one of the leading
operators in the country, Bayo ligali this cost is different
from other capital outlay involved in the provision of infrastructure.
“This cost is aside from the capital outlay for acquiring
the generating sets, which by the way is changed every two
years, logistics involved in delivering the products as and
when it is required and the cost of maintenance.”
Similarly,
the chairman of Nigeria’s Association of Licensed Telecommunications
Operators of Nigeria (ALTON), a telecom Engr. Gbenga Adebayo
thinks it is time for government to take drastic action towards
the resolution of the power sector crisis. “Our economy
and the industry cannot continue with the state of public
power supply system. We hereby call on the government to solve
with immediate effect, all problems associated with problem
of electricity supply, as the economic cost and associated
loss on the operator and the nation as a whole is too high.”
Every
telecom operator in the last six years for instance, have
shown clearly that more than 40 per cent of their running
costs goes into providing alternative sources of power. Instead
of power generating sets being the stand by for electricity,
the reverse has been the trend. Indeed, in most cases, operators
have shunned completely the use of electricity because in
most areas where they have installations, electricity supply
is not even available.
For every
installation, two or more generators are provided to do an
endless relay system that is if the network must keep running.
And for each of such locations, several millions of naira
worth of diesel must be provided to fuel the generating sets,
each week. And for each of such installations, a commensurate
number of personnel must be engaged as security and maintenance
operatives. These simply means that the companies are investing
in areas that ordinarily should not concern them. By implication,
the national power company, Power Holding Company of Nigeria
(PHCN) loses revenue that ought to accrue to it and ultimately,
the government loses the most from shortfalls experienced
by the operators in the form of taxable income.
The statistics
of the nation’s appalling power situation is equally
appalling. Between 1999 and 2007, the figure showing total
power generated has consistently fluctuated between 1,800
Megawatts to 4,000 megawatts; with so much doubt as to whether
the nation actually ever attained the latter. The same statistics
clearly indicate that industries and various levels of consumers
lose several billions of Naira in revenue to stoppages and
damages caused by inadequate power supply.
The on-going probe by the House of Representatives into contract
awards for the various National Independent Power Projects
has further heightened existing doubts to how much the Yar’Adua
government can do to achieve its electoral promise. How much
more money would the government spend to meet the electricity
demands of the people? While the House Committee has been
probing the spending of several billions of naira in the sector
without much results, in the 2007 budget, a total of N104
billion was provided for the power sector alone.
An equally huge appropriation was made in the 2008 budget.
But, even all the money in the 2008 budget is not capable
of solving the problem of the sector. More than the capital
outlay that is required to deal with the crisis created by
power, the new government under the leadership of President
Yar’ Adua will require more political will to surmount
the enormous task ahead of it.
Transcorp/NITEL/M-Tel
Imbroglio
Before the inauguration of the Yar’Adua administration,
it was obvious to keen followers of the telecom industry in
Nigeria that the relationship between Transcorp, the Nigerian
conglomerate that acquired 51 per cent equity holding in NITEL
in 2006 through a transaction with the Bureau for Public Enterprises
and the telecommunications operating firm was still strange
and far from cordial.
And each
passing day saw this relationship deteriorate leading to strikes
and threats of strikes, constant change in the management
of the two telecommunications businesses and a clear lack
of direction and initiative to bring the companies out of
the woods. While Transcorp may have had good intentions when
it bought into the business, good intention alone is not enough
to make a business succeed; so NITEL/M-Tel were obviously
a bad business in the hands of Transcorp.
The issues
were quite clear. The management of Transcorp lacked the competence
to manage telecommunications operations. The government armed
with a 49 per cent equity it is supposedly holding in trust
for Nigerians could not wean itself of the bureaucratic tendencies
with which it has run aground state institutions, so every
decision on NITEL/M-Tel by Transcorp must wait until the government
is ready.
More problems
were that the combined staff of NITEL and M-Tel are put at
11,000 nearly unproductive lot who are brought up in the old
civil service culture and have consistently over the years
become irredeemably unproductive. They must be paid and that
became the lots of Transcorp.
And before
long, Transcorp itself became a victim of the foisted strange
bed fellows that were its directors. No sooner has the company
commenced operation that some of its directors began to withdraw
from the organisation. Then set in doubts and loss of confidence
from Nigerians who have been enthusiastic about their first
national conglomerate. To this day, Transcorp has not recovered
from these setbacks as its stocks continue on a slide at the
Nigerian Stock Exchange notwithstanding that the NSE Director
General, Professor Ndi Okereke-Onyiuke is the company’s
Chairman.
That is
the summary of the company that President Yar’Adua inherited
from his predecessor, President Olusegun Obasanjo. A national
monument, there is no doubt that most if not all of NITEL/M-Tel,s
problems to date are borne out of sentiment and political
manipulations.
And this
became manifest when the Yar’Adua government became
engulfed in the same old pattern that has trailed the two
operators’ subject in the last decade or so. Concerned
with the epileptic services of NITEL/M-Tel and the two companies
constant failure to meet set targets and obligations to business
partners; President Yar’Adua could not hide his contempt
for this sloppy business especially where other operators
who only recently came into Nigeria are making huge returns
on investment even while providing world class services.
After
a meeting with the Information and Communications Minister,
Mr. John Odey and principal officers of the Nigerian Communications
Commission (NCC) including its Executive Vice Chairman, Engr.
Ernest Ndukwe, the President agreed with the regulatory agency
to allow NITEL/M-Tel till June this year to either improve
on its services or lose its operating licences.
A justified
threat; the two companies have consistently failed severally
to meet on promises they have made to their existing customers
and the general public. The last one was last year when the
Transcorp Chief Executive, Mr. Tom Iseghohi promised a 100
days from August 2007 when the companies’ operations
would have returned to normalcy. Iseghohi’s 100 days
elapsed with no explanation and nothing ever changed.
But, hardly
has the government threat to withdraw NITEL/M-Tel operating
licenses gone down when the real bomb was exploded by the
Information and Communications minister, Mr Odey that government
has decided to cancel sale of the two companies to Transcorp.
The crisis reached a head with this pronouncement and in less
48 hours, more than four versions and interpretations of government
position were all over the place. This included denials from
various quarters.
However,
on Friday February 22, 2008; an amicable resolution was reached
by officials of Transcorp and the Federal Government represented
by the minister of Information and Communications and the
Director General of BPE which handed over NITEL/M-Tel to Transcorp
in 2006.
According
to the new arrangement, the Government and Transcorp agreed
to invite a new investor to acquire 51 percent equity in NITEL/M-Tel
and with this agreement, the new structure of the national
carrier will automatically change.
A statement
to this effect signed by the minister of Information and Communication,
Mr. John Odey for government and Mr. Tom Iseghohi for Transcorp,
read: “The Federal Government and Transcorp representatives
met this morning on NITEL/M-Tel and deliberated on management
issues and agreed as follows:
“To
bring in a new core investor that is a player in the telecommunications
industry with requisite focus, technical expertise, managerial
experience and financial capability to take over the controlling
share of the Nigerian Telecommunication Limited (NITEL) and
the Mobile Telecommunications Limited (M-Tel).
“To
do everything possible, following due process and the rule
of law to resuscitate NITEL and M-Tel into a viable and profitable
world class telecommunication company that would provide quality
service to Nigerians.
“To
reconfirm the earlier mutual agreement between government
and Transcorp for both to relinquish shares sufficient enough
to give comfort and interest to a new operator/investor in
line with December 2007 agreements.
“And
that the decisions taken are in the best of the industry,
shareholders and the Nigerian people.”
Although
the February 2008 meeting put to rest speculations over the
continued majority share ownership of NITEL by Transcorp,
yet it did not go down well with some NITEL staff who were
convinced that government earlier decision to quash outright
the Transcorp purchase would have served the best interest
of the ailing company. But it is obvious that government went
back on that line of action conscious of the likely legal
implication of such an action and its negative effect on Transcorp
as a business; even though its fortune has continued to fall
at the Nigerian Stock Exchange where it is presently listed.
Although
the February meeting chaired by the Information and Communications
minister did not make any mention of what percentage each
party is to give up to allow the entry of a core investor,
it is strongly agreed that at a December 2007 meeting between
Transcorp and government, it was agreed that in the event
of the need for an investor, Transcorp would give up 29 per
cent of its 51 per cent leaving it with 22 per cent in the
new arrangement while the Federal Government which originally
had 49 per cent will divest 22 per cent leaving it with 27
per cent after.
Not known
for rash decisions before now, it is clear that the electricity
generation crisis and the non-performance of NITEL/M-Tel showed
that even the most astute of governments could in the face
of daunting national issues become vulnerable and is not infallible.
On these subjects, the Yar’Adua government has made
several summersaults on its positions and there are likely
more position changes to be made before the expiration of
the government’s four years elapses.
Although
the Nigerian government have commenced the process of finding
a new core investor in the telecommunications companies, presently
NITEL and M-Tel staff are on strike to protest the non-payment
of salary arrears, even though Transcorp management insists
it has the salaries ready. And the implications of this strike
action is grave for the industry because many businesses have
been shut down on account of SAT-3 which carries the traffic
of such businesses.
It is
also clear that the relationship between Transcorp and the
staff of NITEL have gone sour and it would need an entirely
new management outfit to turn around the situation. Even though
that too may be a temporary reprieve as any established telecommunication
firm will wink with the overwhelming size of NITEL/M-Tel staff
number. The strike has since been called off as the parties
have reached an amicable resolution.
Between
NigComSat and NCC
If the idea of a Nigerian Communications Satellite brought
joy to the hearts of many operators in the industry when it
was launched in China in May 2007, the unnecessary quarrels
that later followed between the communications satellite company
and the Nigerian Communications Commission over Nigcomsat’s
desire to deploy a 3.5G to 4G multimedia network that will
enable its customers unlimited access to voice, data and video
services on their handsets.
According
to the company, a few days before the departure of the Obasanjo
presidency precisely on May 5, 2007; it got the president’s
approval for spectrum allocation and ‘total’ frequency
licence for any telecommunication service Nigcomsat may wish
to offer.
In contrast,
the regulator insisted that Nigcomsat cannot, based on its
statutory role carry out the activity of a telephone or data
services operation and that it is not under obligation based
on the statutory mandate of the NCC to grant such licence
as the management of Nigcomsat is requesting.
This face-off
that went on for several weeks and became heated subject of
debates in the nation’s media was indeed President Yar’Adua’s
government baptism into the telecommunications industry. And
it was one that exposed the seeming inadequacy of the team
Yar’Adua in the area of ICT.
Once more,
it took another summersault from one position to another for
the raging war between the two government agencies to be doused.
An initial report indicated that the President has instructed
the NCC to immediately give an operating licence to Nigcomsat
only for that position to be reversed when NCC officials said
there was no such order.
It took
several meetings for the impasse to give way to the present
situation where the government have asked Nigcomsat to establish
a subsidiary company that will provide telecommunications
services if it so desires.
NBC,
NCC Merger–in-waiting
For those who have followed Nigeria’s evolving telecommunications
and information management history, the position of broadcasting
and communications have been a running battle that seem to
have no end.
However,
in the last couple of years following the massive investment
and growth that has taken place in the telecommunications
sector and the regulatory prowess that has been exhibited
by the Nigerian Communications Commission (NCC), there is
little doubt as to which of the two regulatory bodies should
supervise regulation of operators in a newly merged information
and communications ministry. Yet, as a clear indication that
the civil service beaureacracy that has always slowed down
the business of government is still in place in spite of reforms
that have been ongoing in the nation’s public sector.
While
the merger of the two ministries commenced during the Obasanjo
years, there is still talks with little visible action in
this direction one year after President Yar’ Adua became
leader. Only recently, the Secretary to the Federal Government,
Ambassador Babagana Kingibe told Nigerians that plans for
the merger of NBC and NCC is still on course and that from
the merged ministries of communications and information, another
new ministry will be berth with communication technology as
one of its pivots. Another talk and no action yet.
It is
obvious that the government did not have an immediate plan
for the merger that was going on in this sector while it came
into power or it could be that as in many other policies undertaken
by the preceding government, the President Yar’ Adua
government would not have anything to do with pending issues
like the merger of ministries until it had done a thorough
review of the programme.
Unfortunately,
this like many others have either dashed people’s confidence
and efficiency of the new government or as many have reported,
says the nation is once again saddled with an unwilling president
who may not be in any haste to get things done faster than
he would.
While
the ministry of information and communications were merged
by the pronouncement of the President, it is still unclear
what the delay is in bringing together the NBC and the NCC
even where the NCC with its more established and tested regulatory
functions stand the better chance of the two to carry out
the activities of a merged NBC/NCC. In fact, the NCC has invested
more in infrastructures for monitoring and evaluating operators’
performances than the NBC could possibly have.
Without
doubt, the quality manpower at the disposal of the NCC cannot
in any way be compared with the NBC, even though the government
have at some time in the past deployed the efficient NCC manpower
to the development of other regulatory agencies like the National
Electricity Regulatory Commission (NERC).
The earliest
these agencies are merged the better for development extending
to other sector of the economy as broadcasting in Nigeria
although has enjoyed a more robust past and has a history
founded in the nation’s struggle for total emancipation,
it needs an adequate dose of business sense and urgency which
an efficient regulator can engender, among other advantages.
Consumer
Protection
For the ICT industry, there is a cautious need to protect
the consumers of ICT goods and services otherwise they could
be exposed to short changing acts in the hands of large companies
and operators. And this is one area where the NCC has done
well even though some operators have not fully come to terms
with the reality of consumerism in an emerging market like
Nigeria.
Last year
2007 will go down as the worst in terms of quality of service
that the GSM operators provided the Nigerian market. Consequently,
after series of meetings to make the operators correct their
poor service delivery and most of them could not measure up
at the expiration of a certain period of grace granted them,
the NCC imposed a set of fines on the erring operators. After
much lull and a court pronouncement that says the NCC was
doing the right thing in protecting the consumer, the Nigerian
consumers were awarded over N4 billion as compensation by
two of the operators.
Although
the payment has not been effected, the regulator has reminded
the operators that at the expiration of another grace period
that is May 15, 2008; they will suffer additional fines for
not keeping to the sanction terms. Indeed, at no time have
the Nigerian consumer been so honoured and his/her interest
so protected as this.
Unfortunately,
the same thing cannot be said for other aspects of the country’s
growing ICT industry. For instance, among computer users in
Nigeria, the issue of dumping is fast becoming a subject of
grave concern among users and local OEMs.
Dumping
of old and refurbished computers as new ones is becoming rampant
in the industry and this is as a result of inadequate legislations
and implementation of existing policies that could protect
the consumers and the Nigerian market, in general.
These
old and refurbished computers sell very cheap and even though
they hardly serve the purpose for which they are purchased,
they are a great source of injustice to the Nigerian manufacturers
and in the long run to the nation.
While
the existing computer associations like the Nigeria Computer
Society and the Computer Practitioners Registration Council
concern themselves with regulation of the practitioners of
computer science and its education in the country, the government
should endeavour to either establish a body that will protect
the Nigerian market against dumping and ensure that only specific
standards are allowed into the country. This is standard practice
in other countries of the world otherwise like the textile
companies, the Nigerian Original Equipment Manufacturers of
computers and components will soon become history.
This same
protection when it is provided should also be extended to
other ICT components and their producers in the country including
software developers, fabricators of various components in
use in the sector, etc. Otherwise, the perceived gains that
come with the liberalisation of several sectors of the Nigerian
economy will only lead to the ultimate destruction of the
economy in the long run.
Indeed,
one of the best examples of how best to protect the consumer
is being set by the Nigerian Consumer Protection Council which
in collaboration with the Nigerian Communications Commission
and the various stakeholders in the industry have continued
to monitor and ensure that the various promotions by operators
are carried out within stipulated standards and that consumers
are not ripped off.
In the
last one year, for instance the various operators like Glo,
Starcomms, etc have doled out millions of naira worth of gifts
ranging from exotic cars to various sums of money and these
have tended to change completely the lives of the winners
in these promotions. Yet, in all these, there has not been
a single complain of a cheated winner or unfulfilled promise.
This is a result worth commending and more of such consumer
protection exercises and legislation should be put in place
by the Ya’ Adua government.
ICT
Investments
Recently, one of the world’s leading electronic manufacturer
LG, a Korean firm announced the commencement of work in a
N600 million manufacturing plant in Nigeria. Apart from representing
a major gain for the nation’s ICT industry, transfer
of technology that has been preached for ages, the initiative
is an endorsement on the nation. Meaning that the environment
is good for business. Yet, the N600 million LG investment
is only a part of the huge foreign direct investment that
has flowed into the country since the ICT revolution began
in the country in the late 1990s.
Without
any restraint, in the last one year of the Yar’ Adua
government, this trend has been sustained and it is anticipated
that the spate of entry of new players in the nation’s
ICT is a clear indication that the years ahead would by far
outstrip the past seven or more years gain.
Among
local investors, the stakes in the industry continues to increase
as more and more OEMs continue to win support and partnership
with banks to increase outputs in producing different range
of computers for the general market and the schools in Nigeria.
Unfortunately,
not much has been heard of the Computer for All Nigerians
initiative (CANi) that was supposed to provide over a million
computers in its first two years that will elapse in this
month. The various computer manufacturers have since gone
their various ways to pursue individual projects that will
bring the computer closer to the people and institutions.
Similarly,
the One Laptop per Child (OLPC) project that was introduced
to the Nigerian government by its American founder, Professor
Nicholas Negroponte was among the first casualties of the
Yar’ Adua government’s policy changes as the education
minister, Aja Nwachukwu announced that government would rather
provide classrooms, chairs and tables than think about a laptop
for a Nigerian child.
Since
the ‘jettison’ of the OLPC initiative, other manufacturers
like Hewlett Packard have come up with their academic computerisation
programmes targeted at young Nigerians. The Nigerian brands
like Zinox, Beta and Brian have also developed their computerisation
of the nation drive getting states, financial institutions
to fund computerisation programmes aiming at making the tool
available to many more Nigerians.
Rural Telephony, USPF and Broadband
There is a deliberate policy to extend telephony services
to the hinterland of the country especially in areas where
ordinarily operators would not have invested in because of
the heavy cost outlay in doing business in such places and
therefore not lucrative. The NCC in strict compliance with
its establishment Acts working with the ministry of communications,
established first the National Rural Telephony Project (NRTP)
and it followed this up with the Universal Service Provision
Fund (USPF) in late 2006.
Describing
the initial response from companies when the NCC advertised
for Expression of Interest in the NRTP, the NCC Executive
Vice Chairman described that the regulator was, “inundated
with a lot of applications.” And he expressed his excitement
and interest in the project, saying, “I am optimistic
it is going to be a huge success from the responses we have
gotten so far and that is on-going. On the issue of USPF,
the NRTP started before the USPF was launched and it has gone
to a particular level. Government in its wisdom will decide
whether it is right to merge or we should allow what is going
on to just finish. Let us say that the concept of the two
is not quite the same. One is based on government taking facilities
from the Chinese government in terms of funding and deciding
to build networks targeted at rural areas. The USPF is going
to operate in a different manner. The Fund will provide money
which will be used as subsidy to operating companies to rollout
networks in rural areas and underserved areas. I think they
complement each other in the long run and a lot of work has
been done behind the scene. Some will target helping very
small players. In form of microfinance arrangement, some will
target bigger players in terms of supporting rollout of services
in rural and underserved areas and in all that context, the
NRTP might find a place.”
In spite
of Ndukwe’s optimism, the projects have not moved as
fast as the regulator may have anticipated. In fact, at the
commencement of the new administration a probe on the procedure
for the award of contracts and sundry issues was called slowing
down in the process the work of the projects.
These
funds are in line with global practice that mandates regulators
to support telecommunications operators in any country with
subvention funds to enable them deploy services in rural areas
where ordinarily they would have no business going to.
Therefore,
the challenge for the new government is to give verve to the
NRTP and resuscitating the USPF programme, making operators
attracted to the policy and thereby drawing rural Nigeria
into main stream governance and development.
Known
for its foresight and vision of making the Nigerian telecommunications
environment one of the best in the world, last year the NCC
took a bold step in declaring that it intends to break new
grounds in the commission’s on-going exploits through
the massive deployment and encouragement of the use of Broadband
internet connectivity in the country.
A welcome
development, Nigerians are eagerly waiting for the massive
deployment of broadband technology as this would drastically
reduce the cost of doing business on the net and other forms
of data communications will be thrown up and the market will
witness another boom. That is until the regulator blows the
trumpet signalling commencement.
Team
Yar’ Adua
Just like President Yar’ Adua, former President Obasanjo
never had any known agenda or plan for the development of
the nation’s ICT industry. But quite unlike the incumbent
Nigerian leader, President Obasanjo attempted an assemblage
of some of the nation’s smart minds to drive the ICT
sector. It therefore did not come as a surprise that one of
the longest serving ministers in the Obasanjo cabinet was
his minister of Science and Technology, Professor Turner Isoun.
In fact,
the three or so ministers who oversaw the activities of the
Communications ministry before its merger with information
had reputation that could stand the best anywhere in the world.
They included Mohammed Arzika, an old Obasanjo loyalist who
worked with the President in the 1970s when the Nigerian leader
was a military leader. Others were Mohammed Bello, Chief Cornelius
Adebayo, Engr Obafemi Anibaba and Alhaji Haruna Elewi; they
were tested in their own rights and it was not difficult for
programmes and government policies to get easily executed.
Of course the Science and Technology ministry was occupied
by Professor Turner Isoun while the National Information Technology
Development Agency (NITDA) had another professor Cleopas Aganye
as head while the NCC paraded the same team that it has today
with veteran public administrator, Dr Ahmed Joda as Chairman.
Although
the Yar’ Adua team is predominantly the same except
in the Information and Communications ministry where he has
a politician and the Peoples Democratic Party former publicist
John Odey in place. The minister of Sate for information and
communication, Alhaji Dasuki Nakande is not quite new to the
system but the real fillip to the combination in that important
ministry is the introduction of one of the best public servants
in the country presently, Dr Timiebi Koripamo-Agary as permanent
secretary in the ministry.
Apart
from this the President seem to be contented with what his
predecessor has done in the sector and has not shown any eagerness
to improve on or surpass any of the marks bequeathed to him.
The
Obasanjo ICT Record (1999 – 2007)
*Between 2001 and Quarter 1, 2007; the number of telephone
lines in Nigeria (mobile and fixed mobile) has grown from
nearly 750,000 lines to about 35 million lines, closing at
ratio 1:5.
*Internet penetration is about three per cent up above the
less than one per cent position in early 2000. This represents
access of about 4.5million of Nigeria’s population.
*During the period 1999 to 2006, an estimated $10.8 Billion
has been injected into the Nigerian economy in the form of
Foreign Direct Investment (FDI).
*National Information Technology Development Agency (NITDA)
established April, 2001 to foster the development and growth
of IT in Nigeria.
*November 2001, Zinox Technologies introduces first made in
Nigeria computers.
*Automated Cheque Clearing System introduced in Nigeria, in
November 2002
*Second National Operator (Globacom) licensed in 2003.
*In 2006 the Unified Access License was granted to eight operators,
marking the end of the five years exclusivity period of the
GSM licences.
*April 2007, four winners emerge for the third generation
mobile technology (3G), expected to commence operation later
in the year.
*July 2006, Federal Government launches the Computerise All-Nigeria
Initiative (CANi)
This is as published in IT & Telecom Digest of May 2007
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