If Glo for the new NITEL, why not?

By Duro Onabule(duroonabule@gmail.com)
Friday, June 19, 2009

Two seemingly pedestrian events occurred and instead of noting God’s timely intent for Nigeria as a nation, we all seem as usual, not to be concerned. And unless the message is driven home, the compelling lesson of national interest may slip once again.

The timing of the two events could not be more illustrative. Almost simultaneously, the sale of Nigeria’s telecommunications giant, NITEL to the controversial TRANSCORP was cancelled just as British Aviation Company, Virgin, was debranding itself from Nigerian Airways more like mid-air.
In purportedly “debranding” itself from Nigerian Airways, Virgin Aviation Company was only applying some finesse to cover up the breach of confidence reposed in the company at the expense of many indigenous Nigerian airlines to run the Lagos – London – Lagos slot for Nigeria. Some would say this breach of trust served Nigerian authorities right. But will the lesson be learnt?

On its part, after the exit of TRANSCORP’s godfather, it was obvious that the company’s nakedness in fiscal muscle, business sincerity and administrative competence would inevitably be open for all to see. Contrary to standard practice, Umaru Yar’Adua’s regime granted TRANSCORP two years of grace to bring NITEL back to life.

Instead, current revelations are allegations of inability to perform, or pay staff salaries, vandalisation of NITEL’s major and sensitive equipment capped by large scale fraud. All these were not the reasons for selling NITEL to TRANSCORP.
Yet, the colossal failure of TRANSCORP should not convey a message of failure of other prospective Nigerian telecommunication companies. In fact, tied to the sudden departure of Virgin Aviation Company from the agreement to run Nigeria Airways, it is now more imperative for Nigerian economy to be inward-looking in the search for investors.

Notably, after the failure of TRANSCOP at NITEL, the saving grace for Nigeria is that another Nigerian telecommunications company, Globacom operates a second national carrier. Otherwise, what could have been the state of our telephone services today? The failure of one company must not be dumped or blamed on another company. The determining factors should be the origin, intent and of course the performances of each corporate organization which range from one to another.

Accordingly, all willing Nigerian indigenous companies should be allowed to bid for the re-sale of NITEL. Except in proved cases – Glo, Multilinks, Starcoms etc. – this is not the time to gamble on so-called foreign investors.
By the way, there is this misconception about these foreigners as being businesslike or that they are so much in love with Nigerian economic potential. Have we stopped one moment to realize that they are here to make money and remit their profit home? And the more profit they make, the more they deplete our foreign reserves.

Was it for nothing that in the recent past, Nigeria’s foreign reserves dropped massively from almost seventy billion dollars to just over forty billion dollars? We are talking of capital flight which became more pronounced at the height of the current world economic recession.
What happened? At that very time the supposed foreign investors should display their faith to help sustain Nigeria’s economy, our supposed foreign investor friends chose to withdraw their investment. Hence, the crash of Nigeria’s stock market.

To now think again of involving the same foreigners as prospective investors in the re-sale of NITEL? As pioneers or early starters in our mobile telephone industry, what is the record of these foreign companies? They were more like economic vermins, and so much of our wealth they remitted home as profits that a South African newspaper gloated in its banner headline that a named telephone company “… HITS GOLDMINE IN NIGERIA.”
In the inherent loot of Nigeria’s wealth, these foreign telephone companies dangled all impossibilities to make them charge tariffs in Nigeria more than double or even triple the tariffs in Benin Republic and Ghana. With the collusion of Nigerian telecommunication officials, we were told the obscene disparity in the tariffs in Nigeria on one hand and neighbouring countries on the other was due to lack of infrastructure (in Nigeria).

The capital flight from Nigeria by foreign telecommunications companies continued till the emergence of indigenous companies like Globacom, Multilinks and Starcoms. Globacom in particular won the hearts of Nigerians by blocking all erstwhile areas of fraud on innocent subscribers.
Before Globacom, we were told per second billing was not possible. Globacom came and introduced per second billing, forcing older rivals to introduce per second billing.

Equally, before Globacom, Nigerians were made to believe that free evening calls by subscribers was not possible. Globacom, with its loyalty and commitment to Nigerian subscribers introduced free evening calls by subscribers. Rival mobile telephone companies were similarly forced to introduce free night calls.
Without indigenous phone companies like Globacom, ripping off of Nigerian subscribers would have continued by the foreign companies to bloat their profits remitted out of Nigeria.

What is more, concessions like per second billing and free evening calls are not for the elites or company executives. Instead, the sole beneficiaries are millions of poor masses Globacom empowered with access to mobile phone facilities.

If, therefore, we have our own capable telecommunications companies that can operate our national carrier, why do we have to look outside? And when an emergency develops like the economic recession, we are abandoned? Or when we demand for local patronage as Virgin (in the case of Virgin Nigeria) was ordered to operate from the new Murtala Mohammed local airport, such foreign company arrogantly bails out?
Even if Globacom is the only capable telecommunications company to bid for the resale of NITEL (and there is nothing to suggest this) the fact that Glo already operates as a second national carrier should not disqualify the company. If anything, that very fact (of already operating as a second national carrier) should enhance its bid. The performance and value to the country is already known.

Monopoly? Which monopoly? A monopoly which brings telephone services even to the rural poor? A monopoly which forced reduction in call rates? A monopoly which conserves Nigerian money in Nigeria? A monopoly which will not abandon Nigeria in an emergency? A monopoly by a Nigerian company to preserve the career prospects and regular salary of long-serving staff as well equipment vandalized all along?
Do we, therefore, for the fear of monopoly open a sensitive sector of our economy, in fact, security to foreigners? In this age, how many countries open themselves to the risk of foreigners in charge of their telecommunications sector if capable indigenous experts are available? It is not everytime we should look up to foreigners to solve our problems.

Would a Nigerian airline have abandoned the country as Virgin Aviation Company did? Even if a group of Nigerian telecommunications company is to be considered, so be it. The truth, however, is that any willing company should be considered on its merit.
From position zero, Globacom rose to the challenges of operating a second national carrier even if the load of other private operators. Should that be a handicap against bigger responsibilities or opportunities?

Nigerian telecommunications companies on their part must ensure they all bid strongly for the resale of NITEL.

Challenge for Nigerian women
Just a month ago, Kenya women, in protest against the unending power struggle between President Kibaki and Prime Minister Odinga, went on a week-long “no sex” strike. Kenyan women to make their point on the sex strike also wrote Mrs Kibaki and Mrs Odinga to join in the sex-strike. It was not clear if the two first ladies complied.

However, on the seventh day (as if they were resting from the sex-strike) Kenyan women organized a prayer session at which they sought God’s spirit to touch the hearts of President Kibaki and Prime Minister Odinga.
A Kenyan man exercised his right against the strike by suing his wife to court for denying him sex throughout the week-long strike.
Could Nigerian women have embarked on such sex-strike in protest against strugglers for political power? Experts would tell us sex relaxes. But the no sex-strike somehow relaxed the tension in Kenyan politics.

Take my Ogun State for example. For over a year, there has been this political enmity between Governor Gbenga Daniel on one hand and majority (almost two thirds) members of the House of Assembly. Even till this week, the showdown continued.

Here is a challenge for Nigerian women in Ogun State. They should embark on a lightening warning no-sex strike for a week to start with. Ogun State women must write Gbenga Daniel’s wife and wives and husbands of all members of Ogun State cabinet and House of Assembly informing them to join the sex-strike.
The sex holiday must be enforced but can Nigerian women do that?

Perhaps if they do, there may be solution to Ogun crisis. The political combatants will at least be humoured and draw national or indeed national attention, as was the case in Kenya.
It is a challenge for Nigerian women.

Calling Niger Delta senators
It is running to a month since the military operations in Niger Delta took everybody by surprise. That is including Vice President Jonathan Goodluck.
At the early stages of the conflict, some senators raised the matter at the National Assembly. Somehow, senators critical of the operations, understandably mainly from Niger Delta, were overwhelmed by their colleagues from other parts of the country.

Intimidated? Not at that time or so it seemed that they were visibly angry at the plight and suffering of their constituents. Senate leadership accordingly adjourned the mater till a fortnight. Unfortunately, it now seems these senators from Niger Delta were only half-hearted in the concern they raised on the sufferings of the innocent (repeat innocent) victims of the military operations. Otherwise, the two-week adjournment has since expired and no senator from Niger Delta (till this time of writing) has bothered to re-opened the issue of the plight of their people.
Niger Deltans, remind your senators that you are still to return to your homes from where you were displaced today.