Mrs. Naomi Essien is a customer of Intercontinental Bank, Toyin Street Branch in Lagos. Sometime in November last year, one of her customers paid some money into her IPSA account but made the payment from another branch in Oregun, Lagos. About a month later, Mrs Essien went to the bank and requested for her account balance and unsatisfied with the figures, she requested for a print out of her account. That began an ordeal that is still unresolved as at press time.
The print out revealed that the payment was not reflected in her account. She raised the issue with the Acting Operations Manager who contacted the branch where the payment was made and she was asked to come back the next day. When she returned to her branch, she was told the payment was ‘hanging’ and he had resolved the issue. He then printed another statement of account for her. However, this new statement was significantly different from the earlier one she got just a few days earlier.
This new statement had been altered as far back as September though the disputed payment was made in November. She also noted that her balance didn’t change in spite of the adjustments to the transactions on her account so in effect; there was still no satisfactory explanation for the disputed payment.
Concerned about her money, Mrs Essien sought a resolution to this issue at her branch for months but no one could explain what really happened. In frustration, she sent a complaint to the bank’s headquarters a few weeks ago. She received a letter from the customer care department promising to investigate and get back to her. That was more than two weeks ago.
My Comments.
This customer’s complaint raises some core issues that borders on trust and confidence in banking transactions. A third party makes a deposit in a customer’s account and for over 2 weeks, that transaction did not reflect in the account and the bank was unaware until the customer complained. What happened to simple book keeping principles of balancing accounts at close of business?
The term ‘hanging’ is quite novel to me but I guess it must be common to bankers. How do you post a transaction to a specific account and it never gets there? Where was the money ‘hanging’? In financial cyberspace? What if Mrs Essien was like me and, I am sure, millions of customers who don’t bother to check the transactions on their accounts? Would the money have ‘hanged’ forever? One cannot help but wonder how many millions of naira are ‘hanging’ in financial cyberspace without the affected customers’ knowledge?
This case also highlights the challenges the banking industry seems to be having with technology in banking service. Or how does one explain how two print outs of the same account within one week reflect such disparity that is backdated two months before the disputed transaction was made? Did the computer make the errors two months earlier in anticipation of the ‘hanging’ transaction? Or someone trying to cover their tracks tampers with the account records when the customer raised the alarm? Only Intercontinental Bank can clear this for the customer and now, because of this publication, the millions of customers reading this piece.
The length of time it has taken the bank to resolve this issue is quite disappointing. Mrs Essien had complained to me since February but I had been reluctant to take it up because I knew she had engaged the customer service structure so I expected the issue to be resolved then. It does nothing for the bank’s customer care culture that five months since she first made the complaint, she still has not received any satisfactory resolution. Would the bank pay her interest on funds for the period it has been unaccounted for? Most likely not.
For a bank that hinges its communication strategy on being happy only when its customers are happy, one wonders how much unhappiness Intercontinental has suffered in sympathy with Mrs Essien’s apparent unhappiness with her relationship with the bank. It is easy to run campaigns eulogizing the customer like most banks do but talk is cheap. Unless service providers demonstrate their commitment to the customer in practical terms, one customer at a time, there will always be a disconnect between both parties; which results in complaints like this. A five-month-old complaint still being investigated belongs in the league of the police force and federal civil service where bureaucracy reigns supreme, not in the culture of a bank.
I decided to publish this complaint so as to alert other customers to be more aware of the transactions on their accounts. If we are going to evolve a more effective consumer protection environment in Nigeria, consumers will also need to take an active part in the process. If you are not too good with figures, please hire an accountant to run periodic checks on your bank accounts to ensure that similar issues are not happening to you unawares. There are so many porous ways in which service providers fleece their customers and though this might not be the case here, imagine if it was actually a planned strategy (like the telecoms industry seem to have perfected as we will be sharing here soon).
‘Wonder’ Charges: Skye Bank too!
On April 24, I published the complaint of a customer against UBA’s cash handling charges practice. I have since discovered that the practice is not limited to UBA alone as it seems practically all the banks are guilty of this questionable practice. I have also received similar complaints from many more customers confirming the growing displeasure to this extraneous and unjustifiable additional expense. To underscore this is this incredible story of a customer’s experience with Skye Bank, Allen Branch. The customer, Tony (he asked to keep his name out of print for business purposes) wanted to transfer the sum of N10m from GTBank to Skye Bank. He called his account officer to let him know that he would be making an interbank transfer which would take a few days to reflect in his Skye Bank account.
His account officer, eager to boost his bottom line, begged him to cash the money and bring it to the bank in cash so it can be lodged in as transaction for that day and he obliged him. One can only imagine his shock when he got his bank statement and discovered a charge of N25, 000 as “cash handling charges” for the transaction! At no point was he informed of any charges for the transaction and he has disputed the charge but the bank is not budging.
I also heard that some banks, trying to encourage the use of the ATM now charge “cash handling fees” on cash withdrawals over the counter of more than N100k. They conveniently forget that the ATM is programmed to dispense a maximum of 20k per transaction. And most ATMs charge N100 per transaction so that means an extra N500 for withdrawing 100k. So customers are forced to pay for withdrawing cash indirectly; not to mention the time wasted conducting 5 ATM transactions to get the desired amount. By the way, it is only in Nigeria that I have heard that customers are forced to use a particular mode of transaction. Whatever happened to choice and preferences?
Obviously, the banking industry is more concerned with its convenience and making profits and least bothered with the customer’s convenience or cost. While we acknowledge that we run the capitalist system, it is unacceptable that service providers like the banks are given a free reign on how and what they charge their customers when the Central Bank just looks on. Whose interests should the Central Bank be protecting; the banks it is regulating or the Nigerian consumer to whom the government should be accountable? (Oops! I almost forgot that governments in Nigeria are accountable only to themselves and the cabals that rig them into power.) Prof Soludo’s unhealthy closeness to the banks he is supposed to be regulating seems to be blurring his oversight of their activities in regular banking transactions. Meanwhile, the customer s are the multiple losers while the banks declare profits in billions.
This ‘cash handling charges’ is unacceptable and I believe this is time to test the system. I am thus advocating for a class action to challenge this practice. If you have a similar dispute with your bank, please get in touch so we can seek legal counsel on how best to pull together to challenge the concerned banks and Central Bank if necessary on this unjustifiable levy after all, there is still a Consumer Protection Act in this country.
Re: UBA’s Wonder Charges
I got a call from UBA on the above story and promised to publish their response to the complaint if they sent one. I am still waiting. Meanwhile, it is surprising that no one has contacted the customer who complained to date, at least not officially. Maybe UBA is really not concerned about what we think of them anymore. One wonders who wants to do business with a service provider who thinks our perception or opinion of them is immaterial. Tut tut, UBA, not impressive customer care response at all.
Wednesday, July 29, 2009
Our Power Dilemma
Like every Nigerian, I am at my wits end with this power situation. We have watched helplessly as the situation degenerated from bad to worse, bordering on an epidemic of incomparable proportions now. Elite and peasant alike, we have deliberated on why Nigeria seems jinxed about power. Our experts have postulated theories and positions on how to get us past this literally dark alley.
Our presidents have set up committees and special task forces to tackle this monster for decades now. After a seemingly unending parade of special advisers, ministers and consultants by one administration after the other, it is pathetic that in June 2009, we are still firmly in the grip of inadequate power supply.
Every Nigerian, irrespective of social or economic status has found some creative way to stave off the damning effect of this unwieldy situation. Many like me, have multiple generators; others graduated to inverters, “I beta pass my neighbor” is so common, it has ceased to be true to its name; every neighbor also has one now. The sounds of generating sets have become part of our environmental identity. The fumes from ageing or overworked engines gradually eke years off our life span. According to some statistics, the installed capacity of generators in Nigeria is about 18,000 megawatts: public power is currently just a little over 2000 megawatts!
Businesses close down regularly from the weight of diesel costs; manufacturing is fast disappearing from the Nigerian landscape. Icons of our national commerce history are relocating to more stable and predictable business environments like Ghana; the brave ones still operating here pass the costs straight to the consumer. The Nigerian consumers are the multiple losers in this scenario. On every front, the power palaver is costing us enormously, directly and indirectly, on the home front, business front and in basic lifestyle. Unfortunately, there does not seem to be an end in sight.
The few Nigerians who understand the issues tell you it is complicated. I have spoken to national advisers, consultants, employers and employees in the power sector for years now. By the time they weave the intricate web of prevailing issues, you become just as confused as they all appear to be. The list of what is responsible range from environmental, economic, infrastructural, political and communal issues to simple matters like consumer ignorance, carelessness and of course, Nigeria’s greatest enemy, the demon of corruption and individual greed.
In a national crisis like this, a focused and visionary administration will display the political will to break this stronghold on our national psyche. I recall the president, as a candidate then, promising to declare a state of national emergency on the power issue. Almost two years into his presidency, we are still awaiting that declaration. A responsive and responsible government will prioritize the well being of its citizens above all other interests but it appears like the “interests” are more in power than the president.
Ethnic, political, religious and personal interests are reigning roughshod over the Nigerian state and they seem to dictate the decisions that affect the rest of us. There are conspiracy theories making the rounds that the cartel that import generators and diesel are part of the saboteurs of national efforts to rectify the situation. The dilemma here is that key members of this purported cartel are core financial members of the ruling party PDP so how can we expect the president to rein them in when he who pays the piper dictates the tune?
Then there is the Northern oligarchy’s interest in the issue. According to this theory, the Northern power sharks are resisting the functional unbundling of PHCN such that distribution infrastructure can be ceded to relevant states which would enable such states to generate and distribute their own power. If we recall the Lagos Enron Project hullabaloo, the Federal Government had insisted on invoking an obviously obsolete clause in the Constitution that cedes power distribution exclusively to them. Lagos State was then expected to generate its power but add it to the national grid thus power generated by Lagos State could be distributed in Jigawa or Ebonyi State.
Well, political observers maintain that the privatization of national structures seem to have left the Northern oligarchy on the sidelines of power so in order not to lose out completely, they are resisting the PHCN move to enable them remain relevant in the national structure. In simple English, Nigeria is being held to ransom by a select few who are afraid to lose their political relevance. If this conspiracy theory is accurate, then the purported cabal would rather sacrifice the lives and livelihoods of Nigerians on the altar of political relevance. Unfortunately, the president may be unable to rein this interest in either since he would naturally belong to the purported Northern oligarchy, if any does exist that is.
The infrastructural challenges are worth mentioning too. As we speak, there are loads of power turbines languishing at Nigerian ports mainly because it is practically impossible to transport them to their intended locations. Why? Our roads are grossly inadequate. One of the IPPs based in the east had narrated the story of its turbines at a round table conference on power I attended late last year.
According to him, there was a bridge along the course of the transfer that has capacity to withstand just ten tons or so but the turbines weighed more than twice that much. When the relevant authorities were approached to construct a heavier bridge, they were told it was not on budget, the IPP then offered to construct same at its expense but was flatly refused the permission. Of course that delayed the project lead time for months before they decided to put up temporary reinforcement s for the turbine to cross the bridge.
This situation is a classic example of the ripple effect of bad management and lack of visionary planning. Our current power situation is obviously a consequence of past military years of gross negligence, greed, ignorance and selfish aggrandizement. If those juntas had an inch of patriotic bone in their bodies, they would have improved on our infrastructure when Nigeria was rich enough to pay for it. Rather they focused on updating their personal financial empires. At least one of them is still alive to feel the impact of his error in judgment. No matter how many generators the ‘evil genius’ installs in his fortress on the hill, he is equal to every one of us, (e no beta pass him neighbor!)
Another strand of the power knot is the reported cases of communal or individual greed. Communities have been known to extort money incessantly from IPPs situating in their localities. Our sense of communal and national responsibility has been so eroded that every ma n or community is interested in what is in it for them. Maybe if such communities were shown the unending possibilities such projects bring in tourism, jobs, and infrastructural development, this particular issue could be managed. I understand there is a power plant in Ghana where tourists pay as much as $20 each to see. Nigerians are among the visitors too.
After pondering on the possible causes and theories responsible for where we are, where do we go from here? That is the trillion dollar question. How do we bring this situation under control once and for all? Paraphrasing Mitchell, the U.S Middle East envoy, ‘every conflict (or crises) created by humans can be resolved by humans”. No human created problem is impossible to solve. Nigeria’s power crisis is manmade and so can be man solved. The singular most important ingredient in resolving this situation is the political and executive will to do so. If President Yar’adua really wants to give Nigerians power, he needs to declare the promised state of emergency in the power sector with immediate effect.
The declaration of an emergency will enable him to bypass constitutional structures that hinder proactive decisions to move us forward. We have sought a national response to the situation for decades now to no avail. It is time to seek state, regional or individual household solutions. We must be committed to try anything that works, even if it has never been done before as this is the time to think outside the box. I saw a model for solar power that seems practicable and affordable for households at the recent Oxford University African Business Conference in UK early last month. But will the existing power legislation be flexible enough to enable Nigerians seek such an alternative?
Aso Rock needs to acknowledge that it does not have all the answers and seek the simple wisdom of the average Nigerian; who knows if the rural wisdom of a farmer might resolve the community issues, or a poor young inventor might come up with a unique model that would work within our peculiar circumstance. The Yar’adua administration needs to engage the Nigerian society in resolving this crisis as we all need a sense of national urgency to save our society from collapse or else, we would have proven Lord Lugard, the inadvertent founder of our nation, right in his scathing but sadly accurate evaluation of the African species (obviously using Nigerians as a sample of the black African race) with which I close this piece.
"In character and temperament" wrote Lord Lugard, "the typical African (read Nigerian) … is a happy, thriftless, excitable person, lacking in self control, discipline, and foresight. Naturally courageous, and naturally courteous and polite, full of personal vanity, with little sense of veracity, fond of music… His thoughts are concentrated on the events and feelings of the moment, and he suffers little from the apprehension for the future or grief for the past.
His mind is far nearer to the animal world than that of the European or Asiatic, and exhibits something of the animal’s placidity and want of desire to rise beyond the state he has reached… He lacks the power of organisation, and is conspicuously deficient in the management and control alike of men or business.
He loves the display of power, but fails to realize its responsibility.... Perhaps the two traits which have impressed me as those most characteristic of the African native are his lack of apprehension and his in ability to visualize the future" P g 70 of The Dual Mandate by F.D.Lugard 1926.
Our presidents have set up committees and special task forces to tackle this monster for decades now. After a seemingly unending parade of special advisers, ministers and consultants by one administration after the other, it is pathetic that in June 2009, we are still firmly in the grip of inadequate power supply.
Every Nigerian, irrespective of social or economic status has found some creative way to stave off the damning effect of this unwieldy situation. Many like me, have multiple generators; others graduated to inverters, “I beta pass my neighbor” is so common, it has ceased to be true to its name; every neighbor also has one now. The sounds of generating sets have become part of our environmental identity. The fumes from ageing or overworked engines gradually eke years off our life span. According to some statistics, the installed capacity of generators in Nigeria is about 18,000 megawatts: public power is currently just a little over 2000 megawatts!
Businesses close down regularly from the weight of diesel costs; manufacturing is fast disappearing from the Nigerian landscape. Icons of our national commerce history are relocating to more stable and predictable business environments like Ghana; the brave ones still operating here pass the costs straight to the consumer. The Nigerian consumers are the multiple losers in this scenario. On every front, the power palaver is costing us enormously, directly and indirectly, on the home front, business front and in basic lifestyle. Unfortunately, there does not seem to be an end in sight.
The few Nigerians who understand the issues tell you it is complicated. I have spoken to national advisers, consultants, employers and employees in the power sector for years now. By the time they weave the intricate web of prevailing issues, you become just as confused as they all appear to be. The list of what is responsible range from environmental, economic, infrastructural, political and communal issues to simple matters like consumer ignorance, carelessness and of course, Nigeria’s greatest enemy, the demon of corruption and individual greed.
In a national crisis like this, a focused and visionary administration will display the political will to break this stronghold on our national psyche. I recall the president, as a candidate then, promising to declare a state of national emergency on the power issue. Almost two years into his presidency, we are still awaiting that declaration. A responsive and responsible government will prioritize the well being of its citizens above all other interests but it appears like the “interests” are more in power than the president.
Ethnic, political, religious and personal interests are reigning roughshod over the Nigerian state and they seem to dictate the decisions that affect the rest of us. There are conspiracy theories making the rounds that the cartel that import generators and diesel are part of the saboteurs of national efforts to rectify the situation. The dilemma here is that key members of this purported cartel are core financial members of the ruling party PDP so how can we expect the president to rein them in when he who pays the piper dictates the tune?
Then there is the Northern oligarchy’s interest in the issue. According to this theory, the Northern power sharks are resisting the functional unbundling of PHCN such that distribution infrastructure can be ceded to relevant states which would enable such states to generate and distribute their own power. If we recall the Lagos Enron Project hullabaloo, the Federal Government had insisted on invoking an obviously obsolete clause in the Constitution that cedes power distribution exclusively to them. Lagos State was then expected to generate its power but add it to the national grid thus power generated by Lagos State could be distributed in Jigawa or Ebonyi State.
Well, political observers maintain that the privatization of national structures seem to have left the Northern oligarchy on the sidelines of power so in order not to lose out completely, they are resisting the PHCN move to enable them remain relevant in the national structure. In simple English, Nigeria is being held to ransom by a select few who are afraid to lose their political relevance. If this conspiracy theory is accurate, then the purported cabal would rather sacrifice the lives and livelihoods of Nigerians on the altar of political relevance. Unfortunately, the president may be unable to rein this interest in either since he would naturally belong to the purported Northern oligarchy, if any does exist that is.
The infrastructural challenges are worth mentioning too. As we speak, there are loads of power turbines languishing at Nigerian ports mainly because it is practically impossible to transport them to their intended locations. Why? Our roads are grossly inadequate. One of the IPPs based in the east had narrated the story of its turbines at a round table conference on power I attended late last year.
According to him, there was a bridge along the course of the transfer that has capacity to withstand just ten tons or so but the turbines weighed more than twice that much. When the relevant authorities were approached to construct a heavier bridge, they were told it was not on budget, the IPP then offered to construct same at its expense but was flatly refused the permission. Of course that delayed the project lead time for months before they decided to put up temporary reinforcement s for the turbine to cross the bridge.
This situation is a classic example of the ripple effect of bad management and lack of visionary planning. Our current power situation is obviously a consequence of past military years of gross negligence, greed, ignorance and selfish aggrandizement. If those juntas had an inch of patriotic bone in their bodies, they would have improved on our infrastructure when Nigeria was rich enough to pay for it. Rather they focused on updating their personal financial empires. At least one of them is still alive to feel the impact of his error in judgment. No matter how many generators the ‘evil genius’ installs in his fortress on the hill, he is equal to every one of us, (e no beta pass him neighbor!)
Another strand of the power knot is the reported cases of communal or individual greed. Communities have been known to extort money incessantly from IPPs situating in their localities. Our sense of communal and national responsibility has been so eroded that every ma n or community is interested in what is in it for them. Maybe if such communities were shown the unending possibilities such projects bring in tourism, jobs, and infrastructural development, this particular issue could be managed. I understand there is a power plant in Ghana where tourists pay as much as $20 each to see. Nigerians are among the visitors too.
After pondering on the possible causes and theories responsible for where we are, where do we go from here? That is the trillion dollar question. How do we bring this situation under control once and for all? Paraphrasing Mitchell, the U.S Middle East envoy, ‘every conflict (or crises) created by humans can be resolved by humans”. No human created problem is impossible to solve. Nigeria’s power crisis is manmade and so can be man solved. The singular most important ingredient in resolving this situation is the political and executive will to do so. If President Yar’adua really wants to give Nigerians power, he needs to declare the promised state of emergency in the power sector with immediate effect.
The declaration of an emergency will enable him to bypass constitutional structures that hinder proactive decisions to move us forward. We have sought a national response to the situation for decades now to no avail. It is time to seek state, regional or individual household solutions. We must be committed to try anything that works, even if it has never been done before as this is the time to think outside the box. I saw a model for solar power that seems practicable and affordable for households at the recent Oxford University African Business Conference in UK early last month. But will the existing power legislation be flexible enough to enable Nigerians seek such an alternative?
Aso Rock needs to acknowledge that it does not have all the answers and seek the simple wisdom of the average Nigerian; who knows if the rural wisdom of a farmer might resolve the community issues, or a poor young inventor might come up with a unique model that would work within our peculiar circumstance. The Yar’adua administration needs to engage the Nigerian society in resolving this crisis as we all need a sense of national urgency to save our society from collapse or else, we would have proven Lord Lugard, the inadvertent founder of our nation, right in his scathing but sadly accurate evaluation of the African species (obviously using Nigerians as a sample of the black African race) with which I close this piece.
"In character and temperament" wrote Lord Lugard, "the typical African (read Nigerian) … is a happy, thriftless, excitable person, lacking in self control, discipline, and foresight. Naturally courageous, and naturally courteous and polite, full of personal vanity, with little sense of veracity, fond of music… His thoughts are concentrated on the events and feelings of the moment, and he suffers little from the apprehension for the future or grief for the past.
His mind is far nearer to the animal world than that of the European or Asiatic, and exhibits something of the animal’s placidity and want of desire to rise beyond the state he has reached… He lacks the power of organisation, and is conspicuously deficient in the management and control alike of men or business.
He loves the display of power, but fails to realize its responsibility.... Perhaps the two traits which have impressed me as those most characteristic of the African native are his lack of apprehension and his in ability to visualize the future" P g 70 of The Dual Mandate by F.D.Lugard 1926.
Nigeria’s UK High Commission Consular Embarrassment!
Few experiences affect me as powerfully as my visit to the Nigerian High Commission UK Consular Section on Northumberland in London earlier this week. I had just concluded a business meeting with a friend and while waiting to go to our next appointment, he needed to renew his family’s Nigerian passports and as we were close to the High Commission, I went him. We were ushered into the basement office of the Consular Section with minimal or no security checks and were faced with one of the most chaotic process I have encountered in a long time.
To begin with, the layout of the office was like some regular tax office where little or no effort was made to assist you with understanding the process. The room was too small and appeared very claustrophobic by the sheer number of people packed in that small space. There was absolutely no order, floor plan nor information desk (the floor space was too small anyway so they had to lump all the services together).
After asking other applicants, we discovered that the only means of payment allowed was by Postal Orders though the High Commission’s website listed an option to pay by card. Postal Orders! I last heard of them in 1977 when we paid for Common Entrance Examinations into Secondary Schools. So off we go to the nearest Post Office which was at least 10 minutes walk. At the Post Office, it took the Royal Mail staff to clearly explain the procedures for the High Commission payment. My friend paid 12 pounds in commission for the postal orders…
While the postal order system might have been in an attempt to manage fraud, why can’t the High Commission collaborate with Nigerian banks in the UK to receive the payments on its behalf so applicants can have the options of paying online to the bank and print out receipts which they would attach to their applications? I am sure the banks would gladly set up a window on the premises to collect cash if necessary thus saving the applicants the incessant trips to the post office and an additional 10% commission; (free income for Her Majesty’s Royal Mail that Nigerians are made to pay by their own government!)
Back to the Consular Section, the chaos was in full swing. I could not understand the logic that informed the fact that visas were issued from the same hall where citizens apply for passports! Does that mean that the Nigeria’s Foreign Affairs Ministry considered citizens as equal to visitors seeking to visit our nation? Is the High Commission so underfunded it could not separate those obviously distinct functions? What benefit do I have as a citizen when I don’t get any preference at my country’s foreign office?
This fact had many grave implications for me. First, it was a testimonial to the fact that Nigeria’s immigration structures are massively compromised globally (I understand the Embassy in the US is not any better though I am yet to experience it myself). There was no way that the Consular Officers could have carried out any meaningful vetting of those visa applications that were approved while I was there due to the sheer chaos in that environment. If Nigeria were susceptible to terrorism, a potential terrorist would easily slip through the process I witnessed (as long as he had black skin, a Nigerian sounding name and “looked” Nigerian)
The second implication was the issue of managed perception. The situation in the Consular Section is a case study in why the Minister of Information’s Rebrand Nigeria campaign is a bona fide still born. No amount of sloganeering, political sound bites or national photo-ops can replace the perception of Nigeria on display for the potential tourist at the Nigerian High Commission Consular Office in London. I am a thoroughbred and fully local Nigerian and I was grossly embarrassed by the rowdiness, confusion and disorder I saw on Tuesday. Nigerian Consular offices worldwide are first level customer touch points in a proper rebranding process and an inability to manage such a crucial component of the brand is an indication of failure.
Still on perception, the staff at the High Commission seems to need a crash course in National Image Management 101. In spite of free parking spaces made available to the High Commission, it is regular practice to find diplomatic cars parked on double yellow lines in front of the embassy. Apart from the fact that such lawless habits cost me as a tax payer as the tickets would be issued to the embassy, it is also very inimical to the image of Nigeria. What examples are the diplomats setting for other Nigerians in Diaspora? That it is okay to break laws in a host country as long as you can get away with it?
This practice seems to be common to most of our foreign outstations as I had watched the Mayor of New York on television a few years ago listing violating embassies with millions of dollars in parking tickets and Nigeria was number three on the list. The Foreign Affairs Ministry needs to start deducting such fees direct from the salaries of these diplomats to show that Nigeria will not encourage such lawlessness; except if it is part of our national foreign policy.
The third implication for me is the value of the Nigerian citizen to his or her government. An administration that subjects its own citizens to the stressful, uncoordinated and tedious processes like this one loses the moral right to expect any loyalty or commitment from such citizens. If President Yar’adua does not think Nigerians at home or abroad deserve a functional, convenient and dignified service when dealing with the structures of civil service, then he should not expect us to embrace his administration’s agenda; no matter how many points they are. The only pointer the Nigerian citizen seeks is the one that shows that his government considers him important enough to work tirelessly at simplifying his life through its policies.
May I suggest that His Excellency send out Mystery Shoppers to assess the nation’s consular service delivery as I am sure he must be unaware of this embarrassment in his Foreign Affairs Ministry? The problem with the Nigerian Civil Service in my opinion is that governance is not treated as a business venture thus little or no accountability, performance evaluation and systems audit are built into the system. How any responsible chief executive can run a system like the consular section at Nigeria’s UK High Commission and goes to sleep everyday under the erroneous assumption that he has put in a good day’s work still beats me.
Then, the oversight functions of a Foreign Affairs Ministry must be questioned. Does the Foreign Affairs Ministry have a template to evaluate the processes in place in all its outposts or are the functions of the Ministry limited to determining who gets to honor invitations to global events like the Obama inauguration saga early in the year? Who actually determines the consular process we employ in our embassies? Is there a template? How much of the consumer’s convenience is written into the process?
Speaking to Nigerians in London, I found out that the situation I encountered was a monumental improvement effected when Dr Christopher Kolade was appointed as High Commissioner in the Obasanjo Administration. My friend actually got the passports renewed same day which was quite commendable while I was informed that an average visa takes about three days now compared to the months applicants used to wait to secure visas in the past. However, one cannot help but expect that as a nation operating in a global village, we must constantly benchmark our processes with what is achievable not what was in the past.
The frustration of the consumers of the High Commission was written all over them. For many, the pilgrimage to the High Commission is a dreaded ritual every year to get visas to visit family in Nigeria; for others it was the loss of a whole day’s productivity as you waited endlessly to be attended to after you survive the maze of figuring out the process. Irritable and restless children were crying incessantly while some were still in school uniforms, obviously unable to get to school. One of the consumers kept asking me if I was a journalist because they so desperately want their story told. Though I never admitted to being a columnist, I hope he gets to read this.
I am personally concerned about this situation because I recall when I wrote under the Handwriting on the Wall column a few years ago, we had done a series complaining on the customer service structure at the foreign embassies in Nigeria which resulted in some crucial changes in the US embassy policy on families with children. If the Nigerian government treated its own citizens like I witnessed, then what moral right do we have to protest the way we are treated by other countries? If the Nigerian means little to his government, why should other nations respect us? After all, didn’t they say “Charity begins at home”?
I believe this administration need to commit to ensuring productive, accountable and customer oriented service delivery in civil service. One of the ways to achieve this is to introduce system audits and productivity evaluation into the civil service structure whereby promotion will be dependent on performance. While I recognize that political appointments will remain, it is high time the President as Chief Executive make effectiveness, efficiency and accountability non -negotiable when making political appointments like High Commissioners or Ambassadors.
In conclusion, Nigerians really don’t care who gets appointed to what position and how but we must start to insist that whoever it is, they must be willing and able to make the process work for the Nigerian consumer. If they find that too difficult, then they should resign and let other s get the job done.
To begin with, the layout of the office was like some regular tax office where little or no effort was made to assist you with understanding the process. The room was too small and appeared very claustrophobic by the sheer number of people packed in that small space. There was absolutely no order, floor plan nor information desk (the floor space was too small anyway so they had to lump all the services together).
After asking other applicants, we discovered that the only means of payment allowed was by Postal Orders though the High Commission’s website listed an option to pay by card. Postal Orders! I last heard of them in 1977 when we paid for Common Entrance Examinations into Secondary Schools. So off we go to the nearest Post Office which was at least 10 minutes walk. At the Post Office, it took the Royal Mail staff to clearly explain the procedures for the High Commission payment. My friend paid 12 pounds in commission for the postal orders…
While the postal order system might have been in an attempt to manage fraud, why can’t the High Commission collaborate with Nigerian banks in the UK to receive the payments on its behalf so applicants can have the options of paying online to the bank and print out receipts which they would attach to their applications? I am sure the banks would gladly set up a window on the premises to collect cash if necessary thus saving the applicants the incessant trips to the post office and an additional 10% commission; (free income for Her Majesty’s Royal Mail that Nigerians are made to pay by their own government!)
Back to the Consular Section, the chaos was in full swing. I could not understand the logic that informed the fact that visas were issued from the same hall where citizens apply for passports! Does that mean that the Nigeria’s Foreign Affairs Ministry considered citizens as equal to visitors seeking to visit our nation? Is the High Commission so underfunded it could not separate those obviously distinct functions? What benefit do I have as a citizen when I don’t get any preference at my country’s foreign office?
This fact had many grave implications for me. First, it was a testimonial to the fact that Nigeria’s immigration structures are massively compromised globally (I understand the Embassy in the US is not any better though I am yet to experience it myself). There was no way that the Consular Officers could have carried out any meaningful vetting of those visa applications that were approved while I was there due to the sheer chaos in that environment. If Nigeria were susceptible to terrorism, a potential terrorist would easily slip through the process I witnessed (as long as he had black skin, a Nigerian sounding name and “looked” Nigerian)
The second implication was the issue of managed perception. The situation in the Consular Section is a case study in why the Minister of Information’s Rebrand Nigeria campaign is a bona fide still born. No amount of sloganeering, political sound bites or national photo-ops can replace the perception of Nigeria on display for the potential tourist at the Nigerian High Commission Consular Office in London. I am a thoroughbred and fully local Nigerian and I was grossly embarrassed by the rowdiness, confusion and disorder I saw on Tuesday. Nigerian Consular offices worldwide are first level customer touch points in a proper rebranding process and an inability to manage such a crucial component of the brand is an indication of failure.
Still on perception, the staff at the High Commission seems to need a crash course in National Image Management 101. In spite of free parking spaces made available to the High Commission, it is regular practice to find diplomatic cars parked on double yellow lines in front of the embassy. Apart from the fact that such lawless habits cost me as a tax payer as the tickets would be issued to the embassy, it is also very inimical to the image of Nigeria. What examples are the diplomats setting for other Nigerians in Diaspora? That it is okay to break laws in a host country as long as you can get away with it?
This practice seems to be common to most of our foreign outstations as I had watched the Mayor of New York on television a few years ago listing violating embassies with millions of dollars in parking tickets and Nigeria was number three on the list. The Foreign Affairs Ministry needs to start deducting such fees direct from the salaries of these diplomats to show that Nigeria will not encourage such lawlessness; except if it is part of our national foreign policy.
The third implication for me is the value of the Nigerian citizen to his or her government. An administration that subjects its own citizens to the stressful, uncoordinated and tedious processes like this one loses the moral right to expect any loyalty or commitment from such citizens. If President Yar’adua does not think Nigerians at home or abroad deserve a functional, convenient and dignified service when dealing with the structures of civil service, then he should not expect us to embrace his administration’s agenda; no matter how many points they are. The only pointer the Nigerian citizen seeks is the one that shows that his government considers him important enough to work tirelessly at simplifying his life through its policies.
May I suggest that His Excellency send out Mystery Shoppers to assess the nation’s consular service delivery as I am sure he must be unaware of this embarrassment in his Foreign Affairs Ministry? The problem with the Nigerian Civil Service in my opinion is that governance is not treated as a business venture thus little or no accountability, performance evaluation and systems audit are built into the system. How any responsible chief executive can run a system like the consular section at Nigeria’s UK High Commission and goes to sleep everyday under the erroneous assumption that he has put in a good day’s work still beats me.
Then, the oversight functions of a Foreign Affairs Ministry must be questioned. Does the Foreign Affairs Ministry have a template to evaluate the processes in place in all its outposts or are the functions of the Ministry limited to determining who gets to honor invitations to global events like the Obama inauguration saga early in the year? Who actually determines the consular process we employ in our embassies? Is there a template? How much of the consumer’s convenience is written into the process?
Speaking to Nigerians in London, I found out that the situation I encountered was a monumental improvement effected when Dr Christopher Kolade was appointed as High Commissioner in the Obasanjo Administration. My friend actually got the passports renewed same day which was quite commendable while I was informed that an average visa takes about three days now compared to the months applicants used to wait to secure visas in the past. However, one cannot help but expect that as a nation operating in a global village, we must constantly benchmark our processes with what is achievable not what was in the past.
The frustration of the consumers of the High Commission was written all over them. For many, the pilgrimage to the High Commission is a dreaded ritual every year to get visas to visit family in Nigeria; for others it was the loss of a whole day’s productivity as you waited endlessly to be attended to after you survive the maze of figuring out the process. Irritable and restless children were crying incessantly while some were still in school uniforms, obviously unable to get to school. One of the consumers kept asking me if I was a journalist because they so desperately want their story told. Though I never admitted to being a columnist, I hope he gets to read this.
I am personally concerned about this situation because I recall when I wrote under the Handwriting on the Wall column a few years ago, we had done a series complaining on the customer service structure at the foreign embassies in Nigeria which resulted in some crucial changes in the US embassy policy on families with children. If the Nigerian government treated its own citizens like I witnessed, then what moral right do we have to protest the way we are treated by other countries? If the Nigerian means little to his government, why should other nations respect us? After all, didn’t they say “Charity begins at home”?
I believe this administration need to commit to ensuring productive, accountable and customer oriented service delivery in civil service. One of the ways to achieve this is to introduce system audits and productivity evaluation into the civil service structure whereby promotion will be dependent on performance. While I recognize that political appointments will remain, it is high time the President as Chief Executive make effectiveness, efficiency and accountability non -negotiable when making political appointments like High Commissioners or Ambassadors.
In conclusion, Nigerians really don’t care who gets appointed to what position and how but we must start to insist that whoever it is, they must be willing and able to make the process work for the Nigerian consumer. If they find that too difficult, then they should resign and let other s get the job done.
Developing a National Consumer Protection Policy
Consumer Protection is a practice as dated as trading although not codified until John Kennedy’s Bill of Consumer Rights Declaration in the 1962. Global recognition for the need to regulate interaction between product and service providers and their consumers to ensure a safe, fair, just and equitable environment where the vulnerable is protected from exploitation, has since exploded in the past 4 decades and has become a sophisticated and technical discipline; advanced enough to have gained recognition in universities in the west and a distinct curriculum and certification structure.
In simple terms however Consumer Protection is the process by which governments seek to protect its citizens in a capitalist economy against probable exploitation. It is a tool also employed to ensure equitable economies of scale between a trader’s guaranteed premise to maximize profit and the consumer’s rights to consume without fear of exploitation, knowing that the two could overlap to the detriment of the consumer. Such is the perceived potency of consumer protection that it is a recognized indication of the level of development available in a country. An effective consumer protection structure suggests progressive development in that society.
As a socio-economic science, Consumer Protection serves multiple purposes: It is essential to the growth of commerce and industry in a nation as it seeks to standardize quality of products and services which in turn guarantees value for money spent, thus encouraging more spending in a confident trade environment. It is a measure of the value of life within a society since when properly utilized; it can increase life expectancy by eliminating and or reducing hazardous commercial practices that endanger life and property.
A well formulated consumer policy structure could contribute immensely to poverty alleviation by curbing losses and wastes due to exploitation thus improving the purchasing power of the consumer. When effectively implemented, consumer protection ensures a healthy, protected and motivated workforce by minimizing their exposure to social, commercial and environmental hazards which can debilitate an economy.
It is an engaging tool for communication, information and education; It is also effective in guaranteeing returns on investment thus encouraging entrepreneurship, business development and innovation because it helps sanitize the marketplace of rogue traders and substandard products thus creating a business friendly trade environment where genuine businesses can thrive. I could go on.
It is therefore very shocking that Nigeria, with its vantage position as the largest market in Africa is yet to define a National Consumer Policy almost 50 years since independence! Rather, we have snippets of laws and regulations in diverse sectors tucked in as afterthoughts and since most regulations protecting the consumers were not the main purpose of those acts, their implementation has also been relegated to the background.
Though the Consumer Protection Act of 1992 gave birth to the Consumer Protection Council, the council on its own cannot meet the enormous challenges in the marketplace. Consumer Protection requires a multi-pronged approach to deliver on its universal objective, which is; ‘to protect the consumer from the exploitation inherent in a capitalist system”. While the CPC strives to make a difference, it is restrained by the inadequate framework in which it operates.
A holistic National Consumer Policy should have 3 main functions; consumer education, consumer protection and consumer or customer care. It would also balance consumer rights to protection with the need to encourage businesses to thrive within the economy. These functions will determine the management structure required to deliver on its defined objectives; for instance the consumer education objective will require the development of a consumer curriculum as civic education in primary and secondary schools but it might also need for a module on consumer law in Nigerian Law Schools as effective implementation would eventually involve the courts.
Then there is the need for public education on consumer rights and responsibilities via the mass media. Implementing the education function would also mandate manufacturers and service providers to disclose accurate information to consumers to encourage informed choices, and so on. A consumer education policy must thus be implemented across various sectors for it to be effective; so also would protection, care and business support and regulations.
Nigeria, as a signatory to the UN Guidelines on Consumer Protection (1999) is mandated to develop, fund and implement a national policy on consumer issues and protection. It however demands an unflinching commitment from the Presidency to be effective or else, we will continue to pay lip service to good governance and consumer protection. The President needs to understand the pivotal role of a National Consumer Policy to the achievement of his 7- Point Agenda (though I seem to agree with the CBN governor that we should scale down to 2) and accord it the priority it deserves.
The National Assembly also must appreciate the need to provide legislation adequate to meet the needs of the Nigerian consumer. The Consumer Protection Act (1992) is obsolete and irrelevant to the dynamism of a technology driven global economy. The Judiciary must re orient to provide structures that make redress easy and accessible to the consumer. Manufacturers and service providers must commit to effective consumer and customer structures that protect the consumer’s right to choose and also get value for money. Consumer Protection must be a national project.
Nigeria needs a National Competition and Anti-Trust Law to check high handed mergers, acquisitions, price fixing and monopolies in various sectors especially telecoms, IT and utilities. We require the establishment of a National Consumer and Competition Commission (NCCC) to coordinate the various structures that would ensure cohesive implementation of the National Consumer Policy which must be statutory funded from the Treasury to avoid the bureaucracies and politics of ministerial management.
The Standards Organisation of Nigeria, the Consumer Protection Council, and other necessary organs essential to protection should be domiciled in the NCCC. We need to establish a National Better Business Bureau as well as encourage the formation of national associations for various vocations and professions to achieve a Code of Conduct strategy that would ensure self regulation for the benefit of the consumer. We also must encourage consumers to engage the system by forming pressure groups and NGOs to help the process.
The Nigerian Police needs a Consumer Protection Directorate to retrain and enlighten its personnel on enforcement of consumer rights. We need to empower the consumer to be confident to insist on his or her rights in every transaction by providing access to information on what those rights are. A national Consumer Call Center would be a worthwhile investment to eliminate the bureaucracy of government and guarantee the consumer instant contact with the national structures to protect him or her. The options of implementation are limitless but we must define first the Policy.
This is probably the greatest opportunity for President Yar’adua to prove his commitment to the development, protection and welfare of the Nigerian citizen. A presidential commitment to a National Consumer Policy would impact every aspect of the economy and level of society. It will aid eradication of poverty, create new jobs, encourage more local and foreign investment and improve the quality and standard of life for the average Nigerian.
We need to open a national discourse on developing a National Consumer Policy with a Stakeholders Meeting. Such a meeting must however be presided over by President Yar’adua himself or else, it will become another exercise in futility like the moribund Re branding Nigeria Project. The Presidency alone has the required jurisdiction to implement such a national policy as it must affect every aspect of our national life. No minister, ministry, agency or bureau can make it happen. My fear though is, does the President realize the importance of a National Consumer Policy?
In simple terms however Consumer Protection is the process by which governments seek to protect its citizens in a capitalist economy against probable exploitation. It is a tool also employed to ensure equitable economies of scale between a trader’s guaranteed premise to maximize profit and the consumer’s rights to consume without fear of exploitation, knowing that the two could overlap to the detriment of the consumer. Such is the perceived potency of consumer protection that it is a recognized indication of the level of development available in a country. An effective consumer protection structure suggests progressive development in that society.
As a socio-economic science, Consumer Protection serves multiple purposes: It is essential to the growth of commerce and industry in a nation as it seeks to standardize quality of products and services which in turn guarantees value for money spent, thus encouraging more spending in a confident trade environment. It is a measure of the value of life within a society since when properly utilized; it can increase life expectancy by eliminating and or reducing hazardous commercial practices that endanger life and property.
A well formulated consumer policy structure could contribute immensely to poverty alleviation by curbing losses and wastes due to exploitation thus improving the purchasing power of the consumer. When effectively implemented, consumer protection ensures a healthy, protected and motivated workforce by minimizing their exposure to social, commercial and environmental hazards which can debilitate an economy.
It is an engaging tool for communication, information and education; It is also effective in guaranteeing returns on investment thus encouraging entrepreneurship, business development and innovation because it helps sanitize the marketplace of rogue traders and substandard products thus creating a business friendly trade environment where genuine businesses can thrive. I could go on.
It is therefore very shocking that Nigeria, with its vantage position as the largest market in Africa is yet to define a National Consumer Policy almost 50 years since independence! Rather, we have snippets of laws and regulations in diverse sectors tucked in as afterthoughts and since most regulations protecting the consumers were not the main purpose of those acts, their implementation has also been relegated to the background.
Though the Consumer Protection Act of 1992 gave birth to the Consumer Protection Council, the council on its own cannot meet the enormous challenges in the marketplace. Consumer Protection requires a multi-pronged approach to deliver on its universal objective, which is; ‘to protect the consumer from the exploitation inherent in a capitalist system”. While the CPC strives to make a difference, it is restrained by the inadequate framework in which it operates.
A holistic National Consumer Policy should have 3 main functions; consumer education, consumer protection and consumer or customer care. It would also balance consumer rights to protection with the need to encourage businesses to thrive within the economy. These functions will determine the management structure required to deliver on its defined objectives; for instance the consumer education objective will require the development of a consumer curriculum as civic education in primary and secondary schools but it might also need for a module on consumer law in Nigerian Law Schools as effective implementation would eventually involve the courts.
Then there is the need for public education on consumer rights and responsibilities via the mass media. Implementing the education function would also mandate manufacturers and service providers to disclose accurate information to consumers to encourage informed choices, and so on. A consumer education policy must thus be implemented across various sectors for it to be effective; so also would protection, care and business support and regulations.
Nigeria, as a signatory to the UN Guidelines on Consumer Protection (1999) is mandated to develop, fund and implement a national policy on consumer issues and protection. It however demands an unflinching commitment from the Presidency to be effective or else, we will continue to pay lip service to good governance and consumer protection. The President needs to understand the pivotal role of a National Consumer Policy to the achievement of his 7- Point Agenda (though I seem to agree with the CBN governor that we should scale down to 2) and accord it the priority it deserves.
The National Assembly also must appreciate the need to provide legislation adequate to meet the needs of the Nigerian consumer. The Consumer Protection Act (1992) is obsolete and irrelevant to the dynamism of a technology driven global economy. The Judiciary must re orient to provide structures that make redress easy and accessible to the consumer. Manufacturers and service providers must commit to effective consumer and customer structures that protect the consumer’s right to choose and also get value for money. Consumer Protection must be a national project.
Nigeria needs a National Competition and Anti-Trust Law to check high handed mergers, acquisitions, price fixing and monopolies in various sectors especially telecoms, IT and utilities. We require the establishment of a National Consumer and Competition Commission (NCCC) to coordinate the various structures that would ensure cohesive implementation of the National Consumer Policy which must be statutory funded from the Treasury to avoid the bureaucracies and politics of ministerial management.
The Standards Organisation of Nigeria, the Consumer Protection Council, and other necessary organs essential to protection should be domiciled in the NCCC. We need to establish a National Better Business Bureau as well as encourage the formation of national associations for various vocations and professions to achieve a Code of Conduct strategy that would ensure self regulation for the benefit of the consumer. We also must encourage consumers to engage the system by forming pressure groups and NGOs to help the process.
The Nigerian Police needs a Consumer Protection Directorate to retrain and enlighten its personnel on enforcement of consumer rights. We need to empower the consumer to be confident to insist on his or her rights in every transaction by providing access to information on what those rights are. A national Consumer Call Center would be a worthwhile investment to eliminate the bureaucracy of government and guarantee the consumer instant contact with the national structures to protect him or her. The options of implementation are limitless but we must define first the Policy.
This is probably the greatest opportunity for President Yar’adua to prove his commitment to the development, protection and welfare of the Nigerian citizen. A presidential commitment to a National Consumer Policy would impact every aspect of the economy and level of society. It will aid eradication of poverty, create new jobs, encourage more local and foreign investment and improve the quality and standard of life for the average Nigerian.
We need to open a national discourse on developing a National Consumer Policy with a Stakeholders Meeting. Such a meeting must however be presided over by President Yar’adua himself or else, it will become another exercise in futility like the moribund Re branding Nigeria Project. The Presidency alone has the required jurisdiction to implement such a national policy as it must affect every aspect of our national life. No minister, ministry, agency or bureau can make it happen. My fear though is, does the President realize the importance of a National Consumer Policy?
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