Friday, August 28, 2009

NCC and the Controversial surcharge for Phone Blacklisting

If you use a GSM phone in Nigeria, you soon have to pay 40 kobo every month to a company called NETVISA so they can list your phone on a data base in case it is stolen.

NCC licensed NETVISA to provide a blacklisting service to switch off your phone when you report it stolen. That way, the phone will be unusable on any network in Nigeria thus defeating the purpose of stealing it in the first place.

A similar service is already available with your service provider once you can prove the phone to be yours but they only switch off the SIM card. However, for some reason, NCC curiously insists on giving the same responsibility to a new company who will charge you 40kobo EVERY month directly deducted from your phone credit irrespective of whether you use the service or not!

That means we will all be forced to pay this NETVISA Company N4.80 every year for as long as we use a GSM line! Seems insignificant... until you add it up and multiply with at least 50 million subscribers and you get a whooping N240m!!

Nigerians will be paying NETVISA at least N240million EVERY year for doing something that MTN, GLO and Zain have the capacity to do without charging a dime!!

MTN and Zain have already connected with NETVISA as at press time. Glo Mobile and Etisalat are yet to comply with the NCC directive. What consumers need to know at this time is, whose interest is NCC serving in this matter; the Nigerian Consumer, the Nigerian Government or NETVISA? Who on earth is NETVISA?

What was the process by which they were chosen to provide this supposed "service"? Has NCC explored other ways in achieving this objective without additional charges? Nigeria pays one of the highest charges for telephony services already; why is NCC trying to add to that burden?

According to the current agreement, the GSM networks will pay the charges to NETVISA which will be deducted from their remittance to NCC for the first 2 years. Subsequently, the charges will be deducted from subscriber funds. The question is why will the government pay for this service at all?

Who is NCC trying to deceive by absorbing the cost for the first two years? Whichever way you look at it, the Nigerian consumer will pay either indirectly through government funds for two years or directly after.

Why is this service being made compulsory anyway? Is it insurance? If so, is NETVISA a registered insurance company? If it is just an added service like a ring tone or wall paper, why can’t the GSM networks provide it to the consumer on request?

Why must we all be passive subscribers to a service we may NEVER need? Is someone trying to scheme the hapless consumer of more of his hard earned Naira again with bogus services?

N4.80k annually seems negligible to one consumer but with the millions of GSM subscribers already on the 4 networks and more signing on every day, the gross due to NETVISA is alarming! For a service maybe less than 10% of us will ever need? It is definitely not acceptable.

NCC has some explaining to do to the Nigerian consumer. Why are we being forced to take a service that is not essential to our consumption of the telecoms service? This service must be optional if it is even to be allowed at all. And NCC should seek the existing Networks option first before seeking a third party or are there personal interests involved here?

The Consumer Protection Council needs to speak up for the Nigerian consumer on this issue. We cannot continue to allow these kinds of violation of consumer rights just because majority of consumers are not aware that they have rights which must be upheld by public and private service providers.

Consumers also must organize effectively to resist this move. Except NCC can explain to us in copious details that the intended service will be optional, (thus protecting the consumer's right to choose) and will not cost us or the Nigerian government any additional charge, we cannot consent to such draconian levies through the back door.

I found out this week that it is possible to file a class action suit in Federal High Courts now. Our NGO Consumer Advocacy Forum is willing to collaborate with other consumer organizations and individuals to challenge NCC's right to enforce this charge on us if necessary.

You can join us by sending an email or joining the group Consumers against Compulsory Phone Blacklisting Charges on our social network www.cafonnigeria.ning.com. You can also email, call or text the address above.

Better still; let’s mount the pressure on NCC by sending emails to ncc@ncc.gov.ng. Here is a sample message to send.

“Dear Engr Ndukwe, I am a Nigerian Telephone Subscriber and I do not agree with the compulsory 40k surcharge for phone blacklisting services. Please explore the option of the networks providing this service on request at no extra charge. Thank you. Your name and cell phone no.”

Send a message that we do not consent to this charges. It is time to get active to ensure that we protect our rights. Let's just say NO!

Monday, August 24, 2009

Sales Promotions: Exploiting Consumer Vulnerability?

In recent times, the Nigerian marketing landscape has been bombarded with an avalanche of sales promotions from almost every sector; financial, telecoms, automobiles… suddenly everyone seems to be in a desperate grab for the consumer’s already overstretched naira.

The prizes are sometimes so outrageous, it’s difficult to believe! Etisalat grand prize is one million dollars! MTN has at least 3 different promotions (above and below the line) running simultaneously; Glo has Text 4 Millions. Practically all the banks have been running unending promotions since the lull of the capital market in an effort to raise cash to shore up their depleting base. The promotions come in various packages, sizes, stages and targeted at parents, yuppies, traders…even children!

While the trend might be seen as an effective effort to keep the business mill turning in a global recession like this, the sudden bandwagon to entice the consumer to spend even more is very alarming. A guesstimate of the value of prizes on the sales promotion landscape to date must be in billions!

That does not include the additional billions spent on publicity, advertising, draw events, and all the attendant marketing support such extraordinary brand activity entails. In fairness to businesses, sales promotions are legal instruments to effect a desired change in market dynamics.

It has proven effective in achieving decisive shifts in market share, improving cash flow and exciting slow sales seasons. For the brand owners and service providers, sales promotions usually portend good news.

The benefits of sales promotions seem however stacked dangerously in favor of the service provider at the expense of the consumer. The troubling question though is, is the Nigerian Consumer aware? How protected is the consumer from the minefield of exploitation prevalent in the sales promotion option?

Are the laws regulating sales promotion in Nigeria comprehensive or even effective enough to reassure the consumer that his vulnerability is protected? Who is responsible to look out for the consumers in such highly tempting and intoxicating situations as sales promotions are proving to be?

First is the processes many of these promotions employ to determine participation. The most common is to encourage the consumer to make a purchasing decision to qualify for instance; text “win” to a short code like 222 or 5000 at N50, N100, and N200 or save N10,000 in your account within a certain period and you qualify to participate.

As simple as this is, it raises the question, what is the focus of the promotion? Is it a loyalty platform or a sales drive? Most brands claim it is a means of rewarding loyal consumers but how can you claim to be rewarding me for past business yet I have to spend something again to have a chance at the supposed ‘reward’?

The only promotion I have seen that has been faithful to the principle of rewarding loyal customers is the First Bank Big Splash Promo which I witnessed at one of the draws in Lagos. The process of selection was transparent and totally chance based because it was computerized and all the winners who emerged were called on the phone right there in the hall.

None of those winners was even aware of the promotion. They were just regular First Bank customers and were automatically included in the promo because their accounts had the minimum balance required. They were not made to fill a form or submit anything. They won because they were loyal to First Bank. That is a loyalty promotion.

Not so with the telecoms industry however. The exploitation of consumer vulnerability is massive here. By global consumer practice, consumers should not pay any extra to participate in a promotion where their options of winning are determined by chance. It is termed as illegal lottery.

A lottery is a promotion that consumers pay a token to participate in a chance draw. A sales promotion is when consumers make regular purchase decisions at regular prices and their decision within the period qualifies them to participate in a chance draw.

The only promotions that can charge more than regular purchase decisions are the ones that require some skill from the consumer e.g. answer 5 questions to qualify for the draw where the draw is also determined by some skill display e.g. a shortlist of 20 people who will answer more questions to emerge winners (like Who wants to be a Millionaire).

Once skill is involved, it is no longer a lottery. However, a critical appraisal of most promotions running shows that the consumer is rarely required to show any skill, yet he is charged a premium to participate in such promotions. That is illegal lottery.

Another issue in this sales promotions jamboree is the psychological exploitation of consumer vulnerability. The harsh economic realities in Nigeria make every opportunity to get a “breakthrough” more attractive to the struggling masses. It is thus easier to entice them with promises of millions of naira, big cars, and foreign trips. Etisalat even promises one million dollars!

The concern for consumer protection experts is that given the prevailing poverty within the society, can Nigerian consumers really make rational decisions on participating in such promotions? There is a risk that the attraction of such mouth watering prizes can be so great, it could influence consumers to make biased judgments that could affect their financial habits which could eventually impoverish them further.

Most promos are cunningly designed to encourage consumers to send multiple entries and at the kind of premiums they charge, a consumer could get hooked sending multiple participation that other necessary expenses of his daily life may suffer. I was informed that a winner of one these promos claimed to have spent up to N2.5m in entries to emerge winner!

Another participant claimed to have spent over N1m and still lost! All in a bid to win N10m in a purported ‘treasure hunt’. Those consumers could have put that money to more productive use if they saved same with the vigor they participated in these promotions.

In cases of psychological and economic vulnerability as we obviously have in Nigeria, government through agencies like the Consumer Protection Council has the responsibility of intervening when service providers run promotions that could inadvertently take advantage of consumers who could be vulnerable or unfairly influenced by the attractions of the prizes.

Once we get past the resolution of lotteries versus promotions, other ways this can be achieved is if a regulation is passed to limit a consumer’s total participation in any promotion to a reasonable number of entries that would not inadvertently impoverish him.

Many of these promotions declare winners who never get the promised prizes. There are no means of proper monitoring as some promotions have so many levels of winners, it is practically impossible for regulatory agencies to verify that the “winners” exist and got the prizes.

Many of the brands also do not cooperate with the agencies in their efforts to monitor these promotions so the only protection the consumer has is the integrity of such brands and how faithful it chooses to be to that integrity. That is not good enough for the Nigerian consumer.

There is a great need to educate and enlighten consumers on the chances of being exploited when participating in any of these promotions. The brands also should have a special customer care line dedicated to educating consumers on the processes of their promos and taking their complaints. Advertising and publicity is not enough.

For the consumer, it is still our responsibility to find out details about these promotions before deciding to participate. An informed consumer will make rational decisions about his limits of participation and how trustworthy the brand’s activities have been before the promo.

Don’t be enticed simply by the star prizes alone. Always remember that no one gives anything without any conditions. Find out those conditions and determine if you can live with them before participating.

If you have been declared ‘winner’ and have not received your prize, get in touch with CPC and make a complaint. Better still, email or text me with your concerns. I would be glad to help you resolve it.

Let’s start taking back our rights as consumers. It is the only way to make the government and service providers accountable.

Friday, August 14, 2009

Make Consumer Rights Work for you!

Hello Sola,
I’m one of those that enjoy your column but I never knew I would soon be one of those writing due to unfair service from the telecoms industry; precisely, Zain.
I started using Zain from Econet days and I must confess that I enjoy them tremendously apart from the general hic cups which I believe is applicable, if not more, to the other networks.

However, right now, I AM NOT A HAPPY CUSTOMER! I bought two N500.00 recharge cards from a stationary vendor in front of my office but couldn't credit my phone with the cards because the system claims that it has been used by a previous subscriber. What! I tried again and again at intervals thinking it will be a mistake but the same message keeps popping up. I was mad! I work hard for my money to lose it this way. I would rather give it to the messenger in my office that runs errand for me than to lose it this way.

One of my colleagues trying to calm me down, explaining that it is possible that Zain printed the same batch number twice! I complained to the vendor who was at a loss as to what could be the problem. I sent my colleague to Zain service centre at Silver Bird Galleria and he was told that they will need to send a message to the Head Office. He even went to another centre at Ikeja on Saturday but was told that they don’t attend to these kinds of issues on weekend.

I then decided to send a mail requested that a new PIN should be sent to me as I couldn't recharge my phone with the cards I bought but the response I got was that the cards in question were loaded by another subscriber on the 2nd of June (I tried to load mine around 2nd week in June).

I sent another mail, this time explaining that the cards I bought were sealed in a foil which I personally removed and the silver lining concealing the PIN was very intact. These I personally scratched hence it beats me how another subscriber must have used the same card when I was holding it! The mail was sent over two weeks now and I HAVE NOT GOTTEN A RESPONSE!

Not even to say that they will look into it. They should find out if the error is indeed from their printing of a batch of cards twice or someone is playing a fast one on them but whatever they do, I need them to send me another PIN because I am so frustrated right now and ready to take this thing further if the need arise. I have my evidence which is the cards themselves, the person that sold them was complained to immediately and their service centres were contacted.

NB: Sola, if you read this mail please advise me on what you think I should do.I am not a hungry riff-raff as I earn an average pay working in the bank and happen to be a branch manager. I just need a PIN that works for the money I have already spent! Nneoma




Dear Nneoma,
Thank you for contacting me through this email. I would love to help you look into what your rights are in this circumstance but off my head, I would suggest you hold the vendor who sold the cards because that is the only way to verify that the cards came directly from the Zain batch or it is a fake card.

I would also suggest that you write a formal letter to the customer services department explaining the situation; but your case would be better helped if you could trace the distribution chain from your vendor to the major wholesaler via the batch number. That way, you can establish Zain's culpability in the case.

Please note that you would need to be patient and ready to follow this through as it might be a long process. I would encourage you to get to the bottom of this because you would be saving other consumers who might fall victim of this fraud if any is established. I look forward to your response and would be glad to help in any way to rectify this situation. Best Regards, Sola



Hello Sola
I am super thrilled reading your response. I nearly didn't believe that you’ll be writing back so thank you very much.

Though I can't be sure, I believe that the vendor is least culpable because he is stationary! If it were to be a hawker, then I will believe that he had played a fast one on me and secondly, this card is not the paper type that they pin together but the hard one that comes in a foil and the PIN number covered with a silver lining.

I think it is an error from Zain. It will be mighty easy for a fraudster to duplicate the paper cards instead of these hard ones but anyway, THIS IS NAIJA! I will take your advice and officially write the customer care unit via the same channel I used before hoping that this time, they will at least investigate it. Keep up this good work. Nneoma


Hello Sola,
I wish to inform you that I just got two Zain cards handed over to me now worth exactly N1, 000.00, thanks to you!

You said to follow the distribution chain and that was what happened. I sent for the vendor and complained to him and then gave him the photocopies of the card (I needed to hold onto the main card as evidence). With these, he sent it to the company he bought his cards from who in return sent it to the ones they bought theirs from and so on and so on! Voila! I have my refund back.

The advice you gave me should have simply be given to me by Zain instead of just telling me that someone has used the card. Thanks a million! I am happy not so much for the money but because I have learnt that things can still happen if you know your rights and consistently follow it through. You taught me that! Nneoma



Hello Nneoma,
Congratulations! I am very proud of you for insisting on your rights and having the patience to see the process through. Many Nigerian consumers like you would just bear that loss without complaining and that is one of the reasons our consumer rights structure is still so weak. I would like to publish your experience especially because there is a great lesson to learn from it. I hope you will permit me.

Please continue to exercise your rights as a consumer in every transaction because it will contribute greatly to the development of our great nation. I am honored to have been of help in this instance. Please do not hesitate to let me know if I can assist you in any other issue that has to do with consumer protection. Sola


Dear Sola,
The pleasure is mine for having you as an advocate, for free! Please feel free to use this experience and material as you please especially for better education of others. Nneoma


My Comments
This chain of e-mails was exchanged between Nneoma and me in the last six weeks or so and I decided to publish because I hope it would encourage another consumer to be more committed to expecting excellent service and where it is missing, to insist on it and not settle for less.

I also hope someone would learn the simple truth Nneoma learnt through this process; “If you know your rights and insist on it, follow through on the process, you most likely will get it! So while we await the body of laws that would codify our consumer rights, let’s make the effort to insist on basic integrity in transactions and good customer care.

P.S I also hope Zain will learn a thing or two from Nneoma’s experience too. A customer response system that does not respond to a customer’s need weeks after the first complaint is not efficient enough. Customer agents should also be better trained on how to help a customer get the best out of his or her experience with the brand. And what was that about not treating some particular issues at weekends? What if that was all the free time a consumer has? Is Zain trying to tell us their ideal customers are people who have time to follow through their process during the week? I sure hope not.

I however commend Zain’s prompt response down the distribution chain. It shows that the brand has made provision to accept responsibility for defaults when it can be established. One however wonders how such a fraud could have been perpetrated. NCC needs to investigate such instances to protect other consumers from Nneoma’s experience. Well done Nneoma! Thanks for proving that consumer rights can be enforced even in Nigeria! I would be glad to assist any other consumer keen on enforcing his or her rights. Just e-mail or call me. Together we can make Nigeria consumer safe and friendly.

Tuesday, August 11, 2009

PHCN’s Bogus “Service Charge”

Nigerian consumers are blue in the face from complaints of epileptic or totally absent power supply from the Power Holding Company of Nigeria (PHCN). Out of frustration, we have all become mini or micro power generating units via our creative options of generators, inverters, solar, wind and good old candles and wick lamps; anything just not to have to endure the darkness one more night. As if the situation is not humiliating enough, PHCN is still stealing us all blind!


My Story

Like every consumer, I am forced to connect to the PHCN grid because it is the only one available. A few years ago, they introduced the pre-paid meter in pilot schemes across the country. Being a discerning consumer, I was skeptical of the new system as we still had tons of issues with the old one. The only thing that was regular on the old system was the bill, not withstanding that you may not have consumed up to 10 hours of electricity in the entire month.

I was eventually ‘forced’ to switch over to the pre-paid system October last year because PHCN was phasing out the old meters in my area. My first shock was that the company effecting the switch came in, connected a new meter and just took my old one away! When I demanded for it, I was informed the meter was PHCN property though we had paid for it when it was installed.

At my local PHCN office to purchase units on the pre-paid card, I discovered I had to pay PHCN N50, 000 for the new meter installed or spread the payment over 24 months. Since I was paying for the meter, could I have it issued in my name because, as a tenant, my landlord would probably not refund the money? Well, in PHCN logic, to get that privilege, I had to write an application to the Marketing Manager begging for the opportunity of getting the meter issued in my name.

Since the process could take weeks and they refused to open a temporary account meanwhile, I agreed to start paying under the old name and spread the payment over 24 months. In a normal environment, one would expect that the meter would be my property on full payment but no, it will always remain PHCN’s property! So why am I paying for something that I would never own? This is the first rip-off.

PHCN makes the consumer pay for an equipment it has no intention of releasing to him. When I requested for an explanation, I was just told ‘that is the procedure, madam’. In actual fact, PHCN (I keep typing NEPA) does not own the meters. They belong to some private companies who have signed the deal to provide the equipment so PHCN would not need to outlay the capital to buy them. So consumers like me are paying the companies back for the investment; the only questionable thing is that the company still owns the equipment even after I have paid for it or does it now revert to PHCN? That clarification begs an answer.

Either way, PHCN appears to be forcing consumers to put up the capital for it to acquire an essential part of its service delivery. But because we are’ investors’ under duress, we do not get any dividend for our ‘investment’.

Rather, we are charged a service fee of about N700 every month for using equipment we are paying or have paid for! It is double jeopardy.

Imagine that you wanted to access the internet and an ISP sells you an EV-DO card at N10,000 to enable you access their portal, and then charges you N700 every month for the use of the card which you must return back to them if you are relocating to Ghana because it was their property all along! What was the N10, 000 for if they owned the card anyway and could get it back when they please? It’s a fraud.

To add salt to the injury of such rip offs, I had a recent encounter with the draconic system PHCN runs in the name of service delivery. I purchased units last in March because, since then PHCN had not provided service to my area until early July. Since I had over 500 units left on the card, it didn’t make any sense to keep making additional purchases for services not delivered. The service got slightly better from the first week in July (from about 2 hours a week to 5 hrs a day now…great improvement!) so I sent a help to refill. Imagine my shock when he came back to say that we ‘owed’ PHCN N12, 500 and could not make any new purchases until we cleared the debt!

How do you ‘owe’ a service provider on a pre-paid scheme? If anything, it was PHCN who owed me for more than 3months by not providing the service I already paid for! On further investigation, the Marketing Manager Ogba Undertaking, Mr. Ajikobi explained that I was in arrears for the monthly installments on the meter. Since I didn’t make any purchases in 3 months, the installments had accumulated so I had to clear it. No remorse for the fact that it was PHCN’s incompetence that created the lull in purchasing activity. If they had been consistent on their service delivery, would I have been in arrears? That is the service delivery one million dollar question.

One would expect that since this is an ongoing relationship (not that I have any choice because PHCN is still a monopoly enforced by federal legislation) the PHCN Management would be smart enough to make these deductions elastic to cover 24 transactions instead of 24 calendar months; especially since they are aware that their system is anything but efficient and the default would most likely be from their end more often than the consumer. But why should they care? They are legalized to extort money from helpless consumers by our own supposed “democratically elected” government with no structures to call them to order!

The one that knocked me off was the fact that my arrears also included service charges for those 3 months! Service charges? Which service did I get from PHCN between March and July that I owed them for? We did not get power in my area for up to 48 hours in almost 90 days! Is that the service I was being charged for? With systems like this, is the Federal Government condoning the biggest extortion racket in Nigeria? How does a government run a service delivery structure like PHCN that demands payment for services it did not provide? If PHCN was a private sector business, consumers could at least seek redress by reporting to government, but who do we report PHCN to? The same Minister who oversees their structure?

Is PHCN another subtle channel to tax Nigerians to death because the only payment you must make without getting commensurate services is a tax? Is the ‘service charge’ actually an Energy Tax rigged through the back door? The Honorable Minister needs to clarify that for the Nigerian consumer because he oversees a structure that robs the consumer of choice and levies a flat monthly fee on all subscribers irrespective of whether the system delivers on its promise or not. That is taxation.

Will the Honorable Minister please advice his boss that the solution to Nigeria’s Power Trauma is for this administration to think outside the box (for once) and attempt total deregulation with the strategic separation of domestic from industrial power consumption? The model is simple, immediate and implementable and I would be glad to forward it to him if he sends his e-mail. At least, it will break domestic consumers’ dependence on epileptic and draconic PHCN by increasing our choices while the government can focus on industrial generation… and no, I am not a power or energy expert or consultant, just a mere frustrated consumer who bothered to think of a creative solution to deliver me from the oppression PHCN has become to my existence! I am sure there are millions like me all over Nigeria.

Meanwhile, I have since paid the disguised “Energy Tax” just so I can supplement my 3 generators with PHCN’s epileptic service but I am seriously considering court action to challenge the power dragon’s rights to charge me for services I did not receive? Is there a lawyer out there willing to represent me in this iconic suit? Maybe if we stretch them thin, they will adjust their unreasonable system and learn how to earn every kobo we pay them for once.

I close with this thread on my Facebook page about energy and service delivery
Breaking News: The UK Energy Regulator OFGEN is to fine EDF an energy service provider £2m for poor customer service! Someone please beg our regulator NERC to fine PHCN too o! Maybe like N100 billion for the trauma consumers endure in Nigeria. Or am I asking the impossible?

Oyefeso T
Yes, it is impossible because the CEO of NERC probably has a 100KVA generator in his house donated by a generator brand and a monthly supply of 500litres of diesel from the importers.

Segun A
Accountability in Nigeria? Phew... Alice in Wonderland!

Wunmi A
Things can only work out in the power sector if Federal govt could ban the use of generator set and its importation, maybe our great State (Lagos) can start that by formulating a policy that will stop or reduce use of generator. Though, it will be very difficult to do but, if Nigerians can sacrifice that we'll all laugh soon.

Kelvinmary P. N.
@Wunmi: Chopping off a head is not the cure for headaches... there are better ways.

Babatunde O J
The problem is much deeper than you can see. If we ramp up production as in megawatts, then failure point is distribution since both equipment and wiring are old and in some cases unable to carry the increased load coming from additional production without significant reinvestment... Of course you can always ask where the monies spent over the past 10 years went... This one pass regulator...


Obaro E
Yes, you are asking the impossible. I don't mean to sound pessimistic or 'unpatriotic', but when supposedly educated people in a country do not believe there is a problem when PHCN cannot guarantee 6 hours supply of electricity after almost 50 years of independence, we really are in a mess.

Sola Salako
Am I the only one who sees the solution to this problem? It’s right under our noses; Develop a unique policy for Nigeria that separates domestic consumption from industrial and encourage micro individual generation via green options like solar and wind while govt focuses on industrial generation. The model is simple, workable and sustainable. But it requires executive will, commitment and sincerity; all qualities that are obviously deficient in this administration. We are at the mercy of the Abuja Circus. God help us!

Ronke A (UK)
Many drops make an ocean. The energy providers in the UK had a history of dancing to their own tunes. Even when housing providers (as opposed to the individual consumer) liaise with them, they respond to enquiries when they feel like, paper trails go missing, site appointments are not kept… yes all this in the UK! It took some doing but an example has been made and service is bound to improve. Where there is a will . . . . .

Babatunde O J
@Sola: this solution has been very clear for some years now... It took a Nigerian to use this model to solve power problems in an East African country some years back... The issue is exactly what you have said... they think it’s a circus... Of course you guys know you will have to delete diesel and generator traders while you are on this path. But please also wipe out trailer and truck haulage of goods and revive the rail system for travel and cheaper haulage of goods while you are ahead...

Elvis E
Who says we need a national grid? Why can't we have regional, state & or even ward grids? This is one urgent thing that ought to be changed in the constitution; let states generate & distribute power as they see fit. Let states be able to sign PPP power agreements. The competition betwixt the states will ensure power supply is regularized according to demand. Breakup the national 'greed', oops! grid, Let there be LIGHT!

Dele V B
Micro generation [using solar, wind, biomass, tidal waves e.t.c] seems like an attractive option going forward. The government still needs to provide a functional, reliable and efficient national grid network. Also, supply, generation and local distribution companies have to be encouraged, regulated and incentivized. Having said this, natural gas is available in abundance and this should serve as our competitive advantage for industries - the resource is being flared/wasted in the Niger-delta by this government. To conclude, a coherent, comprehensive and articulated energy policy has to be owned by this government. But with or without government help, micro generation is bound to get more popular in Niaja (sic) even as initial costs fall worldwide!

Babatunde O J
@Dele: While some of these technologies are still in nascent stages, micro generation is truly very attractive. The issue is we will need to knock Abuja with a very big stick indeed to get them to pave the way... In the US, this option is becoming closer to reality as we speak since they want to reduce dependence on foreign oil and gas. Let's get some truth into this thread... any energy policy that unbundles power production will be strongly resisted by the central government! We need a new TYPE of government then we will get all we are asking for!!!

Omidan O
Power Holding Company of NIGERIA (PHCN) ... thinks they are doing a good JOB! Dem dey HOLD the power well well! Can you imagine a govt that wants to improve on ELECTRICITY would budget a whooping N2 billion for diesel! What else can we expect?


Ailen A
100 billion is an understatement. Something far more will do. Can someone just tell PHCN to stop bringing bills to my house? My household has finally resorted to solar power, inverter and ‘I better pass my neighbor’ generator. This people still dey bring bill. I think well over N900billion fine will just be fine.


Ethel O
To my mind, PHCN is acting in accordance with its name. If I am right, its responsibility is to "hold power" and not to supply it to the ordinary Nigerians who are in dire need of it on a daily basis. Tell me an economy anywhere in the world that does not revolve on a maximum supply of power. I wonder what all those "learned men and women" really learn when they travel overseas and see that things function differently. In fact, a N100 billion will be a mere pat on PHCN’s back for the harm that it causes to the common man, young and old alike.

Surviving Starcomms’ Service Delivery Maze

Dear Sola, as we discussed on Facebook, this is a full report of my transaction with Starcomms.

I have subscribed to the internet services and usually pay for the 100 hours option. My service ran out on Friday 26th June, 2009 and I made payment for a renewal on 30th June, 2009 at GT Bank with teller no (withheld). I immediately alerted Starcomms that I had made payment and was told that that the service would be restored within 24hrs. Alas 24hrs turned into 9 days despite the fact that I was always calling the customer service people. They always had the same story- "we are working on it"

Incidentally I work for NCC the telecom regulator and we have a bureau for consumer affairs but I didn’t want it to seem like I was flexing muscles (Nigerian style). However, when I was getting frustrated with the customer care people I decided to make a complaint on 7th July, 2009. After all I am first and foremost a subscriber notwithstanding where I work.

The service was not restored until today 9th July, 2009 and the excuse given was that there was a delay from GT Bank in notifying them of the payment I made. I find it rather difficult to believe that it would take GT Bank over a week to notify Starcomms that payment was made into their account.

I would really like that the issue of service provision by Starcomms be put in the public domain because people are definitely not getting value for the money paid and that should no longer be acceptable to consumers. Consumer X

My Own Story
I am a customer of Starcomms myself (since 2007 I think) and my numerous contacts with the brand’s service structure always leaves a bad taste in my mouth. I have restrained from writing about it because as a diehard optimist, I hoped they will eventually get it right. Unfortunately it is either no one is smart enough to figure it out in the organisation or someone gets a kick from making customers go through such a tedious process repeatedly and with gross impunity too!
One of the hallmarks of service delivery is convenience to the consumer. A good service delivery structure must simplify its process continuously to minimize stress for consumers trying to access its service but from the structure Starcomms runs (especially on the internet service), I doubt if anyone copied them on that memo. Trying to buy a new Starcomms internet service is harrowing enough but once you are eventually signed on, staying subscribed graduates to being a nightmare!
To acquire internet facility, a customer has to bring their passport, utility bill (? Why this is required beats me. Has anyone considered the fact that most Nigerians are tenants or squatters who do not have a utility registered directly to them? If this was to verify my legitimacy, the fact that I can bring just any utility bill as long as it is registered to the address I give, has defeated that purpose. It is definitely not proof that I am the legal tenant there and since no one bothers to investigate, all the paperwork is just additional junk for the telecoms service provider. (Yes, I know it’s an NCC directive but how accurate is the data such a flawed process will produce?
The Payment Maze
Back to the service delivery maze at Starcomms customer service centers. (I use the Ikeja office on Toyin Street). There are at least 5 queues you must navigate through before you can complete the payment process: (1) You get on one for the service agent to write you a teller (2) you move to another queue to pay the bank cashier at a different window (3) join the third one to log in your teller details in a master book (4) then you move to the next one to register your teller so your internet service can be switched on (within 24 hours they always claim though 72 hours is the average you can get it switched on). If for some reason, you missed any of these queues, your payment gets lost in the maze and so does your connection. The last time it happened to me, I went back up to 4 times before we could locate the payment. Valuable time no one is paying for.
The fifth queue is reserved for you if you are unlucky enough to need some clarifications or issues with the process! Every time I have had the misfortune of going to renew my subscription, it has never taken less than an hour! Just to pay subscription! What happened to giving consumers an online payment choice? After all, this is an internet service so why not make payment easy for them?
Chaotic and Unhygienic Environment
Ambience at the Ikeja Service center is claustrophobic and chaotic. The place is usually crawling with touts and middle men who run the errand of navigating the Starcomms maze at a fee for wiser customers than me who are either too busy or just can’t endure the mentally and physically tasking process .The stench of human sweat mixed with various degrees of body odour in a poorly ventilated room with inadequate air conditioning is enough to discourage you from attempting it yourself. It hits you from the minute the door is opened. One wonders how much of the massive profits Starcomms is raking home is needed to at least make the environment conducive for their customers. (Maybe they don’t know about industrial air freshening process. If you are a professional in this area, please send a proposal to Starcomms with a copy of this article attached. Tell them I sent you! ) Oh! Did I mention the noise level? It’s like a market place.
The “Mystery” Subscription
This part of the maze borders on lack of transparency and accountability in the contract between the subscriber and Starcomms. As mentioned above, you have options of buying by hours or time. Whichever you choose, there is a termination point for instance, the 100 hrs expires in 30 days, whichever comes first. So if you don’t use up the 100 hours, you lose the balance after 30 days; no roll over to the next month.
My grouse with the Starcomms service is that once I am switched on, only Starcomms determines when my subscription expires! I have no means of accessing my account to check my balance hours or days to the end of my subscription. I only get to know that my time is up when my connection is cut off; which could be in the middle of the night, working on a proposal that must be sent by e mail before the next morning! They sometimes send e-mail alerts which are not consistent. For some inexplicable reason, their payment system cannot ensure seamless continuity so even if you pay a few days to expiration, the system automatically switches you off and then you wait another 48 hours to get reconnected. I have attempted it often, it just does not happen.
What does it take for Starcomms to write access to my account into their program so I can be in control of my own time (which I have already paid for by the way) or automatic recognition of payment so service is seamless? I have had to request a transaction history once and the document they emailed me was another puzzle. Somehow, I always feel I am being shortchanged because I cannot follow my usage myself. Does the Starcomms management have a problem with being transparent in their transactions with customers?
No Guarantee to deliver Service
Then there is the issue of guarantees in these service transactions. The only party protected is the service provider as he demands payment for a promised service before delivering the service. It is unacceptable that the consumer has no safety net if the provider defaults which they almost always do. For one, my Starcomms connection is usually weak and cannot stream videos so I can’t access any video clips sent to me, yet it is 3G (I have EV-DO).
Secondly, I lost count of days when I am logged on but cannot even open a web page yet the timer is counting down. I have had to wait for the connection for hours without any success yet Starcomms records my log in and out notwithstanding the single bar connection they deliver. I am so frustrated, I am about to switch to any other service that can at least ensure when I am logged on, I can access the internet. (My friends swear by IPNX or something. I am about to try them out…hope they are not just another flash in the pan because they all seem to be fast until their subscription base expands…then they start crawling.)
Conclusion: The Telecom “419” Racket
If the definition of fraud is to collect payment and not deliver the product or service paid for, then the telecom industry is probably Nigeria’s biggest 419 racket! It is the only industry that seems to have legalized ‘fraud’ because service providers are never mandated to deliver on the service they are paid for. As it is in voice, so it is in data. Drop calls and low bandwidths are never accounted for nor does NCC ensure that consumers get make good for services not rendered. The easiest way is to mandate compulsory additional airtime on every purchase so I have extra minutes free to compensate for the ones which I may not use but was charged for.
The fact that service providers in Nigeria don’t seem to have a clue about delivering the very service they set up shop for has become standard. Almost everywhere you turn, the DNA of what we term ‘service’ violates the very definition of the word. As consumers, we have become so cynical, many of us just don’t bother to expect any better anymore; we just make the best of a bad situation and keep keeping on.
While I understand the sentiments, it is obvious that the only way we can ever change the situation is to keep insisting on the basics until someone takes it serious enough to change the status quo. I believe the Nigerian consumer deserves a safe, wholesome and transparent trade environment to thrive and we can no longer settle for less. Starcomms, it’s time to raise the stakes and truly “speak our language “by improving your service delivery. The magic word is SIMPLIFY!

FAAN and “Branding” at Nigerian Airports

If you have had any reason to use most Nigerian Airports in recent times, especially the very busy ones like MM2, MMIA, NAIA, Abuja (I haven’t used PHIA, or KIA in a few years) you would have noticed the ‘deafening’ attempts at generating income that has almost turned our airports into advertising marts. The drive to make money is so great that every available space is plastered with some advertising message from either the banks or the telecom rivals especially of the GSM variant!
While the concept of public-private sector partnership is welcome, the execution of the idea is fast becoming offensive in our airports and is a testimonial to the lack of creative initiative on both the FAAN team and the brand management teams of the brands on display. How can the Chief Executives of both FAAN and its ‘branding customers’ walk thru such clutter in the name of branding and feel any sense of achievement or cost effectiveness? (Maybe as ‘big men’, they don’t use the ’popular’ check-in, arrival and departure lounges that ‘common’ Nigerians like me have to use)
Every inch of the airports have become fair game to hang all kinds of messages, wall-to-wall outdoor posters, lintel strips of brands struggling to outdo themselves to be the first to welcome the already mentally tired passenger to Lagos, Abuja or Nigeria depending on which airport you are. The cacophony of colors and messages has become a mental assault on the passenger’s psyche. The situation is a clear case of mental and emotional harassment of the Nigerian consumer and it is getting out of hand!
Major culprits are Intercontinental Bank, Glo Mobile, UBA and MTN and the worst airports are MM2 and Murtala Mohammed International Airport both in Lagos, especially MM2! It’s like walking through Oshodi Market pre Fashola! Everything is s-c-r-e-a-m-i-n-g at you. In fact, the adverts are so big they have crowded the valuable signs that should direct the passenger to the appropriate points for service. The visual impact creates more confusion as you are constantly distracted and confused as to what to fix your eyes on while transacting business in these airports.
(By the way, whoever approved the MM2 as a finished project should be thrown in jail! The finishing of the structure leaves a lot to be desired. I can almost bet my bottom naira that the airport will be ready to fall apart by the time the ‘Consessionee’ hands it over to FAAN in 30yrs! Can you see it still standing like the International Airport after the usual Nigerian culture of zero maintenance? I don’t. I can list at least 5 flaws that are tell- tale signs to my aesthetically untrained eyes…just look closely at the ceilings or the floors when next you are there…)
Back to FAAN’s quick money ‘branding’ strategy; just this week, I noticed that FAAN has started branding the exterior of MMIA too since there is no more space to ‘sell’ on the interior (except maybe the floors and ceilings because even the chairs in the departure lounges are ‘branded’ with various corporate colors depending on which brand is financing it.) The tower at the international airport now ‘belongs’ to Glo! Can you imagine; even THE TOWER?!
Maybe the Minister for Aviation should hire the Lagos State Advertising and Signage Agency (LASAA) to ‘visit’ Nigerian Airports and ‘sanitize’ them like they have done Lagos streets, so consumers can use the airports without getting a headache or fudgy brains from trying to process the assault on our mental and emotional psyche. While the brands have a right to advertise their wares, FAAN should also remember that consumers do have a right to their privacy in some supposedly ‘public’ arenas especially when we pay taxes to use those public places too.
FAAN should please take time to understand the psychological impact of its trade and take that into consideration in its aggressive attempt at making extra money at all costs. After all, passengers already pay airport taxes for the use of the same airports or are we being taxed so we can be ‘deafened’ with the visual ‘noise’ and clutter of these brands and their adverts? The ones we are bombarded with on the streets free of charge is not enough, we now have to pay FAAN to deliver us as a ‘captive audience’ to the mental ‘terrorists’ who want to take over our psyche by force or tulasi by ‘branding us red, green, blue or yellow!
Travelling in the Nigerian airspace is nerve racking enough with the various uncertainties about the quality, standard and capabilities of equipment and human resource but FAAN seems bent on further escalating our unsettled nerves with all kinds of messages screaming at us as soon as we enter the airport environment! Haba! The confines of a departure lounge (or immigration areas on arrival at the international airport) should be kept as serene and nerve calming as possible as the passenger has either just survived a harrowing mental experience of flying or is about to commence on one.
From the execution of this concept, it is also clear that the FAAN team seems to have no understanding of the principles of Branding or is it that the FAAN brand has no essence of its own that it can afford to sell away every opportunity to project its own brand values to other brands? With this untidy style of commercializing its space, FAAN may be whittling away at its brand equity thus consumers will have no recognition, appreciation or expectation of the FAAN brand. Or is that the corporate strategy? (Maybe as long as FAAN is ‘faceless’, it can get away with shoddy service delivery?)
Really, how much is the FAAN brand worth to its custodians? The long term implications of this strategy on the FAAN brand may be worth much more than the short term benefits of quick money. By the way, what does FAAN do with all the airport taxes paid on every single ticket purchased to fly out of its airports? Not to mention the rent charges to the airlines. Why is it difficult to maintain the facilities without “consessioning” it out to brand advertisers on this scale? Even the toilets are either overflowing or lack water. On Saturday, I saw a lady about to use the female toilet and a young man sitting at the entrance handed her a roll of toilet paper to take a few plies to use! An embarrassment and invasion of a consumer’s privacy! Why can’t the roll be placed in the cubicles? Is that too expensive or does FAAN need someone to ‘brand’ the toilets too?
The Minister of Aviation needs to pay closer attention to the ‘soft’ services of FAAN while he is grappling with hard core aviation issues because it is all part of service delivery. If the people on the job don’t have the prerequisite appreciation of their job functions, he should please approve the services of consultants to help manage brand image and customer care processes. After all, his ‘been to’ experience must have contributed to the President’s decision to appoint him or maybe he has joined the bandwagon in Abuja who seem to feel Nigerian consumers don’t deserve world class service. Let’s hope I’m wrong about that. Honorable Minister Sir, please help minimize the adverts in Nigerian airports! Or is this part of Aunty Dora’s ‘Rebranding’ Drama script?


Section of MM2 Departure lounge

Throwing a Shoe at the “Rebranding Nigeria” Project

My friend and long time colleague, Maero Ozako had created a group on Facebook (we belong to the ‘Agbayas on Facebook Clan”) titled “Throw a shoe at the Rebranding Nigeria Project” (a la the Iraqi Journalist who pelted past President Bush with his shoes recently. Incidentally, I find that ingenious act very amusing and strangely satisfying. If I was as bold as that guy, there are a few ‘leaders’ in my home space I would be ecstatic to pelt with rotten tomatoes and eggs as an expression of my disgust with their supposed leadership roles. Many times, crimes of passion like this help release the tension of frustration… A note of caution though, no one can try that here or else, their trigger happy police guards would have massacred everyone in that press conference! Jungle Justice.)
Back to the main discourse; I couldn’t join the group fast enough because the concept of embarking on a wasteful exercise like “Rebranding Nigeria” at this” injury time” of economic uncertainty has exasperated me for some time. To assume that this was the silver bullet that would attract foreign investment to Nigeria and earn us the much desired respect as holders of the dreaded green passport sounded very naïve and out rightly pedestrian! Especially if you have learned, researched, taught and made a career of branding as a concept of marketing for more than two decades like we both have. Could one dare wish that the President will rethink this impending colossal waste of scarce resources and veto this project? My post on that group page is as follows:
“Maero, I not only want to throw shoes; my bag, wig, and everything I can immediately grab will follow suit! What kind of rebranding do you do for a product that the essence hasn’t been defined yet? Rebranding presumes we have a brand. What is the essence of that brand? Is it just the name "Nigeria"? Is that the brand? Let Madam Minister and the hawks who are advising her as consultants please define Brand Nigeria for us and tell us what its USP is...what is its mood, promise, core values, essence, and distinct message?
As much as I respect Madam Minister's achievement at NAFDAC, someone needs to tell her she is way out of her league here. Methinks some people are bent on cutting her down to size so they push her in this direction. She is expending her personal brand equity fast and if not careful, can end up a spent and confused brand herself. While I may accede to the fact that she doesn’t need to be a professional to head the Ministry, she should seek counsel from the honest practitioners in this business. There are principles that define the exercise she has embarked on and the current state of Nigeria violates every principle that guides the process of branding.
I really would like to know the supposed “Consultants” who are advising the Honorable Minister on this project. It is a sharp testimonial that all they are about is milking the nation at such a crucial point in our economic well being. No professional branding consultant worth the paper his/her name is written on would counsel a Client with a brand as sick as Nigeria is, to embark on a rebranding campaign.
In case these “Consultants” are from outer space, may we remind them that Nigeria still defies every definition of nationhood? Internal distrust, ethnic, tribal and religious intolerance and communal supremacy are the current core values of this nation as is. We barely understand each other and we all insist our cultural ways are superior to our neighbors. Our values are sometimes at variance with each other; we are separated by age, tongue, cultural orientation and social expectations.
We have gross attitudinal issues to work and community; we are a conglomerate of individual fiefdoms where everyone seeks to exert his/her supremacy over their neighbors. Our sense of communal interdependence is grossly eroded. The concept of Nigeria means different things in the East, West, North or South.
We are not a people driven by the common good; rather we are motivated by personal or parochial gains. The only seemingly common denominators in the Nigerian project today are Lawlessness and Corruption. There is gross indifference, callousness and outright wickedness towards our fellowman as we display obscene wealth in the face of extreme poverty. We walk by and turn the other way at a corpse on the street. Our streets are full of able bodied beggars and destitute who have no social security or recourse.
Basic rights of life are either nonexistent or grossly inadequate. Healthcare for women, children, the disabled or the elderly does not exist. Education is more of a privilege than a right. Shelter is scarce, in most cases, grossly inhuman and inordinately expensive! Food and water are scarce and expensive. Our sense of value for the human life is close to freezing point. Security of life and property is only available to the highest bidder. We have an underfunded, unmotivated and ill equipped police force who leads the blatant disregard for the law in simple things as traffic violations and pedestrian harassment.
Our roads are relics of the past generation; public transportation is either an experience in claustrophobic incarceration or temporary insanity (kombi bus or okada). Our busiest airport was built when I was 6 years old… I am now 42 and no improvement, extension or even consistent maintenance has gone on through the years. Core social values of integrity, honesty, respect, selflessness and empathy has been sacrificed on the platter of popularity, politics, “Bigz Boyism” (a la Jenifa, the movie) and power at all costs.
Avarice is a common strain in our DNA. We have had the misfortune of over 4 decades of selfish leadership and self centered followership. After almost 50 years of independence, we are still unable to ensure power supply consistently in our most urban centers not to mention the rural communities. ( I write this with electricity powered by my tired and overworked China generator…one of the three I alternate to ensure some power in the heart of Ikeja, Nigeria’s foremost industrial district!)
Industry is grinding to a total halt because the infrastructure required to sustain it has regressed over the years. We are a nation that produces nothing …except oil ( that is a discourse for another day) we import almost everything...even our social values and culture. There is barely any part of the Nigerian society that is sustainable in the long term…we appear plan less, disoriented and confused.
Governance specializes in tokenism. We are expected to be grateful for getting our due as a citizen of a nation. Our leaders expect us to hero worship them or else we are cut off from the ‘national cake’. A military man believes he is above the law…a politician assumes the federal purse is his family’s pocket book from which he spends without accountability or recourse to public scrutiny. Our children learn on bare floors in dilapidated buildings. Our teachers are constantly disrespected and cheated until they go on strike.
The National Assembly’s primary concern seems to be to legislate on their remuneration and witch hunt in those sectors where ‘settlement’ is rife. Our laws are so obsolete that the penalties for grievous crimes sometimes are a ridiculous fine of N50! (They were written in the days of Lord Lugard when N50 was equal to N500k!) And depending on who you know, you could get away with murder. We operate a constitution that allows a man who rigged an election to become a governor, get another chance to rig again ( the current Ekiti scenario is a case in point). Election malpractice is no longer a criminal offence…if you are caught, all it will cost you is a few months “suspension”, then you get another chance to repeat the exam; no big deal!
This is the Brand Evaluation Report of nation Nigeria. This is what the Honorable Minister is planning to repackage and wrap in positive, exciting and attractive visuals and slogans to present to a world that is very aware of all its inconsistencies. Who would willingly buy an attractive package when they have facts that the content is rotten? No amount of creativity can achieve that feat…at least not repeatedly.
At the risk of sounding condescending, may I counsel the Honorable Minister and her team that the most potent tool for a successful brand is customer experience and satisfaction? How does the Honorable Minister hope to deliver on the brand promise when Nigeria is in the state described above?
Another principle of successful branding is Internal Branding. A successful brand must first achieve internal buy-in within the organisation before selling itself to the public. If Nigerians don’t buy the brand, how will we represent it to visitors who come based on the Rebranding Campaign? The Honorable Minister must remember that she will not be the first person to welcome potential investors or tourists; the average Nigerian will. If her campaign is not successful at home enough to change our attitude and adjust our psyche, her external campaign will be futile. All 140 million Nigerians are potential ambassadors for Brand Nigeria. If the government does not focus on making Nigeria work for us, it will be difficult for us to represent the ‘new’ brand since we are not experiencing it. It is not rocket science; just simple logic.
So if this administration is really serious about rebranding Nigeria, then the place to start is not the campaign. That is like starting to build a house from the roof without a foundation. Let Madam Minister start by fixing the little things first. Make Nigeria work for us and we will be willing evangelists for Brand Nigeria. Put the proposed billions for this campaign in one aspect of the Nigerian experience and you will get better ROI than paying the CNNs and Sky News of this world (after all the banks are already doing that, so why duplicate efforts?)
Finally, may I recommend ‘The Tipping Point’ by Malcolm Gladwell to the Honorable Minister as a great reference book in her efforts at social reengineering? The basic principle for a successful campaign is taking care of the little things first. Please the right people and they will do the tenuous job of reaching the multitude for you. To transform New York City from the Mecca of crimes to one of the safest megacities in the world today, the Giuliani team started by fixing the little things first; a broken window here, cleaning the trash there, wiping off graffiti from the subway carriages, and arresting people for not paying their fare on the subway. Seems too simple in the face of thousands of murders and robberies in the 70s, but it began one of the greatest social revolutions of this generation.
Do I believe in Nigeria? With all my heart. That is why the Minister must read this, because there’s too much at stake to trivialize it with another tokenism like the planned jamboree called ‘Rebranding Nigeria’. The solution requires more depth than that and I believe if there is anyone who can achieve it, it is the Honorable Minister. Her track record speaks volumes in her favor. In fact, Honorable Minister, you did more for rebranding Nigeria as NAFDAC DG simply by doing your job…ensuring the safety and wholesomeness of food and drugs in Nigeria. Let everyone else do their jobs too and we won’t need to embark on this unnecessary campaign. The Lagos State Government example proves that Nigeria can work. The question is, is the Yar’adua administration committed enough to make the necessary sacrifices? The jury is still out on that.

Sola Salako is a Branding &PR Consultant and a Consumer Rights and Protection Advocate based in Lagos.