TELECOMS: A NIGERIAN STORY WITHOUT NIGERIANS? (2)

He followed his observations with a number of posers: “What has gone wrong and still going wrong? What exactly is happening? Have the majority owners of multinationals lost confidence in Nigerians? A situation where the two biggest Confectionery Companies, two biggest Breweries and two largest detergent companies are being managed by expatriates is worrisome. Are all Nigerian top managers non-performing or adjudged by expatriates to be bitten by the bug of lack of integrity?” There were more: “What future projections can we make? Has it occurred to multinational owners of large manufacturing outfits, that 99 per cent of the consumers of their products are Nigerians? Is economic nationalism dead, killed by globalisation? Is there now an artificial glass ceiling in the Corporate Boardroom for nationals? That is, a level beyond, which nationals cannot rise.

As we were saying, the Nigerian telecommunications sector has been so successful in the last eight years that many of us have had to occasionally pinch ourselves to reassure us that we are not indulging our fantasies! When I see the things that we now routinely do on phone, including “flashing” your children within the home to summon them, I wonder how we ever lived without the mobile phone. Add to the hardly calculable utility value these humongous numbers – 70 million lines from a maximum of 500,000 in 2001; foreign direct investment (FDI) of up to $12billion or N180 trillion at today’s exchange rate; hundreds of thousands of direct and indirect jobs etc and you’ll agree we have nothing short of a miracle.

Here comes the puzzle. Why is the fastest growing telecommunications sector in Africa, and one of the top 10 in the world, run largely by foreigners? IT & Telecoms Digest, the magazine which triggered this had raised the puzzle in these words: “ironically, in spite of this monumental leap forward that the country has achieved in so short a time, it remains a puzzle why there are no Nigerians occupying the chief executive officer position in any of the telecoms companies in the country…In all, the percentage of CEOs of Nigerian extraction is less than 30 percent of the country’s industry total.” It is against this background that we pose the questions: “Is a glorious chapter of Nigerian history being written without Nigerians? If so, should we be worried?”

Before we attempt to find answers to these questions, however, it is pertinent at this juncture, to recall a piece, mentioned here last week, “Omolayole and Integrity in Corporate Governance”. It was a commentary on an article by Dr Michael Omolayole, a highly respected management expert and consultant titled, “Corporate Management: More Questions Than Answers.” In that piece the erudite management scholar had raised similar questions about the dominance of foreigners in the leadership cadre of major companies, particularly multinationals in Nigeria. He recalled how during “the last quarter of the 19th Century to the early 70s of the 20th Century” conglomerates and multinationals in Nigeria “were managed by expatriate personnel especially at the top” and how “the Indigenisation Act in Nigeria in the 70s helped in no small measure to change the status quo.” As a result of that law, he said that “where there was only one Nigerian CEO of a Multinational Company quoted on the Nigerian Stock Exchange” in 1973, “by 1980, the picture had changed. The country had four or five Nigerians who were CEOs of multinational companies quoted on the Stock Exchange. By 1990, the country probably reached the highest number and quality in terms of progress made”.

Omolayole then noted, much like the writers of IT &Telecom Digest’s current cover story now do about the their sector: “However, between 1990 and 2000, some large multinationals somehow did not seem to find it easy to sustain an indigenous management succession or decided outright to turn back the hand of the clock. Some of these companies are Guinness Nigeria Plc, Unilever Nigeria Plc, and Nestle Nigeria Plc. We are now more than half way into the first decade of the 21st Century and the picture is more gloomy. Cadbury Nigeria Plc, Nigerian Breweries Plc, WAPCO and PZ Industries have joined the groups that are now managed at the very top by expatriates”.

He followed his observations with a number of posers: “What has gone wrong and still going wrong? What exactly is happening? Have the majority owners of multinationals lost confidence in Nigerians? A situation where the two biggest Confectionery Companies, two biggest Breweries and two largest detergent companies are being managed by expatriates is worrisome. Are all Nigerian top managers non-performing or adjudged by expatriates to be bitten by the bug of lack of integrity?” There were more: “What future projections can we make? Has it occurred to multinational owners of large manufacturing outfits, that 99 per cent of the consumers of their products are Nigerians? Is economic nationalism dead, killed by globalisation? Is there now an artificial glass ceiling in the Corporate Boardroom for nationals? That is, a level beyond, which nationals cannot rise. What answers could we possibly give to such questions from our children and grandchildren with regards to this phenomenon?”

More questions than answers, no doubt, but let’s at least attempt answers to our earlier posers on the telecoms industry and see if it illuminates our path through this valley of decision. Is a glorious chapter of Nigerian history being written without Nigerians? It is easy to respond to this in the affirmative, because for the moment, from ownership to management, the industry is dominated by foreigners.

Interestingly, even most Nigerian-owned companies in the sector are executive-managed by foreigners. But to answer the second question, we must contend with the question: why do the investors prefer to install expatriates in their executive suites? This is a particularly important question because even the IT& Telecoms Digest article contained this unflattering piece of information: “Many telecom companies started the communications journey but few have survived the telecom boom period. In the same market where some companies have been reaping their gains in bounties, others have faltered mid-way into the race. They have either gone extinct or are barely clutching on to floating straws on the water surface for survival. These companies have a common denominator – they were once run by Nigerians!”
Could it therefore be that a fear of losing their investments or of failing to maximise their returns is the reason Nigerians are not being considered as CEOs? Is such fear founded on empirical evidence? If it is, is it the result of paucity of technical expertise, or competence, or experience or integrity, or a combination of some or all of these? Or are there other factors? (CONTINUES)

TELECOMS: A NIGERIAN STORY WITHOUT NIGERIANS?

Now - back to the issue at hand. In the words of the IT & Telecoms Digest report, “ironically, in spite of this monumental leap forward that the country has achieved in so short a time, it remains a puzzle why there are no Nigerians occupying the chief executive officer position in any of the telecoms companies in the country…In all, the percentage of CEOs of Nigerian extraction is less than 30 percent of the country’s industry total.” Is a glorious chapter of Nigerian history being written without Nigerians? If so, should we be worried?

One of the most important items on my monthly reading fare is IT & Telecoms Digest; an all-gloss monthly magazine published by Ikeja, Lagos-based, Belmang Limited. It is a world-class publication that covers the information technology and telecommunications sector globally from an unabashedly Nigerian perspective. Proactive on issues affecting the sector and reasonably relaxed in its presentation, it manages to educate and inform me about Nigeria’s most deservedly celebrated success story. Now and again, it also sets me thinking about the Nigerian condition, our vast potentials and possibilities and our tendency to self-immolation. Its current cover choice did just that.

Headlined, “Black Versus White; Indigenous Versus Foreign, Picking CEOs for Nigerian Telecom Operations”, it highlighted the current situation in that vibrant sector as it applies to headship of the major operators. Obviously triggered by the departure of the only Nigerian CEO among the top-six companies, Mr Bayo Ligali, until September 18, CEO of Zain Nigeria, the report should at least restart a debate on an issue we had raised in a piece, “Omolayole and Integrity In Corporate Governance” (March 26, 2008).

But first a few facts and figures as gleaned from the magazine. With about 70 million telephone users, Nigeria is the undisputed leader in subscriber numbers on the continent of Africa. This is a phenomenal rise from the paltry under-500,000 lines in use before the communication revolution of 2001, which began with the introduction of the global system of mobile telecommunication (GSM) that year. The growth is such that it has changed the face and turned the fortunes of the global industry. Admitting that much recently was no less a person than the incumbent Secretary General of the International Telecommunication Union, Dr Hamadoun Toure. On a visit to Abuja, Nigeria last month, Toure, a Malian and first African to hold that office, proudly declared: “For the past five years and the first time in 144 years, Africa was recognised as one of the best carriers of the ICT sector. Nigeria is currently the continent’s largest market. This did not just happen by chance. It required good leadership by government, good regulation that is independent and committed”.

Toure’s reference to good leadership and good regulation is incidentally one of the most important single achievements of democratic governance yet. Beginning with the issuance of licenses through an auction that was universally acknowledged as one of the most transparent ever, the National Communications Communication, NCC has continued to attract commendation internationally. This might explain why current Nigerian Information and Communications Minister, Professor Dora Akunyili, in spite of the widely known frosty relationship between her and Engr Ernest Ndukwe, Executive Vice Chairman of the Commission, had to join the praise choir.

Receiving Toure in her office in Abuja, she was reported as saying: “I don’t want to miss congratulating the EVC of the NCC for the good job NCC has done in this country since 2001 – during the GSM auction which is still being celebrated in this country and the way they have ensured that growth is steady…” Interestingly, she had a cultural and statistical explanation for the unprecedented growth of telephony numbers in the country. After explaining that her motivation for wanting to “continue to work to ensure that we improve services,” was “so that we have service that Nigerians can smile and be happy about”, she noted that “the average Nigerian is ready to skip lunch to buy airtime (because) we spend a lot of time on telephone. In fact some people culturally pick up the telephone and praise God first, which is wonderful, and then ask after your family before discussing the issue. That is why 10 subscribers in the US or Britain equals one subscriber in Nigeria.”

The success story in this sector, however, goes beyond the number of telephone users or any ministerial mathematics. Nigerian operators have begun to think beyond that. Globacom, a wholly owned Nigerian company is leading penetration into other countries in the West African sub-region with presence in Benin Republic, roll-out imminent in Ghana and, Cote d’Ivoire a near possibility. The same company recently landed Glo-1, its submarine cable system in Nigeria, a world first by a single company; existing such systems being consortia affairs. Another submarine project Main One by another full-blooded Nigerian company, Main One Technologies is on the way. These are massive heavy data capable systems that will connect Nigeria to virtually every part of the world. Within the country itself thousands of fibre optic cable lines are being laid including MTN Nigeria’s 3,400 kilometre Y’ello Bahn launched much earlier.

Nor is Nigeria’s newfound ICT leadership in Africa only region-deep. At international ICT forums, the country provides leadership. In a preview of the ITU WORLD 2009 in the magazine, Dennis Onwuegbu recalled how the Nigerian pavilion at the ITU Africa congress in Cairo, Egypt last year drew one of the highest numbers of visitors. He wrote in part: “the green and white colours of Nigeria which was conspicuously hoisted inside the expansive Cairo International Conference Centre became a major attraction throughout the four-day event. And the presence of Nigerian government officials, operators including the country’s two leading computer manufacturers – Zinox and Omatek; industry regulator, NCC; a financial institution, Access Bank; and an overwhelming number of ICT journalists were all that the country needed to make the difference at the event.”

Now - back to the issue at hand. In the words of the IT & Telecoms Digest report, “ironically, in spite of this monumental leap forward that the country has achieved in so short a time, it remains a puzzle why there are no Nigerians occupying the chief executive officer position in any of the telecoms companies in the country…In all, the percentage of CEOs of Nigerian extraction is less than 30 percent of the country’s industry total.” Is a glorious chapter of Nigerian history being written without Nigerians? If so, should we be worried? (CONTINUES)

BETWEEN SURVIVING AND THRIVING

Now, there are many reasons why we are a surviving rather than a thriving nation. One of them is the dearth of people-loving leadership. The golden age of Nigeria was the era of Obafemi Awolowo, Nnamdi Azikiwe and Ahmadu Bello and they succeeded because they loved their people enough to want the very best for them. It is that kind of leadership that we must seek to enthrone if we will have anything to celebrate next year.

FIFTY weeks from now, Nigeria will be 50, if the Lord tarries. You can be sure that the golden milestone would be celebrated with considerable fanfare, regardless of the achievements, or lack of it, of the nation over the period. If media debates about the state of the nation at 49 offer any guide, there are probably as many people who think we definitely have reasons to celebrate as think otherwise.

I personally agree with those who say we do not have any cause to celebrate the last anniversary, particularly because, it would have been insensitivity at its worst for us to roll out the drums with our universities shut to industrial dispute, among other socio-economic challenges. But, shall we have cause to celebrate our golden jubilee in October 2010? Frankly, I think it would depend on what we do or fail to do in the brief intervening period? For those with a statistical bent, that is to say, we have one week to redeem each year of our national life yet! And that’s almost ludicrous, isn’t it? But haven’t there been famous injury time redemptions as in football before? Besides, I am a Bible-believing Christian - I believe in miracles.

But I am not going to talk about miracles today. I want to talk about authority, my authority and yours as believers to change things around us. Many of us might recall the four-part series, “Open Letter to Kingdom Persons” published here recently. In it, I tried to draw our attention or remind us, as the case might be, of the unfortunate prevalence of sons of God living the lives of servants. We pointed out that God’s Kingdom is a kingdom of sons, not servants or slaves; that everyone who you are a son of God if you are led by the Holy Spirit. If you are born again, you are open to the leading of the Holy Spirit already, because without the Holy Spirit working on your heart, you wouldn’t have accepted the lordship of Jesus Christ, in the first place. Implicit in sonship is authority; the kind that servants do not have.

It is this theme that struck me as I reflected on the potentials of our nation as we approach 50. As I write this, ours is a surviving nation. A survivor, as Pastor George Pearson of Kenneth Copeland’s Eagles Mountain Church recently said, is only one step above the dead. In other words, any deterioration in a survivor’s case automatically leads to death. Yet, given the abundant resources it has pleased God to locate within our geopolitical boundary, we should be a thriving nation. We should be that land flowing with milk and honey, far, far, far above death.

Now, there are many reasons why we are a surviving rather than a thriving nation. One of them is the dearth of people-loving leadership. The golden age of Nigeria was the era of Obafemi Awolowo, Nnamdi Azikiwe and Ahmadu Bello and they succeeded because they loved their people enough to want the very best for them. It is that kind of leadership that we must seek to enthrone if we will have anything to celebrate next year. How to do it? Let’s enforce our spiritual authority as sons of God to speak what we want into manifestation. No other strategy can beat that.

RE: A NATION DOUBLY BEREAVED
When Nigeria’s Flying Eagles crashed out of the Under-21 World Cup last Wednesday night, my mind flashed to an article “A Nation Doubly Bereaved” (Kingdom Perspective, September 13, 2009), the conclusion of which was lost to gremlin, the printer’s devil. I think the last few paragraphs of the piece can bear repetition. So, here goes:

Interestingly, it is not often that they (football administrators) manifest ineptitude. Sometimes they even strive to get it right, throw money around, organise friendly matches etc, yet things don’t work. Take the (Super Eagles’) match against Tunisia. Do you think those boys didn’t know what was at stake? Do you think they do not want to go to the World Cup - with all that it would do for their career? Are they not experienced enough to know what to do to defend their one goal advantage five minutes to a crucial match? Think again.

Dr Adeleke Olaiya, President, Nigeria School Sports Federation (NSSF), I believe, put his finger right on it, when he said during the week “that our football problem is intricately spiritual and we must apologise to Ibrahim Galadima, former Nigeria Football Association (NFA) boss for all Nigerians wronged him by disgracing him out of office with just no cause. If he was unable to take us to the World Cup, who will? This is the bitter truth and I stand to be challenged. Nigeria must not be careless with her spiritual life by taking things for granted, we must be sensitive in our public life and ask for forgiveness from God. Then our football will wake up with genuine developmental agenda. God will be with us and give strength to our leaders.”

Save for the fact that the injustice in our football predated the Galadima episode, and has not ceased since, I am absolutely in agreement with Olaiya. The point is this. It is an inviolable moral and spiritual law that you cannot build something on nothing. One of my dear readers, Mr Akintunde Makinde once put it very powerfully on this page in a similar context. Quoting Charles Spurgeon he said “You cannot steal a goose and offer God the gosling” and added “Amalekite oxen are unacceptable as burnt offering. Might is not right but right is right. This is the way forward for the country.”

Gani (Fawehinmi) died a day before our World Cup dreams died. Gani was a source of succour and hope for the common man. So is football. While we can keep Gani’s essence alive by picking up the gauntlet against greed, which is the father of virtually all other vices, we can resuscitate our sports by exorcising the spirit of greed that has held it bound. Are we going to even try?

THE SABOTEUR AS CITIZEN

A very critical element in the mix is the place of companies and individuals with vast investments in the sole substitute to public power source. These are principally generator manufacturers’ agents and importers, diesel importers and generator maintenance and servicing outfits. This alternative industry must be worth hundreds of billions of Naira; offering employment to thousands of Nigerians and expatriates, and contributing to the tax coffers. Yet, to my knowledge, no power policy has factored them into the equation, except perhaps as saboteurs to be dealt with by the military, Nigeria Police and other paramilitary outfits.

Chief Ajibola Ige, of blessed memory, it was, who once said, “Blessed are those who do not hope, for they shall not be disappointed.” An ironic statement, if ever there was one, particularly coming from one of Nigeria’s hope-inducing politicians of his era. Bola Ige, as you probably remember him, or Uncle B to many of his younger followers, died in the service of the nation as Attorney General and Minister of Justice. He was allegedly shot in his bedroom in Ibadan by unknown assailants as his security details “went out to eat.” The assailants remain unknown to date – at least to “we the people” whom he was supposed to be serving. But like all unsolved mysteries, it is a matter of time for as Holy Writ puts it: “… there is nothing covered, that shall not be revealed; neither hid, that shall not be known” (Luke 12:2).

As I sit here reflecting on Nigeria at 49, hope and the Cicero of Esa-Oke sprung into my consciousness. When in 1999, Bola Ige, who had wanted to run for the Presidency, but was denied the opportunity by his party, the Alliance for Democracy (AD), was appointed Minister of Mines and Power in Chief Olusegun Obasanjo’s government of rival Peoples’ Democratic Party (PDP), two emotions were rife – shock and hope. Shock, because Bola Ige, deep-dyed in the old Awolowo school of party supremacy seemed to have acted out of character. But hope sprang in the hearts of pragmatists who felt that if anyone could fix the daunting electricity power problem the nation faced, Uncle B was the man. National service trumped political discipline and the man took office.

The former Oyo state governor did nothing to douse expectation; indeed with a Mr Fix-It attitude, he raised all hopes by announcing a time-table. But in the end, it was hopes dashed; expectations unfulfilled, chalking up, to my knowledge, his first and only failure in an illustrious career in public office spanning over forty years. That was why he subsequently moved to the Ministry of Justice, where the man died.

Several ministers and billions of Naira later, Mr Lanre Babalola, said to be an internationally reputed specialist in the field, is still grappling with the problem. Numbers have been churned out again and again, targets set and reset. The Nigerian understandably has settled for late Bola Ige’s other maxim “siddon look,” even if he cannot help hoping against hope that someday his nation would one day achieve the uninterrupted power feat of her less-endowed neighbour, Ghana.

The power problem is however beyond the bolt and nut approach of successive governments and their technocrats. Its intractability is not the result of bad planning, design and execution of plants, transmission lines etc, even if we’ve had our fair share of those. A very critical element in the mix is the place of companies and individuals with vast investments in the sole substitute to public power source. These are principally generator manufacturers’ agents and importers, diesel importers and generator maintenance and servicing outfits. This alternative industry must be worth hundreds of billions of Naira; offering employment to thousands of Nigerians and expatriates, and contributing to the tax coffers. Yet, to my knowledge, no power policy has factored them into the equation, except perhaps as saboteurs to be dealt with by the military, Nigeria Police and other paramilitary outfits.

This is the crux of the matter. Successive governments have failed to think outside the box. Look at it this way. Government’s inept policies over time have created this burgeoning subsector into which people have invested legally and legitimately, including many youths who went to universities and polytechnics with a view to servicing that sub-sector on graduating. They have become stakeholders in the power sector. Then government wakes up from its long slumber to redress the situation, which implies wiping out the sub-sector. Yet they are ignored. The risk to their investment is not considered; their future immaterial to policy makers. In desperation, they seek to protect themselves – by instigating illegal and immoral activities to stay in business. So they get correctly labelled saboteurs and outlaws to be resisted by all the forces at the government’s disposal, which happens to be inadequate. Business Hallmark in one of its July editions carried a lead story it headlined, “Unseen hands behind power crisis,” which sought to highlight the problem. Of course, tried as the trio of Victor Bassey, Chika Nwabueze and Obinna Chima did, mum was the word from the generator marketers they approached. It’s a survival thing, man.

A new approach is needed. Has it occurred to anyone to study the extent of this sub-sector to determine the size of investments, the number of jobs and the general socio-economic impact of a successful resuscitation of the public power sector on this section of it? Can stakeholders in the subsector get a piece of the action in the emerging scenario? Are the massive iron and metal contrivances capable of being integrated into the system or are they convertible to other uses? What becomes of those scraps, when they do become so?

What applies to the power sector is equally applicable to the transportation sector. Where do the trailer and tanker vehicle owners and operators fit in the scheme of things as we seek a revitalization of the rail sector? What becomes of the massive investments in the long haul vehicles and their thousands of minders? If cries of sabotage are not yet being heard there, they will.

While not encouraging lawlessness, I commend this wisdom of the Lord Jesus to our leaders: “…If a man have an hundred sheep, and one of them be gone astray, doth he not leave the ninety and nine, and goeth into the mountains, and seeketh that which is gone astray? (Matthew 18:12). Governments exist to take care of the interests of all its citizens, including those whose minority interests might be hurt in the process of meeting the needs of the majority. Otherwise the road to majority satisfaction will be unnecessarily elongated, as is currently the case.