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“In 2017 and Beyond, Consumers Will be Our Focus”

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  • “In 2017 and Beyond, Consumers Will be Our Focus”

“Customer is King” is an age-old business mantra accentuating the importance of customers (and would-be customers) in every business.

Traditionally, this rule usually entails a company’s promise to provide good customer services to… well, the customers. But with the current evolution on work and business settings coupled with technological advancement, ‘customer is king’ means more than just good customer service.

Indeed, to any business, customer eccentricity is as important as product.

Today the markets are guided by the desire and satisfaction of customers. Customer eccentricity is extremely essential to a business, organisation and institution because without customers there won’t be business.

In most of the economic sectors of Nigeria, the consumers are still being treated with disdain, even in the telecoms sector, especially with poor services and several scam messages.

H‎owever, to correct these ills and place consumers at the forefront, the Nigerian Communications Commission (NCC) declared 2017 “The Year of the Nigerian Telecom Consumer.”

The programme, which started in Abuja, some months back, was recently brought to Nigeria’s commercial nerve centre, Lagos to underscore the importance of the state when it comes to telecommunication business.

Already, the NCC has informed the public on the huge spending on telecommunications services by the consumers.

The Executive Vice Chairman of NCC, Prof. Umar Danbatta, said within the last two years, telecommunications subscribers added about N11.9 billion to the Nigerian economy.

Specifically, Danbatta said consumers contributed N5.6 billion and N6.3 billion to the telecommunications industry in 2015 and 2016 respectively.

He also informed that the activities of the consumers, about 155 million of them, increased the contributions of the sector to the GDP from eight per cent to nine per cent in Q1, 2017.

Danbatta said the NCC 2017 Year of the Nigerian Telecom Consumer is remarkable because the telecommunication consumer is centre stage. “We must also remember that these consumers together have made all the success stories we speak about possible in the telecom industry today.

“Almost two months ago (March 15) NCC flagged off a national campaign of the Year of the Nigerian Telecom Consumer at its Headquarters in Abuja. Sixty days hence, I am glad; we can report some progress resulting in increase in the activation of the Do-Not-Disturb short code using the 2442 facility, by more than one million consumers in this short span. More subscribers reported their unresolved complaints using NCC’s 622 toll-free lines in the same period” he said.

Danbatta further disclosed that NCC consumer conversations are going on simultaneously every month in the six zones across the country

“In 2017, and even beyond, the consumer will be our focus. NCC intends to inform and educate the consumer with the sole intent of protecting and empowering them to make the right decisions.

The NCC boss said as a regulator, NCC has the mandate to ensure all its key stakeholders are protected and their interests balanced in an atmosphere of fairness, transparency and within the framework of the NCA 2003 and other subsidiary legislations. Almost one year ago the NCC launched an 8-Point Agenda.

The agenda, which will drive the NCC until 2020 aims, among other things, to facilitate broadband penetration; improve quality of service; optimize usage and benefits of spectrum; promote ICT innovation and investment opportunities; facilitate strategic collaboration and partnership; protect and empower consumers; promote fair competition and inclusive growth and ensure regulatory excellence and operational efficiency.

The leadership of NCC said the Year of the Consumer is focused on two key areas: improving the quality of service; protecting and educating the consumer. To address the unsolicited calls received by consumers, the NCC has introduced the ‘Do Not Disturb’ (DND) facility where consumers are urged to activate the facility by texting 2442.

There is also the 622 number for the NCC customer toll free complaint line. NCC intends to increase the awareness level and equally the activation level of these two initiatives.

“In its determination to ensure that the consumer experiences improved quality of service in the year and beyond, the commission is implementing measures to ensure drop call rate reduces and meets its industry benchmark of less than one per cent (<1% DCR) target. The commission is closely monitoring, tracking and reviewing the key performance indicators (KPIs) of operators by the Network Integrity and Technical Standards Department. Greater efforts would also be put in place for compliance monitoring and enforcement of set standards.

“The Commission will also enlighten consumers about the environmental impact of telecom infrastructure. As part of efforts to realize NCC 2017 Year of the Consumer, I have convened a meeting with MNOs and infrastructure providers to demand that the quality of services must be improved upon immediately. This is to ensure that the consumer gets value for money and gets satisfactory user experience.

“There are sanctions for failing to meet KPIs. NCC will not hesitate to enforce them and might consider making them even more stringent. NCC is mindful of the forex challenge faced by the telcos. We have intervened with the Central Bank of Nigeria (CBN). Already this intervention is beginning to yield some results. We are sure that in the not too distant future, the forex challenge will be addressed to the benefit of both the consumer and the operators,” Danbatta revealed.

Danbatta said that when the year is ended, the NCC should be able to measure the success and impact of this initiative by the level of awareness created among consumers and the number of consumers that have activated the 2442 facility. “It is my hope that the Nigerian telecom consumer would consistently get the right quality experience and value for money” he added.

The Executive Commissioner, stakeholder management, NCC, Sunday Dare, on his part noted that for the first time, NCC is singling out the consumer and dedicating a year of activities towards safeguarding the rights, protecting the interests, and empowering the consumer to make informed decisions – but above all, to place the consumer atop the stakeholder ladder of the NCC.

Dare noted: “For the Nigerian telecom consumer and indeed the Mobile Network Operators (MNOs), things have come almost full circle. They know each other and need each other. The NCC as a regulator stands like an impartial umpire, a referee engaging and monitoring to ensure the interests of all parties are respected. From a customer base of slightly over 400,000 in the height of NITEL’s glory, we now have a combined subscriber base of over 150 million across the country.

“This boom and massive jump in mobile telephony have brought with it several challenges especially in terms of reliable service, network upgrade, expansion and maintenance, and increasing demand for capital expenditure (capex) injection into the telecom industry.

“Continuous monitoring of Key Performance Indicators, KPIs, and benchmark is ongoing too on a quarterly basis to ensure that the quality of service does not deteriorate. On a continuous basis, NCC will seek to engage and explore ways to make consumer experience more satisfying within the Nigerian telecoms industry,” Dare said.

The MNOs present at the Lagos event have also keyed into the NCC’s vision, reiterating the fact that the customers’ remained the heart of the business.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Manufacturers Grapple with Losses Amid Economic Strain

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In the first three months of 2024, some of Nigeria’s major manufacturers found themselves navigating treacherous waters as financial losses mounted amidst economic turbulence.

According to data compiled by BusinessDay, rising interest rates and a further devaluation of the naira contributed to the woes of these industrial giants.

The latest financial reports from 13 listed consumer goods firms paint a grim picture, with seven of them collectively recording a staggering loss of N388.6 billion in Q1.

Names such as International Breweries Plc, Cadbury Nigeria Plc, and Nigerian Breweries Plc were among those that bore the brunt of the downturn.

On the flip side, a few companies managed to buck the trend. BUA Foods Plc, Unilever Nigeria Plc, and Dangote Cement Plc reported a combined profit of N171.9 billion, showcasing resilience amidst the challenging economic landscape.

While the overall revenue of these manufacturers saw an impressive 79 percent increase to N2.27 trillion, it was overshadowed by soaring financing costs.

In Q1 alone, finance costs skyrocketed to N616.5 billion from N65.8 billion in the same period in 2023.

Analysts attribute these mounting losses to the confluence of factors, including the devaluation of the naira and escalating interest rates. With the naira experiencing nearly a 30 percent devaluation this year alone, coupled with a 40 percent devaluation last June, companies faced intensified pressure on their margins.

Moreover, the Central Bank of Nigeria’s decision to raise the monetary policy rate to 24.75 percent in March further exacerbated the situation.

This marked the second consecutive increase, following a 400 basis points hike in February, aimed at curbing inflation.

The adverse effects of these economic headwinds were felt across various sectors. Nestle reported the highest finance cost of N218.8 billion, followed closely by Dangote Cement and Dangote Sugar Refinery.

Commenting on the challenging business environment, Uaboi Agbebaku, the company secretary at Nigerian Breweries, highlighted how increased interest rates and FX volatility led to a staggering 391 percent rise in net losses compared to the same quarter in 2023.

Looking ahead, manufacturers remain cautiously optimistic but vigilant. Thabo Mabe, managing director at NASCON, emphasized the importance of navigating the turbulent waters while executing robust strategies to ensure sustained growth.

As Nigeria grapples with economic uncertainties, the resilience of its manufacturing sector will play a pivotal role in shaping the nation’s economic trajectory.

However, concerted efforts from both the public and private sectors will be needed to steer the industry towards stability and growth.

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Shell Nigeria’s $1.09 Billion Tax and Royalty Payments Power Economic Growth

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Shell Petroleum Development Company of Nigeria Limited (SPDC) and Shell Nigeria Exploration and Production Company Limited (SNEPCo) paid a sum of $1.09 billion in corporate taxes and royalties to the Nigerian government in 2023.

This figure, revealed in the recently published 2023 Shell Briefing Notes, shows Shell’s commitment to supporting Nigeria’s development through substantial financial contributions.

According to the briefing notes, SPDC disbursed $442 million in taxes and royalties, while SNEPCo remitted $649 million.

Despite a decrease from the $1.36 billion paid in 2022, these payments highlight Shell’s continued role as a key contributor to Nigeria’s revenue generation efforts.

Osagie Okunbor, Managing Director and Country Chair of Shell Companies in Nigeria said “Shell companies in Nigeria will continue to contribute to the country’s economic growth through the revenue we generate and the employment opportunities we create by supporting the development of local businesses.”

The briefing notes also provided insights into Shell’s ongoing operations and initiatives in Nigeria. The company’s investments span more than six decades, with a focus on powering progress and promoting socio-economic development.

Through collaborations with stakeholders and communities, Shell aims to provide cost-effective and cleaner energy solutions while fostering sustainable growth.

“It is important to emphasize that Shell is not leaving Nigeria and will remain a major partner of the country’s energy sector through its deep-water and integrated gas businesses,” Okunbor reiterated, underscoring Shell’s long-term commitment to Nigeria’s energy landscape.

Shell’s contributions extend beyond financial payments, encompassing initiatives aimed at enhancing local capacity building, fostering job creation, and promoting social development. By prioritizing safe operations and environmental stewardship, Shell seeks to align its business objectives with Nigeria’s sustainable development goals.

As Nigeria navigates economic challenges and seeks avenues for growth, Shell’s substantial tax and royalty payments serve as a testament to the company’s enduring partnership with the Nigerian government and its commitment to driving economic progress.

Through continued collaboration and investment, Shell endeavors to play a pivotal role in Nigeria’s journey towards prosperity and sustainability.

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Federal Government Sets Two-Month Deadline for PoS Operators to Register with CAC

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Corporate Affairs Commission (CAC)- Investors King

The Federal Government, through the Corporate Affairs Commission (CAC), has issued a stringent directive mandating Point of Sales (PoS) operators to register their agents, merchants, and individuals within a two-month timeframe.

The move comes as part of efforts to comply with legal requirements and align with the directives of the Central Bank of Nigeria (CBN).

The decision was reached during a crucial meeting between representatives of the fintech industry and the Registrar-General of the CAC, Hussaini Ishaq Magaji, held in Abuja on Monday.

With over 1.9 million PoS terminals deployed nationwide by merchants and individuals, the registration requirement aims to bolster consumer protection measures and fortify the integrity of the financial ecosystem.

According to the Registrar-General, the initiative is in line with Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020, as well as the 2013 CBN guidelines on agent banking.

Speaking on the matter, Hussaini Ishaq Magaji emphasized that the registration deadline, set for July 7, 2024, is not intended to target specific groups or individuals but rather serves as a proactive measure to safeguard businesses and ensure regulatory compliance across the board.

In a statement released by the commission, it was highlighted that the collaboration between the Corporate Affairs Commission and fintech companies underscores a mutual commitment to upholding industry standards and fostering a conducive environment for financial transactions.

The decision to implement this registration requirement follows recent concerns over fraudulent activities involving PoS terminals, which accounted for 26.37% of fraud incidents in 2023, according to a report by the Nigeria Inter-Bank Settlement System Plc (NIBSS).

The directive from the Federal Government comes amidst a broader crackdown on financial irregularities, including the prohibition of cryptocurrency trading and heightened scrutiny of fintech operations by regulatory authorities.

Last week, major fintech firms were instructed by the CBN to halt onboarding new customers and to warn against cryptocurrency trading on their platforms.

The move by the CBN is part of a larger effort to enhance regulatory oversight and combat illicit financial activities, including money laundering and terrorism financing.

Prior to this directive, the Economic and Financial Crimes Commission (EFCC) had obtained court orders to freeze numerous bank accounts allegedly involved in illegal foreign exchange transactions.

In response to the directive, fintech firms have pledged to collaborate with regulatory authorities to ensure compliance with the registration requirement.

However, they have also stressed the importance of comprehensive sensitization efforts to educate stakeholders about the implications of non-compliance and the benefits of regulatory adherence.

As the deadline approaches, PoS operators are expected to expedite the registration process and ensure that all agents, merchants, and individuals are duly registered with the Corporate Affairs Commission, demonstrating a collective commitment to maintaining the integrity of Nigeria’s financial system.

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