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GSM operators move against local recharge cards
KEN NWOGBO
IN a curious
twist to government’s directive for the local production of the
telecommunications recharge card, some network operators appear to be mobilising
against the move claiming that local companies lacked the credibility and
capability to execute such delicate jobs.
The operators claim that Nigeria is the
first African country to implement such a ban and said the conditions that will
make local recharge manufacture possible would include "tax relief through
pioneer status, tax relief if a large proportion of local raw materials are used
in the production process, tax relief if there is massive labour involvement and
tax relief for investment in disadvantaged areas".
The operators who chose to speak also gave
hard knocks to the regulatory authority, the Nigerian Communiations Commission (NCC)
which they accused of inconsistency and intervention.
Critics, however, said the operators are
trying to protect their offshore partners which are often an affiliate of the
telecom companies operating in Nigeria.
Despite the simmering campaign against
local production of the cards, government appeared unbent and had gone ahead
through the NCC to pencil down 27 companies to go to the final stage of the
process leading to authorisation to manufacture the cards locally.
The firms are Controcards Limited,
Nitecrest, Masterstroke Packages Limited, Security Printing and Allied Solutions
(SPAS), Hemnugg Limited, Value Trust Inv Limited, NIC Systems & Graphic In-Line
Limited, Austine brooks Nig Limited, Prudence Business Solns Limited, and Smart
City Plc.
Others are, Kalila Nig Limited, Southbeach
Company Limited, Cards Technology Limited, Intergra Telecomms Limited, SNECOU
Group of Companies Limited, Royal Alliance Limited, Airtel Limited, Alfa Juliet
Mangler Limited, Exxis Facility management Limited, and HeyGate Press Limited.
The rest are, Advantel Limited, Nelag &
Company, NamlTech Limited, Gijima Technologies Limited, Premiumideas Limited,
Orga Cards System and Xcard Limited.
President Olusegun Obasanjo had at a
meeting with the telephone operators said from next January, government would no
longer accept the importation of recharge cards into the country.
The directive is receiving commendation
from a cross section of telecom stakeholders in Nigeria with many of them
pointing out that the move would reduce pressure on the national currency, the
naira, as well as provide employment for more Nigerians.
The directive agrees with the submission
of telecom lawyer, Paul Usoro (SAN) who in 2000, called for the provision for
the local manufacture of telecom equipment.
"Currently, there is nonigerian company
that is seriously involved in the manufacture of any telecommunications
infrastructure or equipment. As Nigeria seeks to meet its telecommunications
policy objectives, it is paramount that attention be paid to the manufacture of
telecommunciations equipment and infrastructure. A failure to do this will
result in Nigeria continuing as a net importer of telecommunications
infrastructure and equipment," Mr. Usoro had said.
Some telecommunications operators,
however, insisted that the directive is retrogressive while warning that
licencing of recharge card production will naturally introduce a new cost point
for the producers (in the form of levies to the regulatory) which is likely to
be passed on to the customers by the companies in future.
"The Central Bank of Nigeria (CBN) dos not
licence the printing of cheque books even though it requires security printing.
The cheque books represent an exchange of value for the banks as the recharge
cards represent value exchange for the Telcos. And if in the same local
environment one experienced regulator (CBN) has successfully operated for
decades without over-regulating the environment in the execution of its
function, then perhaps the government needs to encourage the regulator in the
telecoms industry to borrow a leaf from the CBN’s books," they argued.
The operators are also worried about security which they
argued is the most important consideration in the scratch card manufacturing
process because the focus is on the protection of the pin code used by the
customer to recharge his account.
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