Allied Solutions,13 others to produce recharge cards
By Sonny Aragba-Akpore
PROSPECTS for local manufacture of recharge cards for use in telecommunications services brightened yesterday as 14 out of the 27 companies that expressed interest in the business got the Federal Government's nod.
At a meeting with telecoms service providers on May 2 this year, government had given December 31, 2004 as the deadline for halting the importation of recharge cards into the country.
The meeting, presided over by President Olusegun Obasanjo and attended by Communications Minister, Chief Cornelius Adebayo and Executive Vice Chairman (EVC) of the Nigerian Communications Commission (NCC), Mr. Ernest Ndukwe among others, decided that from January 2005, such recharge cards would be manufactured locally.
NCC spokesman, Mr. Dave Imoko in a statement last night listed the 14 companies as Security Printing and Allied Solutions; Masterstoke; Airtel Limited, Nitecrest, Cards Technology Limited, Namitech West Africa, Limited and Snecon Group of Companies. Others are South Beach Company Limited, Control lands, Advantel Limited, Premium Ideas Limited, Hemung Investment Limited, Alfa Juliet Mangla Limited and Orga Limited.
The 14 companies, having received government's endorsement, will consequently be issued permits to engage in the business of local card manufacturing by the NCC, the statement said.
The minister was quoted as commending the enthusiasm of local and international entrepreneurs in this project. "The initial intention was to approve a much fewer number of companies, but government was overwhelmed by the share number of competent companies that applied for the permit.
The NCC also stated that the award of contracts for the printing of recharge cards to any of the approved companies would be entirely a business matter between the operating companies and the manufacturing companies.
"It is also important to emphasise that this issuance of permits for the manufacture of recharge cards is not a once-and-for-all process. Government will closely monitor the performance of these companies that have been granted the first batch of permits as well as the supply-demand equilibrium. Further permits may therefore be granted in due course in response to the dynamics of the market and decision of government," it said.
As a prelude to licensing, the minister stated that government was conscious that if left uncontrolled, the nefarious actions of some unscrupulous elements might thwart the good intentions of government.
In his charge to the NCC, the minister had instructed the Commission to initiate a process of selecting qualified companies to be issued permits to manufacture recharge cards in the country.
The commission immediately proceeded to implement the directive within the legal mandate it h as to implement government policy.
The commission therefore, in adverts in the print and electronic media invited expressions of interest from interested companies for the manufacture of recharge cards. A total of 98 companies responded to the advert. In the screening of the applications, it was observed that over 60 per cent of the applicants were mere speculators who hardly had any clue about the exact requirements of the business being applied for. The screening exercise resulted in a shortlist of 27 companies based on the information contained in their submissions.
The short listed companies were then required to collect application forms and provide detailed information about their business plan, experience and financial capability.
