Telecoms World
Vodacom Saga & Consequences of Perception
By Olufemi Adeagbo
My recent article titled the 'Vodacom saga' generated some passionate responses most of which tended to arrive at the conclusion that the Vodacom exit was a case of 'good riddance to bad rubbish.'
I beg to differ to this viewpoint and hope that the bulk of the polity do not share this opinion which whilst proudly patriotic is in the real world of business destructive. Perhaps my objective was misinterpreted or perhaps these individuals felt such a level of patriotism that obscured the essence of my piece and their perception of reality. For reiteration, I still feel that it would be a tragedy if the whole Vodacom Saga just becomes confined to the dustbins of conjecture, speculation and smearing of personalities.
In these situations, only the truth clears the air. It may well be the case that Vodacom had other reasons for pulling out, and chose to 'hang' everything on the widely reported 'breach of trust'. If this were the case, then it would be palpably unfair as it perjorates Nigeria's already battered reputation even further. If however, their concerns were legitimate and well founded; then our corporate state of existence requires improved control measures; as the actions of a few can indeed damage the reputation of a nation.
Magnified perception of negativity not only affects our ability to generate foreign investments; but further cements the sub-conscious apprehension that Nigeria and the whole environment is one vast myriad of fraudulent people - even to the Nigerian on the streets of Lagos or Warri or Kafanchan. Whilst there can be no doubt about the existence of 'cowboys' enmeshed in corporate boardrooms, it is an unfair burden for the generality of honest Nigerians to bear; and the system and its institutions must be honed to examine such instances of opaqueness, in order to enable the corporate world and Nigeria mount a vigorous defence of it's integrity in situations where unfair aspersions are cast on its captains of industry. Within this context I welcome very much the investigation initiated by the Nuhu Ribadu led EFCC into the whole 'Vodacom Saga'.
Another cardinal feedback point was the issue of dependency on foreign investment as a potential albatross to growth of the telecoms sector. I couldn't agree more with one of the writers that this elusive foreign investment is overrated. The reality is that wealthy Nigerians more often than not prefer to lubricate the Western economies, often with ill gotten Naira, rather than invest in their own economy. It is the same problem we have seen over the years and despite Governments increased monetary control policies, I am afraid it is one we will continue to see until an attitudinal shift occurs and Nigerians start realising that foreigners and foreign organisations are understandably driven first and foremost by profit, and NOT love for Nigeria.
To develop this strand, the recent MTN phenomenon is a point in case - 50 billion Naira PAT for a six - month period demonstrates the existence of liquidity, and the willingness of the market to perhaps utilise the principles of substitute economics to fund necessary activities like communicating on the move. By delivering such a strong performance, MTN has demonstrated the viability of this sector, despite its constraints in the Nigerian environment; and I wonder why some people are so critical of them considering the fact that they pay taxes, have social responsibilities and in a sense are simply profiting by the vacuum years of mindless corruption, lack of patriotism has created.
In an economy desperately in need of jobs and wealth distribution strategies to alleviate poverty and reduce crime, despair and anger; this telecoms industry - if well nurtured can contribute dramatically to the resolution of these challenges. The wealthy will generate revenue which will in turn be re-invested to deliver capacity and basic services to the less wealthy. The wealthy will be compelled to partake in distribution economics which they otherwise will not, given that Nigerians are averse to concepts of taxation, inward investments and social responsibility. The widespread availability of communications will deliver efficiency and stimulate growth at the micro business level, and offer better opportunities for profitability and conservation of other resources - like petroleum products.
Most importantly, proper structuring of this industry for inward inflow of investment, and an attitudinal change, might well reduce the dependency on foreign monetary input -even if technical and managerial expertise require importation in the evolving stages of the industry. In essence our financially capable individuals and institutions need to shift their focus to the long term benefits that can be achieved from sustained expansion of this sector, rather than on short term gains and vain self indulgence generated from and sustained by the proceeds of their deposits in the vaults of European and American banks. To create this level of confidence for even an indigenous investor we cannot afford contentious and potentially scandalous situations like the Vodacom saga to cast aspersions on the integrity of our corporate world. The issues must be aired and resolved categorically.
If we continue the policy of passing investment risks in our own country to foreign organisations, then we should not be found complaining when they are repatriating their profits to their countries of origin. If we find the will, conviction, passion love and commitment to channel towards the development of our own country, Telecoms offers a viable investment vehicle, and by investing in our development, we just might start a movement against second slavery which is imminent, if we continue our current short sighted greed oriented attitudes.
Adeagbo is consultancy director for Comnavig, a Telecommunications, and CRM advisory firm. Comments to [email protected]
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