₦airaland Forum

So competition for the cellphone market benefits nigerians how?

Okada drivers with cellphones that cannot send their children to school and are barely scraping buy at least can buy cellphones on the Cheap. WONDERFULL. THAT IS THE TYPE OF PROGRESS WE NEED. NEVERMIND IMPROVING SCHOOLS OR PROVIDING A DECENT MEANS OF LIVING. AT LEAST OUR POOR PEOPLE CAN AFFORD GSM CELLPHONE TO CHAT WITH THEIR NEIGHBORS ABOUT THEIR WONDERFULL LIVES IN THE GREAT NAIJA.

I bet you you are not even in Nigeria right now. If good things are happening there why are you here eeh?

Like I said, try to sell your bullshit scenarios and prospects elsewhere. We are not monkeys

Some people cannot carry on a conversation without acting so immature. Nothing anyone has said on this thread has warranted the use of such profanity as 'bullshit scenario'. Just because others have a different point of view from yours doesn't mean you have to start cursing them out. Besides, I was addressing Donzman and the other sensible folks on this thread in the first place, not you, so I don't know why you were quoting me to begin with.

Henceforth, I am just going to ignore you and your posts.  I am too old to be dealing with folks that can't carry themselves in a respectable manner.

all the persons that have bedeviled and played roles in our misfortuned have been yoruba's
and hausa's and for crying out loud obasanjo is making sure it stay's that way.

Wrong !

Obasanjo is not making sure it 'stays that way'. The 13% oil derivation and the NDDC came about under Obasanjo's administration. The northen states even sued OBJ's govt at one point regarding the 13% derivation.

Thanks to oil derivation, Rivers state collects the highest revenue from the federal purse today. According the the Finance Ministry, In March 2007, Rivers State got N24.4 billion naira (over US $190 million), followed by Akwa Ibom (N16.9 billion), Bayelsa (N11.1 billion) and Delta (N10.88 billion).

If Ondo an oil producing state got only N6 billion, there is no need for me to say how much less the other states received. So please, Obasanjo has tried to correct some of the wrongs of the past. I do admit that much more needs to be done.

Donzman,

You have a very hard time sticking with the issue. Who is talking about Bank's customer service here ? The truth of the matter is, the banking reforms have put the banks in a position where they can lend to the real sectors of the economy.

A whole airport was built without a kobo from the government, over 85% of the funds used to build tinapa did not come from the government, these funds came from the private sector - the banks ! and the banks were able to come up with the funds as a result of the reforms.

That is progress how ever way you want to interprete it.

You also fail to recognize that some of these bank loans can easily be public funds funnelled through banks!

Which public funds ?

Where were you when Soludo took out the govt funds from the banks ? Where were you when the banks had to merge in order to meet up with the N25 billion requirement ? Where were you when 89 banks were reduced to only 25 well capitalized banks ?

Everyone knows the money available for the banks to lend is a direct consequence of the N25 billion recapitalization.

Donzman,

There has been big reforms in the banking sector. The N25 billion naira re-capitalization requirement has put banks in a position where they can lend to  the 'real' sector of the economy.

Due to the reforms, Oceanic bank provided a good chunk of the funds used to build the new MM airport local terminal. Due to the reforms, a consortium of Nigerian banks, including First bank, provided billions of naira in funds used to build the Tinapa resort in Cross Rivers State.

Many Nigerian banks have gone to the stock market to raise their capital shares beyond the N25 billion mark. Zenith bank's N50 billion or N75 billion public shares offering was over subscribed !

Aliko Dangote is offering shares of Obajana Cement Company at the stock market, First Bank is offering N100 billion shares at the stock market and you are sitting here saying there has been no reforms. When was the last time you saw this taking place in Nigeria ?

If the banks can provide funds for the airport and tinapa, they can provide funds for commercial real estate. If the stock market can provide funds for the banks, it can provide funds for commercial real estate purposes.

UPDC is an example of a reputable real estate firm that currently targets the high net-worth folks. If it decides to generate funds by going to the banks or the stock market, I have no doubt of their ability to come out on top, especially when you consider the housing shortages of the nigerian masses.

What Dangote is saying in essence is 'I plan on becoming even more wealthier than I currently am, but I am going to carry Nigerians along with me'. In my opinion, there is nothing wrong with this line of thinking. Unless one objects to a capitalistic way of reasoning, I don't see why anyone should have a problem with Dangote's aspirations.

If anyone doesn't trust him, then such person shouldn't buy shares in his company. Personally, I think the man has a very good track record in managing his multi-billion naira business conglomerate.

All this happens in a well regulated FREE MARKET ECONOMY. Nigeria doesnt have that. You people try to apply bussiness scenarios that occur in the West to Nigeria. It doesnt work that way my friend. Companies selling cellphones to Nigerians is not going to stimulate squat in a place like Nigeria.

Your argument is flawed beyond comprehension.

I recall when GSM was first introduced to Nigeria. MTN and Econet were the major players then, their charges were very high, the average Nigerian could not afford their services. They also stood their ground on charging customers per minute, not per second.

Then competition - Globacom - came into the mix and the prices have fallen considerably such that today, market women, bus conductors etc have cell phones. When I was in naija in 2004, even the bus boy at the hotel I was staying in had a cell phone.  

A 'business scenario' that is used in the west which is -  the more competition, the less monopoly, the tendency for prices to drop - was applied in Nigeria and it worked with the telecoms !

naija_diva:
that is why they hate us. because of jealousy. don't you ever realise when someone hates a person, that is because they envy them.

You are very very smart for a 17 year old. You should consider applying to Harvard University.

@jen33,

I thought you might want to read this.

peteroby:
tings don change for naija for better. my little sister is a Naval officer and we no see GOD before she get am .the selection is by state

Source:-  https://www.nairaland.com/nigeria/topic-51234.0.html#msg1115135

I have read from numerous people on Nairaland that they have gotten jobs without having any connections. Backslider on this thread said the samething about his brother.

Donzman:
@GNature

Are you naturally unable to reason?. . .

Watch your mouth donzman, what is the matter with you ?

Donzman:
If the high end sector is eventually going to get saturated and thus forcing people to move into the low end sector, I see no reason to rush into the high end sector with everyone else. I can easily lay back, invest in low end apartment buildings so that when the high end is saturated (which you claim it will be), I'll be THE BOSS in the low end sector.

The typical business man would want to exhaust the most profitable end of an industry before looking elsewhere. Being the boss in the low end sector comes second to profitability. Why go into the 35% return end of an industry when there is still plenty of room to make money in the 60% end of an industry ?

You asked for an example so let me give you one. When cell phones first became popular in the U.S., the cell phone companies ran credit checks on people (or they had to make hefty deposits) before they could become subscribers. A couple of years later, the companies realized that there is a group of people who don't have good credit and cannot afford to pay deposits to get cell phone service. And those group of people were quite substantial ! 

That was how the pre-paid scheme came about here in the states. Now, no credit check or hefty deposits are required - Just pay the nominal $20, pay for the phone (or get a cheap one for free) and top up every 2 or 3 months.

So, like we have been saying, when a segment of an industry becomes saturated, the players in the industry would most likely look for other segments that were not initially targeted (for growth) as long as the segment is profitable, and I have no doubt that there is a big untapped low end real estate sector in Nigeria that if carefully targeted would result in impressive returns.

debosky,

It is the mismanagement and corruption with the aviation officials that is the bane of our horrible air safety record. To get an airline license, your firm should have been solvent to begin with, your aircraft should have been thoroughly inspected, you should have met all the guidelines set by the aviation authorities.

Periodic maintenance inspection should be carried out. Not taking or passing the inspection means the aircraft is grounded. You have policies in place and you implement them to the teeth, period.

No one is bribed, there is no favoritism, just implementing a well laid out aviation policy.

What does recapitalization have to do with this ?

You don't need to recapitalize anything, all we need is to make sure all aircrafts go through the proper safety & maintenance procedures as done elsewhere in the world. The airlines bring these european rejected  planes into our air space and our aviation officials are bribed to over look them.

The next thing you know - Airplane crash !

What is wrong with having a 1 or 2 plane airline ? There are certain routes not used by the majors that can be used by such airlines. Recapitalization would have no bearing whatsoever on airline safety. The onus lies in the hands of the Aviation officials.

Lack of Checks and balances is the overriding factor. The word executive and legislative might as well be fused into one single word to make it only 2 arms of government:-

The "Execlative" and The Judiciary .

That reasoning is not consistent bro., high end being staturated does not in any way imply they'll move to low end. If that was the case everything being equal, don't you think that a smart investor willl move to build low end apartments now so as to gain the first movers advantage when the rest realize that the THIN high end apartments have become saturated?. . .Why isn't this happening?. . .

It is not happening because the market for the high end apartments is not yet saturated. Why let go of 60% return that is still well and alive to settle for 35% return ? A business man would always exhaust the business with the highest rate of return before he looks for other profitable businesses with less return.

I am confident that the developers would eventually turn to the lower end apartments because they would have developed an expertise in their field, they wouldn't just want to let go of their skills as developers. The overwhelming majority of the population are below the high end, so  that is where the opportunity for growth lies. It only makes sense that they'll lean toward that direction.

_{disclaimer:- the percentages used here were just meant to prove my point, they aren't factual}

ayefele200:
he.s corky,stupid,act nuisance,he's a bastard, the real son of bitch, he.s a punk,an asshole,sissy ass mutherfucker, don't give a shyt about him,


tell him HELL FIRE has prevailed upon him, i wonder if he's going to make it to HEAVEN, certainly NOT,

What did he personally do to you ?

@fromuk

What is it about the U.S. that you prefer ? Because a lot of what you wrote is applicable in the U.S. too.

Some of the folks on this thread are under the impression that the luxury apartments et al show-cased on this thread by Jen33 are government built/financed. Wrong ! All of those properties are privately owned with no government stake whatsoever.

I agree with Jen33 and Iyke-D. When the market for luxury homes becomes saturated, I have no doubt that the home builders would turn their attention to the lower income earners.

It is not that lower income properties are not profitable, they are just not as profitable as the luxury homes/apartments. With the lower income scheme, it'll take much longer for developers to recoup their investment, but in the long run, its still profitable.

Here in the states, there are housing estates/apartment complexes (privately owned, of course) that are catered to the "not so rich" folks. Many of them are half or one-third the size of festac town in Lagos. With some incentives such as free (or leased) land from the government, I have no doubt that with time we'll replicate the practice in Nigeria.

_{( i think there is already a public/private partnership estate being built in abuja, but I don't know if the estate is catered to the rich folks).}

Wouldn't it be nice if top notch real estate developers can go to the Nigerian Stock Exchange to source funds to build apartments and bungalows that are in the cadire of 1-3 bedrooms, i.e. not catering to the rich ?  I believe such estates can be built with  estimated rental income of ~ N70 million - N100 million a month. Because they'll be privately owned and managed, the facilities are not likely to rot and decay that easily - revenue is at stake !
This is the direction we should be heading and I believe we will get there.