Business

Transforming Transportation Sector: RTC Example

Published

5 years ago

January 11, 2019

In the blueprint of his new vision for new Rivers State before assuming office as Governor, Chief Nyesom Wike had vowed “to build a State that is truly united, secure and prosperous with boundless opportunities for everyone who lives in it to peacefully pursue their goals and realize their full potentials in dignity and happiness’’.
He did not stop there. He had also insisted on actualising “the agitation of the people of Rivers State for a balanced development and an enhanced quality of life for the present and future generations through responsive governance guided by the fear of God’’.
To realise the new vision, some priorities which included the development of transport infrastructure were listed.
Demonstrating an uncommon and unwavering commitment to all that he enunciated in the blueprint, the Governor had, from the outset, worked relentlessly towards actualizing his vision and mission for a better Rivers State in the strong belief that ‘’together’’, as he puts it, ‘’we can create better opportunities and achieve more for our people’’.
Whatever may be the tensions and stresses of leadership challenges occasioned by the intervening variables that do discipline the untiring efforts of serious-minded chief executives as Wike in a democratic setting, it can be safely suggested, without fear of contradiction, that the Governor has acquitted himself creditably in the conceptualization and execution of projects and programmes to the admiration of many, including Vice President Yemi Osinbajo who rightly dubbed him ‘Mr Projects.’
Nothing really evinces this more than his rare show of interest in the development of transport infrastructure and the continuous existence and progress of the Rivers Transport Company (RTC) as exemplified in the appointment of the Board of Directors of the Company led by debonnaire gentleman and seasoned administrator, Chief Ibe Eresia-Eke.
The Tide’s review of the progress report of a few quasi-government enterprises and state-run firms, including sister corporations, many of which are dead or forgotten, shows that the anti-climax situations and the suffocating tradition of inefficiency and corruption which are the hallmark of many government parastatals, have dramatically turned to a prologue-a pointer to the fact the new board appointed for RTC holds the key to a brighter and promising future that will see the company regaining its lost glory and setting the pace for others to emulate.
Indeed, a visit to the corporate headquarters of the company and an inquest into its operation in the past two years confounds hardened critics and cynics, and proves that a government-owned enterprise can be viable and competitive like private firms controlled by hard-tested entrepreneurs.
There is no gainsaying the fact that the present board members, like the veteran task masters they are, are breathing life into their ideas, shoving complacency for sheer pragmatism, making good their solid reputation as turn-around prime managers with Midas touch to the maximum satisfaction of a hitherto despondent workforce.
It is apposite to state here that ninety percent of the board members are transport practitioners and logisticians who have brought their experience to bear on the administration of the company. The Chairman, Eresia-Eke, a transporter himself and one-time chairman of oil-rich Ogba/Egbema/Ndoni Local Government Area of Rivers State, is an author of a bestseller on local government administration with particular emphasis on transport. Apart from that, he had served as General Manager of RTC 14 years ago. After his stint there, he floated a driving school to lend credence to the fact that his line of thought has always been transport. And with a highly disciplined background, he has the vision of where a public transport company should be going, which is what he is bringing to bear on the administration of the company.
The Board Secretary, Sir Allwell Egwurugwu is a state officer of the National Union of Road Transport Workers (NURTW) and is into logistics services. Little wonder then that there is pleasant result in the form of physical and operational transformation of the company to the delight of staff who have adjudged the current board as the most prudent and worker-friendly in its 48-year history.
Professional expertise and financial prudence, investigations revealed, appear to be what set the Eresia-Eke led board apart from past ones. The judicious utilization of scarce resources, including a grant that was released to the company by the state government in the infrastructural revamp of its headquarter complex with befitting office accommodation for staff has elicited a confidence vote on the board and immense appreciation to Governor Wike for his foresight in putting square pegs in square holes.
The reason for that is not far-fetched. Most past boards were peopled with non-professionals whose only interest were just the collection of data of how much the company was getting, and not in staff welfare or vehicles maintenance and other overheads that are used to generate the money. Infact, the story was once told of how board members shared the buses that former Governor Rufus Ada George gave to the company.
Some other past boards did not fare any better. One of such boards wrecked the company to the extent that staff salaries could not be paid for several months after they left.
From all intent and purposes, past governments, many believe, had not been sensitive to what public transportation demand should be, hence certain persons who are appointed into a board ultimately clash with professionals who know the nitty gritty of running a transport company profitably.
From1991 till date, RTC has had five boards of directors who, as it were, represent the interest of government which is the owner of the business. So if government appoints a board, analyst insists, it is expected that the board should be interested in the prosperity and profitability of the business. But this had hardly been the case with the company until the present board took charge of affairs.
The Deputy General Manager, Chief Peter Borlo who joined the company 28 years ago as an Administrative officer said: ‘’as secretary of past boards I can tell you that we have the best board now. We have never had it this good. The Board has been addressing workers and corporate needs promptly’’
Illuminating the workings of the transport system, Borlo, who happens to be the chairman of the Chartered Institute of Logistics and Transport, Rivers and Bayelsa States, hinted that ‘’public transportation demands expects that you provide the buses that are needed with the way they are needed to ensure profitability’’.
Similarly, RTC’s Assistant General Manager (Operations), Mr Biedima Wariso said it is the first time the company was having a Board that has put in place policies that have impacted, and still impacting, positively on staff.
Apart from the prompt payment of staff salaries and emoluments, Borlo and Wariso hinted that the owing to the policies put in place by the Board which have also improved the monitoring system, things are now properly done as leakages and pilfering have stopped.
The Head, Courier and Logistics of the Company, Mr M.F. Oputa and the Acting Head, Health, Safety and Environment (HSE), Mr Kinikachi Chu ku spoke in similar vein.
Said Oputa: ‘’The Board is dedicated, God sent, and staff-friendly. They ensure that each staff is well taken care of. They give incentives in the form of promotions, increments and many more.’’
Oputa, who also revealed plans by the company to expand the frontiers of its service to foreign countries said the Board built a beautiful edifice for staff of his department who ‘’were confined in one small store’’.
Commending Governor Wike for his foresight in identifying the Eresia-Eke-led Board which he as well described as exceptional and God-sent, Chuku on his part, said the company has so far not recorded any fatality on the road as it ‘’has devices of getting feedback on any of our drivers who don’t adhere strictly to safety rules’’.
The chairman of the Monitoring Team, Mr Dappa Belema Soye was also full of praises for the Board for being favourably disposed to workers welfare among others. ‘’The Board in liaison with the union has been able to promote staff who were long due for promotion and also employed casual staff who have since been craving for gainful employment’’, he said.
As it is, it would certainly require the compilation of a compendium to record all the commentaries on the achievements of the Eresia-Eke led Board just as it would demand enormous intellectual rigours to completely unravel the mystery behind their somewhat magic wand.
Never the less, the challenge of getting more vehicles to improve on their services and earnings stare RTC’s Board and management in the face. Said Borlo: ‘’Our vehicles are depleted. Though we are doing relatively well, we need recapitalization to be able to do more’’.
Hinting that the company has about 270 staffers who have some 10 dependants each, Borlo divulged that the company also has international courier licence which requires adequate funding, arguing that a well funded RTC can contribute i immensely to the internally generated revenue of the state and also reduce its clan of unemployed.
Yet, RTC regularly and promptly pays staff salaries and other emoluments in spite of the difficult condition in which the company is operating due largely to lack of vehicles.
It was gathered however, that while the Board has made some requests to the Rivers State Government for grants in the form of loan, and graciously waiting for its approval, it has also reached out to the Bank of Industry for a facility to procure some 50 vehicles.
While approval for all these requests are being expected by the company, its highly appreciative and elated workforce hasexpressed its unalloyed support for Governor Wike’s second term bid to enable the government consolidate on its achievements, especially in the transport sector.

Victor Tew

Business

Paper Industry’s Economic Contribution Hits N398bn

Published

2 days ago

April 22, 2024

The Tide

The contribution of the paper industry rose to N398.8billion in 2023 from N356billion it recorded in 2022.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Musa Yusuf, disclosed this in a report released to mark the inauguration of World Envelopes Day in Lagos.
Marking the event, which also commemorated the 50th anniversary of envelope manufacturing firm, FAE Limited, Yusuf stated that the paper industry has a profound economic impact across all sectors of the economy.
He, however, noted that the growth in digital technology had greatly disrupted the sector, especially as a mode of communication.
“As of 2023, the value of the Nigerian paper industry was N398.8billion naira, according to the National Bureau of Statistics.
“The value was N365bn in 2022; N363 billion in 2021; and N255billion in 2020. This is a significant contribution to our GDP. However, when compared to the size of our economy, which is estimated at N230trillion as of 2023, it is still very small”, the CPPE boss stated.
Yusuf said the paper industry had been largely in recession because of the digital technology disruptions and other macroeconomic headwinds, especially relating to exchange rate depreciation, forex liquidity crisis and high cost of fund and energy cost escalation.
He emphasised that the paper industry had a profound economic impact across all sectors of the economy, which underscored the need for government intervention in the sector.
In her opening remarks, the Managing Director of FAE Limited, Funlayo Bakare, described World Envelopes Day as the brainchild of the company, which sought to set aside April 16 as a day to celebrate the fundamental role envelopes play in daily communication.
“As we celebrate our golden jubilee, we are delighted to announce the inauguration of World Envelopes Day, to be celebrated annually on the 16th day of April.
“This is a pioneering initiative by FAE Ltd in accordance with our leadership position in the sector.
“The establishment of World Envelopes Day is to raise awareness about the importance of envelopes in various aspects of human endeavour, including personal correspondence, business transactions, and creative expressions”, she said.
The Publisher of The Guardian Newspaper, Maiden Ibru, who chaired the occasion, stressed the need to strike a balance between digitalisation and physical paper production, especially due to the indispensable role paper plays in cultural preservation.
Nigeria once had three paper mills: the Nigeria Paper Mill Limited, located in Jebba, Kwara State; the Nigerian Newsprint Manufacturing Company Limited, Oku-Iboku, Akwa Ibom State; and the Nigerian National Paper Manufacturing Company Limited in Ogun State.
The mills are no longer operational, and the country has had to depend on importation to make up for the shortfall.
The Asset Management Company of Nigeria has taken over the management of NNMC over unpaid debts.

Business

Aviation Union Threatens Strike Over Revenue Deduction

Published

2 days ago

April 22, 2024

The Tide

The Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) has said it would embark on industrial action if the Federal Government refuses to exempt aviation agencies from a directive that seeks to deduct 50 per cent from their Internally Generated Revenue (IGR).
ATSSSAN disclosed this in a communique issued by its National Executive Council (NEC) after its National Economic Council meeting in Ibadan, Oyo State.
The NEC, which had in attendance all 17 affiliates of ATSSSAN comprising all branch Chairmen, Secretaries, and national officers, reiterated calls for the exemption of the aviation agencies from the deduction of 50 per cent of their IGR under the Fiscal Responsibility Act.
The association said the agencies were not established for profit, hence stifling them of the required funds would jeopardise the effective performance of their safety and security mandates.
ATSSSAN warned that if the Federal Government insist on the deduction, it would compound the current financial state of the agencies, and “we may be forced to direct all aviation workers to down tools until the government reverses itself”.
Last year, the Federal Government directed the Office of the Accountant General of the Federation to immediately commence the presidential directives on a 50 per cent automatic deduction from the IGR of Federal Government-owned enterprises.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, had issued a circular titled, “Re: Implementation of the Presidential Directives on 50 per cent Automatic Deduction from Internally Generated Revenue of Federal Government Owned Enterprises (FGOEs)”.
According to the circular, all partially-funded Federal Government agencies and parastatals (receiving capital or overhead allocation from the Federal Government’s budget) should remit 50 per cent of their gross IGR, while all statutory revenues, like tender fees, contractor’s registration, and sales of government assets, among others, should be remitted 100 per cent to the sub-recurrent account.
ATSSSAN stated its apprehension over what it perceives as deliberate efforts by certain private airlines to stop their employees from forming labour unions.
Citing Section 40 of the Nigerian Constitution and international labor norms, the association contends that such actions constitute a violation of workers rights.
The statement, however, did not specify the airline operators suppressing workers from joining unions.
Part of the statement read, “The NEC-in-session calls on all employers in the private sector in the aviation industry to respect collective bargaining agreements in order to avert industrial crises at the workplace.
“NEC-in-session was seriously disturbed by the continuous willful acts by some private airlines towards frustrating the unionization of their employees, contrary to the letters and spirit of Section 40 of the Constitution of the Federal Republic of Nigeria and relevant international conventions and laws”.
The association, therefore, called upon the Federal Ministry of Labour and Employment to uphold and enforce employees’ rights to unionise within the aviation industry.
It urged the Minister of Aviation and Aerospace Development, Festus Keyamo, to orchestrate a dialogue involving all relevant stakeholders, including the non-compliant airlines and labour unions, under the auspices of the Labor Ministry.
At the meeting, other issues affecting workers, especially members’ welfare and working conditions, and the aviation industry at large were discussed, and positions and resolutions were taken.
The aviation group decried what it perceive as a dearth of avenues for career progression within government-owned aviation entities.

Business

NCDMB Rakes In $1m Return On NEDOGAS Investment

Published

2 days ago

April 22, 2024

The Tide

Management of the Nigerian Content Development and Monitoring Board (NCDMB) says it has received a cheque of $1 million from Nedogas Development Company Limited (NDCL).
A statement made available to newsmen by the Directorate of Corporate Communications and Zonal Coordination of the Board said the sum received was part of the return on investment (ROI) on one of its strategic investments.
The statement added that: “The cheque was presented by the Chairman of the company, Engr. Emeka Ene, when he visited the Nigerian Content Tower in Yenagoa, Bayelsa State, where he was received by the NCDMB’s Executive Secretary, Engr. Felix Omatsola Ogbe, and other members of the Board’s management.
“Nedogas Development Company Limited (NDCL) is a joint venture company between Xenergi Limited and NCDMB Capacity Development Intervention Company.
“As part of the project, Nedogas NDCL constructed and commissioned a 300 MMscfd Capacity Kwale Gas Gathering (KGG) and injection facility located in the Umusam Community, near Kwale in Delta State, Niger Delta, Nigeria.
“The KGG Facility was designed to handle stranded gas resources in Nigeria’s OML56 oil province by providing the opportunity for independent operators in the area to monetize natural gas from their fields through the gas gathering, compression, injection and metering infrastructure of the KGG for quick market access.
“Nedogas is one of the several strategic and successful investments of the NCDMB funded from the Nigerian Content Development Fund (NCDF), in line with the Board’s mandate to build capacity and catalyze local projects in the Nigerian oil and gas industry as enshrined under the Nigeran Oil and Gas Industry Content Development (NOGICD) Act”.
In his remarks, according to the statement, the NCDMB Executive Secretary stated that the success story of NEDOGAS at Kwale, Delta State, could be replicated in other oil and gas producing communities to minimise gas flaring, saying that Ogbe also declared the Board’s readiness to continue collaborating with the company.
“Their model should be extended to other parts of the country where gas flaring is continuing.They have shown that with the modular system, we can quickly remove flaring from our operations in Nigeria.
“The NCDMB had continued to receive briefings from its investment partners. We’re still waiting for them to come back with success stories. Some of them are near completion and have not started operations yet”, the NCDMB’s Executive Secretary said.
In his remarks, Chairman of NEDOGAS, Mr. Emeka Ene, conveyed the company’s excitement in returning part of the credit and profit, adding that it was a proof that the NCDMB’s investment was a success and they are getting back that investment, adding that the firm looks forward to further collaboration with the NCDMB to expand its scope.
Responding, the NCDMB boss said the Board was now doing effectively and practically and tangibly what it was set up for, saying its mandate was to impact the economy by direct interventions.
“That’s the way the economy can grow, improve the gas infrastructure in such a way that’s sustainable despite the tight economic conditions”, he said.
He added that, “the value propositions of the Nedogas project include total eradication of flared gas and conversation of environmental pollutants into products of value and creation of a strategic gas gathering hub and injection node for quick access to market for gas owners to monetize gas”.
Other benefits, according to Ogbe, include the provision of alternative gas supply to western flank of the OB3 line to add to the volumes of economic sustainability and increase in Nigeria’s Gross Domestic Product (GDP).
“The partnership with NEDOGAS is one of NCDMB’s 15 strategic investments geared towards actualizing the Federal Government’s aspirations in key areas of the oil and gas industry.
“Most of the projects were targeted at actualizing the Federal Government’s Decade of Gas programme.
“Some of NCDMB’s notable third-party investments include Waltermith’s 5000 barrels per day (bpd) modular refinery in Imo State, Azikel Group12,000 bpd hydro-skimming modular refinery in Gbarain, Bayelsa State, and Duport Midstream’s 2,500bpd modular refinery in Edo State.
“Other investments of the Board include Better Gas Energy for LPG terminal and gas distribution, partnership with Rungas Prime Industries Limited to establish a cooking gas cylinders manufacturing plant in Polaku, Bayelsa State, and Alaro City in Lagos and the partnership with Butane Energy to deepen LPG utilization in the North”, he stated.
The Executive Secretary also noted that there was the partnership with BUNORR Integrated Energy Limited in Port Harcourt, Rivers State, to produce 48,000 litres of base oil per day and partnership with the Nigerian National Petroleum Corporation (NNPC) Limited, Brass Fertilizer and Petrochemical Company Limited, and DSV Engineering to establish a 10,000 Ton Methanol Production Plant, Odioama, in the Brass Local Government Area of Bayelsa State.