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RTC Can Contribute To IGR, Create Jobs – Eresia-Eke

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Only few public men in Nigeria entrusted with the responsibility of turning around the misfortunes of an ailing government enterprise exude implicit confidence in their onerous assignment. One of such men is Chief Ibe Eresia-Eke who currently sits atop the Board of Rivers State Government-owned Rivers Transport Company (RTC) as Chairman.
A master game planner, veteran task master, management expert, technocrat and politician, Eresia-Eke, dares to be different, running a quasi-government outfit profitably, away from the suffocating tradition of corruption and inefficiency which are the hallmark of most parastatals.
Making good his solid reputation as turn-around prime manager with Midas touch, the debonair ex-General Manager of RTC, former local Government Chairman, one-time State Chairman of the defunct Democratic Peoples Party (DPP), former State Chairman of the defunct Action Congress of Nigeria (ACN), and erstwhile Deputy National Publicity Secretary of the disbanded All Nigeria Peoples Party (ANPP), among many others, has been breathing life into his ideas, since coming on board.
With the see-it-all achievements of RTC made within this short space of time, Eresia-Eke, perhaps out of sheer modesty, will still tell anyone who cares to listen that there is no magic behind the new face of the company.
In this encounter with The Tide Political Editor, Victor Tew, the energetic Peoples Democratic Party (PDP) Chieftain insisted that a government-run enterprise can be viable and competitive like private firms controlled by hard-nosed extrepreneurs, explaining how RTC can contribute immensely to the state’s Internally Generated Revenue (IGR) and create employment, among other issues.
Excerpts:
How has it been running this company?
It has been quite tasking. We are expecting some support from government. We pay salaries and do other things by ourselves without government funding. Whatever we get is what we use in the running the place. It has been quite demanding. It has not been easy.
What we have been able to get so far is some support to renovate the building. When we came on board this building was very bad and dilapidated. It was deroofed. The government gave us money with which we were able to do some renovations, build a multi-purpose hall and some parks. They did not have an assembly Hall and other faculties. And all these were done under my watch.
The premises was filthy, dirty, unpainted and generally in disarray. We could’t get into the place on the first day I reported for work.
Are you suggesting that the past management did not really consider the company’s infrastructural development or are you blaming it on corruption or ineffective mismanagement?
It’s ineffective management. Not everyone knows how to manage a place, moreso an outfit such as this. They are more interested in what they would make than maintaining the existing facilities and even improving on them. Most of them do not even know that there are much more to running a place like this. The whole thing revolves around logistics and other things. You have to manage transport, the facilities and the people (the workforce). All these put together ensures effective management.
You talked about managing the people, your workers. Are they satisfied with your effort so far?
Yes, the workers are satisfied and happy with the effort of the new board. You can talk to them. Salaries, leave allowances, bonuses and every other emoluments are being paid promptly.
What is your staff strength?
We have approximately 250 staffers. This is aside from the casuals.
What plans have you to improve on your revenue generation effort?
Well, RTC is a very viable place. It is the only surviving state-owned transport company of its kind in this part of Nigeria. All we need is support, then the sky would be the limit. 99 percent of our vehicles are privately owned. They are owned by individuals who have invested with us and brought their vehicles in for us to manage. What we do is to collect commission. So you see that if we can just collect commission of 20 to 25 percent and pay salary of some 250 people and still maintain the facilities we have here, imagine if we have our own vehicles, then you will really appreciate how viable this place can be. So that is why we are saying that RTC can contribute immensely to the internally generated revenue (IGR) of the state if we are supported to acquire vehicles. We are not asking for free money. We are asking that the state government guarantees our bank loans as banks cannot grant RTC loans as a wholly owned government company . We have also asked government to give us money in the form of grant or loan and we will pay back in two to three years.
Have you also approached any institution for loans or other forms of assistance?
Yes, we have. We have approached the Bank of Industry (BOI) and they have agreed to give us 50 buses. The papers for this deal are before the Governor for consideration. We hope that with his determination to transform the transport sector and make it contribute to the state IGR, he would give it expeditious attention, especially in his second tenure as the state chief executive.
It appears that what RTC is doing now is just public private partnership for survival.
Yes, that is what we are doing now. Individuals bring in their vehicles and we manage them for a commission. But we want to go beyond that by having our own vehicles, generate revenue for the state and create employment in the final analysis.
How many vehicles have you in your pool?
We have 700. Of this, RTC has about 10 and that is very bad and critical. And because we solely depend on individuals we find it difficult to discipline them. You have to handle them with care because if they embark on strike or withdraw their vehicles from the road we won’t be able to do many things that we are supposed to do. So we are very cautious, very tactful but strict. But if we have our own vehicles our services will improve because we will be stricter.
As a transport business, there certainly exists loopholes. How do you plug them?
There are certainly loopholes and corrupt practices. Transport is a cash based business. So, we have monitors all over the place. We have check points where our vehicles stop for routine check, mostly close to the Police checkpoints at the borders with neigbouring states. This is because no matter what you do, you must come to the headquarters. We also have offices in 16 states including Abuja.
Are you satisfied with your efforts so far?
Yes, the Board has done well and the workers are happy. We have also reviewed staff condition of service. Before now gratuities were not paid, even to those who had died. But we have started paying them. So, staff welfare is a priority.
You earlier talked about casuals in your workforce. Are there plans to formalize their appointment and give them a sense of belonging like your permanent staff?
Yes, we occasionally do that. But there is an embargo on employment now. I can tell you that even as casuals they are well taken care of. However, as a government outfit we operate within laid down rules. We report to the Governor, the state Ministry of Transport and even the State House of Assembly Committee on Transport.
No too long ago, your management hinted of plans to kick-start international courier service in the first quarter of this year. To what extent have you gone to actualize it?
For now we want to concentrate on the local courier service. We are solely engaged in goods courier because most traders in Port Harcourt procure their goods from Onitsha, Lagos, Awka, Ogoja etc.
Does this mean that your company has shelved the idea of an international courier service.
Not at all. It would be revisited. We are only being disciplined by some constraints and logistics problems. So, we just want to concentrate on the local one before going international.
Is your board not considering saving a little from what the company generates to procure some vehicles for itself?
It is not easy. A Toyota Hiace bus (15 seater) is about N25 million. Even when we save we can only buy fairly used ones. Only very few buses in our fleet are brand new and because of the prevailing economic situation you hardly see anyone bringing in new vehicles. They are all used vehicles. It is not easy, but we will try. We pay salaries, taxes to the state and federal government, and other local levies. We don’t default.
Are there plans to improve on your revenue generation effort and staff welfare this year?
We can only do that if our business expands. The only way we can go about this is to procure more vehicles. In this way, we will create employment and generate more revenue for the state. So the more vehicle we have the more people we can employ –the drivers, mechanics and others. But we hope that the Governor will support us to enable the company contribute the states’s IGR and create more employment. We are confident that he will do something about it because he is a man who keeps his words.
What is your impression about the last general election in the state?
The last general election in the state shows clearly that Rivers State is a PDP State. The opposition tried all sorts of things-intimidation, bullying and all that. It didn’t work because we (PDP) are on ground and we have the peoples’ support. It turned out well because we worked hard in service delivery to deserve the support of electorate who voted enmass for PDP and defended their votes. They (the opposition) failed because you can’t rig an election where you are not popular. No way.
What is your take on the recent peace move by Amaechi shortly after Governor Wike offered an Olive Branch to political gladiators in the state?
Amaechi’s expression of readiness to seek peace as canvassed by Governor Wike is a welcome development if he (Amaechi) is sincere. If he genuinely asks for forgiveness, ofcourse Rivers people will forgive him. But he has a reputation of not keeping to his words. But I know that the Governor is sincere about his call for peace. And they are brothers in the first place, why won’t they make peace. So, let them come together in the interest of the development of Rivers State. This is over and above the interest of any individual.
How would you assess Governor Wike in terms of service delivery?
The Governor has performed exceptionally well. Just take a look at the quantity and quality of projects dotted around the state that he conceptialised and executed in the past four years. That is why the people of the state came out in their large numbers to vote for him in the last elections. If he did not do well they would not have voted for him. The fact that they voted for him is an appreciation of his hardwork. So we are happy for him and we are sure that he would do more in his second tenure. And let me say one thing: the impression in some quarters that governors do relax in their second tenure is not true of Governor Wike that we know. This is more so as Rivers people showed him love during the elections. They appreciated him for his outstanding performance.
What is your message to the people of the state?
Rivers people should continue to support the Government of Chief Nyesom Wike and the Peoples Democratic Party for them to continually reap the dividends of democracy.
For the people of Ogba/Egbema/Ndoni, I enjoin them to remain peaceful, law-abiding and supportive of the state government. It was quite interesting to note that Onelga people confounded cynics and critics by maintaining peace in the just-concluded-elections as politicians came together and ensured a rancour-free and fair polls.

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Eazipay  Offers Zero-Interest Loans To  150,000 SMEs, Employees

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With a mission to ignite growth, encourage business continuity and help businesses and employees thrive, Eazipay is gearing up to propel the dreams of 150,000 SMEs and employees to new heights through her relief fund.
Gone are the days of financial constraints and stifled dreams. With Eazipay’s support, SMEs and employees alike can bid farewell to limitations and embrace a world of endless possibilities.
Whether it’s start up,  business expansion or personal development, Eazipay is here to make dreams come true.
The mind-blowing initiative, which  kicked off this month, would end in December, and will also offer a range of perks and benefits designed to put a smile on the faces of SMEs and employees alike.
From exclusive discounts to various advisory services and beyond, Eazipay is committed to spreading happiness and creating lasting impact in people’s lives and to the growth of businesses.
The technology company which offers products and services that range from payroll management to IT/Device management and assessments, “Eazipay isn’t just providing financial support but also unleashing a wave of growth and prosperity for SMEs and employees across the nation.
“Interested businesses and individuals can take part in this initiative directly from the Eazipay website: www.myeazipay.com”.

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SMEs Critical For Sustainable Dev – Commissioner

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The Commissioner of Finance, Lagos State, Abayomi Oluyomi, has described Small and medium Enterprises (SMEs) as a critical engine for sustainable development in any economy.
He said this recently at the 10th anniversary of the Alert Group Microfinance Bank and the opening of their new head office in Lagos.
According to the National Bureau of Statistics, SMEs accounted for about 50 per cent of Nigeria’s gross.
He commended the positive impact of the Alert MFB as it empowers SMEs in the State.
“Alert MFB in the past 10 years has been at the forefront of empowering SMEs in Lagos State, disbursing over N30bn in loans to over 30,000 individuals having small to medium businesses over that period, which is quite remarkable”, he said.
Speaking, the Group Managing Director of Alert Group, Dr Kazeem Olanrewaju, revealed that the financial institution commenced business in 2013 as a microfinance bank.
“We started this journey in 2013 and it has been expanding. Today, they have about 10 branches across Lagos. They have supported well over 30,000 clients and have disbursed over N30bn.
“The company has been profitable since the second year. Looking at the market and the available opportunity, the Alert MFB board decided to come together to establish a Microfinance Institute (MFI), which is the Auto Bucks Lenders”, Dr. Olanrewaju said.
The GMD further stated that the company was focused more on supporting businesses and small and medium enterprises.
“The loan to support business represents over 98 per cent. The consumer loans you will see are the ones given to entrepreneurs. So, the area of focus of Alert MFB and Auto Bucks Lenders is to support businesses across the country.
“With the establishment of Auto Bucks Lenders, we have the opportunity to also do business outside Lagos. So, presently, we have offices in Ogun State and Oyo State. We intend to go to every part of Nigeria to support what we are doing”, he declared.

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Retailers Explain Price Drop In  Cement Cost

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The cement market, in the last couple of weeks, has seen a significant turnaround with prices tumbling from between N10,000 and N15,000 per 50kg bag to between N7,000 and N8,000.
The sudden rise in the prices of cement and other major building materials in February this year upsets  the construction industry, especially in real estate, where many developers were forced to abandon building sites.
A recent market survey conducted by The Tide’s source in different locations across the country confirmed a price drop, ranging between N7,000 and N7,500 per bag, though BUA cement is selling for N7,500 to N7,800 per 50kg bag, depending on location.
Both entrepreneurs and major distributors who were interviewed,  explained that the price drop is due to low demand and government’s intervention.
At the peak of the price hike, the Federal Government called a meeting with major producers where it was agreed that a bag of cement should be between for N7,000 to N8,000, depending on location.
But the producers did not comply with this agreement immediately, followin which “Nigerians stopped demanding for cement; many project sites were abandoned as developers sat back and waited for the prices to come down.
“So, what has happened is an inter-play of demand and supply with price responding, which is Economics at work”, Collins Okpala, a cement dealer, told the source in Abuja.
In the Nyanya area of the Federal Capital Territory, a 50-kg bag of Dangote cement now sells for between N7,000 and N7,500, while BUA cement sells for between N8,500 and N9,500, down from between N11,000 and N12,000 respectively.
In Lagos, the product has seen significant price drop too. In Ojo area of the state, Sebastin Ovie, a dealer, told our reporter that what has happened is a crash from the January price, attributing the crash to low demand and stronger naira.
“The current price of the product is between N7,000 and N7,500 per 50kg bag, depending on the brand. This is a significant drop from the average of N12,000 which most dealers were selling in February and March”, he said.
A dealer in Agege area of the state who identified himself as Taofik Olateju, told the source that sales are picking up due to the drop in price.
He recalled that Nigerians at a point stopped buying due to the high price of the product at N15,000 per bag.
“I am sure most dealers ran at a loss then because we had mainly old stocks which we wanted to offload quickly”, he said, confirming that the product sells for between N7,500 and N8,000, depending on the brand and the demand for the brand.
Continuing, Olateju noted that “because the naira is now doing well against the dollar, it will be unreasonable for manufacturers to continue to sell the product at the old prices. I also believe that the federal government’s intervention and the threat to license more importers may have worked, leading to the reduction in price”.
In Enugu, the source reports that the product sells for between N7,200 and N7,500 depending on the brand and location.
“This is a city where the price of a 50kg bag went for as high as N12,000 and N13,000 in some cases in February and March”, Samuel Chikwendu said.
He added that the prices of other building materials, especially iron rods, have also dropped considerably which is why, he said, activities are picking up again at construction sites.
The story is slightly different in Owerri, the capital of Imo State, where Innocent Okonkwo told the source that low demand was also driving the price drop, adding that a 50kg bag was selling for N9,000 on the average in the state.
Sundry market observers are optimistic of further price reductions, but they remain cautious as manufacturers, wholesalers, and retailers continue to play critical roles in setting prices for end-users.
They lamented, however, that despite Nigeria’s status as one of the largest producers of cement in Africa, the price of the product continues to rise, particularly in the face of high inflation impacting the building materials market generally.
Okpala in Abuja highlighted the variations arising from direct sourcing from manufacturers versus procurement through dealers, with traders holding old stocks selling products at prices ranging from N8,500, N8,300 to N8,000 per bag.
Lucy Nwachukwu, another dealer in Abuja, said the significance of  procurement volume in determining cement costs, noting that stability in prices has been observed over the past month, with the product retailing for between N7,000 and N7,800 depending on the brand.
In Port Harcourt also, a customer, Daniel Etteobong Effiong, said the price goes between N7500 to N8500, depending on the brand and the location one is buying from.

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