Business

Is Cyber Café Losing Business To Smartphones?

Published

10 years ago

April 18, 2014

Few years ago, run
ning a cyber café was still highly profitable in Nigeria, while many people were attracted to that business.
Today, the story is different; many cyber café operators can hardly make ends meet, while those who cannot persevere have left the business.
The reason, according to computer analysts, is the rise in smartphones, as people now access the internet from the comfort of their rooms.
“Internet cafes across the developing world, including Nigeria are reporting dwindling numbers of customers as smartphones make the mobile web less attractive.
“After all, why pay for web access on someone else’s old PC when you can access Facebook and other internet facilities on your smartphone device from anywhere you like? Mr Maxwell Okechukwu, an ICT expert, asked.
A Lagos based Information Technologist, Mr Oluwaseun Adeboye, however said that a recent study showed that people had continued to rely on public venues like the cafes to access the web.
According to him, a five-year study released by the University of Washington in July, 2013, shows that web users continue to rely on public venues for web access even when smart phones are available.
“One technology does not replace the other and smartphone will not solve the access problems,’’ Adeboye said.
But many cyber café operators complained that the emergence of smartphones had greatly reduced the number of people patronising their services.
Mr Kunle Aribisala, who has been in the cyber café business for seven years, said that patronage was low in recent times.
The 36-year-old Aribisala, has a cyber café with 10 computers in Osogbo, Osun State.
“Making money was easy in the beginning, when there were not so many home computers or smartphones.
“It has become more and more difficult to attract consumers. People would rather play with their smartphones,” he said.
Sharing similar sentiments, a café operator in Ibadan, Mr Tunde Iyiola, said many people now preferred to use their smartphones to browse rather than visit a cyber café.
“Although, we enjoy a reasonable level of power supply in this area, many people prefer to browse on their smartphones.
“The only time people come to the café is when they want to scan a document or do a print out,’’ he said.
Another operator, Mr Kazeem Hammed, said he was planning to close his shop for another business due to low patronage.
Hammed said that many people had resorted to the use of smartphones rather than visit a café, adding that the practice was not encouraging the business.
“The golden days have passed. It is impossible to earn money easily like we did in the past.
“The few people that come to café once in a while are the university candidates who want to print out their admission letters or scan a document. This is not too good for the business.
“ The cyber cafes are not so attractive to the users as they used to be since most of their functions have been replaced by mobile internet devices,“ Hammed said.
Another operator, Mrs Ibironke Isiaka,said cyber café was a lucrative business before the advent of smartphones.
“You know technology is improving every day. Most people now use their phones to browse, and indeed, I do not see any reason why they should patronise the café again,’’ she said.
Analysts say that many people now prefer to use their smartphones because they are cheaper and more convenient.
Miss Chisom Maduike, said that she bought only N1,000 data plan for a month to browse.
“My smartphones can satisfy my needs, why should I visit a café?
“It saves extra cost and provide me with the comfort and ease to do whatever I want, ‘’Maduike said.
A student of Osun State University, Emmanuel Oladipupo, said after buying a smartphone a year ago, he stopped visiting cyber cafes.
“I can play games and get news on my phone. Then why visiting cyber café again?
“Besides, these phones have the option of Wi-Fi and USB tethering; a person can connect his or her laptop/computer with the phone and surf the internet.
“Also, facebook, twitter, gmail, nimbuzz, all these services are present in a mobile phone (even a feature phone), thereby reducing the need to go to a cyber café on a regular basis.
“ My colleagues will rather play video games on their phones than go to a cyber café because it’s more convenient and cheaper.
“Most of my classmates have computers, and we need not go to the cyber café to search online information like our predecessors did,” he said.
Also speaking, a journalist, Mr Kolawole Idowu, said the internet on smartphones was always on, be it GPRS or 3G.
“If the pack is good enough, a person does not have to worry about spending any extra money on cyber café since they have become similar to broadband.
“Also the price of an hour in a cyber cafe is about N140, whereas a subscription on smartphone is about N1, 000 per month.
“This means that to subscribe on smartphone is cheaper than to visit a café,“ Idowu said.
As experts say, “ one technology does not replace the other,’’ cyber café operators should exploit their areas of comparative advantage in order to remain in business.
Adeoti is a staff of News Agency of Nigeria.

Victor Adeoti

Business

Fuel Scarcity: IPMAN threatens shutdown over bridging claims

Published

4 days ago

May 3, 2024

The Tide

The Independent Petroleum Marketers Association of Nigeria (IPMAN) Depot Chairmen Forum, has exonerated its members from the current fuel scarcity in the country.

According to IPMAN, this is caused by its inability to source petroleum products.

The IPMAN Depot Chairmen Forum also threatened to withdraw its services over non-payment of N200 billion bridging claims by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to its members, since 2022.

Alhaji Yahaya Alhassan, the Chairman, of the Forum said this while briefing newsmen in Abuja, yesterday.

Alhassan said the Nigerian National Petroleum Company Limited (NNPC Ltd.) was the sole importer of the product, but the marketers could not source products from NNPC Ltd. deport, rather from the private depots at high rate.

“We cannot buy fuel from the private depots at N950 and transport the product from Lagos to the North and other parts of the country with N2 million and still sell it at N900 or N1, 000.

“It is expedient for us to state that we are more pained by the non-availability of petroleum products in the country, which has given rise to another round of untold hardship for Nigerians.

“Contrary to claims that IPMAN members are hoarding Premium Motor Spirit (PMS) known as fuel, we would like to categorically state that PMS scarcity is wholly triggered by inability to get fuel from NNPC and not IPMAN,’’ he said.

Meanwhile, the NNPC Ltd. Chief Corporate Communications Officer, Olufemi Soneye said the disruption was due to logistical issues which had since been resolved.

“We currently have an availability of products exceeding 1.5 billion litres, which can last for at least 30 days. Unfortunately, we experienced a three-day disruption in distribution due to logistical issues, which has since been resolved.

“However, as you know, overcoming such disruptions typically requires double the amount of time to return to normal operations.

“Some folks are taking advantage of this situation to maximise profits. Thankfully, product scarcity has been minimal lately, but these folks might be exploiting the situation for unwarranted gain,’’ Soneye said.

He however, said the lines would clear out soon.

On the non-payment of bridging claims, the IPMAN forum said it was distressed and depressed by the laidback attitude of the NMDPRA towards the survival its member’s businesses, arising from its refusal in paying the claims.

“It is with deep frustration that we have assembled here today as the IPMAN Depot Chairmen Forum. It is also disheartening to note that some of our members have completely shut down businesses and retrenched employees.

“As businessmen and women, our members acquired bank loans to keep their fuel retail outlets running on a daily basis across the nooks and crannies of Nigeria in order to serve the teeming population of Nigerians,’’ Alhassan said.

He recalled that Sen. Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), at a stakeholders meeting in February mandated the NMDPRA management to clear the entire debt in 40 days.

“However, today, we have crossed the 40 days’ time lapse given to the NMDPRA to clear the debt, and it is shameful to state that only the paltry sum of N13 billion has been paid, ignoring minister’s directive.

“We are not happy with the indiscriminate increment in the issuance and renewal of Sales and Storage Licence, by the NMDPRA, and the subsequent delays in acquiring the licence, which our members are recently subjected to.

“We are also calling on President Bola Tinubu to look into this unwholesome figure which is highly detrimental to our business and reverse it forthwith, as it is bound to impact negatively on the masses.

“We are poised to take far reaching decisions that may cripple the supply and sales of petroleum products across Nigeria if our demands are not met within the shortest period of time.

“We are collectively prepared to withdraw our services, shut down every single outlet, and suspend lifting of products forthwith till our demands are fully met, and the consequences will be terrible.

“We call on our members to however remain resolute and law abiding, even as we draw close to the immediate ultimatum for our demands to be met by the NMDPRA,’’ the chairman said.

Reacting to the IPMAN’s claims, the Acting Head, Corporate Communications, NMDPRA, Seiyefa Osanebi said the bridging claims payment was ongoing.

“The bridging claims payment is always an ongoing process,” she said.

Maritime

Shippers’ Council Registers 160 Port Operators

Published

1 week ago

April 29, 2024

The Tide

The Nigerian Shippers Council (NSC) says it has registered 160 Port stakeholders into its Regulated Port Service Provider and Users platform since the initiative began in 2023.
Executive Secretary, NSC, Mr Pius Akutah, made the disclosure on the sideline of a sensitisation programme by the commission for port operators in Lagos, with the theme, “Regulated Port Service Provider and Users”.
Represented by the Director, Consumer Affairs, Chief Cajetan Agu, Akutah emphasised the significance of the programme for stakeholders.
He said the sensitisation programme was the second edition after its commencement during the last quarter of 2023.
The Secretary said the 160 registered port operators consist of agencies, terminal operators, shipping companies, individual port users as well as service providers.
“We invited the ports stakeholders for enlightening them on the processes for online registration of Regulated Port Service Provider and Users.
“We have demonstrated to them how to register and how to make payment and we were able to present before them the various categories of the registration.
“The rate of payment is also in the registration. The payment of each group depends on the operation. A shipper pays N30,000, terminal operators and shipping companies pay N300,000, truckers also pay N30,000, while some pay N50,000 and N100,000.
“The Council was able to intimate them on the benefits, because port users benefit more as we help to interface on reducing port charges from time to time”, Akutah said.
He said that there was a need to continue to work with port operators to stop delays and eliminate high costs to make the port efficient.
Also speaking, the Deputy Director, Stakeholders, Service, NSC, Mr Celestine Akujobi, said “the sensitisation exercise was important for the council to enable us bring all the port stakeholders together”.
According to him, this is to avoid challenges during the implementation of the council’s responsibilities.
“By the time we introduce sanctions on defaulters, no operators will complain that he or she is not aware of the registration.
“I’m happy with the turnout of this sensitisation. This shows that the operators are well informed of the statutory friction of the council as the port regulator.
“The final implementation will commence as soon as we discover that all the operators have keyed into the portal.
“We are engaging other ports across the country and we’re hopeful that before the last quater of 2024, the council will implement sanctions on defaulting operators”, Akujobi said.
Earlier, Vice Chairman, National Association of Government Approved Freight Forwards (NAGAFF), Dr Ifeanyi Emoh, said port challenges were enormous, adding that they originated from some of the government agencies.

Emoh urged the council to look into regulating other government agencies, so that there could be a window through which they can collect port charges collectively instead of indiscriminately.

By: Chinedu Wosu