KNOCK-OFFS: MOBILE PHONES

KNOCK-OFFS: MOBILE PHONES

There is no phone that has not been counterfeited. The market for knock-offs knows no boundaries, from developing countries to the G-20 nations, there are stories of counterfeited mobile phones. Big names like Nokia, Samsung, Sony Ericson, LG, etc have all been affected.

Reason for having so many fake phones in the market range from inability to differentiate fake from genuine, low price of fake phones and the deliberate desire of the consumer to patronize these fake products for personal reasons. Being an open market, it erroneously believed that no one is directly being affected by the sale of knock-off phones. Consumers suffer the loss of income in purchasing phones that would not serve on the one hand; and on the other hand, consumer also suffers health hazards due to dangerous emissions which become quite harmful with continued use of the product. There was a report of a young man who died due to massive electric current that ran through his phone which was charging while he was using it. The low price of these fake phones tightens the noose around genuine mobile phones and they are forced to take their business elsewhere because of the stiff competition and in doing so, the citizens suffer because of employment loss. The government also looses revenue in that duties and taxes are not paid.

For the Nigerian market for fake mobile phones, while hiding under the excuse of poverty and inability to afford genuine phones, consumers are cautioned to note that it is not just about the loss of income but the risk their health and further depletion of the already poor economy as well as taking jobs away from Nigerians. The Chinese government is putting in measures to stem the “Shanzai tech market” (copied or fake products) which is a money spinner but a major source of worry to the Chinese as well as the global technology sector.

United States of America and the United Kingdom are also making effort to check their activities by delisting such unrecognized phones from their national network. The Nigerian regulator, the National Communications Commission (NCC) has commenced an enforcement campaign of the NCC Act of 2003 which provides for protection of the consumer in establishing and enforcing standards for all telecommunications equipment in Nigeria with the aim of ensuring that they operate seamlessly and safely with the country’s telecommunication environment.  The NCC approved 57 mobile phones with different models for the Nigerian market effective March 14, 2011.

The implication is that all mobile phone service must receive the type approval of NCC for their equipment including customer devices like mobile phones and wireless adapters to conformity with applicable standards as mandated by NCC before bringing them into Nigeria. It has not been all talk or business as usual as the NCC came down on some mobile phones companies like Kenxinda Mobile and-Tide. Kexinda Mobile is a Chinese company that has about 17 different models of mobile phones in the Nigerian market without the NCC type approvals. The Head of Media and Public Relations of NCC, Mr. Reuben Muoka explained that the company has the Standards Organization of Nigeria Conformity Assessment Programme certificate as well as the Sales and Installations certificate from NCC but these are different from the NCC type approval and for this reason the company was sealed.

The Head of Enforcement of NCC, Mr. Efosa Idehen confirmed that Kexinda was given enough time to regularize but failed to do so; rather the company continued business and was placing adverts in the dailies. Mr. Idehen stressed that Kexinda is just one out of the seven companies providing the service without the required approvals and in due time, they will be called upon.

Producers of genuine mobile phones owe the Nigerian consumer the duty of educating him or her on how to spot fake phones and continually stress the dangers inherent in using fake phones. It will do everyone involved a world of good if they would partner with regulators to carry out vigorous enlightenment campaigns.

The consumer will equally contribute to this campaign in being alert to spotting and avoiding fake phones. Some of the ways by which fake phones can be identified are:

i.                 Incorrect spelling of the brand name

ii.                Phone does not support English language

iii.               Phones of the same make and model come in different sizes and shapes

iv.               Instruction manuals are badly interpreted and almost meaningless to the consumer

v.                They come with no warranty

vi.               Logo is upside down or back to front

vii.             The price is too good to be true in relation to all the functions the phone is claimed to be able to achieve.

HIGHER ELECTRICITY TARRIFFS FOR NIGERIA
Along the line of rapid economic reforms planned by the Nigerian government which is aimed at the removal of the federal government subsidy on petrol, privatization of Power Holding Company of Nigeria (PHCN) and the Petroleum Investment Bill (PIB) which is aimed at unifying all the necessary legislation in one bill, providing a clear framework for investment in the energy sector the new Multi-Year-Tariff Order (MYTO) will be officially released by the end of February and will take effect between April and June.  The increase in electricity tariffs will range between 25 and 88% which will result in increase of up to 50% in bills.  This new tariff structure will result in consumers having to pay more the supply of electricity.  The chairman of Nigerian Electricity Regulatory Commission (NERC), Mr. Sam Amadi made this known to journalists.

According to Mr. Sam Amadi, NERC has taken a lot of factors into consideration as the increase will not be a 100% increase across the board and NERC also plans to ensure that consumers are effectively carried along so that members of the public are fully enlightened of the necessity of the increase.  The MYTO is aimed at gradually increasing electricity tariff to attract private investors to invest in NIgeria.  

The Minister for Power, Engr. Barth Nnaji  is reported by FT to have said “we are making sure that the urban poor and rural dwellers be provided a subsidy so that they don’t see a significant increase in tariff.”

While welcoming the development, responses from members of the public again highlight the fact that at a steadily increasing frequency, power supply tariffs have been increasing.  Some consumers express a lack of confidence in the government especially over the shocking removal of the Federal Government’s subsidy on petrol.  Furthermore, until December, 2011, consumers using the pre-paid meter were being billed for a meter maintenance charge – a service which was not being rendered.  It was a welcome relief when NERC instructed the Power Holding Corp of Nigeria (PHCN) to immediately stop the obnoxious charge.  The normal thing in Nigeria is that once costs begin to rise, it is very rare for such costs to be reverted.  It is like removing the meter maintenance charge was in view of the increase in electricity that was in the pipeline for Nigerian consumers.

In a meeting which took place between a delegation comprising of representatives of eight power companies, other financial service provides from the United States of America headed by the United States Deputy Assistant Secretary, William Fitzgerald and the NERC at Abuja on Monday, 13^th of February, 2012, the delegation called for proper public relations campaigns that will allow for awareness and effective dissemination of information on the proposed increase in electricity tariffs to prevent public outcry or protests.

Vice Chairman of US Export-Import (EXIM) Bank, Wanda Felton called for the use of radio to inform consumers due to its wide coverage and popularity in the country.  Mr. Amadi confirmed that NERC is already thinking along those lines.   

Electricity supply in Nigeria is ranked to be among the cheapest in the world and the supply of electricity one of the poorest in the world. With vast reserves of oil and the rapid economic growth all through Africa, majority of Nigeirans barely exist on less than the world defined poverty line; as low as below $1 a day. World Bank reports that with GDP rising from $87.8bn to $193.7bn which is a growth of about 120% which cannot be compared with population growth of just 16% clearly indicative of years of inequality in poverty and income. 

FOLLOWING THE STORM

FOLLOWING THE STORM

As soon as the protests took off, virtually all Nigerians became political and economic commentators at their various levels of experience and exposure.  Quite intriguing were the interviews and discussions on the various units of the media.  While the people vented their anger and frustrations at the government of the day for taking the decision to remove the Federal Government’s fuel subsidy, a can of worms was opened which has resulted in the ongoing probe panel that has been set up to investigate allegations of mismanagement and impropriety at the Nigerian National Petroleum Corporation (NNCPC).  The panel chaired by Hon. Lawan Farouk is yet to conclude probing however; revelations that have been made so far are quite disturbing.

Madame Christine Lagarde of the International Monetary Fund (IMF) visited the president Nigeria a week before the announcement of the removal of the federal government’s subsidy on petrol.  Popular opinion has it that President Jonathan’s decision to go ahead with the removal while discussions and negotiations were still going on was the result of Madame Lagarde’s visit. The IMF as well other international financial institutions like the World Bank,  and the Paris Club the London Club have been pressurizing Nigeria and other developing countries in this direction as the basis for its continued support in terms of loans and other financial handouts.  One or two nations like Brazil have in the past agreed and undergone such economic revolutions and they are benefitting from the sacrifice. China also underwent such stringent sacrifice and today China is on the same pedestal as world economic giants.  Very true, however, the magnitude of corruption in China and Brazil cannot be compared with what obtains in Nigeria.

Mrs. Ngozi Okonjo-Iweala on many occasions during the protests stated that Nigerians express a strong sense of distrust for the government; this is equally true, however, while Nigerians look forward to the development of Nigeria and making the required sacrifice, the issue of corruption continues to fester so it is not entirely out of place to distrust the government.  The ongoing probe is aired on national television stations most of the time and from what little gathered so far, government subsidizing petrol is not the real challenge before Nigerians rather, it has become clear that the avenues for wastage in the government of the day is colossal and by all standards, the government has turned out to be too expensive for the economy.

Mr. Olisa Agbakoba referred the panel to the audited accounts of the Federal Government of Nigeria which showed that a lot of money slips away unaccounted for and if such a wastage is cleared and properly channeled, the government would not need to be borrowing or falling at every threat of international financial institutions who fail to see that there are at least 90% of Nigerians who exist on less than $2 a day.