NIGERIA HOUSING CRISIS, WHAT'S THE WAY OUT?

1. THE PROBLEM:
Nigeria currently has a Housing Deficit of about 16 million. Lagos alone accounts for 30% of that deficit. Let’s look at the state of Housing in Lagos:  according to recently released statistics, Lagos has about 4.75 million Houses against a population that is in excess of 20 million. Statistics also show that out of these 4.75 million Houses, only 3.15 million are residential, while the rest are offices, churches and mosques. And over a third of the remaining 3.15 million houses are in slumps and areas which clearly need urban renewal. 

One may not appreciate how bad the issue of housing deficits currently is until one considers the size and the age distribution of the Nigerian population and the population growth rate, which is put at a year on year average of 2%  against the low rate of growth of the real estate market, especially at the lower end of the market.  World Bank statistics  puts Nigeria at 168 million people with 70% of the total population below 40 years of age.  From the total population therefore,   about 118 million people are below age of 40 years with the median age at 17.9 years . Now if that statistics  is placed against other key indicators such as rate of migration from rural to urban centres, it becomes palpable that beyond the current 16 million Housing deficit, there will be a major Housing Crisis in less than 20 years from now.

2. FINDING A SOLUTION:
The question to ask is how do we resolve this problem? An easy answer will be to say that Government should prioritize the building of low cost houses. But Government already has a lot of issues it is battling with, such as Education, Health and other Social Amenities, so where is the money for mass low cost housing going to come from? Another hurried answer will be to use the PPP model? The question then arise, how do we do this successfully since the PPP model already adopted by some State Governments like Lagos appears to be failing, with the cost of the houses delivered through PPP's being out of the reach of the people it is meant for.

 With minimum wage pegged at 18,000 naira it will be near impossible to get people of low income brackets to buy houses delivered at over 5 million naira even if they were expected to be allotted on owner occupier basis with repayment made through deductions from their salaries over a twenty year period. Now the next solution will be to prioritize Medium Income Housing through PPP’s while we rethink low cost housing. The current reality is that the interest on  Mortgage loans in Nigeria averages 19%  and equity contribution is about 20 - 40%. Now if a medium housing unit which is delivered at an average of 20 million naira through a PPP is put on the market for 22 million naira at 10% profit (which is below the rate of inflation, put at 12.3% in 2012); how will a medium income earner be able to access  a mortgage facility at 19% interest and an equity contribution of between 5- 6 million based on national income averages? 

Of course some will say why not access the Federal Housing Loan through the Federal Savings Bank that has a 6% charge attached to it? But then, the maximum available is 15 million naira, and how many people are able to access that? 

3. SO WHAT IS THE WAY OUT?

a. CRASH THE COST OF MORTGAGES
The way out is to get the banks out of mortgages first of all because the current interest structure from the Banks defeats the essence of Mortgages. The question then arises; where will the average person desirous of owning a home get funding? Some will quickly say through the Pension Funds. But we all know that all Pension schemes in Nigeria before the Obasanjo Pension reforms – from National Provident Fund to the Nigerian Social Security Trust Fund - have been embezzled with the consequence being the lack of real long term funds within the economy for projects such as mass housing.  So how can Pension Funds bail us out of this Housing quagmire?

My recommendation will  be to first of all build more transparency into Pension Fund Administration and the next step will be to encourage Pension Funds and Insurance Companies to pull together long term Funds for Mortgage lending through the a National Savings and Loan Scheme which is Privately run by different operators and regulated by a National Mortgage Commission to be set up by Government.

b. ENCOURAGE LARGE HOUSING OFF TAKERS TO ACCESS THE PULL OF FUNDS FROM INSURANCE AND PENSION FUNDS 

i. ON THE SUPPLY SIDE - Large Real Estate Off-takers can  be encouraged to take advantage the pull of funds from the Pension and Insurance funds with preference given to those with low cost designs and cheaper source of building materials. These Real Estate Off-takers will be licensed on a Regional basis based on proven capacity to deliver cheap and durable housing under a National Mortgage Policy akin to what is be is obtainable under the Power Reforms. Allocation of land for this purpose will be done through State governments under a land swap arrangements which will give marginal equity to State Governments for housing projects under their jurisdiction. If this process is fine-tuned and backed by relevant legislation, there will be a huge interest by credible foreign and local participants on the supply side and selected Off-takers will be able to leverage scope and scale advantage to lower their cost and have a good spread in terms of margins.

ii. ON THE DEMAND SIDE - Prospects will be encouraged to form thrift associations to buy into such housing projects. And this thrift system will further reduce cost as subscription will be done on group basis in order to drive down cost.

It is my sincere belief that if this strategy can be fine-tuned, with other Fiscal policy measures which will encourage cheaper building materials and more cost effective housing solutions taken by government, Nigeria will begin to tread the right path to reducing her huge Housing deficit, while putting plans in place to arrest the looming burst should Nigeria's population begin to age.

Breaking the Cycle of Poverty in Nigeria

As the whole 2015 drama gathers steam, the issue that seem to dominate the polity is this concept of turn-by-turn Presidency and not the real issue.

I have heard supporters of the current President play this up and I continue to hear the Chief Antagonists like the Northern Elders forum also pack their punches in this regard. But truth is, we know the real issue, I reckon we also know the solution but something tells me there is no will to solve it, BECAUSE HERE, ACCESS TO POWER MEANS ACCESS TO OPPORTUNITIES FOR ANY SECTION OF THE POWER ELITE THAT ATTAINS IT.

Nigeria today has a poverty level of 63%. When this statistic is pitched against a year on year growth average of 7.4%, it becomes clear that Nigeria's growth is not trickling down. Yes people have blamed corruption for Nigeria's uneven development, but the question is what fuels corruption? I reckon the answer lie in the structure of Nigeria and the values of the Nigerian power elite. Here, you have a situation where power is seen as an opportunity to share rather than care.

I have listened to every political party speak about their manifesto but non thus far is speaking about the real issue: How do we restructure Nigeria? How do we change the values associated with leadership and above all, how do we end the cycle of poverty that fuels crisis and causes instability? For me, the answer lie in doing three things - 1. EDUCATION - 2. ENERGY - 3. EMPOWERMENT.

1. EDUCATION - Tied to poverty is illiteracy. How do we avail the right kind of education that can feed our development needs? Is it education that priortises white-collar jobs or blue-collar, one that seeks to accelerate development and one that targets the bottom of the pyramid - giving them requisite vocational skills that can feed into a chain of small businesses and can guarantee a supply of support skills that can help quicken our infrastructure and industrial development?

2. ENERGY - Growth and Development are actually not synonyms. In Nigeria's case, growth has averaged 7.4% in the last 10 years without commensurate development. How can a nation fast-track development with electricity supplies to the national grid averaging 2,500 Megawatts in a nation of 167 million people? It is often said that small businesses are the engine room of development in any economy, and China remains a classic example. There is correlation between access to energy and cost doing business as well as the development of small businesses.

3. EMPOWERMENT - Agriculture contributes about 45% of Nigeria's GDP but it is largely done at subsistence level with no empowerment for rural and small-holder farmer, hence the high-level of rural-urban drift and tied to this is the high level of destitute and crime in our urban centres. How can we empower small-holder farmers, implement a value chain approach to the development of our Agriculture while moving from Farm-gate to factory-gate?

I reckon that any party that can effectively answer these 3E questions and can present a candidate that has the profile and the will to execute it will have my vote in 2015. It is indeed the turn of the Nigerian people. http://data.worldbank.org/country/nigeria

** Bolaji Okusaga is the Managing Director The Quadrant Company and can be reached at bokusaga@yahoo.com

REINVENTING CUSTOMER SERVICE IN THE AGE OF THE INFORMED CONSUMER

1.      WHO IS THE CUSTOMER?

The Customer is that person or Institution that makes a demand for your products or service offering.

A Customer is the target for specific products or service and helps add value to an enterprise through the demand he / she makes of specific offerings.

The Customer is the most crucial actor in the marketing process because there can be no marketing without the Customer.

2.      WHAT DOES THE CUSTOMER WANT?

The customer seeks for the satisfaction of his / her needs in the market.

The producers of goods and services seek to satisfy the desire of Customers for value in return for profit.

The customer demands the value inherent in the consumption of products or services and also gives value to the producer in the process.

3.      PERFECT MARKET: THE OLD ORDER

In an imperfect market, where the DEMAND for specific products or services outweighs SUPPLY, producers are usually price-makers, who make little effort to woo the Customer.

This situation occurs in a monopoly or an oligopoly.

Here, producers dictate their terms and Customers strive to meet these terms.

4.      ENTER THE ERA OF IMPERFECT MARKETS

With globalization, increased innovation and its attendant atmosphere of fierce competition, where monopolies like Microsoft and Oligopolies such as Coca-Cola, IBM, Nestle and PepsiCo are now facing stiff competition from emerging enterprises in China and India, the era of price-makers in perfect markets are over.

The death of perfect markets has led to a new era where competitive edge is not only driven by product quality but by distribution, delivery and customer service innovation.

5.      THE DEMANDS OF A CUSTOMER SERVICE CULTURE

Global exposure to technology and skilled Man power, led to the advent of product parity in most industry and the consequent erosion of rigid customer loyalty.

Price now became a big consideration in choosing between competing brands and products.

In this dispensation, consumers became price-grabbers, shopping for price and not out of loyalty.

 

However given the need for differentiation beyond price and product quality, companies now started to innovate in the area of product delivery, turn-around time and Customer service.

This shifted emphasis away from Total Quality Management (TQM) to Total Relationship Commitment (TRC) and redefined the whole concept of Marketing.

6.      ENTER THE ERA OF MAXI-MARKETING...

Noting that traditional marketing with its emphasis on Product, Place, Price and Promotion, does not adequately address Customer needs, Maxi-marketing a blueprint centered around Customer Relationship Management (CRM) emerged.

Customer Relationship Management is a process or methodology used to learn more about customers' needs and behaviours in order to develop stronger relationships with them.

Customer Relationship Management  as a process which brings together pieces of information about how customers, sales, marketing effectiveness, responsiveness and market trends help to shape a Company’s Business  Strategy.

7.      CUSTOMER RELATIONSHIP MANAGEMENT: THE NEW REALITY

Customer Loyalty is crucial in the drive at year on year profit.

For a company to stay solvent and profitable, it must manage its customer churn rate and increase its customer retention capacity.

To drive this strategic intent, Companies must court the Customer by meeting or surpassing his expectations through availing the Customer a robust value proposition well beyond the competition.

8.      WHAT IS CUSTOMER LOYALTY?

Customer loyalty describes the tendency of a Customer to choose a product or service over another.  Note the use of the word "choose”.

Though customer loyalty becomes evident when choices are made and actions taken by the customer, customers may express high satisfaction levels with a company in a survey, but satisfaction does not equal loyalty. 

 Loyalty is demonstrated by the actions of the Customer; Customers can be very satisfied and still not be loyal.

9.      RETAINING THE LOYALTY OF THE CUSTOMER – WHAT IMPERATIVES?

If your Customer could compare you with your competitor in terms of your product and price, would you be better off?

Companies generally need to know two key principles about customer decision making:

a)      Customers never buy solely on price even though we think they do.

b)      Prices may be transparent to Customers, but value is usually opaque. By building a Customer service culture, companies build added value to their offerings.

10.  MOVING THE CONVERSATION AWAY FROM PRICE TO VALUE

In value based selling, relationship is prioritised over transaction. Sale is therefore a continuous process - from building the pipeline, the narrowing on the prospect, making the real sale to after sale service - customer satisfaction is placed very high in the entire process. 

11.  HOW TO SELL ON VALUE

Value delivery is the basis of the existence of businesses.

However, given the gradual decline in the differentiation of offerings based on quality, value delivery in most industry began to wear the toga of monotony and stasis.

Value delivery soon became defined in terms of product delivery, distribution and Customer service innovation.

Product and Service delivery based on the understanding of Customers changing needs and attitude became the order of the day.

12.  SELLING ON VALUE: CASES FROM THE MASTERS

Dell

Dell cut off the middleman in the distribution of Computer Hardware and Customized offerings to suit  individual Consumers, thereby beating competitors like HP, Compaq and IBM.

Pepsico

Pepsico shifted emphasis from the production of carbonated soft drinks to production of energy drinks and other related offerings in order to take advantage of changes in trends and consumption attitude, thereby beating a competitor like Coca-Cola in terms of profit.

Selling on Value: The Nigerian Experience

Zenith Bank

 Zenith Bank redefined the concept of Banking in Nigeria by introducing On-Line-Real-Time Banking and Convenience Banking before it became the minimum standard of entry  thereby beating Competitors like Guaranty Trust and Diamond Bank.

Ekocorp

 Ekocorp redefined health care delivery in Nigeria by being the first publicly quoted Hospital. Through its access to funds from the capital market, it was able to raise enough funds to procure state of the art medical equipment and hire experienced personnel thereby raising the bar in private health care delivery.

13.  HOW TO GET THERE

It is proven that innovation based on technology or efficiency in production not targeted at the customer do not positively affect the bottom-line.

Most profitable innovation therefore are built around the Customer.

This is because the Customer is at the core of Value Delivery and Profit Maximization.

It is therefore essential to build a Customer centric value delivery process in order to engender loyalty.

14.  WHAT DOES IT TAKE?

Understand What Your Customer Really Value

 You may find that product cost is a small component of the customer’s total cost and that price is only one of the many variables that customers consider. To build loyalty you must understand the Customer’s Life Time Value (LTV) and align this with your Product’s Lifecycle.

Develop Flexible Market Offerings

No Company can satisfy all Customer segments with the same offering. Companies need to create flexible market offerings. These are bundles of products, service and information that Customers can configure and customize to suit their priorities. Companies sometimes bundle services with their product, but the truth is that not all Customers value these services. Allow Customers to choose the service they value and pay for only what they use. 

Communicate Your Value Proposition

You need to educate Customers about the elements of your value proposition in order for them to fit these into their equation. Without this, your sales force will only use price as its competitive weapon. There is therefore the need to educate your customers on the economic benefits of the Non-Price-Variables embedded in your offering.

Be Open and Honest

A lot of People believe that transparency is an enemy of profit. They reason that Customers will take advantage of better information to drive down prices and profit, but the truth is that there can be no loyalty where there is no trust and trust is better built in an open and honest relationship.

Develop a Customer Data-Mining Process

Customer data and models based on this data can help inform you of customers most likely to respond and become loyal, no matter what kind of front-end marketing program you are running or how you "wrap it up" and present it to the customer.  The data will tell you who to promote to, and how to save precious marketing naira in the process of creating customers who are loyal to you.

15.  PARTING SHOT!

“It is much less costly to generate Customer Loyalty and retain Customers, than to deploy marketing money in the quest at attracting new Customers”

GETTING ON THE ROAD TO ELDORADO: HOW CAN COMPANIES FIND A DIFFERENTIATOR?

I work in an industry dogged by low perceived used value. My industry is Public Relations and just any guy, who has honed his skills in journalism and citizen publishing, feels he can ply my trade; hence everyone jumps in until we get to a point where no one feels the need to pay for our service. So, how do we survive? And what is the attraction for our continued participation anyway? I reckon this applies to every industry. The need to find a differentiator, one that delivers value and keeps you in business is one question that keeps CEO's awake at night. But, the answers get tougher as one survey the landscape.

1.       At the Beginning – Far from Having a Product , Companies Saw a Need to Build Reputation

Everyone has an image, but building reputation takes careful planning, hence the need to hire someone on the outside, looking in and orchestrating a road-map – from the sessions with critical stakeholders, the interviews on Radio and TV, the Press Release to the Social Report – everything must tell a story aligned to the desired end state. But beyond that, Companies focused on keeping the quality of their products or service high as a basis for continued patronage and good reputation.

The marriage was fluid and pleasant until quality became a buzz word and clutter slipped into the media environment on the back of the worldwide web.

2.       From the Era of the Media is "Us" to the Era of the Media is "Me"

After centuries of brandishing quality as a differentiator and latching on to the traditional media for corporate story-telling, a big bang occurs and the world is thrown open. Now every company must come to the table with quality and people are able to communicate with anyone in the world graphically and visually in real time about their experiences of competing companies offerings. And as this changes kicked-in, things came tumbling out of control.

With the changes brought clutter and confusion, and as things progressed, the question on the mouth of future-oriented companies became - from the email, to the blog, the podcast and now with social media - how do we build the needed differentiator for our offerings? How do we tell the corporate story to the right audience and be sure they are listening and in turn helping to shape the desired perception? Suddenly, the name of the game changes from having a consumer who is content with shopping for the same products under different labels to a consumer who is not only individualistic and informed but one who seeks to be involved in the production or service process.

3.       Under the New Era – How Do We Tell the Corporate Story?

Under this era of individualism with the consumer drawing expression and association with all that he encounters, based on the connection he feels with each product or service, rather than the perceived quality of the product or service, telling the corporate story becomes a complex game. In building communication that connects, the demand on business therefore became to understand not just what the consumer wants but how the consumer wants it.

So away from onground reality, shaping perception also became complex. And in trying to simplify things, the print journalist jumps in, wielding data on the circulation figures as well as the demographics of the readers, claiming “it can never be better than knowing precisely where your crowd has been for decades and knowing it really does not change”. Excuse me? Never changing demographics or never changing consumption patterns? Does that really exist?

Still trying to make things easier, the broadcaster comes knocking, claiming “the crowd is still with me and I know because there is a TV and a radio in most homes”. Hey, whatever happens to the proliferation of electronic media? How does this affect gathering the crowd?

Still seeking Eldorado, the Social Networker and  Citizen journalist breaks in saying, “I am the new deal, try me for size and you’ll see the beauty of your story come through with immediacy of feedback”.  Looks good and Interesting, but how about unintended consequences?

In an attempt at finding an Eldorado, everything changes as everyone stakes a claim to the crowd and what the crowd wants remain elusive. What is even sadder still, is the fact that the Public Relations professional whose duty is to seek out what the crowd wants is considered a middleman and in today’s business logic, everything must be done to get rid of the middleman because he not only reduces turn-around time and increases cost, he also prevents personalization and customization. The take is, why do I need a Public Relations professional? “I know what my desired reputation is and I figured I can hire a guy who speaks the PR language and I can deal directly with the media – whether old or new – on my own!

And as changes continue to happen in both the social and business environment, new challenges erupt raising new questions and demanding specialist knowledge. But guess what? The business buff finds a way around it. “I reckon I can talk to each platform directly and just maybe, my crowd will pick it up and run with it”. But in telling the story, he fails to recognise that each platform places a demand. And in telling the same story, there is a need to vary it based on the nuances of each platform. He then hits a brick-wall. And still in search of the Eldorado, he keeps trying the same things and hoping for a different result.

4.       The New Game is About Building a Community of Followers.

In today’s complex business and media environment, the only way to avoid clutter is to build a community of followers who share your values and are ready to openly associate with you.

The Social Media teaches a good lesson in building communities as communities once built, become a centre for telling a corporate story and having members tell their experience. And as the storytelling becomes a two-way game, the true picture about how a business is perceived emerges and keeps emerging as new things happen in the external environment.

Truth is, in building a community and ensuring continuous participation, Public Relations regains relevance but in regaining relevance, new skills are demanded of the Public Relations practitioner. He remains an arbiter but no longer a middleman. The Public Relations professional must become as immersed in the story as the owner of the story and must participate in the feedback process as ardently as the average member of the community. But even as the new skills are honed and owned, the search for Eldorado continues, because the world is ever changing.

5.       Building a Corporate Stature – Its More About Dynamism than Heritage

And away from the Public Relations professional, businesses must strive to be different with every encounter in the storytelling process. But beyond finding a difference, the intrinsic value of the business must have a dynamic basis as this deepens the experience; because a story is just as good as the experience of the product and service in the moment of truth. And given that today’s consumer is intensely curious, easily bored and always searching for something new, legacy and heritage cannot stay static, it must have a dynamic basis with the value it brings remaining ever new to the consumer.

Once upon a time, Microsoft ruled in personal computing and Nokia reigned in the world of mobile device. The story changed as the divide between both became blurred and in came the almighty Apple which became ubiquitous as it built a closed community of ardent and fanatical followers.

But that soon changed as Android soon busted the bubble and Samsung became the new word for sexy and smart. But the story is indeed a labyrinth  with no end but only layers and pit-stops, so the way to find your place under the sun, is to keep changing to meet the needs of thirsty consumers with fleeting loyalty.

Believe in the Future - Place a Bet on What You Believe in.

Google did not invent the search engine and Facebook did not invent the Social Media, but how come they define their category?

The answer is tenacity and tunnel vision. Truth is, being original or first is nothing - you can ask Apple and Yahoo, how their smart competitors, Samsung and Google overtook them.

In the race of life, nothing is fair. Life only compensates the SMART and the BRAVE. No one owes you a reason for your existence, we've all got to chart our own path, own it and keep milking it until a cycle ends and another begins; because truth is, no one is going to win all the time but you can make one victory last a lifetime!

Its all about OPPORTUNITIES and TAKING CHANCES. There are few chances, so only the strong survive. Its all a zero-sum game, one gets it, another loses it and the cycle begins again.

Ever believed that there was a time when Google was going through a hard time in it early days and its founders were prepared to sell-off to Ask.com for a paltry $750,000? And guess what? Ask.com was not smart enough to see the opportuinity! A university Professor who saw the opportunity, invested his widows-might - $100,000 and in 10 years harvested over a billion dollars! Today, Ask.com is nowhere, but Google is soaring away.

What does this mean anyway? Life is about risk taking, working smart and placing a bet on the future no matter how bleak it may initially seem. We need to keep dreaming.

I believe in the future, I am placing my bet on the futue and asking everyone who believe in the future to come along with me, because you can't join a train once its left the station!

Nation Branding in Nation Building – Nigeria As Case-Study (Part One)

Nation Branding in Nation Building – Nigeria as Case-Study (Part One) 

by Bolaji Okusaga

1. Nigeria: Celebrating a Nation at One Hundred

It all started with initial chase for slaves which were needed to power the agrarian economy of the New World around the 14^th century and  lasted for over four hundred years depleting Africa of the energy required for growth, as able-bodied men were forcefully uprooted from their ancestral homes and made to go through the harrowing experience of the passage through the Atlantic to the New World in chains and manacles, and the push for an end to this inhuman practice which forced  major traders in Agricultural produce in Europe to seek opportunities in Africa’s booming trade in Oil-Palm, Cocoa, Rubber, Ground-nuts and other cash crops, hence changing Europe’s strategy from  slave raiding to colonial annexations of territories in Africa. From the annexation of Lagos as a Colony of  England  in 1805, to the signing of various treaties with communities along the River Niger by the Royal Niger Company,  the Bismarck Conference of 1884 to 1885 where the balkanisation of Africa among European powers like Britain, Germany, France, Portugal and Belgium was signed, sealed and delivered, to the decision by the British Colonial Authority to merge the Northern and Southern Protectorates together with the Colony of Lagos in 1914 giving rise to the nation Nigeria on January 01, 1914 under the leadership of Lord Fredrick Lugard, a nation was created albeit the fact that it was without the consent of its various constituents but more out of British economic interest. The fifty-six years that followed after the birth of the nation Nigeria would witness several struggles by the new and fledgling elite who had benefited from British education to seek to rein the leadership of this young nation from its colonial over-lords.  During this period, a lot of intrigues and sectional bias were introduced into the struggle both from the British colonial masters and their cronies in an attempt to maintain the status quo. This period also showed the evident cracks among the elites and the divided interests inherent within their ranks, mainly playing out through the setting up of regional groups in order to attain power as the push for independence was beginning to achieve some results.

Several constitutional conferences were convened in the build up to independence and by October 1960, the British departed, leaving Nigeria, though a country with huge potentials but deeply divided hence creating a blurred vision as to the path to greatness of this strategic nation – one with the largest black population on earth, resource rich, with a huge market and rich cultural diversity – all qualities of a nation that can take on the world.

On January 01, 2014, Nigeria will be 100 years old as a nation but the pervasive question remains: who are we and where are we heading? Granted, the celebrations may have different meanings to different people; what with some saying there is no cause for celebration while others are saying that the celebration is not about accomplishments but the enactment of a ritual. The first school opines that the celebration is a waste of scarce resources, or at best a way of siphoning money. This school of thought is of the opinion that Nigeria still totters among the committee of Nations and being a toddler at one hundred, the milestone should be spent taking stock and bemoaning the failed leadership that got us to this sorry-state. The second school sees the anniversary celebration more as an opportunity to celebrate our existence as a nation given all the rough paths we have travelled as a nation in the last One hundred years. This school cites the two coup-d-tats of 1966, the Nigerian Civil War and the periods of Military interregnums and failed attempts at democracy that dogged the last One hundred years while concluding that despite these great socio-political tremors, it is a miracle that we are still together as a nation. This school enthuses that nations that went through less of these trauma have disintegrated or are still at war. They cite Czechoslovakia, Yugoslavia, USSR, and Myanmar; and nearer home in Africa:  Somalia, Liberia, Sierra-Leone, Congo, Burundi, Rwanda, Uganda and a host of others. To them, the fact that our democracy, though shaky, with Legislators earning more than the United States President and doing nothing rather than bicker over benefits, we deserve to celebrate. The fact that our economy though failing, with banks not lending to the productive sector, with the industrial sector almost comatose and the army of the unemployed rising by the day, we still must celebrate. Here, the significance of celebration goes beyond accomplishment, it is rather about our continued existence as a nation.

 

The second school, which I nick-named the ritualistic school, sees more a need to decree our greatness through role-playing as opposed to reality. Taking a cue from the early man’s penchant for rituals which seeks to conjure reality through stylised plays, as seasons and cycles come and go, while little or no explanation is given as to the reason for the difference  in seasons and cycles, and the celestial rather than the existential is appeased and faith become more about inertia than action.  To this group, everything falls or rises without human intervention but by a divine unction, akin to the big bang theory.  This group concludes that the path to greatness is in celebration.

2. Taking a Shot at Nationhood - One hundred years After

While the school of reflection and the school of rituals are at each other’s throat regarding Nigeria’s 100th anniversary, the nation Nigeria must yet prepare for the future and in preparing for the future use the opportunity of the 100th anniversary to begin to reposition our nation by rising up to the challenges of building a modern nation state, one which is audacious in its quest at greatness and competitive within the committee of Nations. 

The second question then is what path are we taking in our second attempt at nation building? Because in One hundred years of our existence, the world has moved on from the agrarian age that precipitated the exportation of slaves to the new world from Africa, the industrial age which led to the signing of treaties which ceded authorities of our erstwhile traditional institutions to the British Colonial powers, to the age of Crude Oil which came just before our independence , to the information age which came in the wake of globalisation, I am therefore asking this question against the background of a  constantly changing global order. What this implies is that our strategy starting out needs to also change in alignment with what is happening around us. This is where knowledge comes in. We need to observe global trends and ask questions as to our place in it. We need to develop our educational system and make it more oriented to our development needs as opposed to being just about certification. This is where imagination comes in, as without conception, there can be no accomplishments. This reminds me of the space-race. Starting with the United States and Soviet Union in the 100’s, with each acquiring the knowledge required at conquering the space and putting their imagination to work, it did not take long for success to come. Today, every ambitious nation has caught the space bug with each either sending men into the orbit or launching a satellite. Today, the world is different because of this out-of-the-world knowledge and imagination. So where does this leave our own dear Nigeria?

Indeed, I have heard people say it will take centuries for us to catch up with the developed world, but my response is always that it does not take time, it takes will; the will to get on the road, the will to get our hands dirty, the will to act! But what defines will, if not imagination, what defines imagination, if not knowledge?

Let’s look at the Asian Tigers, Taiwan, Korea, Singapore and the others in comparison with Nigeria. In 1960, we were all classified as third world nations but by the 1980’s the tide had started to turn what with the designation changing to emerging nations for the Asian Tigers and Nigeria still keeping the tag “third world”. By the 1990’s the Asian nations had taken the path of sustainable growth and were in fact, almost at par with the developed world on the prosperity index and today, the talk is no more about the Asian Tigers but about Brazil, Russia, India and China – what has been rightly termed the BRIC states. Even with the current global recession, these states are still recording quarter-on-quarter growth and are fast catching up with the so-called developed world. What these examples point to is that it does not take centuries to catch-up, it takes a virile strategy based on knowledge and imagination and above all it takes collective will. 

3. Collective Agreement - The Path to Nation Building

A friend once said to me that the path to greatness is arduous when a nation emerges outside of the consent of its constituent societies. The friend goes further to reveal that before 1776 there was an American society with affinity and engagements although under British rule unlike the Nigerian situation where a nation was decreed based on British administrative convenience rather than the agreement of the constituent societies. He enthuses that it was the collective agreement of the American society acting under the leadership of George Washington that led to the defeat of the British overlords and the adoption of a collectively created constitution in the quest at having an immutable union. In the Nigerian situation, there was first a Nigerian nation before attempts at forging a Nigerian society, hence the constant bickering about federal character and  fights over the sharing of the national cake as opposed to a collective agreement at baking a bigger and better cake as was the case in the American context. Although critics are quick to point out that despite the collective resolve at forging a nation in the American context, there was a near succession by the Agrarian South from the Union leading to the war with the Industrial North in what was known as the American Civil war from 1861 to 1865. Critics went further to assert that if this can happen about a hundred years after agreeing to come together, then Nigeria may be on the right path to nationhood. The risk at taking this standpoint is that it is always easy to cite the wrong examples. Back to my friends point, nations rise to greatness on the platform of a collective agreement. Again critics will point to diversity of cultures and religion, in the Nigerian context, as being the bane behind the failure of a collective agreement citing more homogeneous settings like China where a collective agreement was easy and national cohesion and development had moved apace. Again this appears    a wrong thesis as culturally heterogeneous communities too had also forged a collective agreement which has survived the test of time. America being a good example, the United Kingdom being another and under the current world order we see a further boost for diversity as a platform for progress in the coming together of disparate states to form the European Union with a single monetary union in mainland Europe. Back to my friend’s assertion that for progress to happen, societies in coming together to forge a nation, must have a collective agreement and this collective agreement can happen under a homogeneous or heterogeneous cultural and religious setting. All it takes is sincerity of purpose, a good sense of history and the will to agree to work together for the common good. What this essentially means is that in the Nigerian situation, development and progress can come through despite the heterogeneity but the constituent societies must, outside the whims and caprice of Lord Lugard, Sarah Shaw and their British masters, forge a collective agreement which will chart a way forward for a bigger and a better union.

4. International Relations under a Competitive Global Order

Having done a comparative study of the emergence of nations, there is a need to look at the relationship of nations and the route for development under a competitive context and this brings to fore the question of Nation branding and its efficacy in the quest at nation building under the current world order.

It is truism that with the advent of globalisation, the world is becoming smaller, what with technology such as the internet bridging the distance with international policies such as trade liberalisation also creating access to erstwhile closed markets and creating a platform for trade and tourism on a global as opposed to a local platform. With these new developments, pundits have predicted the eventual death of the nation-state as we know it today, what with the battle for control going beyond the local context to a global scale. A look at the recent battle of the United Emirate and Saudi authorities with Research in Motion, the makers of BlackBerry, puts this new dynamics in proper context. Today, countries compete for control not just through military strength but through the possession of competitive brands which seek to dominate the scene globally. As these brands, be they physical products or intangible ideas and notions travel the globe; the originating state grows in economic and social status and gradually captures the global imagination. Starting with Coca-Cola’s involvement in America’s military expedition during the Second World War and the subsequent global domination of the brand, other brands have also crossed international boundaries taking their national platform with them. Over time, the strength of nations gradually started to move beyond military prowess as the United States which orchestrated this order grew in strength, erstwhile competitors who were initially ignorant of this silent economic war gradually waned in global influence and economic strength. Today, the path to nation building as become more complex as the quest for global competitiveness be it in trade, technology, tourism and other competitive advantage has increasingly become an issue. Nation states which fail to understand this new dynamics run the risk of failure under the new world-order. The current Chinese scramble for Africa is a virile example of this new reality. The Chinese having woken-up to the reality of the new order are voraciously taking stakes in Africa’s Agriculture and extractive industries in order to support their domestic productive base in the quest at domestic growth and global competiveness. Today, nation building has gone beyond forging collective agreements, it demands the building and expansion of national institutions such as road, houses, hospitals, sports facilities, hospitals, political, legislative  and judicial systems which can only happen with a strong economy. The last Olympics in China and the recent world cup competition which was hosted by South Africa is a big example of this new reality. Nations having built internal systems can advance their local agendas by aspiring to and attaining global relevance. This is because, in today’s reality, two dominant forces are driving the world toward a converging commonality, and these forces are globalisation and technology. These forces have radically redefined international relations and bringing to bear their influence on global trade, tourism and sports and far from these, these forces are affecting the way we see national economies, communication, transport, and travel. It has made erstwhile inaccessible nations and poor countries eager for development, domestic cohesion and given birth to the idea of global competitiveness. This has resulted in a new commercial reality - the emergence of global markets for standardised consumer products on a previously unimagined scale or magni­tude. Nations aligned to this new reality, benefit from enormous economies of scale in production, distribution and marketing of their outputs in return for national cohesion and sustainable progress and prosperity for the greater majority of people within their local boundaries. By the benefits of stressing global competitiveness in nation building, these Nations benefits from the scale and scope advantage which the new global order confers as these Nations using their national brand,  are able to  decimate competitors that still live in the disabling grip of the old hypothesis of how the world works.

From the fore-going, it is evident that Nigeria and Africa are at the current sorry levels development because of a lack of understanding of the current global realities and what that means for local product brands and other intangible brand assets which can be leveraged for global competitiveness and by implication, help quicken the pace of economic and social developments which will consequently impact nation-building.

Nigeria – The Quest at Nation Branding

a.      Unconscious Positioning – “Giant of Africa”

Nigeria by her population size, diversity, natural resource and positioning in the black world is strategically primed to assume leadership status with the right internal focus and alignment. However following the political crisis of the early sixties and the period of military interregnum and failed democracy that followed, there was disarticulation of objective and action in the quest at nation building as successive governments worked in contra-distinction to what existed before them and given the endemic corruption and wastages that came in its wake, it was difficult to focus on the task of national rebirth and positioning.

However, in the earlier epoch, following the discovery of oil in commercial quantity and the end of the civil war, Nigeria enjoyed a period of economic boom which positioned her on the sub-region as a big brother and buoyed by her then foreign policy which made Africa the centre-piece of her focus, it was easily branded the “giant of Africa” to the end that it concentrated on this extrinsic advantage at the expense of her intrinsic value. To this end it readily offered assistance to brother African nations at the expense of her internal development challenges. Expressions of this course are her support for the liberation movements in South Africa in the 1970’s and her support for peace keeping efforts in Congo, Liberia and Sierra Leone in the 1990’s. Further to this was the Nigerian Technical Aid programme where educated Nigerians in highly required fields were drafted to educationally disadvantaged nations in need of skilled manpower in medicine, engineering, teaching and other crucial areas. This programme initiated by the Nigerian government was in support of the need for technical cooperation among African Countries using Nigerian experts with the aim of promoting development as well as institutional strengthening in Africa.

 Given these initiatives, the Nigerian nation brand built huge equity as a result of her unconscious positioning as Afro-centric, caring and friendl

b.      The Search for Inbound   Investment – The Heart of Africa

Following the restoration of democracy and the drive for economic and political revival following years of military dictatorship that made Nigeria a pariah state, the government of President Olusegun Obasanjo, embarked on extensive foreign trips in search of economic partnerships and inbound investments. However, given the new world order which placed a premium on good infrastructure, democracy, the absence of corrupt public institutions and open government as well as other competitive advantages in deciding economic partnerships and investment options on the globe, Nigeria made very little advances in the drive for foreign direct investment. This precipitated a need for a new national positioning.

The quest for a new brand image, one that is deliberately orchestrated with the intention of positioning for economic benefits led to the emergence of the Nigeria image programme in 2004 under the direction of the then minister of information, Chukwuemeka Chikelu saw the emergence of the “Heart of Africa” project which has as its key thrust the need to project corporate brand Nigeria and by so doing sell our unique selling point to the world. The project was intended to be sold through a 360 degrees communication approach across the world.

With the exit of Chukwuemeka Chikelu came Frank Nweke (Junior) who adopted this platform and sought through the various road-shows which he carried out across Europe and America, preserve  the original idea while underscoring it with  Economic diplomacy. But given the fact that Frank Nweke came at the second half of Obasanjo’s second term as President of Nigeria, he could not consolidate on the work he had started before the coming of a new President, Umaru Yar’adua.

c. Yar’Adua and the Quiet Push for Russian and Sino-Nigerian Friendship as Basis for International Positioning

The 2007 Presidential election came with wide local and international condemnation especially from Europe and America and, as a result of this, the new President could not advance Nigeria’s economic interest with the West given the credibility problem which came with his election and seeking a way out of this interregnum, he pushed for stronger ties with Russia and China, while pushing for policies which gave increasing economic stakes his new found partners at the expense of the west. To this end Gasprom, a Russian Company moved to secure the Trans-Sahara Gas project ahead of British Gas which was hitherto a front-runner. China also pushed for bigger stakes in the Nigerian upstream Petroleum sector and the push to have the Petroleum Industry Bill passed into law met with stiff resistance from European and American owned Multinational Oil Corporations such as Shell, Agip, Mobil and Chevron, as it was seen as a surreptitious way of ceding great stakes to China. The Yar’Adua years, though short, saw a redefinition of brand Nigeria and with it came a new selling proposition and a new brand association. Nigeria sought under Yar’Adua to dilute her old legacy and chart a new cause away from it old Western masters as Yar’Adua also built stronger ties with the Middle-East while the West remained a distant influence. At the local front, things proceeded at a slow pace and the need to have a rallying point around which the average Nigeria could take pride was missing until the emergence of Professor Dora Akunyili (a Pharmacist) as Minister of Information.

d. Dora Akunyili and Her Move to Re-Write History – Enter the Nigeria Good People, Great Nation Project

With Dora Akunyili’s entrance came the “Nigeria Good People, Great Nation” brand identity project the project which effectively put paid to the Heart of Africa project.

In terms of positioning, the Good People, Great Nation project sought to have an inside-out positioning as opposed the Heart of Africa project which had an outside looking in perspective.

On the communication side, the Good People, Great Nation project suffered from a paucity of idea in terms how to drive a clear-headed communication of what the project seeks to achieve and aside from a few internal road-shows, the project scale was far too little for it to have been effective. This was so, given the fact that unlike the Heart of Africa project which had Presidential endorsement, the Good People, Great Nation project did not have open Presidential endorsement as Yar’Adua maintained a quiet distance from the project through-out the life-span of his Presidency. 

 

 Bolaji Okusaga is a Lagos Based Public Relations Practitioner