Tuesday, 15 January 2013

Always some fairy tale excuse to siphon money. Now its N60 Billion for Mobile phones for farmers.


The Nigerian Minister of Agriculture Dr Akinwunmi Adeshina recently put in motion an initiative in which 10 million Nigerian farmers would be in line to receive a mobile phone each. It is difficult to begin assessing this situation. There are a lot of factors to it.

Concentrating on what impact this venture would have on the Nigerian agricultural sector. On the one hand it is a fact that Information is absolutely critical on the other hand one is forced to ask, what information the government is looking to disperse to Farmers. How frequently would this information be given and why can’t it be given via any other means. Now, giving the fact that most of these farmers are in rural areas with little or no access to electricity, already this initiative is riddled with holes. A lot of them are illiterate and all they care about is growing their crops and getting them to the market. This they have done for hundreds of years. A mobile phone wouldn't in any way make this easier for them. It would only complicate things.    

Now, Nigeria with over 110 million mobile phones in circulation has the largest number of active mobile phone users in Africa. Despite this staggering statistic, Nigeria does not have a viable program where the activities of mobile phone operators are monitored and the interest of the populace protected. The result of this is that mobile operators frequently defraud customers with dropped calls and lost credit, this they do with absolute impunity, MTN being the worst offender. This Practice does result in Trillions of Naira in windfall for the Mobile phone operators every year. In part this makes up for the shortfall in the number of new customers they now sign up every year.

This seeming Agricultural project of acquiring 10 million mobile phones for farmers on the surface does seem like an intelligent move. Well, the fact is it is an intelligent move; it is a very strategic business move. The question is, for whom? The answers to that question my friends are hardly the farmers or the Nigerian Populace or even the Ministry of Agriculture. I can only see 2 beneficiaries with regards to this scheme, and neither of them carries a hoe.  

10 million farmers swear fealty to MTN. Promising to pay them at least N10,000 every month in buying credit and a further N2,000 in dropped call and lost credit. That gives us a total of about N120 Billion every month in the MTN kitty, this amounts to N1.5Trillion a year. This is of course before the domino effect takes off and the Farmers  neighbours and friends also decide to get their own mobile phones in other not to feel left out. An estimate of this would be that at least one person would decide to buy a mobile phone for every five farmers who receive one. This does equate to an extra 2 million phones and an extra N24 Billion a month. In Total we are looking at about N1.8 Trillion a year ($12Billion) in Revenue for MTN and friends. I wonder what impact $12 Billion would have on the Nigerian Agricultural sector if invested wisely.

Minister of Agriculture. Dr Akinwunmi Adeshina
 Dr Adeshina was on television last night to deny the existence of any N60 Billion put aside to purchase mobile phones. Now, mobile phones cost at least N8,000 per phone. This takes us to N80 billion, N20 Billion more than what was anticipated. Now, this being a quote for the cheapest mobile phones, I am really struggling to see where Mr Adeshina is going to get the phones from without having to pay for them. Last I checked Nigerian farmers don’t grow mobile phones. Nigeria doesn't even manufacture mobile phones.

On Second thoughts, given the current security situation developing in the country, tracking decedents and terrorist would be a little bit easier, albeit quite expensive.
   
So, our dear Dr Akinwunmi Adeshina has found himself a very comfortable nice niche being a middle man for MTN and Nigerian farmers. He gives the Farmers N60 Billion worth of Mobile Phones and in return the Nigerian Farmers give MTN and friends N1.8 Trillion a year. Not a bad investment. Of course, none of these huge amounts flying around would find its way to Dr Adeshinas’ backyard. Absolutely none of it.