Nigeria’s Behemoth – Transcorp: The Good, The Bad, or The Ugly

 - Cletus Olebune

            courtesy of nel-mag.org

    This grotesque creation will either swallow us Nigerians or better us; it all depends on the degree of interference by the government. One thing that cannot be taken away is that the Transcorp idea is a great concept, and an opportunity for Nigerians to participate in the global economy. The tragedy may lie in the concept implementation, and management of the interconnected middle collaborations for a corporation with more than three Strategic Business Units (SBU). The ongoing Initial Public Offering (IPO), some may argue is too early, but the initiators believe that through public offering, the general Nigerian public will have opportunity to have a piece of the pie. Corporations enter into IPO for two main reasons, to raise fund for growth expansion, or as exit strategy for entrepreneurs who want to cash out. This is where the concern comes in, when the initiators of Transcorp's IPO want the public to believe that it is an opportunity for Nigerians to have a piece of the pie. This light social agenda – an IPO that gives Nigerians opportunity to own part of a grotesque creature does require Nigerians to have the money to buy Transcorp’s stocks. For those Nigerians who do not have the money to buy the stock, how can they benefit from the perceived light social agenda side of the Transcorp’s IPO?

I have since used this medium, the nel-m.org newsletter to promote entrepreneurial leadership, especially in manufacturing. I see Nigerians in the rural areas benefiting from the perceived light social mindset of the initiators of the Transcorp’s IPO in the agro business strategic unit of Transcorp. Although, it requires quality collaborative coordinated management and education of the rural farmers, as well as provision of right tools for skill building, development, and awareness creation for the light social side of the IPO to benefit farming entrepreneurs and the service sectors connecting the rural entrepreneurs, the behemoth and the global economy.

The success of the agro business unit of the Transnational Corporation of Nigeria, Plc depends on the empowerment of palm tree farmers in the Eastern Nigerian, cocoa farmers in the Western Nigerian, rice and livestock farmers in the Northern Nigerian, the reestablishment of the rubber farmers in the Midwestern Nigerian. We know where the Southern farmers belong – the fishery farming business, until when government gives up the petroleum business. My hope is that, a lesson is learned from the management of palm produce in Malaysia. I am sure the local palm produce entrepreneurs in Orlu, Imo State, the cocoa farmer in Ondo, Ondo State, or the local cheese maker in Ofa, Kwara State will be happy to know how he or she can benefit in the perceived light social agenda of the Transcorp’s IPO.


The question though, is whether the agro business unit of Transcorp will focus on production of finished goods, semi-finished, or raw material? Being able to answer this question clearly, will help it develop collaborative coordinated management and developmental strategies with the rural farming entrepreneurs, and all that is in between, helping it to create jobs in almost every professional industry. Success depends a lot on the ability to manage all interconnectedness in the middle between regional farm production and the Transcorp for the realization of the perceived light social benefit agenda as is being drummed up now.

The Information Technology (Telecommunication) business unit of Transcorp is another interesting strategic business unit. This unit if well managed, and developed will benefit entrepreneurs. Growth and expansion of fiber optics for Internet access in the rural communities will encourage entrepreneurship ventures in these remote places, and help entrepreneurs run their companies or do business anywhere. The public health environmental aspect of developed rural Internet access is that it will help to lessen the population explosion as seen today in Nigerian major cities, therefore, creating more livable environment and easy management in major Nigerian cities.

About our growing population? I could not help but laugh at the debate and discuss on whether the population of Lagos is bigger than Kano, and vice verse. Well that is my Nigeria, where everything is viewed based on political and regional understanding, rather than the underlining issues of economic and environmental health understanding the head count should have generated. But I do understand; I know that the easiest way to make an argument when one does not fully grasp a topic is to see the political aspect of it, hence, the saying, politic is the easiest profession to enter, as everyone has an opinion. And for developing democratic societies, all understanding is political on most issues, until political participants are mature and educated to the concept of professional politics as a profession for public goods. In one of my previous articles – “Management as the removal of obstacles”, I made a point to the effect that, when the leadership debates non-issues, the society never grows in a positive direction. Nights and days may come and go, but not until there is a clear understanding of the problem situation, the leadership will continue looking for solutions to problems that were not there in the first place, or in the absence of one, create one to keep busy. One needs to ask, why the populations of Lagos and Kano is growing at more rate than other states. My take is that, it has a lot to do with the movement of rural people of the North to Kano, and those from the South to Lagos, in search of means of living. This is more reason to empower entrepreneurship in rural Nigeria communities by providing tools for the easy of doing businesses in the remote places of Nigeria.

Having lived in the various cities and rural areas of the United States, England, and Nigeria, I understand the various ups and downs living in cities and rural areas in these three countries. Helping rural entrepreneurs by providing them tools such as Internet access will not only encourage them to think global and act local, it will open doors to increased technological knowledge and create opportunity for rural entrepreneurs to develop new business models as they understand the interlocking global economy. In my business experience, I have had Chinese manufacturers from rural China contact me via Internet, only to find out that air flight to the factory location to Shanghai is once a week, every Thursdays, taking several hours, road or rail travel is next option but not as smooth; this is in contrast to a plastic/rubber production plant located in the small rural community that I currently live in the state of New Jersey, USA. This plastic factory has extensive business network around the globe, and is a major contractor to the USA DOD (Department of Defense). Although, travel (air, road, or rail) here is smoother than in China, the common denominator here is the accessibility of the global markets via Internet by these two manufacturers located in the remote areas of People Republic of China, and the Unites State of America. Chinese economy is what it is today not because 25 years ago when it started its economic reforms, some behemoth went public and started drumming up around the world, but because of its focus on rural entrepreneurship empowerment. Wal-Mart has not always been known globally until recently; Sam Walton started his business as a small town variety store in rural Rogers, Arkansas in 1962, years after he bought a Ben Franklin franchise in 1945, and a Walton’s five and dime variety store in rural town of Bentonville, Arkansas. Most developed economies started off this way, even the USA; that is why rural Midwest, rural Northeast, and other regional rural areas are known for particular industry areas. During a recent community meeting, while talking with the CEO and Chairman of the plastic/rubber company, I discovered that he was born in the town, went to schools in the town, married his high school sweet heart in the Roman Catholic Church that both received their baptisms and first holy communions. Most current employees of the plastic company have parents and grandparents who have in some ways worked at the plastic factory. Upon this knowledge, I thought of how many Nigerians that have been dislocated from the communities they were born, in search of greener pastures, thousands of miles from their place of birth. Well, for one I am looking at, myself. We can only achieve the 24-hour economy by 2020 that we at Nigerian Entrepreneurial Leadership have talked about since 2005 when entrepreneurial adventure and intensity are increased in rural locations, creating opportunities for jobs in these remote places. The irony of it all is that with the exception of my National Youths Service years, and few years of gig with the Nigeria High Commission, in London, I have contributed more to other nations than the nation of my birth. This is the case for many young Nigerians, with most spending their prime and active years building other nations or seeking the way out, right after college and university education. One might argue that young Nigerians are not patient enough, but one can only be patient in a hope filled societies. I see hopelessness in the faces of young college graduates in any environment that lacks basics such as water, electricity, and telecommunication technologies helping the youths develop a relaxed mindset while crafting out new innovative ways of doing business. Someone’s else “refuse” may be another’s gold.

To achieve 24-hour economy by 2020, more tools should be given to entrepreneurs, especially those that show potential for job creation in manufacturing and production. Initial Public Offering does not create jobs, although, one may argue that as corporations and businesses raise money through IPO, and are able to expand, jobs are created. The thinking is that for every expansion, there are several job opportunities. But let us not forget that in the developed economy, over eighty percent of the jobs are created by small and medium size enterprises (SME). Here comes my point; the ability of the SME to create jobs in developed economies is that most are suppliers and vendors to the multinationals or the behemoths. With this, I am sure the understanding and the dependency of the success of the Nigerian behemoth on the management of the interconnectedness of the behemoth and rural farmers for the agro business unit is clearer, and the development of IT business unit of Transcorp on fiber optics entrepreneurial ventures.

As we advocate for more tools to be given to rural entrepreneurs, we hope that 2007 and beyond will belong to entrepreneurs. To this end, we flag off NEL 2007 Business Plan Competition. Any Nigerian anywhere is welcomed to enter. Results will be announced in January 2008, we will start accepting a one page business plan proposals starting in the first week of March, 2007. Details coming soon. Our purpose is to encourage and empower entrepreneurship in the concept of disaggregate and compete.

Sidebar:

If you’re thinking of becoming an entrepreneur, and don’t know where, or how to start, remember, the best business ideas spring from an individual’s experience as well as their passion. A word of advice, focus on creating and developing a company, focusing on money (not cash flow) will frustrate you sooner and is a recipe for quitting.

If you are dreading the abuse from your boss, and wants to finally start your own business in 2007, remember, gone are the days when one needed large investment of start-up capital, but don’t rush the start-up process. Get any piece of the business up and running before you leave your day job. Start a business on the side and learn as much as you can and to taste whether your idea is going to work. With a phone, fax, a computer, and a great idea, 2007 will be the year you join the club of people who have started their own businesses.

Cletus E. Olebunne

Executive Director

NEL.

January 2007

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Together we can build a nation where its economic strength is comparable to its individual citizen's capabilities. A 2020 Nigeria economy where manufacturing is the driving force. We are always glad to hear from you. 

ABOUT THE AUTHOR: Cletus E. Olebunne, Is the Executive Director of Nigerian Entrepreneurial Leadership (www.nel-m.org ) An accomplished scientist, and entrepreneur in the global healthcare product distribution. He is the founder of Eastern Pharmaceuticals (www.easternpharmaceuticals.com), a global distributor of healthcare products based in New Jersey. An active member of Regulatory Affairs Professional Society (RAPS), the global pharmaceutical regulatory body, the American Chemical Society, and the American Management Association (AMA).
The NEL organization seeks to:
1 Support and promote a community of entrepreneurs
2 Promote public understanding of manufacturing entrepreneurship
3 Promote and enhance the role models that reflect the ideals of manufacturing entrepreneurship
4 Be the source for information about best practices in business leadership.