We need government intervention – Edo GSM Village operators

Dealers in phones and accessories, laptops, as well as technicians (repairs) at the GSM Village, Benin City in Edo State, are smiling home despite the challenges being experienced in the business.   Operating under the umbrella of the Association of Great GSM Village, by the Benin Airport Road, the group, which has over 2,000 members, […]

Dealers in phones and accessories, laptops, as well as technicians (repairs) at the GSM Village, Benin City in Edo State, are smiling home despite the challenges being experienced in the business.

 

Operating under the umbrella of the Association of Great GSM Village, by the Benin Airport Road, the group, which has over 2,000 members, told our correspondent that despite lack of electricity, enough finance, high cost of shops and grant from both the state and federal governments, among other challenges, the business is expanding.

Those who spoke with Daily Trust Saturday said they had not benefitted from government’s grant or loan, especially Central Bank of Nigeria’s soft loans.

The chairman of the association, Aminu Abraham, said they were contributing to the economy of the state by paying taxes to the local government where they operate, employing youths and training them.

He said they paid taxes of between N10,000 and N15,000 to the state government yearly, depending on the size of one’s shop.

Daily Trust Saturday learnt that shops in the village go for N150,000 and N200,000, depending on size.

The association urged the state government to build a GSM village for them to rent and transact their businesses, saying it would have been relatively cheap if the government built the shops, which are owned by private individuals.

Speaking with our correspondent, Abraham said, “The business is growing. As you can see, we have moved from the major complex to the streets and opening more shops.”

“The GSM village is owned by different persons. And the shops differ, depending on the landlord and sizes. We have the one of N150,000, N170,000, N200,000.|”

According to him, the major challenge they are facing in the business is lack of electricity as it requires constant electricity so as to satisfy customers.

“We have three hours rotation of electricity, but we are not even sure of it.

“For taxes, some pay N10,000 while others pay N15,000 on a yearly basis.”

He said 15 persons, including employees, were under him.

He also said the place had been crowded, and due to lack of spaces, the surrounding houses had been turned to shops, adding that the business is expanding from street to street.

On how they cope with the situation of electricity, he said, “Due to epileptic power supply we have acquired two central generators (100kvA and 16KVA), which we fuel to provide electricity for nine hours daily.

“The cost of running the business is high as we spend much on diesel. We need a considerable supply of electricity from the Benin Electricity Distribution Company  (BEDC).”

He lamented that they spent above N60,000 monthly on diesel to power the generating sets.

He further noted that they partnered with the state government to train Libya returnees, adding that the trainees were given starter packs by the state government.

Asked how lucrative the business is, he said they were contented with what they get at the end of the month.

“What we really desire from the government is to build a GSM village for us to do our business. This will help in bringing down the cost of the shops. The enabling environment is already there,” he said.

He called on the general public to always patronise them as they deal in genuine phones, laptops and accessories.

“My vision as the chairman of the association is for this GSM Village to look like the Computer Village in Lagos,” he said.

Another phone and laptop merchant, Amadi Godwin, who is also the chairman of their task force in the village, said the business had impacted positively on him and his family.

“I have two shops here; one costs N150,000 and the other, N200,000.

“From the proceeds of my GSM business, I sponsored myself in the university, and today, I am a bachelor degree holder in Accounting from Ambrose Ali University, Ekpoma.

“I have five persons under me: three are my employees while two are learning the trade under me,” he said.

According to him, aside the challenge of power, they also contend with customers’ overbearing attitude, adding, “We always try as much as possible to find amicable solutions to the problems without resulting to the police.”

He further said their association had been registered with the Corporate Affairs Commission.

He also said, “I am happy with the profit I am making from this business. Apart from sponsoring myself in school, I got married and have kids; so the business is good.”

On his part, Peter Odion, who sells laptops, lamented that they had not benefitted from both the federal and state governments’ loans and grants despite the fact that they pay taxes.

“The business is going well, but the major issues we are facing are little finance and lack of government support. We need money to improve our businesses,” he said.

On how lucrative the business is, Odion said, “I can’t say much on profit when there is no capital, but we still thank God.”

Also speaking, Timi Ebame, an engineer who deals in hard-wares, decried low patronage.

“The business has been good, but we are now experiencing low patronage because of the harsh economic situation in the country and the high rate of dollars,” he said.

He called on the state government to assist them with grants or loans so that they would expand their businesses.

Also, David Amadi, who specialises in repairing phones, said his challenge was how to get the equipment to work with due to financial constraint.

He said, “It is hard for us to get the equipment because they are very costly. We don’t have the money and government is not helping us.”

He lamented that he had not gotten loan from any financial institution because of stringent rules attached to it. “It is not easy for us to get loans here. However, the business is good because I am able to feed my family and do other things,” he added.

He appealed to the state government to assist them with funds so that they would be able to buy more equipment, saying, “This will bring down the cost of repairs and help in the training the youth, thereby reducing unemployment and crime in the country.

Lucky Enafo, a phone seller, called on the state government to assist them as they are also employers of labour.

“Business has been good, but getting loans to expand is a huge task for us. And government is not helping us in this regard.

“I pay N200,000 for my shop; I have one person working for me and I pay her N15,000. So I am also helping the government,” he said, and appealed to the state government to come to their aid in terms of loans or grants.