Quality Towers Business Services recently celebrated its 10th year of thrift business supporting small and medium scale enterprises (SMEs).
In this interview with Assistant Life Editor, TERH AGBEDEH, its founder, Dominic Onyenali, talks about his challenges and the reason for the celebration.
Starting point
With my position in the church I discovered that many young boys and girls complain about unemployment. In those days I was a spare parts dealer and had a limited number of people I could employ.
I started thinking, ‘What can I do? Can I have a platform where I can help jobless youths and at the same time impart into the lives of people?’
Transition
I have stopped dealing in spare parts. I started Quality Towers on January 18, 2005.
This new business is more successful in terms of my definition of success, which is not about money.
When you set up a group for yourself and are able to achieve your passion, for me that is success.
Dealing in spare parts gave me more money but this one gives people job opportunities. I see myself helping people put food on their table.
I have employed over 70 people. But we currently have 50 on our bill. That is the number of people we directly employ.
What Quality Towers does
We service business, but to be specific, we are into thrift business. There are people who don’t save money. Some don’t want to save, some don’t have the time, and some think it is only big men who go to the bank.
We are the banker to the unbanked. We go to their houses, collect their money for savings at all times, even on public holidays, and give it to them whenever they need it, unlike conventional banks.
Benefits to clients
We bank at odd times, like public holidays, Saturdays, evenings, and if possible, on Sundays. That is one of the advantages; we are flexible, unlike conventional banks.
We tailor our business to the needs of clients and that is why they like us. They have a lot to gain.
The clients tell us what they want. Their needs inform our business style.
Difference between thrift and cooperative
A cooperative collects money from members for particular projects, keeps it for a time and shares the money when it deems fit.
But for this one, people give you money in the morning and in the evening they want it back.
Some of us have formed a cooperative. In Lagos State our union is called Thrift Collection Association of Nigeria (TCAN). That is the umbrella body for all thrift collectors.
Why there is little publicity
Government or CBN (Central Bank of Nigeria) regulation stops at micro finance banks. They know we exist but don’t want to help us. We are not regulated.
But we are trying to see how we can form a common front and present ourselves to the government.
Banks will not give loan to pepper sellers in the market because they don’t have collateral. But due to the fact that we know them, we know where they live, we are the people who actually drive the economy.
Banks don’t recognise barbing salon operators and motor mechanics, the government does not recognise them, and nobody encourages them.
We do that at our own risk, with our own resources, sometimes at a loss, to make sure we encourage these people to grow.
The government should encourage us.
What we want from CBN
The CBN should come down to our own level, to understand how it can encourage us to help these helpless masses.
The NDIC (Nigerian Deposit Insurance Corporation) insures big banks. Who insures us? Nobody. But we are the ones giving succour to these poor people.
Loans and interest
We give unsecured loans. The interest is negotiable.
Our clients are petty traders and we can see how much they gain. There is no fixed interest but it is very, very low because they contribute the money every day. Most times the loan is at no interest.
Most times somebody contributes N200 every day, which is like N6,000 in a month. If the person can contribute N3,000 you give him a N6,000 loan, so that he or she can continue his or her business at the end of the month.
How technology affects business
We make maximum use of every technology. I have the data of all my clients on my system and send them messages on a regular basis and give them information.
I think it is an advantage to be able to understand the workings of such technology and make maximum use of it.
How this business has impacted your own life
I see this as a ministry but I try as much as possible to make sure that nothing disturbs my first ministry, which is my family. However, I struggle to have time for my family because this business takes a lot of time.
Most times, because of the nature of our country, I like to do things by myself because before you say jack, somebody will cart away your money. Most times you do all the supervision yourself, run all the errands, go to the bank yourself.
We don’t have computers so everything is majorly manual. Most times you are there yourself to make sure every figure tallies. It takes time and at times I wake up by 2am and work till 6am trying to make sure all the figures are correct.
I struggle to have time for other things. But I try to have time for God because that is the main success story.
So, it is time consuming and challenging. I hardly travel. My visa, which I used once, has expired and now a new one is about to expire.
Background training
This is a business that you can start without training. It is easy to start but you cannot go out because immediately you start, you put yourself in trouble and that is why we advise people to get trained.
Some people will work for you for two months and set up and you cannot really stop them. There is no formal training, we train on the job. That is why we are trying to form an organisation where we can provide training for ourselves.
What you do personally is to attend management seminars. Nobody pays for you, you have to pay and attend. Some of us try to go to school.
I went back to school at LASU (Lagos State University); that was in 2003 prior to starting this business in 2005.
I have some training in management, I majored in marketing at LASU and finished in 2010. I got a BSc in marketing.
Whenever there is business training in churches or banks I attend.
Succession plan
I wish to have a succession plan, but almost all my staff are women. You train them, they get married and leave.
It is easier to work with women. The EFCC (Economic and Financial Crimes Commission) will tell you that men have more corrupt tendencies.
Somehow, that it is easier for me to manage women.
Minimum deposit
You can open an account with as little as N200. But you pay that amount every day, Monday to Saturday.
You can get the savings back after 30 days and we take only the deposit for one day.
The charge is enough to cover overheads if we have many clients, but these days the number of clients is reducing because of the economic problem while the salary bill is increasing.
Secret of your success
What has made us successful is quality staff; most of my staff are well trained. They know what they are doing and that is why we are better than others.
They get training from you?
Yes. Some of them are graduates, some undergraduates, while some have no formal education. Some have First School Leaving Certificate and we try as much as possible for them to go back and have their Ordinary Levels.
We give them loans, refundable or non-refundable, to make sure that all of them have at least Secondary School Certificate. That is part of the training.
We have clients who trust us. That is why we are successful. Also, there is a good management team and we provide unique services. Which is what we have ahead of our competitors.
