Obiorah Atuchukwu is into a lot of businesses. In his own case, he is a master of all due to his business acumen. He started little, but today has expanded to become an importer and exporter of goods. His organization is impacting the economy of Nigeria and lives of average Nigerians positively. In this interview with Oge Okafor, he talks about the various businesses he has delved into and what it takes to do business in Nigeria.
Could you tell us when you started business? What was the beginning like?
I have been doing business for more than 30 years now. In 1984, I started with the importation of motor spare parts (like Mercedes and luxurious bus spare parts for 911, 1621, 2624) in Idumota, Lagos. Thereafter, I moved to the factory and later into newspaper publication between 1990 and 1992. I was publishing the Weekend Post, a weekly newspaper in Lagos. I also went into transport business, but because of the many challenges, I had to sell off my vehicles. At present, I export charcoal and cashew nuts to Europe and India and import Ayurvedic drugs (herbal remedies) and medical devices, which I have been doing for 10 years now. I am a general merchant, importing a lot of things.
For someone who is new in a business, it’s not always easy making headway. What is your story?
When I started, I had to learn how to do the business. My father assisted me in renting a shop and stocking it. Luckily, I met a man from Italy, who made me the sole agent for FT Thoso and Mytuntenburg in Germany. I was a commissioned agent at that time and whenever anyone goes to Germany to buy spare parts, the company there will refer such a person to us in Nigeria because we had the goods packed in my warehouse. It’s either the client pays to us or to them and when they confirm, we release the goods to the client.
You said your father assisted you financially in setting up the business. How much did he give you to start up?
While I was at Idumota, my father gave me N14, 400 to rent a shop. Later, he gave me my first N10,000 and that was precisely in October 1984. He later gave me another N10, 000 after three months.
How then did you breakthrough in business?
Between 2004 and 2005, a man from Mali who supplies goods to Mali government came to my shop looking for 911 engines and spare parts of other trucks. Although, I had always known him, he comes to buy goods while I was an apprentice in the trade. I checked and realized that I did not have the goods in my shop. So, I called the late P.N Emerah, a major transporter who was the beginning of my success in business to ask if he had and the price. When he confirmed he had and we concluded on the transaction, he told me to come to Onitsha. The Malian paid me for the goods about 4pm that day and I called another colleague of mine explaining to him the situation and asked him to help me calm the Malian if need be, because if I had told him I was traveling to Onitsha, he wouldn’t have given me the money. Thereafter, I moved that night, with the hope of returning on Monday morning. Onitsha was a familiar terrain, but at the time was volatile. I did not have any excuse to give the Malian. That was why when I got there at midnight; I hid the money in my shoes and dressed like a madman to enable me get to my destination without being robbed. When I got to one of my father’s houses, the caretaker and my cousin were surprised to see me. I took my bath, ate and slept, with the money under my pillow. On Sunday morning, I then concluded the transaction with Emerah, who asked me to pick up the goods at Iddo, Lagos. I left Onitsha same Sunday evening and got to Lagos on Monday. When I eventually delivered the goods to the Malian, he was very happy. I made a lot of money from that transaction and indeed my first breakthrough in business.
What happened subsequently?
After that deal, I had a lot of cash with me. So, in 1985, I traveled to Italy and met a man called Sunday from Achi in Anambra State who worked with Ideal Motors. He normally bought goods from me but unfortunately; he died a month before his wedding. While we were in the plane, I told him that I was going to Italy and that I was going to a firm, but I was not sure about them. He said he had a customer to introduce to me. That was how he introduced me to FC Thoso. When we landed in Italy, he took me to the man and I bought a lot of goods from him. Automatically, the man made me his distributor, maybe because of the money I went with. We did business and when we want to buy goods like luxury buses and Mercedes spare parts, either from Italy or Germany, we buy from him. We have warehouses and when you come to buy and we confirm that you have paid him, we release the goods to you. I also bought from him that time, even as his sole agent. Also, I normally go to buy plugs from UAC. One of the managers who liked me so much sold plugs to me at a good price, and then I’d go to Idumota to sell and make some money.
You talked about exporting charcoal as your major source of business, how did you identify the opportunity?
The charcoal business started 10 years ago. Charcoal export business is a good one and profitable if the foreign exchange is fair and stable. When I started, it was a normal business without much profit but when the trouble of foreign exchange (dollars and euros) rate started, so many people who went into export business left because export business is not mincemeat, if one is not careful.
How do you get clients to supply charcoals to?
Having your client is important before any other thing. You could walk up to any embassy and tell them that you need such customer and they would write and discuss with the person to establish contact, before you can do business. They, in turn, will ask questions to verify before any transaction.
How is the charcoal processed and verified before exportation?
The only way out is for you to be there in the forest with the processors or employ a trusted person as manager. Usually, they burn the charcoal in the forest, but now they go to Cotonou to burn it there. The trees are covered and ignited and after burning for a period of time, the charcoal is produced and then packaged for export. Charcoal is used for many things such as barbeque in restaurants, hotels and in homes for people who do not have money to buy heater.
What are the challenges of the export business?
I do not advise people to borrow money to do export business because of the risk involved. For instance, people in the bush could supply bad goods and when we export them, our counterpart abroad will reject it because they are particular about quality. If the quality is poor, they will repackage it and send it back, no matter how much you have spent on the product. Another challenge in the business is from the people in the bush. Sometimes, they give us unprocessed, wet or dust charcoals or cashews that are not properly gauged, which is unacceptable to our partners abroad. Apart from scarce foreign exchange, another challenge in the export/Import business is that you have to pay N100, 000 to weigh the container you are exporting or importing apart from the demurrage you pay to the shipping company. This started late last year and I don’t know if it’s the government that’s responsible for that. It’s really affecting our business because nobody wants to be importing and the government is only interested in collecting money without creating an enabling environment for us.
What do you think the government can do to help the situation?
Well, government should put the right people in place. They should always investigate to know what is going on in the business because anyone who has a business will investigate to know how the business is doing. Everybody must put hands on deck because there is a big problem in this country. I feel much pained when you travel out of the country and return to see the contrast in doing business here and there. I must give credit to Segun Awolowo of Nigerian Export Promotion Council for the manner in which they carry on their activities and even encourage one to do business.
What does it require of someone who wants to do this kind of business you are doing?
It’s simple but first if you want to go into export-import business, you must follow those in the bush and make sure they give you what you want. I have been a victim so many times. Gone are the days you stay in Lagos and do export business. Those that tried it did not go a long way. Then, the area of finance depends on the individual, but one must be able to finance his business if he really wants to succeed. You must also understand the rudiments of the business before investing in it.
How much is required to start export-import business?
It depends on how many containers you want to export/import and that’s why I say that you need to go through it. For instance, if you want to export cashew, you will spend nothing less than N20 million to do so. There are stages and prices. I might give you a price while the other people might give you a cheaper one, which is why one must go through training and understand what it takes. It’s a risky business because you will supply goods to Europe and some bad people will not send your money to you. So, you must be ready to take those risks and you must be sure.
You are the CEO of AKO Group of Companies, what you are talking about is a part of what you do. We also know you as the sole marketer of Ayurvedic medicines like Dykure and Pykure herbal capsules, Pykure Ointment and Diabiz Herbal Tea in Africa. How did you start?
We are not only into Ayurvedic medicines; we are also into medical devices like card for HIV, condoms (CD), malaria kits and so on. We started importation of these Ayurvedic medicines about two years ago and I think that we are getting a good response now.
What encouraged you to invest in the business?
It was a result of the health problems we have in Nigeria. I saw the reason to bring in herbal medicines, which have been proven to be more effective all over the world. Obviously, there is alternative medicine all over the world but it’s only in Nigeria that we disregard it. And if you want to bring alternative drugs, some people will discourage you and will find a way to stop you. I really like Yar’Adua and Obasanjo because during their time, they supported herbal remedies. These remedies we’re talking about have existed for a long while in America, Europe and Asia. So, in a nutshell, I saw the importance of herbal remedies and decided to invest in them so as to save lives. Fortunately, there are success stories since I went into the business.
How do you think government can encourage enterprise in Nigeria?
Government should help businessmen by providing enabling environment. The lack of it is why you see most people run to Ghana. Everyone knows it and they are not doing anything about it. Nigeria is a very good place to do business in Africa but because those who are involved don’t know what they want, hence they play politics with people’s lives. Our problem in Nigeria today is corruption, personal interests, sentiments, tribalism and religion. We need love, peace and truth to put Nigeria in the right place like many countries of the world. Obviously, Nigeria is a virgin land to do business, but people in government agencies don’t want things to work well; they create policies that are unfavourable for doing business. Most firms have left Nigeria because of this.
What are the dos and don’ts of doing business?
I advise anybody that wants to do any business to always buy insurance. In Nigeria today, if you want to do a successful business and go home and sleep, your business must be insured. So, if anything happens, the insurance will be of help. If you must fall, you fall on the table and not on the ground.
How has technology benefited your business?
The advent of technology is really helping in business, though some people use it negatively.
One can be in a place and send money to another person elsewhere. You can also transact business over the phone without necessarily being with the other party and that saves time and money.