Building a solar power business in Nigeria; 11 Lessons that you can learn from.
January
18, 2015.
I
sit behind my lap top and I am thinking how I can recount my journey so far.
Should I only tell you about the successes and omit the failures? Should I tell
you about the ease with which you can break into a market and omit the
challenges that are thrown your way at every turn?
As I
write this story it will come to me.
In
January of 2014 we selected a manufacturer in China who would manufacture the
systems we would install for our customers. The decision was based on the fact
that they could provide us with everything we needed to install a complete
system for our clients. They gave us cables, batteries, racks, panels, control
systems and allowed us to be OEM. Knowing very little about solar power, I
interviewed and hired someone who was already in Africa but had trained in the
United States. I verified his references.
We
started to sell our wonderful new system and we were fortunate to get some
sales. I also made the fortunate decision to install the systems in my parent’s
homes. The systems arrived in Nigeria on May 14, 2014 after spending two months
at sea and we did not take delivery till June 21. I had people I was paying
salaries to, sitting and waiting for the systems to clear the ports. We took
delivery and started installation that night at our home in Lagos. My baby had
hatched. We turned it on and all it could power were lights. It could not power
a refrigerator. My expert burnt the charge controller on the system because he
did not believe in reading manuals. Our second installation went even worse.
The charge controller actually caught on fire. The third installation worked
briefly and blew up the next day. The fourth one worked but we had to keep
sending people back to visit. The fifth one was installed in an empty home and
the sixth was an entirely different system (a test project) that served
perfectly during the day. We had installed an expensive “I better pass my
neighbor”.
We
had installed 6 systems in Nigeria in less than 10 days across two states and
under the most challenging conditions. I had spent the months of May, June and
July in Nigeria. Spent every dime I had, missed my family and lost more weight
than I could afford to. During my last few days in Nigeria, my health yielded
to fatigue and poor eating habits. I was shivering mess battling malaria. When
I went back to the United States, I was so tired; I could not climb up the
stairs without my legs shaking. I returned to New Jersey on the morning of my
50th birthday. I was broke, tired and seriously underweight. My
pictures on Facebook caused panic among my family and friends. I immediately
hatched my plan to return and do things better. I borrowed more money and went
back to work.
Lesson
1: If you
are not bringing in a container don’t use the ports. Clearing agents are
ruthless and have no morals. They know they have you by the proverbial nuts and
will squeeze till you yield. My pain threshold was tested. Customs will rape you if you have no Form M.
Lesson
2: The nuts
and bolts. It is good to bring in an
expert, it is better that you know your business and your systems. I came back
and took NABCEP approved training on installing Solar. I watched as many YouTube
videos as I could. The errors in our installations became so obvious. In
addition to a horrible system, our wiring and connections were poorly done. Now
I had become the expert. A supplier that gives you all your systems can never
be ideal. Almost all the systems except one failed. We went to different
suppliers to find our components
Lesson
3: Your
health, the importance of rest and eating properly. I am yet to recover from
the weight I lost. I weighed about 180 lbs. when I left in May. Today I weigh
about 165. I am 6’2. My pants fall off. The reserve I had in fat was gone, I
lost muscle mass and I can’t build it back in 1 year. Eat well and rest. Sounds
easy but when you are like me that is constantly on the move it becomes
critical.
Lesson
4: Use the
product you sell. All that could go wrong; I experienced firsthand the
limitations of the old system. We replaced them free of charge for our clients
because our experience was just as bad. The new systems were a planet away from
the old in terms of performance. The smallest system powered fridges and pumped
water. We also found out that what works well in the East does not work as well
in Lagos. Better to find this out with our system than with a client’s. Our new
batteries required charging before use.
Lesson
5: Logistics
and having a place to stay. Traveling in the cities is not much of a challenge
but traveling in rural areas can be a night mare. You wind up renting vehicles
that are past their use date at exorbitant prices, vehicles that are unsafe or
very road worthy. Breakdowns are common. Expect it and plan for it. Budget and
increase your budget by 100%. Having a place to stay is a welcome relief. My
family has provided me with homes, cars, drivers and so much that I can’t list
here. Hotels in Nigeria are ridiculously expensive. We have paid as much as
N50,000 for a night and I can tell you that Motel 6 is better. Don’t expect
western standards for what you are paying for. If you are squeamish your are in
for a rude shock. The roads are a challenge, the police check points are
designed to extract money from you. Always have a bill of lading or receipts.
They will ask for it. Even with them expect to pay. Have police inspectors,
commissioners on your speed dial. They will come in handy.
Lesson
6: Source
local. I purchase my batteries in Nigeria and I will be purchasing my panels in
Nigeria as well. I spent $3600 to get panels delivered to the office. The
panels came into MMA (the airport warehouse) November 14, 2014 and I still
don’t have them. I have to pay another $4100 to get them delivered. The quality
can be as good if you do your homework. The customs officials and agents will
kill you faster than you can die. I went to Alaba Market where you can buy
everything you need but it is a live circus. Someone told me on seeing me
there. “I will chop your money today. I will feed my children with your money”.
Such is the atmosphere at this very dynamic market.
Lesson
7:
Employees. Hire and fire at will. The schools are graduating idiots. I met an
engineer who had never used a multi-meter. I met another young man that had a certificate
saying he had trained in solar and he did not know what a charge controller or
what a parallel and serial connection was. The employees that have some
experience are sloppy and take short cuts. They believe the way they do stuff
is the correct way. The results have been a couple of blown inverters, blown
fuses and blown battery chargers. I have had employees drill holes in Solar
panels because they wouldn’t fit the place they wanted to place them.
Recruiting is a constant function. Never stop hiring. You MUST SUPERVISE THE
WORK THEY DO. Walk away and come back in tears. Stay there all through, till
they have done that function at least ten times. Customer service is a foreign concept to them.
Drill it in. The younger ones feel a sense of entitlement. I remind them that
they are entitled to unemployment. Their sense of knowledge is over inflated.
Prepare to train every day. The young driver I hired drove the car I purchased
with a broken belt. The result was a burnt head gasket. The response you get
for each time they do damage is “sorry sir”
Lesson
8: Burn the
bridge. If you think you can go back, you will. I have borrowed everything I can;
I have maxed out my credit. I missed thanksgiving, Christmas, New Year, my
family depends 100% on my succeeding at this. I have no choice but to succeed.
Lesson
9: Singular
focus: Nigerians and Africans tend to dabble in this and that. When you ask them what they do, they say this
and that. Pick what you do and focus on that thing. People will know you for
that one thing.
Lesson
10: Be
passionate and have fun. I thoroughly enjoy what I do. The running joke is that
to befriend Christopher you have to talk solar. I come alive talking about it.
It is a miracle watching the sun restore the batteries you depleted the night
before. I won a sale in which I was 50% higher priced. The reason the client
gave was “you spoke so authoritatively on solar”. I am not the best at my craft yet I keep getting
better and having fun.
Lesson
11: Be
Present. Since May 2014, I have been in Nigeria every month except August.
People want to see you. They want to make sure you have staying power. They see
you and they buy from you. Till you become established it is critical to your
success.
I
will stop at 11. I am sure there are many more experiences that I can share.
We
will have a total 18 systems running by the end of January. That will make us
one of the larger installers of complete residential and non-governmental
business systems in the country. Last month I got a phone call at 230 am
Nigerian time. The caller had been at
the home of a client who had uninterrupted electricity. He asked him if he was
using a generator and he said no. He asked if it was NEPA, he said no. He asked
him what it was and his response “Christopher’s light”. At another function at
the country home of a mogul the power had failed as expected and his generator
for the first time in 15 years had failed too. The meeting had a senator, members
of the house and other important dignitaries present. He apologized and told
them that power they were experiencing was provided by Christopher. My father
has saved people around his compounds 100’s of Naira in phone recharge costs.
They charge their phones in his compound for free. The running joke is the
Ikeja Disco (former NEPA) staff that charge their phones in the house in Lagos
when they come to read the meter.
Comments and things
like this have made the challenges worth it. Hoping you got something out of my
post and here is to wishing you a successful 2015
Comments