Mr. Christian Chigbundu is the Managing Director of Coscharis Mobility Limited, a subsidiary of Coscharis group. The company is into leasing, car rental, haulage and logistics, protocol and escort services. Having been in business in the last six years, and operating under the Sixt franchise in Nigeria, a 120 year-old German company operating in 150 countries, and reputed to be the biggest car rental company in Europe and third in the world. He spoke with ROSEMARY ODIA on the activities of the company, as well as the business of logistics in Nigeria.
Six years running this business, how has it been in Nigeria?
I have been in the industry for 17 years, we operate in Lagos, Abuja, port Harcourt, Enugu and very soon we are going to Owerri. We also operate from four hotels in Lagos, two airports in Nigeria, we operate International Airport, Lagos. Our fleet size started from one and now we have over 600 fleet of vehicles, our clientele spans both corporate and individuals, who have confidence in what we are doing.
How have you been able to run business and cope with government policies especially with the Value-Added Tax (VAT) increase that takes effect soonest?
Basically, to us as a business, the customer pays for it so we don’t have much problem with that, it won’t make you not to rent or lease a car. We are into leasing, car rental, accessing, haulage and logistics so we are like a one-stop shop. If you want to rent a car, if you want to lease a car for as long as you want, we are at your service. So Increasing VAT will not affect anybody who is doing business with us.
Do you think that more people are beginning to take on to haulage?
Yeah, transportation and logistics is something you cannot do without. You cannot do without transportation, either you fly, follow a train, ship or a vehicle. In our environment, 90 per cent of people depend on vehicles, few people fly, the trends are coming up but not as they are supposed to do. So basically, it is a business that you cannot do without. Companies and individuals cannot do without it. If you have vehicles here and you fly to Abuja, you will need a vehicle to pick you up from the airport and chauffeur you around.
Was was your attraction to the business?
Yes, to me my getting into the business was divine. I am an accountant by profession. These are major international cars, so I was moved to manage Benz at a time that developed my likeness for the business. I like solving problems, making people happy and I love solving problems for people.
How have government policies affected business and what peculiar challenges have you faced running the business?
There is no business without challenges and life is all about dealing with challenges. There is nothing you would do, if you look at the challenges before doing it, you can’t do it. In business, I don’t look at the challenges, every problem has a solution that’s the language of logistics, so there is no problem that has no solution. So, if you have that mindset in logistics, you will solve every problem. It is either you do it or you don’t do it. Problems of vehicles in Nigeria like the roads are so bad but that does not mean you will not drive a vehicle. So you spend so much on maintenance, we do chauffeur driven which is not applicable in other countries of the world and so for every vehicle, you have a driver and you know how drivers are and that is a problem, but that does not mean, you will not do the business. We have a lot of double taxation, local government stickers everywhere, and that doesn’t prevent you from doing the business. So, there are a lot of challenges, a lot of misunderstandings. And we are here to see a way we can render service notwithstanding the challenges.
What is your staff strength or how well have you been able to employ more Nigerians and put food on their tables?
That’s one thing about doing business. Our core staff is close to 70, then the non-core staff is 600. It gives you joy talking to people every day, trying to impact on people’s lives. There was a research that was done, I don’t know how true it is, it says people who live longer are those we talk to people every day. The more you interact with people, the more you live longer. So, it gives you happiness interacting with people, to interview, talk and sack people too. I feel happy about it, and when I look at the people that are working here and you are paying, look at their families, extended families, it is huge.
So, how rewarding is the business?
The profit margin is very low for the leasing business especially when it comes to vehicle leasing. That notwithstanding, it is a business people can’t do without. At least you have a business going, so, I can say it is rewarding. I am very passionate about this business, if you do what you like doing, it is not like work, especially when you see people who pass through you doing well, that is more rewarding.
What are your plans for this year?
We hold an annual convention and it is mandatory that every Sixt franchise. So, they come here every year, they audit and see whether we are meeting up with standard. At our Annual convention, all the staff across the country gather at the head office to discuss on issues and also every year, all MDs and GMs also meet twice a year. The aim is simply bonding, and reminding us on where we want to be and achieve.
What stands your company out from other haulage/ car rental service providers?
We have a driving academy which we launched, Coscharis Driving Academy last year, people put up all sorts of driving schools and we wanted to do something different. We have a well-equipped classroom, a stimulator (an artificial car) in an air-conditioned room. The academy is one of our newest divisions, we partnered with NYSC and have so far over 50 NYSC students learning how to drive. We have their database. If opportunities come or companies call for them, we call on them.
How do you source for your drivers, do you train them?
We train them every quarter. There is no weekend you come that you will not see training here. Right now, we are training drivers in Enugu. Every weekend, there is training in this place.
For the trucks on the roads driving recklessly, what do you think is responsible. Are they not owned by haulage companies?
In the haulage industry, the challenge we have are the owners of the business, if you treat a driver well; pay him salaries as when due, and he can feed his family, give him medicals, he knows he has pension and gratuity, he knows he is insured, he might not misbehave, you are sure of getting 90 per cent good drivers. The man knows that if he is on the road and his family goes to the hospital, there is HMO to cover the expenses, then he is fine, but most haulage companies are not organised. They don’t take care of their drivers, they are not permanent drivers, sometimes they are not paid, they don’t have medicals so you cannot get value from such staff. He is always thinking about his family’s health; school fees how do you expect him to feed? Some of them don’t have the capability of maintaining the trucks. Logistics is capital intensive. It is not something that you can say, let me just start this thing now, and buy three trucks they can break down, anything can happen. Road safety has tried as much as possible to impound some but they are still everywhere, they don’t have fire extinguishers, lights, a lot of issues, but I think they are making moves now to restructure and organise it, to make it better.
In Nigeria’s haulage industry, is there an association where these things can be checked?
There are, but then there are small haulage companies that just want to haul and give ridiculous prices, but the main haulage companies are those that are organised and doing the right thing, and that is the problem we have.
Do you think it is the government’s fault that people run the business without adherence to precautionary measures?
In Nigeria, people don’t want things to change. If you start impounding trucks, they will go on strike. When the road safety officials come to impound vehicles, they come begging saying they feed their families with the job, forgetting the risk that it is putting on other people. If you want to do that, it takes courage, it takes being firm but I don’t know if that can be done. Try it now they will tell you they will go on strike, they will block the road, and even the tanker drivers will join them. That’s the challenge we have.
What business message do you have for young people?
One is integrity. My little experience has shown me that integrity is key. There is a saying that says a man might have energy, a man might be intelligent, a man might be very creative but if he lacks integrity, he lacks everything. Secondly is humility. Humility sometimes comes from God, because I have been opportune to see people that are very rich and when you see them, you won’t believe these are the people, very humble and that humility has been pushing them forward so humility is key in life, it is not physical ability but spiritual strength. Thirdly, patience and be who you are. You can’t be like me; I can’t be like you. I am just myself, I am created differently. I can copy you, I can admire you but I can’t be like you 100 per cent. So it is better to be who you are in terms of living a fake life. Don’t allow people push you around, just be focused.
