The Nation Newspaper

Category: Business

  • Toyota sells 9.75m vehicles

    Toyota Motor Corporation has released its tally for global vehicle sales for last year at a record of 9.748 million vehicles — a bigger number than the estimate it gave last month of about 9.7 million vehicles.

    It was already clear Toyota had dethroned General Motors Co. as the Detroit-based automaker fell short, selling 9.29 million vehicles.

    GM had been the top-selling automaker for more than seven decades before losing the title to Toyota in 2008.

    GM retook the sales crown in 2011, when Toyota’s production was hurt by the quake and tsunami in northeastern Japan.

    The latest results show Toyota’s powerful comeback.

    Global vehicle sales for the maker of the Camry sedan, Prius hybrid and Lexus luxury model surged nearly 23 percent from the previous year. Overseas sales jumped 19 percent, while sales in Japan, where the economy has been troubled, recovered a whopping 35 percent.

    Volkswagen AG of Germany, the world’s number three automaker, sold a record 9.1 million vehicles around the world.

    All three automakers play down the significance of the sales ranking and say they are focused on making attractive products.

    “Rather than going after numbers, we hope to make fine products, one by one, to keep out customers satisfied. The numbers are just a result of our policy. And our policy will continue unchanged,” said Toyota spokeswoman Shino Yamada.

    Still, the recovery for Toyota is impressive. Like other Japanese automakers, Toyota’s production was devastated by the March 2011 disasters, which disrupted supplies of crucial components. Flooding in Thailand, where Toyota has factories, also hurt car production.

    Before that, it struggled against a crisis of massive recalls in the U.S. over defective floor mats, gas pedals and brakes, involving millions of vehicles, some recalled over and over, that hurt its reputation for quality.

    Toyota officials have vowed to scrutinize quality, and have held back product development to minimize recalls.

    From the middle of last year, it was hit by another kind of problem — a widespread boycott of Japanese products, including Toyota cars, in China over a territorial dispute.

    But sales growth in other parts of the world, including the U.S. and Asian nations such as Indonesia and India, was more than enough to offset such losses.

    Toyota is planning to sell 9.91 million vehicles globally this year, putting it back on track toward its earlier goal of 10 million vehicles — a target that it had made a special effort to play down after its recall crisis.

    Meanwhile, the company will recall nearly 1.3 million cars globally for two separate defects, including 752,000 Corolla and Corolla Matrix vehicles in the United States to fix airbags that could be deployed inadvertently, the automaker said last week.

    It is the third Toyota recall since October to involve more than a million cars, and it comes as the company tries to recover from a damaged reputation following a series of recalls between 2009 and 2011 that were related to unintended acceleration problems.

    An IC chip in the airbag control unit can malfunction when it receives electrical interference from other parts in the car, causing the airbags to deploy when it is not necessary, Toyota spokesman Naoto Fuse said.

     

    Toyota is also recalling certain Corolla and Corolla Matrix vehicles in Japan, Canada, and Mexico.

    “The problem has caused minor injuries such as abrasions in 18 cases that have been reported. Two accidents have been reported by customers outside Japan, although Toyota has not been able to confirm them,” he said.

    Fuse said Toyota will add an electrical signal filter to the airbag control module to the recalled vehicles – repairs expected to take an hour to hour-and-a-half.

    The spokesman declined to disclose the costs involved.

  • Banks mull funding strategy for power projects

    Banks mull funding strategy for power projects

    Nigerian banks have started a collaboration to develop amenable financing framework that would serve as financial industry’s master template for lending and funding of the power sector.

    The strategic funding plan is being developed under the auspices of the Bankers’ Committee with active participation of top management of banks, the Central Bank of Nigeria (CBN) and other key stakeholders.

    The funding strategy is a linchpin in the Bankers’ Committee’s programme for the year, which largely focused on aligning the Nigerian banking system to provide adequate financing to meet the peculiarities of the power sector.

    Banks’ chief executives, Governor and top officials of the CBN and several experts had brainstormed extensively on the power sector at the recently concluded 4th annual retreat of the Bankers’ Committee.

    Sources in the know said the development of an industry-wide funding strategy was part of the outcomes of the discussions at the retreat.

    It was gathered that the funding strategy will provide the banking industry with a master agreement or template that would foster best practices, remove inconsistency, ease access to funding and encourage regulator-operator understanding as banks move into the still-evolving power sector.

    A bank may adapt the funding strategy to suit its internal structure and terms, but the template would provide guidelines, structures, terms and concepts, among others for the industry.

    The CBN would sign on the banking industry funding strategy for power sector, which would give the template a quasi-regulatory status.

    Banks are also expected to consider input of key non-bank stakeholders such as the Bureau of Public Enterprises (BPE), Nigerian National Petroleum Corporation (NNPC), Ministry of Power, Energy Commission of Nigeria (Encon) and NBET among others in the overall draft of the funding strategy to give the plan a higher level of general acceptance beyond the banking industry.

    The funding strategy will enable banks to provide well-structured finances to support investments in gas transmission pipelines, upstream gas developments, Liquified Natural Gas (LNG) and Liquified Petroleum Gas (LPG) plants, gas processing facilities, key infrastructure, port, real estate, pipe milling and fabrication yards and gas supply and gas transportation infrastructure among other.

    Besides, banks are required to reinforce their energy desk to build capacity for power project financing while the Bankers’ Committee would continuously provide supports for advocacy and programmes that centre on the power sector transformation.

    Chairman, Economic Development and Sustainability of the Bankers’ Committee/Managing Director, Access Bank Plc, Mr Aigboje Aig-Imoukhuede, said banks are aware that the growth, prosperity and national security of Nigeria depend on the success of the power sector transformation.

    According to him, the Bankers’ Committee would continue to collaborate with the government and other stakeholders to create and sustain enabling environment for private sector funding of the required investments in the power sector.

    He noted the potential impact of stable and adequate power supply on the national economy pointing out inadequate power supply has been the bane of the underdevelopment and non-competitiveness of the manufacturing sector.

    He reiterated the commitments of banks to continuously explore ways of providing adequate and suitable finances to the three key sectors of power, agriculture and transportation adding that the Bankers’ Committee’s focus on these sectors was borne out of the deep appreciation of the critical importance of the sectors as catalysts for the growth and development of the economy.

     

  • 1,000 lose jobs in aluminium sector

    1,000 lose jobs in aluminium sector

    NO fewer than 1,000 workers have lost their jobs in the aluminum sector of the economy. More will likely go as the sector continues to battle recession. Tower Aluminum Plc sacked 450 workers and First Aluminum Plc laid off 220 and shut down its operations. Other operators are believed to have followed similar pattern.

    The Group Managing Director, Tower Aluminum Plc, Chief Jinesh Dugad, said the gale of retrenchment has hit the sector, following its inability to produce optimally in the past few years. He added that the sector’s performance has been constrained by poor power supply and policies of the government.

    Dugad said: “As an interim measure to reduce loss, Tower Aluminum have laid off 450 workers in December 2012, leaving behind 70 per cent of the company’s workforce of 1,570. One hundred and ten thousand people may be laid off soon. In addition, all suppliers and contractors will be affected with reduced volume of operation. Our hopes were dashed when a new Common External Tarrif(CET) was released in 2010, which reduced the import duty on extrusions to five per cent from 20 per cent.”

    He said First Aluminium did not only retrenched its 220 workers recently, but shut down its operations.

    According to him, the aluminium manufacturing industry is nearing extinction because many of its operators have closed shops.

    “The few existing aluminium companies are producing below average. While some of them have stopped producing aluminium products, others survive by importing finished products. In the next few years, the industry will die if urgent steps are not taken to revive it.” he added.

    According to him, representations have been made at different fora to the government since 2008 for the review of CET, with little or no results.

    “We stepped up our representations to the government in 2012 through the Federal Ministries of Finance and Trade and Investment, including the Budget Office, the Manufacturing Association of Nigeria (MAN), as well as the Standards Organisation of Nigeria (SON). However, the Minister of Trade and Investments, Dr Olusegun Aganga, has promised to discussed the issue with the stakeholders in Abuja, this February,” he said.

     

  • Outdoor advertising: Challenges and prospect

    Outdoor advertising: Challenges and prospect

    CONTINUOUSLY, rationalizing advertising spend on media, taxes the various conventional media vehicles on the critical issue of relevance and value-addition. For advertising media products and services providers at times like this, value-focused marketing is imperative. To the extent that insight on intricacies peculiar to various media vehicles will help marketing efforts by media platform, it beneficial to learn from on experienced professionals. The following is an excerpt of a paper on the value of outdoor advert media, challenges and prospects for practitioners by the President of Outdoor Advertising Association of Nigeria (OAAN), Mr. Charles Chijide, at a seminar. We at MC&A DIGEST see this is a good piece for our readers in the business of outdoor advertising. Happy reading:

    Characteristically, out of home advertising is focused on engaging the target audience when they are out of their homes (in other words, when they are on the move). The role outdoor advert media are challenged to play bestows on them so much responsibility which has necessitated a lot of aggression, creativity, persuasion and target audience engagement abilities. It is also very obtrusive in nature, ranking the highest need for a measure of opportunity to see, among advert media vehicle options. For well over 50 years, dedicated practitioners have consistently deployed this unique media vehicle for the development of advertising in our local market. From a humble beginning when the conventional billboards and posters were all there was to date, a lot has happened to up the standard and quality of services delivered by this sub sector. We now have global standard digital display panels in Nigeria. Today, we can boast of well over 100 different outdoor media formats displaying across the country.

    In all, the growth indices evidenced upon outdoor advertising business and practice are open to common perception. As mentioned earlier, there is a clear manifestation of local presence of global and innovative outdoor advertising products in Nigeria and a huge upscale in the level of professionalism in the quality of service delivery within the industry today. Today, the business and service of outdoor advertising is handled by trained professionals and focused entrepreneurs. Gone are the days when outdoor advertising service was delivered by the barely literate and artisans. The leadership of OAAN has invested so much in improving the image perception of outdoor advertising practice in Nigeria. Our National association is now a registered member of the world outdoor advertising body, FEPE. Among our goals is enabling practitioners and personnel of our registered corporate members access to global practice standards, new learning and insight and the opportunity of interacting with global practitioners through international workshops and seminars. I can tell you outdoor advertising growth potentials in this market are enormous.

    However, so much needs to bring to fore, as very essential learning for aspiring practitioners and the ordinary Nigerian, to enable a good appreciation of the challenges investors and practitioners face, in their quest for survival as practitioners and the optimization of returns on investment, for the entrepreneurs and investors in outdoor advertising practice. To put the revelations that will follow in perspective, let us look at the practice standard in developed economies.

    Globally, outdoor advertising service delivery and business operations face similar constraints, as a result of its nature. And put briefly, the constraints are:

    (1) Space

    (2) Statutory regulations

    On space, for instance, at least 1,500 cities and communities prohibit the construction of new billboards. The States of Vermont, Hawaii, Maine and Alaska in the same US, prohibits all billboards. In Brazil, the City of Sao Paulo, in 2007, banned all billboards within the city. In South Africa, there is an operating manual known as South African Manual For Outdoor Advertising Control (SAMOAC), compiled and published by the Department of Environmental Affairs and Tourism Directorate in 1998. This document is a 124 page manual put together based on a pains-taking research project – just for the definition of outdoor advertising, the extent and impact of outdoor advertising and its impact on environmental beautification and tourism. Nobody or group of people engage in any form of outdoor advertising in South Africa without express referral to the contents of this document. I like to read this quote from the forward from SAMOAC:

    “Outdoor advertising and information transfer fulfills an essential function in modern society. It directs guides and informs as to locality, product, activity or service and contributes to economic growth in general. However, if outdoor advertising is not controlled properly it could have a very real impact on tourism resources and the human living environment, as was experienced in countries such as the United States of America. Most advertisements are aimed at the road user and may therefore also impact on the road environment. Control measures are therefore needed to ensure that road environments will be conducive to safe and pleasant driving.”

    The portion I just read captures the reasons for statutory regulations on outdoor advertising, world over. To a great extent, the need for environmental protection is a good reason for government intervention in billboards erection and outdoor advertising generally – such as is contained in SAMAOC. Take our local environment, for example, the landscape and skyline in major cities and busy towns across Nigeria suffered all sorts of “pollution” from billboard structures due to indiscriminate erection. Billboard cluster resulted in menace, such that outdoor advertising made no since due to the abuse owing from indiscriminate erection of boards.

    The other part of government control on outdoor advertising has to do with rates and levies due government agencies and department for the use of permitted outdoor space (also worldwide). Such payments are statutory and ordinarily come through as permits for display of advert messages and use of public space. In properly structured society such levies are collected directly by the municipal or local government councils with jurisdiction over the geographic space billboards are erected and the advert message displays.

    World over, the two areas of government intervention stated above remain the key consideration for every outdoor service provider. So as investors or practitioners, managing the incidences of these key components will go a long way to determine the extent of any outdoor advertising business. However, if we add “…in Nigeria” to the topic of this paper, the theme of this forum changes dramatically, immediately because of the peculiarities of the Nigerian market. In other words, localizing the challenges facing outdoor advertising, throws up so many oddities that also require the attention of practitioners and entrepreneurs driven by success.

    As we know, any business concern that does not yield adequate returns on investors’ interest and compensate her human resource is not a successful business. So< return on investment will remain the most important measure of success. In the face of that, let us run through the peculiar challenges facing outdoor business in Nigeria, as follows:

    1. Government policies/ regulation: in addition to global standards of statutory intervention, the local scenario is one of seeming confusion among governments and their agencies. For instance, state governments have technically usurped the local governments’ right to outdoor advert levies through their agencies. But because this arrangement is not harmonized properly in some quarters, outdoor advert agencies find themselves subjected to dual level payment – one to the state government agency and the other to the local government who insists to be paid. This all add up to multiple taxation of some sort, and doubles the cost of such corporate bodies’ operations.

    2. Quality of human resource – outdoor advertising practice is still evolving from the days of old when it was lacking in adequately educated practitioners. But to mention, the industry will be better serviced by a continuous growth in the number of adequately educated practitioners. The good thing is that the trend is growing and the situation is looking better. We like to emphasize, from the standpoint of OAAN that our focus is on achieving high level of professionalism in the industry. We therefore encourage corporate bodies’ consideration for staff training and retraining, and the engagement of highly educated personnel at entry level.

    3. Corporate organizational structure – there is the need to cut cost of operation by considering the concept virtual office and outsourcing. The traditional office setting as we knew it in the 1960s through to the 80s is no longer practicable in today’s business environment. Infusion of technology, sharper focus and competences on the basis of comparative advantage will make better meaning in cost-efficient business management today.

    4. Financial discipline among business owners – business ownership and financial discipline is not one of our strong points in this environment. A lot of small and medium size businesses in this economy are organized around “the owners” so much so that there is no clear distinction between the personal finances of the owner and that of the business. Such practice leads to financial impropriety, indebtedness and business failure.

    5. Clients’ commitment to payment terms and pattern – clearly, not all that glitter is gold in real sense. You would be shocked to know how much is owed to outdoor advertising companies on account of these magnificent and spectacular displays you see in Lagos and Abuja, by the clients. As a result of clients’ indebtedness, most of the agencies are reeling in crippling debt that are threatening their survival. Coupled with the huge investment on those hoardings, the impressive digital display panels, payment to government agencies and cost of operations, debt management is one of the major concerns for any investor in this market. We at OAAN are working towards an acceptable financial management system between our member-companies and their clients that will support healthy business relationship.

    6. Industry practice – underhand dealings and compromises for selfish reasons. This is straightforward. We know of unwholesome practice by some service providers, especially those non-OAAN members. In order to make quick gains, the y compromise industry ethical and practice standard to get businesses. Their most potent tool is outdoor advert rates. They drop rates so badly the unsuspecting client shuns standard practitioners, not considering the dangers of unprofessional service delivery. What happens most times with such arrangement is substandard service delivery, abandoned hoardings and disappointment. So, we implore all those intending to practice in this market to uphold set industry standards.

    7. Innovation, research and strategic planning – lastly, the outdoor advertising practice will do better with research and strategic planning. As in all professionally driven business venture, the need for deep market and consumer insights is the bedrock for success. We must at all times be able to tell what the trends are at the market place, gauge extent of efficiency and effectiveness, understand the target audience expectation, traits and habits. Outdoor advertising businesses must begin to look at introducing more of strategic planning and research for greater effectiveness and ultimate market performance.

    In rounding up, the ingredients for successful business management are globally same – diligence and commitment. As we say in business management thinking global and acting local is the only difference in the small details you find from market to market. Therefore, investors and practitioners must begin to widen their scope in quest for innovative business thinking. Outdoor advertising business is the fastest growing among the three conventional advert media options today. It is also the most resilient to change in the ‘new media world’ driven by digital media. In the new direction, practitioners and investors in outdoor advertising must be challenges by innovative thinking, training and retraining, exposure and new business ideas, to drive success.

  • US import drop hits Nigeria’s oil exports

    US import drop hits Nigeria’s oil exports

    The oil industry faces a difficult 2013 as shale oil in the United States takes an increasing share of the north American market.

    Togo-based Ecobank, according to the Financial Times, said Nigerian crude oil exports to the US could fall by over a quarter this year, from 800,000bpd in 2012 to as low as 580,000bpd in the year.

    Already, in January, there were signs of stress. Crude oil shipments from Nigeria have, Ecobank says, declined from 75 cargoes in January to a scheduled 59 in March, and there is an unsold overhang of 21 out of 65 February cargoes. This is an unusual situation given that the cargoes contain Nigeria’s premium grades of sweet and light crude, which are usually very much in demand.

    As Rolake Akinkugbe, the Head of Energy Rsearch at Ecobank, explained to beyondbrics, refiners in Asia are increasingly capable of handling larger volumes of sour crude oil grades, while European refiners are facing pressures on their margins and seeking lower-priced inputs. Neither are looking as favourably upon Nigerian oil grades, which are priced at a substantial premium to the sour grades from the Middle East.

    “Nigeria and other oil producers in west Africa had a window of opportunity during the Libya crisis when their [Libya’s] supply was taken off the market”, she said. “There was a great switch to African crude grades, which partly accounts for their pricing premium at the moment.”

    Libyan oil is now coming back online, but the major problem for Nigerian crude is the soaring volumes of shale oil being produced in the US. The US is still Nigeria’s biggest oil export destination, but the relationship can no longer be taken for granted.

    “A decade ago” says Akinkugbe, “the industry thought that by 2015 around 25 per cent of America’s oil would come from west Africa, but now there’s a dramatic change in that picture. African governments need to look for alternatives destinations.”

    In recent years, she says, producers in west Africa and the Gulf of Guinea have exported around 2mbpd of oil to north America, but this has fallen to around 1mbpd, with the slump in Nigerian exports to the US being particularly severe due to the steeper price of its crude. Having accounted for 12 per cent of US crude imports in 2011, Nigeria’s share fell to 6 per cent in 2012.

    Nigerian oil exports to the US, Ecobank says, have already slumped to 700,000bpd from the 2012 average of 800,000bpd, and that could fall as far as 580,000bpd in 2013 as US domestic oil producers add an expected 800,000bpd of new capacity.

    As if the stiff new competition from Texas and North Dakota were not enough, Nigeria’s oil industry also has sizeable domestic problems too. Theft and pipeline vandalism cost it $7 billion in 2012, according to the International Energy Agency, and uncertainty surrounding the long-awaited Petroleum Industry Bill (PIB) is causing nervous oil companies to hold back investment.

    Oil and gas make up 94 per cent of Nigerian exports, and so even a small slackening of demand for its hydrocarbons spells big trouble. No wonder senior figures in the Nigerian government seem to have been talking so much about economic diversification recently.

  • Why we borrow to fund projects, by Fashola

    Why we borrow to fund projects, by Fashola

    Lagos State Governor, Babatunde Fashola (SAN) yesterday said the government’s decision to borrow to fund projects in its fiscal budget was geared towards future development of the state.

    Fashola also cleared the air on the criteria for the specified 200cc motorcycle to ply Lagos roads.

    He spoke while on inspection of several projects in the Badagry axis of the state.

    Fashola, who was with members of the State Executive Council, said his administration is investing huge resources on infrastructure that will determine the quality of, not only the present, but also the future generation, adding that the government could not fund the massive projects in the state by the meagre amount it gets from internally generated revenue(IGR), hence the need to source for bulk funds from other means.

    “IGR will only give us about N300 billion. From the demand we got from various communities for roads and other infrastructure, what we saw when we quantified it was about N750billion, but we couldn’t generate N750billion, that’s why we scaled down the budget to N495billion, over and above what we can reasonably pursue,” he said.

    Fashola also flayed those castigating his government for its debt profile, saying they were ignorant of the intentions of his administration,saying the initial N50billion bond his administration took has paid off.

    He said the alarm usually triggered by debt profile should not be based on borrowing, but the ability of such government to pay back, saying the state has shown its capacity to pay back funds borrowed.

    “This is why I have chosen to ignore all those voodoo economists. From the way they are talking, they don’t know what the economics of governance is,” he added.

    Clearing the air on the okada specification requirement, Fashola said: “First of all when you have a 200cc motor cycle, as your own form of transport, not public transportation, you can ride on any road in Lagos. You don’t need any permission. You don’t need any exemption.”

  • Dangote reopens Gboko Cement Plant

    Dangote reopens Gboko Cement Plant

    Dangote Cement Plant Gboko in Benue State, shut as a result of the glut in the domestic cement market, has been reopened, the management has said.

    The decision to reopen the plant was reached immediately after a meeting between President Goodluck Jonathan and Chairman, Dangote Cement,Alhaji Aliko Dangote, in Abuja yesterday.

    Giving reasons for the reopening, a source from Dangote Cement said: “Since the shutdown of the Gboko Cement Plant, Government has been engaging local cement manufacturers in discussions, trying to find solutions to the challenges facing the industry.”

    According to the source, Dangote Group President, Aliko Dangote, was in high spirits after the meeting with the President. In appreciation of the President’s concern and willingness to intervene, he directed the reopening of the plant immediately.

    When contacted, the Group Head, Corporate Communication, Dangote Group, Mr Tony Chiejina, confirmed the reopening. He said: “We are confident that in the days ahead, we will see positive developments and actions that will address problems of local cement manufacturers caused by the glut in the cement market.”

  • Fed Govt seals $1b deal with GE

    The Federal Government yesterday signed a $1billion investment deal with General Electric Company (GE) for the establishment of a new manufacturing and assembly facility in Calabar.

    The Minister of Trade and Investment, Olusegun Aganga, signed the Memorandum of Understanding (MOU) in Abuja on behalf of the Federal Government, and the Global Chairman/ Chief Executive Officer of GE, Jeff Immelt, signed for his company.

    The new investment also takes care of additional investment in the service workshops in Port Harcourt and Onne and it is at the point of execution, according to Immelt.

    The deal, which comprises $250million capital expenditure and over $800 million incremental spending on local sourcing of goods and services, is expected to create 2,300 jobs and make Nigeria the regional hub for GE’s manufacturing service and innovation in Africa. It will also support the company’s power generation, oil and gas production and exploration activities.

    Aganga said GE’s proposed investment in Nigeria was based on the country’s positive macroeconomic indicators.

    He said: “This is the beginning of many more investments that will come from GE and we are committed to providing a conducive investment climate for both GE and other foreign investors.

    “GE’s size of investment, which is $250million, for the outset, and $1bilion over the next five years, is significant in every respect. It is far more important because the investment is in critical areas of our economy, which is power and infrastructure. This investment will support our Industrial Revolution Plan, which is based on the areas where we have competitive and comparative advantage.

    Immelt pointed that the investment was a demonstration of the company’s confidence in the Nigerian economy.

    “The time is now and the place is Nigeria.The government of Nigeria has made significant progress in its economy within the last few years.

    “GE, as a global infrastructure company, will be investing $1billion in Nigeria within the next five years, which will create about 2,300 jobs. We see a lot of opportunities in Nigeria.We are committed to playing our part in the sustainable growth of Nigeria and the positive impact this will have on Nigeria and the continent of Africa as a whole, ” he said.

  • $150m AfDB boost for rice

    $150m AfDB boost for rice

    The African Development Bank (AfDB) is supporting the rice value chain of the Agricultural Transformation Agenda (ATA) with $150 million, the bank’s Chief Operations Officer, Dr. Patrick Agboma, has said.

    He spoke at the opening of a stakeholders’ workshop by AfDB in Abuja.

    AfDB, in 2012 pledged $500 million to support Rice, Cassava, Aquaculture and Sorghum of the ATA.

    Agboma said: “It is well known that the AfDB has committed $500 million for the ATA over the next three years but for this programme maybe up to $150 million could be put up.”

    However, he emphasised the need for infrastructure development in the states.

    The Permanent Secretary, Federal Ministry of Agriculture and Rural Development, Mrs. IbukunOdusote, said that the programme will be implemented in six Staple Crop Processing Zones (SCPZ) across the country.

    She added that the centres would be located in areas where there are high potential for production of the selected crops.

    Odusote, who was represented by Director, Federal Department of Agriculture, Dr. Julius Odeyemi, said 13 sites have been designated for the first set of SCPZs for rice, cassava, sorghum, aquaculture and horticultural crops.

  • Heineken’s winning way

    Innovation is often defined in terms of technological breakthroughs. There is a growing tendency to see it more as the creation and implementation of ideas that improve existing situations, writes WALE ALABI, using Heineken as a case study.

    Joyce Wycoff, co-founder of the Innovation Network defines innovation as “people creating value by implementing new ideas”. Eileen Dundon sees it as “the profitable implementation of strategic creativity”. In line with these definitions, the concept can be seen as proposals for products that could add value to a brand that are new to it.

    In the complex world of the 21st century where consumer preferences change rapidly, marketers are often on their toes to keep pace with this development through active participation and meaningful dialogue with consumers and brand loyalists. To some brands, it pays off; to others, it is often a Herculean task. One brand that appears to be getting it right is Heineken, the world’s leading international premium beer.

    Noted for the quality of its packaging and content and for opening the world of its consumers, the brand seemed to understand the concept of brand innovation well when it unveiled a new global bottle in Nigeria. The brand- which constantly looks for opportunities to set new world standards to provide its consumers with utmost quality- did not disappoint. It held a spectacular World Premiere of the bottle at the Federal Palace Hotel and Casino in Lagos which attracted high net worth personalities. This was replicated in Ibadan.

    For a brand to expand its interaction and maintain a balanced market penetration at a stable pace, it requires a robust and mutual relationship with consumers and stakeholders for success. This was the focus of Heineken when it launched the new global bottle in Ibadan, the Oyo State capital. It gave stakeholders the premium experience in an airport ambience in conjunction with James Bond latest movie, SkyFall.

    Some of the distributors expressed optimism that the innovation behind the new global bottle would drive sales and strengthen the bond between the brand custodians and stakeholders.

    Mary Odebiyi, a manager at Dacamca Nigeria Limited, one of the leading distributors, praised the new Heineken global new bottle for standing out. “The new global bottle is a very fantastic move that will help in creating more visibility for the brand, it is a well thought out process that is already bearing positive fruits. The fact that it was unveiled to consumers and distributors laid credence to its international status; it is truly the ‘Chairman’ of all beers”.

    She added that the brewery industry in Nigeria is big, adding that the new bottle will expand the businesses of stakeholders because people “will appreciate the beer more than what it used to be as this will translate into high volume for us as distributors. Heineken is for a unique set of consumers and the new bottle will further distinguish it from other beers”.

    Chairman, Tabcon Nigeria Limited Ibadan/Abeokuta, Akinyele Oladeji said the unveiling is a way of showing the quality and leadership place of Heineken in the Nigerian market. “As for us distributors, we are excited about the new idea because it will contribute to our sales volume in the shortest time. The new packaging cannot be ignored on the shelf because of its unique look and features.”

    Managing Director Ofage Enterprise Nigeria Limited, Ado Ekiti, Adegboyega Omotoyinbo, disclosed that the Heineken brand has contributed to positioning of his outlet and business in terms of return on investment and with the new innovation it will further add to the growth of the business.  ”I can authoritatively confirm the type of revolution I created in the market with Heineken and other Nigerian Breweries products.”

    Managing Director, Lexican Investments Limited, Ile-Ife, Omoba Adeleke Gbadebo, praise the minds behind the rebranding of Heineken and further pledged his company’s loyalty to the brand and other Nigerian Breweries products.

    Regional Business Manager West, Nigerian Breweries Plc, Joseph Bodunrin, disclosed that the Heineken brand is being sold in more than 170 countries of the world and Nigeria has contributed immensely to the brand which has informed uniformity, in the sense that the brand needs to have a uniform identity worldwide which is what informed the introduction of the global new bottle into the market.

    He further explained that, the brand is an icon as the James Bond movie Skyfall it sponsored recently is. The partnership with James Bond has further driven home the uniqueness and the premiumness of the Heineken brand. He added that consumers generally have insights, which drive them to approve a brand like Heineken.

    On the place of the brand and the activities in the region, Bodunrin said: “Heineken has done very well here in Ibadan even the poor know what quality is all about and they associate with Heineken a great deal, and the brand appreciates by engaging in sponsorships in term of carnival especially the Ibadan carnival which is mainly a beer event where consumer gather to enjoy the quality beer responsibly.”

    Mr Nicolaas Vervelde, Managing Director/CEO, Nigerian Breweries Plc, unveiling the global bottle in Lagos, said the company has been reinventing its brands and driving innovation over the years. Heineken, he noted, is an outstanding brand in Nigeria, the fastest growing and most premium lager beer in the country, hence, the name “Chairman”.

    The packaging, he continued, is state of the art and a retinue of distributors will ensure that it gets to the hands of its consumers wherever they are.

    Marketing Director Mr Walter Drenth affirmed that the new world class and innovative, proprietary bottle comes in 60cl and 33cl content. “It is a uniform Heineken bottle across the world and I am proud that Nigeria is one of the first countries to introduce this new design on a returnable bottle. This bottle is designed with true perfection to match the premium quality that Heineken always delivers”.

    Taking the audience through the design features of the new bottle, Drenth stressed that it is the first bottle of its kind with a transparent label in Nigeria; he said it was deliberately achieved because “Heineken hides nothing of its premium quality. The new green neck foil is inspired by the shape of a smile and is now wrapped around a longer neck. The stylish embossment at the back is a proof of authenticity and class. Together with the modern curves it adds a tactile nature that is pleasant to touch and that improves grip”, Drenth added.

    The beer market in Nigeria is still growing; competition may be keen, but, what matters is for consumers to continuously approve of a brand. There is no gainsaying the fact that Heineken will continue to have national acceptance in Nigeria.