The Nation Newspaper

Category: Business

  • How to increase food production, by unionist

    CHANGE is needed to improve national production, the Kwara State Chairman of Agriculture and Allied Employees Union of Nigeria (AAEUN), Comrade David Kayode Ehindero, has said.

    He highlighted the importance of increasing the productivity of land, not just for food, but also of other services in the industry.

    He said there is need to balance the many different priorities demanded of farmers.

    Ehindero said if the Agriculture Transformation Agenda must be achieved, then there is need for the support by stakeholders for the programme, most especially the Labour organisation, such as AAEUN, whose members are committed to improving agricultural practice at different professional levels.

    While commending the government on its plan to revolutionalise agriculture, ehindero, who is also the National Coordinator of Gentleman Farmers’ Scheme called for collaboration at national and state levels on the most effective and sustainable ways to improve farming.

    On the challenge of access to funding, he urged the government to establish a Presidential Taskforce on Agriculture Credit to work out ways to enable real farmers get loans.

  • Bournvita makes more millionaires

    Cadbury Bournvita Yummy Life Promotion has produced more winners in the Week 8 and 9 draws held last Friday at the company’s head office, Agidingbi, Ikeja, Lagos.

    Odera Obidimma from Abuja and Nnaemeka Nnawube from Ebonyi won N1 million at the electronic draws witnessed by regulatory agencies and the media.

    Other winners included Timothy Ilelaboye, a factory worker in Agbara, Lagos and Michael Ndukwe, a tricycle rider from Imo State, who won N250,000 each while seven others got N100,000 each.

    The two new millionaires brings the number of winners of N1 million to nine.

    Cadbury Marketing Director Dele Anifowose said: “With the level of participation by the consumers, the promo has achieved its objectives, which are to create excitement, delight and to reward consumers for their loyalty to the brand.”

    Anifowoshe congratulated the winners, urging others to participate in the promo to by buying either the 900g or 450g packs.

    The representative of Advertising Practitioner Council of Nigeria (APCON) at the event, Mr Akinnola Adewale, praised Cadbury Nigeria Plc for the transparent manner in which the draw was carried out.

  • Fed Govt adopts single window system for agric exports

    The Federal Government has restated its commitment to promoting the National Single Window Project to encourage international acceptance for agricultural commodities.

    The Coordinating Director, Nigeria Agricultural Quarantine Service (NAQS), Dr. Mike Nwaneri, said the platform would ensure safe import and export of agricultural produce.

    He spoke at a stakeholders’ meeting on the activities of the service and the new trade project in Abuja.

    Nwaneri said: “Importation is an international thing and there are global requirements for any product to move around the world so withthis, we can gain international acceptance especially our agric produce. So, in both country of export and import, there is a huge amount of documentation, inspection and possibly treatment required. So, this makes exportation hectic.

    “The essence of introducing single window system is that forcesinvolved particularly in export and import trade in agricultural products seem to be cumbersome for exporters to adhere to, because anumber of certificates are required from different sources to be ableto achieve a successful export.”

    Describing the project as a trade facilitation tool, he said it would reduce cost of doing business, time spent at the ports, enhance transparency and improve collaboration with government agencies.

    He said the service has been partnering with the Nigerian Custom Service (NCS), stressing that it has begun an upgrade of its laboratories to detect Mycotoxins, a major common food contaminant.

    Nwaneri identified the food poisoning bacteria (Aflatoxin) as part of reasons most agricultural commodities were being rejected at the international market.

    However, he informed that the detecting equipment have been mounted at the NAQS zonal offices in Ikeja, Port Harcourt and Kano.

    “NAQS undertakes emergency protocol to control and manage new pests’ incursions as part of its responsibilities to prevent spread of exotic pests and diseases of plants, animals, aquatic resources and theirproducts. It is a key national implementer of Sanitary andPhytosanitary Standards (SPS) of the World Trade Organisation (WTO),” he added.

    In her presentation, Ghanaian Consultant to the NCS, Valentina Mintah, stated that the single window trade system could make trade across border, 50 per cent better, faster and cheaper within a period of five years.

    According to her, “the optimum goal of the system is to create an integrated work space of data and business processes for trade-related activities and stakeholders with the trader at the core.”

    She added that it would, among others, improve effective revenue collection for the Federal Government.

  • The challenges of outdoor advertising

    Outdoor advertising has its challenges. Among these challenges are conflicting regulations and multiple taxation, huge debts and demolition of their billboards. In the face of all these, the practitioners are undaunted because business is booming. Raji Rotimi Solomon examines these challenges and projects into the industry’s future.

    Forming perception about a brand and stamping it in the mind of a consumer is the ultimate goal of an advertising agency. One of the highly rated brand building tools is outdoor advertising.

    The former president of Outdoor Advertising Agency Association of Nigeria (OAAN) Rafiu Ladipo said: “Out-of-Home (OOH) is attractive and strategic to mass communication, hence, there is the need to pay close attention to this medium.

    “This is why this kind of advertising is in high demand as many companies worldwide maximise its productivity potential to the optimum. Its efficiency in driving brand consciousness is unquantifiable.”

    Mr Charles Chijide, OAAN president, said operators are now cash-cows for some government agencies.

    In the beginning

    In the past, billboards were made of rusty poles and planks on which were pasted materials that peeled off under severe climatic conditions. Due to lack of proper regulation, billboards were planted indiscriminately around cities, highways and roads, constituting nuisance.

    Some caused obstructions as a result of their dilapidating state, some poles were bent, some fell on major roads. Posters were pasted without checks. Under-bridges, Power Holding Company of Nigeria (PHCN) poles, culverts, bus-stop shelters and the rest served as pasting boards. Professionalism in the sector then was at an all time low. Only few practitioners followed the industry standard operating procedures.

    Digital age evolution

    Out of home advertising has gone beyond rusty poles signage in Nigeria. The major turnaround featured segmented scrolling billboards, unipoles, ultra waves, crossway billboards (gantries) backlit, Hexa signs and the latest of them is the light emitting diodes LED screen billboards. These evolutionary billboards designs are meant to make the outdoor advertising functions more effective, less stressful yet delivering value for money.

    These latest electronically controlled billboards could be managed from the agencies office without any stress. Another advantage and a delight to clients is that it could also be monitored by the clients from their offices removing the hassle of going to spy on a billboards post for monitoring. Just like other digital innovations, this one also comes with accuracy, ease, speed and trend. This new technology provides aerial beautification.

    Demolition spree

    The first act of billboard demolition took place during the Raji Rasaki military regime. This action marked the beginning of billboard extermination in the country.

    In 2006, there was massive demolition of billboards in Abuja. The exercise was aimed at sanitising the Federal Capital Territory (FCT), but the resultant effect was the agony it caused some outdoor agencies, some even filed for bankruptcy. In 2007, Lagos State Signage and Advertising Agency (LASAA) went on a crusade against billboards in the state.

    This exercise made many OAAN members groan in agony. In August 2012, Kano State also embarked on a demolition expedition. The timely intervention of OAAN relieved practitioners of impending and inevitable heartache. The legal intervention was to forestall a reoccurrence of the Lagos billboard demolition saga which shook the industry violently.

    The association dragged the urban planning and development authority to court. Boko Haram insurgency was another major challenge; the destruction of billboards in the northern state caused practitioners some millions.

    In July 2012, the over flow of the Niger River caused a great flood which affected the middle belt states initially. Gradually this flood spread out to the east, southsouth. It was recorded to be one of the biggest flood disasters Nigeria has ever experienced after the 1969 flood. This flood was responsible for the collapse of so many billboards. This has been the ordeal of the outdoor advertising industry.

    Challenges

    The three tiers of government lay claim to the control and regulation of OOH, each grabbing a body part to tear. The local government has the power following Section 7(1) and (5) Paragraph Item (k) the fourth schedule of the 1999 Nigerian Constitution to regulate OOH, but the state and Federal Government struggle alongside the local government in generating revenues from practitioners. When all these government agencies levy their taxes and OOH practitioners are to pay, what is left as profit? Little wonder Chijide aptly described the industry as swimming in shark-infested waters.

    Economic benefits of OOH

    Chijide highlighted the following as benefit and impact of outdoor advertising in his speech during the 2012 advertising stakeholders forum.

    • Outdoor advertising propels the growth of trade and commerce in peculiar ways that has endeared it to highly successful brands as a must-use.

    • It is the second biggest contributor to objective-driven media engagement worldwide.

    • It is the most enduring and most effective among advertising media options, for the reason that it is ubiquitous and reaches markets others cannot.

    • It helps to properly target the mass market, reinforces brand availability and provides retailers with proof of marketing support.

    • Outdoor advertising is the only vehicle of advertising that is active at all times.

    • Outdoor advertising is, forever, committed to supporting brands through offering value-added services, especially within the Nigerian local market.

    • Even within the limited and meager resources, coupled with stringent environmental conditions, and stifling statutory restrictions, outdoor advertising continues to make significant contributions to the national economy.

    To add to this, OOH is a major employer of labour in the industry.

    Resolution and projection

    OAAN, joins and partners with international bodies and the industry now operate with international standards the president promise to keep such standards and to continually bring innovations that would drive the industry forward. The association also resolves to protect the interest of its members from various forms of extortions and actions that would kill the industry and practitioners.

    Lastly we urge different government agencies to support the industry and apply leniency and consideration while carrying out their duties. 2013 would see to the birth of bigger and better innovations, we are ready to do more to better our brands and grow our economy if only we are given the chance to blossom and not strangled.

  • Brands fail, not ads

    Ads are the same. They come in either living colour or black and white. People share similar attributes with ads. You are either black or white. While ads seek to sell products or services to satisfy brands aspiration, people buy goods and services to gratify their desire. Around the world, people’s needs are the same. That is why Nigerians connect easily with foreign ads. That is because people build ads, not machines. On the other side, contest this if you like, ads do not build brands. People do.

    A brand that would not deliver what its ad promises cannot be built be another ad. The ad campaign commissioned by an internet service provider (ISP) is a pointer to this. The brand’s ad was engaging. The teaser was spot-on. It jiggled the target’s brain with series of quiz: What is the name of the fastest land animal? What is the name of the fastest bird in motion? What is the name of the fastest reptile?

    To illustrate this, each ad in the series showed pictures of the fastest animals, suggesting that the product has the same credentials as these animals, as such; the market should rely on it to meet their particular needs. The ads ran for months. The brand promised the target the “fastest wireless broadband speed allowed by today’s technology”. The concept was to convince the customers and would-be customers that the product under the wrap is the fastest in its segment.

    The same ad encouraged the target to take their productivity to the next level at home or office; everyone can share reliable high-speed broadband connection and instant Wi-Fi cloud on “your laptops, smartphones, and iPads and gaming consoles working at 4G speeds”. Like all good ads, this ad was riveting. Consumers were wondering what is going on. They were in the dark. They could not comprehend the brand’s logic; neither could they get out of the maze. However, in the passage of time, light shone at the end of the tunnel. The masquerade was unmasked.

    The ad achieved its objective: sell the brand. However, the ad failed to take the brand further. That is because the product failed to deliver what it promised in the ad.  When a brand fails to match words with action, it all amounts to sweet nothing. All motion and no action, big hat, no cattle. The ISP actually promised 4G broadband speed. What this means in local parlance is that your car would travel on Third Mainland Bridge without any hindrances, both ways.

    With that analogy, you get a clearer picture of how 4G works.  However, now imagine travelling on Third Mainland Bridge in the morning or any time and your car moves at a snail pace. Does that match the experience the brand promised in the ad? Let us take it further. You are a subscriber of this 4G stunt from this ISP. Your team of 10 executives were connected. Thinking the 4G would run at the speed of a Cheetah, you sent a JPEG picture to the team from out-field. 24 hours later the teams have not been able to download the picture. Hey, the picture resolution is high! Your colleagues screamed at you over the phone. You reduced the resolution and sent it again. The team got the same result.

    Meanwhile, 72 hours later, you were back in the office. Got the picture? You asked your team. No. What is up? Trouble-shoot your laptop. The system engineer commanded.  It was done. You had the same experience. Desperately searching for a solution, you turned to your BB. Immediately, the picture came alive on your phone and you transferred it to your laptop. All within seconds! Now, mobile download is the option available to most Nigerians, including you.

    Warning: There is a limit to what you can achieve with a mobile application. With a one-off, light download, there is no stress. Nevertheless, with the kind of business you engage in, where data, video and information stream out of you like a river, you need a robust 24/7 internet connectivity. When you do not have that, what can you do? You directed the question, this time, at your system engineer. He looked askance. That is one bad experience. However, the ads did not give you false expectations. The brand did. Therefore, the brand failed.

    Do not go away. Before you got to this stage, the ISP had cutover your link to 4G without a prior notice. Not knowing that the ISP had played a fast one on you by pulling the plug of your 3G internet connection, you were “trouble shooting” and “searching for internet connection” where there was none. When you discovered this, the ISP asked you over the phone to connect to the 4G internet speed. The essence of such an investment in 4G is to boost content download and upload.

    This is important to how business manages its information. If it is a business with an incredible richness of information like yours, then it is frustrating not having the internet access for a millisecond.  On that score, when you eventually obeyed the “4G order” you thought your life, your business, and your clients would never remain the same. It was never the same because after the connection, activities slowed and you spent your waking hours shuffling between Lagos Island – where the ISP has its office – mainland, your office.

    In the ISP office, you noticed several hapless customers: Those without a voice, without options, and without a clue about what was going on. They sat comfortably, waiting for ‘good luck’. Some of these people were hopeful; others were hopeless; some were expectant; others were in suspense. The customer service executives were unfriendly [why customer service executives in most companies are like that beats me!]. They know what was going on. They know that the ISP sold 4G “dummy” modem to the subscribers. They could not tell you. They dare not tell you. Why they could not tell you, beats your imaginations. The look on their faces painted a sad story, a sad story of indifference, total lack of care.

    In retrospect, their body language said, “Collect the 4G modem and leave our office. After all, before you know that the modem is not functioning, you would have got to your office and ….” Meanwhile, these customer service executives earn their salary from the subscription of these subscribers. If so, is it too much to show a little care, a little concern, a little compassion for a subscriber who had to leave her office early in the morning and queue up in order to collect the internet modem she had paid for?

    The hours spent waiting in that ISP’s office could have been used for something meaningful such as rendering a service to a client, conducting a research online, attending a meeting that would translate to more business opportunities…. Excuse me! You ran after a matronly woman. Goodness, she is the marketing manager. Breathless, you could only mutter two words: Madam. Help. She ushered you into an air-conditioned office. She did not move. She listened to your woes. She promised to help. She promised she would help. Deliberately, that sentence came twice because she had not helped you at all. Till now.

    Take a pause, please. The ads did not let down the subscribers. The brand ambassadors failed the subscribers. The people employed to build the brand through consistent service delivery let down the subscribers. Therefore, the brand promised what it cannot deliver, not the ad. Let us examine it. The ISP put out a paid ad, saying it is the fastest 4G broadband internet service provider in town. No problems.

    Now, face to face with a manager who represents the face and voice of that ISP, what you got was yet another unfulfilled promise. Four weeks after the encounter, you still have not been able to browse, download or upload any information. Shhh, no, the ad did not tell lies. The ISP promised; the ISP failed. No, ads do not build brands; people build brands through consistent service delivery. Is the ad good in execution? Yes. Can the ISP win back the subscribers’ confidence? Yes. Can ads convince subscribers to return to the ISP? No. Can ads build this ISP? No. How can this ISP build its brand? Practice what you preach.

  • AFAN solicits assistance to boost rice production

    The All Farmers Association of Nigeria (AFAN), Ijebu-Ode chapter, has appealed to the Federal Government to assist rice farmers with finance and inputs to boost local rice production.

    The Chairman ,Chief Kamoru Adeite, made the appeal during an interview in Ijebu-Ode, Ogun State.

    Adeite noted said the major challenges facing farmers in rice production were the lack of finance, farm equipment and encouragement from the government.

    He said if the government could assist farmers to overcome these challenges, there would be no need for rice importation.

    Adeite, who expressed the farmers’ readiness to embark on massive production of local rice with the government’s assistance, said that was the surest way rice importation could be discouraged.

    He urged the Federal Government to be sincere in its quest to attain self-sufficiency in rice production in 2015 by encouraging farmers in all ramifications.

    Adeite noted that the government’s intervention in local rice production would boost the economy and also encourage young persons to embrace farming.

    The AFAN boss, who rued the huge amount of money the government had been spending annually on rice importation, noted that such spending was not in the best interest of the nation.

    ‘’If only the government can listen to our plea and assist us in rice production, I believe the idea of rice importation will be a thing of the past.

    ‘’We, farmers, are ready to partner with the government in attaining self-sufficiency in rice production but the government must also be ready to assist us,’’ he said.

  • Don seeks agric resource mapping

    A National agricultural feasibility study and mapping, to show where crops can yield high returns for investors, is necessary, a lecturer with the Agricultural Extension and Rural Development, Faculty of Agricultural Sciences, Ladoke Akintola University, Ogbomosho, Prof Abel Ogunwale, has said.

    He said such a map would help local and foreign investors to make decisions on investment and secure food supply.

    He said the industry needs maps of harvested areas and yields.

    According to him, the knowledge of crop production potential in some parts of the country is an essential input to food security planning.

    He said Nigeria has a vast and diverse resource endowment, suitable for production of some crops.

    Given the abundant natural resource base, Ogunwale said agriculture offers the greatest potential for generating growth and increasing employment and incomes.

    He said foreign investors would find Nigeria a favourable destination and that they are capable of shrinking the ‘yield gap’ — define as the difference between attainable and actual yields of food crops.

    Ogunwale said there are areas where improvements would have a substantial impact.

    He said the government has to provide farmers with market access, infrastructure, risk management practices that would provide incentives to them to produce more food.

    Ogunwale called for an holistic approach, including working on agriculture research, development, dissemination of technology and provision of agricultural input and irrigation, to help achieve high productivity.

    He noted that higher farm output was important not only for food security, but also to sustain high growth.

    Calling for higher public and private investment in the farm sector, he said there was need to invest more in agriculture and allied sectors with the right strategies, policies and interventions.

    He said higher level of investments are required for increasing farm productivity and creating infrastructure for transport, storage and distribution of agricultural produce.

  • N1b loan: Jigawa farmers call for conditions’ review

    Farmers in Jigawa State have called for a review of the conditions for accessing the commercial agriculture loan.

    The Federal Government has provided a N200 billion Commercial Agriculture Loan Fund aimed at encouraging agricultural productivity and boosting entrepreneurial skills among farmers.

    Under the scheme, each state was allocated N1 billion to be distributed to smallholder farmers.

    Farmers who spoke in Dutse noted that smallholder farmers in rural areas could not access the facility due to the cumbersome processes.

    A maize farmer, Jubril Danladi, said the terms for accessing the facility were stringent for the peasant farmers to meet in view of their low capital base.

    Danladi said the facility had failed to make provisions to take care of the needs of small and medium scale farmers. “The scheme is not meant for smallholder farmers; most farmers could not meet the conditions to enable them to access the facility.

    “The conditions set by the banks only favour big farmers who represent a small fraction of the farming population.

    “It is desirable for the government to review the conditions and provide a waiver on the collateral to enable us to access the facility,” Jubrin said.

    Another farmer, Adamu Muhammad also called for proactive measures to ensure the availability of fertiliser, seeds and other input to the farmers.

    He added that the non-availability of fertiliser and input made agriculture difficult and less attractive.

    The state Commissioner for Agriculture,Alhaji Rabiu Isa, acknowleged that N1 billion was earmarked for farmers in the state under the Federal Government’s Agriculture Loan Scheme.

    Isa, however, added that the state was not participating in the scheme due to the

    cumbersome processes.

    He said the state government achieved more than 60 per cent in the implementation of agricultural programmes last year.

    He explained that the state recorded success in crop and livestock production as well as enhancing farmer entrepreneurial skills.

    “We have vaccinated over three million livestock against animal diseases. We also recorded significant decrease in diseaseoutbreak.

    “Through our collaboration with IFAD and Fadama programmes, thousands of farmers were encouraged to embark on agricultural processing, thus, providing job opportunities to youths and women.”

    According to him, the state government has made adequate provision in this year’s budget to accelerate irrigation and provide job opportunities for youths through effective use of water.

    The Director-General of the Jigawa Agricultural Research Institute, Alhaji Mamun Aliyu, said inadequate funding was affecting the operations of the institute.

    Aliyu explained that the institute had conducted research on tissue culture and soil analysis in the last three years, but the work could not be published due to the lack of funds.

    “The research was carried out in the last three years, but we could compile and publish the work for the benefit of the farmers.

    “We are appealing to the state government to provide the fund to complete the project. The work is imperative toward transforming agriculture in the state,” he added.

  • CPC honours Indomie

    Indomie Instant Noodles, from the stable of DUFIL Prima Foods Plc, has added another feather to its cap. It clinched the Product Excellence Award category at the maiden edition of the Nigeria Consumer Award (NiCA) organised by the Consumers Protection Council (CPC).

    Indomie Instant Noodles was bestowed with the award at an event held at the Ladi Kwali Hall, Sheraton Hotels and Towers, Federal Capital Territory (FCT), Abuja, having won among other notable brands shortlisted for the category.

    Indomie was voted the best by consumers which was verified and authenticated by an award verification panel comprising members drawn from the Nigerian Labour Congress (NLC), the Media, Organised Private Sector (OPS), the Standard Organisation of Nigeria (SON), the Nigerian Communications Commission (NCC) and the National Association of Nigerian Students (NANS).

    According to the Director-General of the CPC, Mrs. Ify Umenyi, “the Nigeria Consumer Award (NiCA) is an initiative instituted by the agency to bestow honour and recognition on corporate bodies that have offered products and services adjudged by the consuming public as embodying the highest standards.”

    Mrs Umenyi noted that the maiden edition of the awards featured 14 categories which included: Service Excellence Awards, Product Excellence Awards, Consumer Rights Advocacy Awards, Corporate Social Responsibility Awards amongst others and the designation of some eminent Nigerians as Consumer Ambassadors.

    The Chief Host of the awards, the Minister of Trade and Investment Mr Olusegun Aganga who was represented by the Minister of State in the ministry, Mr Samuel Ortom, explained that the need to ensure adequate protection for Nigerian consumers cannot be over emphasised. He urged manufacturers, brand custodians as well as service providers operating in the country to ensure that Nigerians are given the best in terms of products and service delivery at all times.

  • NCC pegs SMS at N4.00

    NCC pegs SMS at N4.00

    The Nigerian Communications Commission on Thursday fixed N4.00 for all domestic Off-Net Short Messaging Service with effect from February 5.

    The directive, which was signed by the Director, Legal and Regulatory Services of NCC, Ms. Josephine Amuwa, according to a statement issued by the commission’s Head of Media and Public Relations , Reuben Muoka, has been communicated to the operators since January 3 this year.

    But she maintained that NCC will not place a price cap on International SMS for now.

    The commission, she said, arrived at the new price cap after due considerations of the submissions made by the operators at various consultative meetings.

    Having evaluated and analyzed SMS traffic information provided by the operators, she said the commission noted that “There was a general recognition that the cost of SMS is too high, especially in view of the interconnection rate of N1.02 for SMS as determined by the commission in 2009.”

    While noting that the operators had proposed a price cap ranging between N5-10 per message for Off-Net SMS, she said the operators also urged NCC not to set a cap for international SMS due to the fact that Interconnect rates for International SMS are outside the commission’s control.