The Nation Newspaper

Category: Business

  • Getting firms to pay pitch fee

    Over the years the issue of pitch fee has caused serious controversy in the industry. While it is a standard practice in other countries, it is a herculean task getting advertisers to pay in Nigeria. Pitch fee or rejection fee as it is called alternatively is the payment made to an advertising agency after losing a pitch.

    This is to compensate for effort made, in terms of expenses incurred during preparation and intellectual input. This might sound absurd, that a company must be paid for failing to win a pitch, but the rigour of putting a pitch material together is cash consuming.

    Pitch: Is a presentation by one or more advertising agencies for a prospective account. In this presentation, the agency would use portfolio, slides, video, storyboard or other devices to review its organisational set-up, result for other clients, types of accounts, experience of personnel, specialisations, and any other information that is pertinent to winning the account.

    With that completed they move to downloading the strategies they intend to employ, to make an account a premium brand or to maintain the height it has gotten.

    All these is done with animations, research, layout and all, to communicate your imaginations and showing what the campaigns would look like. The process of preparing a pitch material is quite expensive and demanding and so should be rewarded.

    In most cases the pitch process starts with organisations calling for credential checks from various agencies before throwing-out a pitch. After the credential check, selection is made and then pitch preparation begins from short-listed agencies.

    These quell any form of bitterness or disappointment that might stem from having an overcrowded pitch exercise and eventually not being able to pay too many agencies their pitch fees.

    This phenomenal issue in the industry has been raging on, but with the new approach Advertising Agencies Association of Nigeria (AAAN) is taking would definitely settle the hitch in 2013.

  • Fake products: Fidson canvasses support for NAFDAC

    A LEADING manufacturer, Fidson Healthcare Plc., has called on pharmaceutical firms to support the campaign against fake drug syndicates by the National Agency for Food, Drugs Administration and Control (NAFDAC).

    Fidson’s Director of Operations, Mr Abiola Adebayo, spoke against the backdrop of the on-going campaign by NAFDAC to rid Nigeria of fake drugs.

    Drug counterfeiting is affecting the pharmaceutical industry and the country’s economy.

    To eradicate it, NAFDAC embarked on campaigns against fake drugs syndicates. The agency mounted public enlightenment campaigns and enforcement with other security agencies and government bodies.

    Adebayo maintained that the campaign could only be successful if stakeholders, including pharmaceutical companies support the agency in the fight against drug counterfeiters.

    He said: “It is very imperative to see the on-going campaign beyond just one of NAFDAC, activities. The problem of fake drugs is neither a NAFDAC problem nor that of the pharmaceutical industry. It is a serious national issue because it has to do with human lives. Hence everybody, including pharmaceutical firms must join hands with NAFDAC in this fight.”

  • Regal Gin holds ‘Fuji Slam’

    Consumers of Regal Dry Gin, the number one gin in the market from the stable of Grand Oak Limited, were entertained to the best of live fuji music by its Brand Ambassador, Alhaji Alabi Pasuma in this year’s ‘Fuji Slam’ held at New Afrika Shrine, Lagos.

    It was an exciting feat that left the audience yearning for more as they were entertained by different artistes before Pasuma mounted the stage.

    Speaking at the event, Category Manager of Grand Oak Limited Mr Abiodun Ayodeji said: ‘Regal Fuji Slam’ is the brand’s way of rewarding loyal consumers while at the same time entrenching Regal Dry Gin with the core target consumers.

    “If you look at the Southwest part of the country you will find out they love music and the kind of music they love is Fuji hence, we latch on this as a platform to promote the brand.

    “Regal Dry Gin has been in the forefront of promoting indigenous musical forms and entertainment programmes in the media. Regal Dry Gin pioneered the sponsorship of “Fuji Tolode” which got rave reviews in the late 90s on five radio stations,” he said.

    He said Regal Dry Gin sponsors “Lagbo Regal” on 14 radio stations across the Southwest because of the love people in this part of the country have for Fuji Music.

    According to the Brand Manager, Olufemi Falomo, “Regal Dry Gin has always communicated on the platform of enjoyment and satisfaction in close conjunction with Fuji Music.

    “This is a show where different wave making Fuji artistes entertain brand consumers. It also had side attractions like dancing and miming. The high point of the event was the star performance by Pasuma who entertained the audience.”The event serves as a platform for the brand to bond with her consumers. It is the link between the brand and the consumers where people can actually come together and interact,” he said.

  • EPCL launches beauty products

    Clients, friends and hair and beauty personalities were feted to a cocktail as a range of personal care products was launched last Sunday at the Oceanview in Victoria Island, Lagos.

    The products were launched amidst fun fare as the invited guests interacted with the superior range of products namely Sofn’free and Easy waves crème relaxers, Clere Hair and body lotion and cremes, Silk-e skin toners and lotion and also Krayons petroleum baby jelly.

    Speaking at the event, Mr Suren Mirchandani said often times hair products made by other companies burn the scalp but the Sofn’free and Easy waves crème relaxers were carefully formulated by AMKA’s laboratories to make sure women have value for their money without the products burning the scalp.

    “We are here today to introduce our superior range of products to Nigerians. European Personal Care Limited, EPCL’s goal is to add value to the African woman by helping them to look beautiful and feel good.

    “Over the years, we have trained thousand of hairstylists on how to use our products efficiently and they have testified of the results. 2013 will be more exciting as we plan to launch other products to the Nigerian market,” he said.

    The glamourous event was hosted by actress Tina Mba and dignitaries graced the product launch among who are Mrs Thomas Ishoka, President of Hairdressers Association of Nigeria and Dr Elizabeth Oshisanya, a distinguished cosmetologist and founder of Elegant school of cosmetology.

    Mrs Osishanya said she was proud to be associated with the brand as they have proven as a company that caters for the wellbeing of the people.

    “We have been using the products for years now and they are wonderful. The cocoa butter produced by European Personal Care Limited has been wonderful. I use their cocoa butter for my skin and it has been a household item for me and my family. I urge the women to make use of the Sof n free, Clere and even the Krayons cream for their babies.”

    Part of the highlights of the product launch was a dance by the Azazi Dancers with Attitude. A dipstick study among Lagos State salon owners showed that four out of five salon owners recommend Easy Waves crème relaxers and shampoo.

  • Fed Govt’s pre-shipment contract extension for probe

    Fed Govt’s pre-shipment contract extension for probe

    The furore generated by the extension of the multi-million dollars pre-shipment contracts to four firms by the Federal Government took a new twist yesteday as the House Committee on Customs said it would organise a public hearing on issues and circumstances sorrounding the six-month extension.

    The government had, through a letter signed by the Permanent Secretary, Ministry of Finance, Mr Danladi Kifasi, conveyed the extension of the contracts for the provision, installation, operation and management of X-Ray scanning equipment and software for inspection of good to Messrs. Global ScanSystem Limited, Webb Fontaine Limited, Societe Generale Du Surveilance S. A. and Cotecna Inspection Limited.

    The letter, dated December 31, 2012, stated that the extension takes effect from January 1, 2013 and directed the firms to contact the Finanace Ministry’s legal unit “for the preparation and execution of the new agreement within one week of the date of this offer.”

    But stakeholders in the sector told reporters in Abuja yesterday that the contract extension violated certain agreements signed with the firm in January 2006, insisting that the nation stands to benefit more if officers specifically trained for the job by the Nigerian Customs are allowed to take over the task.

    Noting that the government violated a contractual agreement, which affirmed that the relevant agencies, including the service providers must be given three months’notification before an extension can be made, the stakeholders also questioned why the service providers are exempted from paying duties on their imports even when their services are being paid from proceeds of import duties.

    They also argued that the country loses about $50 million monthly to the four firms without any commensurate value to the nation’s economy.

    Aside the petitions filed before the Hon. Sabo Nakudu House Committee on Customs, the National President of the Association of Nigerian Customs Licensed Agents, Mr Olayiwola Shittu, said the government ought to understand that the extension of the contract has dire economic and security implications for the country.

    Speaking with reporters, Shittu said: “I can tell you that the whole thing is a waste. Over 80 per cent of the so-called Risk Assessment Report (RAR) has been found to be faulty because the Customs contnues to discover that what is declared does not tally with what is found.

    “In spite of all the noise about pre-shipment inspection, the Customs still discovers cases of concealment, wrong valuation and other acts that short-change the government from maximising revenue collection.”

    Lamenting that the $50 million being raked in by the four firms based on the one per cent Free On Board of cargoes into Nigeria, Shittu said the association has submitted its petition to the Ministry of Finance and the relevant committees in the National Assembly, adding that the House has assured of its desire to organise a public hearing on the matter.

    “Honestly, there is no justifcation for the extension. The Customs, as it is constituted, can manage the risk as it is done in many other countries”, he said.

  • Conoil to invest N4.8b in 60 new stations

    Conoil to invest N4.8b in 60 new stations

    As part of its expansion programme, Conoil Plc plans this year to bring on stream 60 new retail outlets worth N4.8 billion.

    A source said the filling stations would be spread across the country in line with the company’s planned major strategic expansion programme to meet the increasing consumer demand.

    “The expansion programme would cost about N4.8 billion and it is earmarked to grow the company’s sales and revenue by over 65 per cent. It is projected that the new stations will complement the company’s plan for massive importation of refined petroleum products this year.

    “The retail outlets will offer robust and automated network, which will leverage on technology to deliver the assurance of quality products and improve service efficiency at the forecourts.

    “The expansion project represents the second phase of the company’s comprehensive four-year plan which started two years ago,” the source who asked not to be identified,” he said.

    Conoil had embarked on the plan to adequately prepare for industry-specific challenges, ensure impressive growth in its performance indicators and consolidate its leadership position in the downstream petroleum business.

    The company started the ambitious expansion plan with the upgrade of its storage tanks at its depots nationwide to accommodate bulk product imports.

    To do this, the company said it increased the storage tanks for white products, which include premium motor spirit (PMS), diesel and kerosene, to 80,000 metric tonnes, thereby doubling the capacity of its storage facilities at its Apapa installation.

    Another major flank of the expansion programme, the source noted, is the construction of the company’s multi-billion naira Port Harcourt depot, which has the capacity to hold 70,000 metric tonnes of various petroleum products with the propensity to dispense 5.5 million litres per day.

    The Port Harcourt depot, he added, complements the company’s flagship installation in Apapa, Lagos, providing easy access to fuel imports and easing the pressure on available jetties and other port infrastructure in Lagos.

    “Conoil has been in the forefront of pioneering innovative initiatives in the downstream oil sector.Its multipurpose mega stations, not only sell petroleum products, but also offer a variety of value-added convenience services that delight consumers,” he added.

  • OPEC to cut crude exports by 1%

    OPEC to cut crude exports by 1%

    The Organisation of Petroleum Exporting Countries (OPEC) will cut crude shipments this month by one per cent as demand tapers off after peaking for the northern hemisphere winter, according to tanker tracker Oil Movements.

    The group that supplies about 40 per cent of the world’s oil will export 24.02 million barrels a day in the four weeks to January 19, down 2501,000 barrels from the previous period, the researcher said yesterday in an e-mailed report. The figures exclude Angola and Ecuador.

    “The mid-winter trough is the end of the season for long- haul crude coming into the Atlantic basin,” Roy Mason, the company’s founder Mason said by phone from Halifax, England.

    The reduction may also signal that Saudi Arabia is trimming production to balance global supply and demand, he said.

    Brent crude traded at about $112 a barrel in London today, having gained 3.5 percent last year in its weakest performance since 2008. OPEC is pumping about 1.4 million barrels a day more than its official target of 30 million, data compiled by Bloomberg show.

    Middle East shipments will slide 1.3 percent to 17.68 million barrels a day in the period, compared with 17.91 million in the four weeks to Dec. 22, according to the report. That figure includes non-OPEC members Oman and Yemen.

    “There is less west-bound oil,” Mason said. “If you’re going to control the market, the west is the major lever. So the Saudis may already be moving to control the market.”

  • AshakaCem targets three million tonnes

    AshakaCem PLC plans to increase its yearly production capacity from 900,000 to three million tons.

    Its Managing Director, Mr Neeraj Akhoury,who made this known, said the decision was reached during the company’s Board meeting in Abuja.

    He said the feasibility studies on raw materials reserves, power and infrastructure undertaken on the planned capacity prove the company’s equality to the task.

    Consequently, he said the company is putting everything to accelerate the development plan, adding that it has made significant progress in implementing the phase one of the expansion project.

    While explaining that the expansion was in tandem with ensuring that Ashaka Cement remained cement users’ top choice, Mr Akhoury explained that their mother company, Lafarge Group, was committed to seeing the expansion through.

    He added that the expansion was founded on the willingness to create local business opportunities in partnership with its neighbouring communities to underscore the strong support the company has received from them and Gombe State government.

    He said the company to give back to its host community in 2011 invested over N175 million in education, village infrastructure and health development.

  • Shareholders okay Capcom’s, Starcomms’ $210m deal

    Starcomms Plc has received support from 99.83 per cent of its shareholders for Capcom to invest $210 million in the embattled telecoms company.
    A statement from Starcomm’s Public Relations outfit, Cutler Ogilvy, said bythis development, Starcomms “has received the necessary shareholder support for all matters relating to the proposed $210 million investment by Capcom into the Company.”
    The shareholders’ approvals, “now require the High Court’s ratification and the transaction, thereafter, remains subject to a number of conditions precedent as outlined in the Scheme Document including, but not limited to final regulatory approval from the Nigerian Communications Commission (NCC), Nigerian Stock Exchange (NSE) and Securities and Exchamge Commission (SEC)”.

  • Fed Govt to acquire 30 aircraft for domestic operators

    Fed Govt to acquire 30 aircraft for domestic operators

    The Federal Government is to procure 30 aircraft as part of its efforts to boost domestic operations of the aviation industry.

    The Corporate Communications General Manager, the Federal Airports Airthorityof Nigeria (FAAN), Mr Yakubu Dati, who stated this during the inspection of the renovated Benin Airport, said the fund would be sourced from part of the aviation intervention fund of the Federal Government.

    Dati, said the development entailed buying and distributing aircraft to domestic airline operators, unlike the old practice of giving out aviation intervention funds to them, which they allegedly misused.

    He said the procurement of the aircraft would be funded by the Central Bank of Nigeria (CBN) in conjunction with the Bank of Industry (BoI).

    He added that the initiative would help in reducing the cost of travelling by air in the country. “ I also want to say at this point that the issue of assisting domestic carriers has been uppermost on the mind of the Honourable Minister of Aviation, Stella Oduah.

    “And that is why the issue of the removal of tariffs and taxes on aviation spare-parts was done by Mr. President.

    “This is to help the airlines operate profitably and also make it more attractive for investors because spare-parts are the major cost component on the aviation sector.

    “The minister of aviation is also making plans to bring in about 30 aeroplanes to be able to assist local airlines. “So with all these, we believe that eventually, we will now have cheaper tickets and by the time we have cheaper tickets, there will be higher traffic.

    “Because if you cut the cost of doing business, then the person doing the business has no reason but to also cut the cost of running it because we believe that one hour flight in Nigeria shouldn’t cost more than N10, 000 or N15, 000. “

    And the whole idea is to make the business cheaper and easier to operate so that Nigerians who are the ultimate beneficiaries should be the passengers and they should board with cheaper tickets,” he said.

    He said that the Benin Airport was one of the 11 airports that were remodelled and reconstructed in the first phase of President Goodluck Jonathan administration’s transformation agenda.

    He said that the reason for the transformation of the aviation industry was to ensure that the nation’s airports and terminals became the centres of commercial and economic activities.

    The manager said that the Benin airport underwent major renovation for the first time since it was opened in 1979. He said that the reconstructed airport would be inaugurated soon as additional 22 airports had been earmarked for major reconstruction nationwide.

    He said the revolution in the sector is a deliberate plan as contained in the aviation master plan to restore Nigeria’s aviation industry to where it truly belonged as a hub in Africa aviation and to be able to contribute to the Gross Domestic Product (GDP).

    Commenting on the issue of abandoned aircraft littering most of the airports, Dati said the owners had been directed to remove them as they constituted a menace and danger to the flying public.

    Dati, however, said that some of the owners were in court as the aircraft were subject of litigation. He said that the matter was being handled by the legal department of FAAN, adding that as soon as the case was dispensed with, the aircraft would be removed.

    Earlier, the Benin Airport manager, Mr Ayodele Olusegun, who conducted the inspection team on the facility tour, said between 25,000 and 26,000 passengers travelled from the airport monthly.

    He said that the 200 seat capacity departure hall had been upgraded through the on-going renovation to 350 seats.