The Nation Newspaper

Category: Business

  • Unemployment, layoffs down in Singapore

    Unemployment, layoffs down in Singapore

    Unemployment in Singapore declined in the second quarter of this year, reversing the slight increase a quarter ago, according to the Ministry of Manpower (MOM).
    The ministry attributed the drop in unemployment to more jobs being created in the second quarter, while layoffs eased for the second successive quarter.

    These were the key findings from the “Labour Market, Second Quarter 2012” report released by the Ministry of Manpower’s Research and Statistics Department on Friday.
    Total employment grew by 31,700 in the second quarter, higher than the gains of 24,800 in the same period last year and 27,200 in the first quarter of 2012.

    Cumulatively, employment rose by 58,900 in the first half of 2012, compared with the increase of 53,100 in the corresponding period of 2011.
    Services contributed 17,300 jobs, the majority of employment gains in the second quarter of 2012. But the figure was lower than the same period last year where there was a gain of 19,300 jobs in the services industry.

    For the seventh successive quarter, growth in construction workforce accelerated, supported by public infrastructure projects.
    In manufacturing, employment grew by 4,700, as gains led by petroleum, chemical and pharmaceutical sectors outnumbered the declines in the electronic, computer and optical products sectors.

    MOM said amid the strong employment creation, unemployment declined over the second quarter, after the slight rise in the first quarter.
    The seasonally adjusted overall unemployment rate dipped over the quarter by 0.1 per cent point to 2.0 per cent in June, erasing the increase in March.
    The jobless rate for residents and citizens declined by 0.2 per cent point to 2.8 per cent and 3.0 per cent respectively.

  • Labour market defies economic slump

    THE LABOUR market in the UK continued to recover strongly in the three months to July/August, despite the double dip recession, the Office for National Statistics revealed on Friday.

    Employment rose 236,000 in May to July, compared to the February to April period, putting the total at 29.56m, just 11,000 below its all-time peak in early 2008.
    The unemployment picture also improved, edging down 7,000 during May to July on the labour force survey measure, and slipping 15,000 on the claimant count measure for August, also released.

    Big increases in population, and 181,000 fewer economically inactive individuals aged 16-64 compared to the previous three months – the largest decrease since records began in 1977 – account for the fact unemployment is basically flat despite rapid job growth.

    Of the close to a quarter of million gaining jobs, 102,000 were full-time employees, and 134,000 part-time. Self-employment hit a new all-time high at 4.2m, with 52,000 extra people officially working for themselves.

    The rise in jobs has not come from ministerial fiat. Excluding the reclassification of institutions providing further and higher education, the public sector shed 39,000 staff in the second quarter, while the private sector increased employment by 275,000. Although this data is one month in arrears compared to the rest of the data, it fits in well with the overall trend.

    But some analysts said that the employment picture was too good to last in such a gloomy overall economic climate. “The economy would have to be growing in excess of trend rates to sustain these levels of job creation, so we must expect some payback in the form of falling employment levels in the months ahead,” said Andrew Goodwin at the Item Club.

    Average weekly earnings were just 1.4 per cent up in the three months to July, compared to the year before, despite consumer prices going up 2.6 per cent, meaning workers took a real wage cut. The upshot of a real wage cut is that workers look more attractive to employers, potentially helping to explain the employment boost.

  • Good earning forecasts sustain equities’ rally

    Good earning forecasts sustain equities’ rally

    The Nigerian stock market rounded off last week with a strong rally as several equities indicated they would make substantial profit in the fourth quarter.
    The common value-based index at the Nigerian Stock Exchange (NSE), the All Share Index (ASI) rose by 2.01 per cent to close the week at 25,337.18 points. Similarly, market capitalisation of all equities increased by N158.69 billion to close at N8.066 trillion.

    The sustained bullish trading was strengthened by emerging forecasts from several companies, indicating positive bottom-line and considerable returns in the fourth quarter. Evans Medical Plc, which has just been recovering from a scandalous losing streak, indicated it could record net profit of N67.55 million on turnover of N1.62 billion during the fourth quarter ending December 31, 2012.

    Stanbic IBTC Bank projected that profits before and after tax would be N3.06 billion and N2.47 billion during the three-month period just as gross income was estimated to hit N17.2 billion.

    Presco is expected with net profit of N466 million on total sales of N2.5 billion while Berger Paints could earn N88.26 million in net earnings on turnover of turnover of N976.30 million.

    Also, RT Briscoe projected that turnover would be N6.21 billion while pre and post tax profits would be N52.30 million and N35.57 million respectively.

    Five out of the six group indices at the NSE trended upward last week, reflecting the widespread gains during the week. The NSE 30 Index, NSE Consumer Goods Index, NSE Banking Index, NSE Insurance Index and NSE-Lotus II Index rose by 2.32 per cent, 4.84 per cent, 0.94 per cent, 1.86 per cent and 2.52 per cent respectively. However, the NSE Oil and Gas Index declined by 0.30 per cent.

    Nestle Nigeria led the pack of 40 gainers with a gain of N27.50. Nigerian Breweries Plc followed with a gain of N10. Dangote Cement Plc led the losers with a loss of N1.98 per share. It was followed by 7up Bottling Company Plc, which lost N1 per share.

    A turnover of 2.224 billion shares worth N14.252 billion was recorded in 24,108 deals with the financial services sector accounting for 84.55 per cent of aggregate turnover. Financial services stocks recorded a turnover of 1.880 billion shares valued at N10.369 billion in 14,381 deals.

    Banking sub-sector recorded a turnover of 1.153 billion shares worth N9.986 billion in 13,736 deals. Volume in the financial sector was boosted by activities in the shares of Cornerstone Insurance Company Plc, Zenith Bank Plc, and Access Bank Plc, which accounted for 919.542 million shares, representing 48.91 per cent and 41.35 per cent of the volume recorded by the sector and total turnover for the week respectively.

    At the Over-the-Counter (OTC) bond market, activities slowed down with decline in turnover to 187.87 million units worth N187.45 billion in 733 deals compared with 227.005 million units worth N227.196 billion traded in 1,034 deals two weeks ago.

  • Banking sector credit drops to N13tr

    The aggregate banking system credit to the domestic economy stood at N13.09 trillion in July 31, the Central Bank of Nigeria (CBN) Economic Report has showed.
    The data depicted a decline of 1.6 per cent , on month-on-month basis, in contrast to the increase of 0.5 per cent at the end of the preceding month.

    Also, banking system’s credit to the Federal Government, on month-on-month basis, fell by 26.5 per cent to negative N1.7 trillion, compared with the decline of 13.1 per cent at the end of the preceding month. The development was attributed, largely, to the decline in banking system’s holding of Federal Government securities.

    As at December 2011, aggregate banking system’s claims on the Federal Government fell significantly by 251.5 per cent. The Federal Government, however, remained a net lender to the banking system at the end of the review month.

    The report said banking system’s credit to the private sector rose by 1.0 per cent to N14.8 trillion, compared with 1.5 per cent recorded at the end of the preceding month, but in contrast with a decline of 0.2 in the corresponding period of 2011.

    The report said the banking system’s claims on the core private sector rose by one per cent to N14.2 trillion, above the level in the preceding month, compared with the growth of 1.5 per cent at the end of the preceding month. The development reflected, largely, the 1.9 per cent rise in DMBs’ claims on the sector. Relative to the level at end to December 2011, banking system’s credit to the private sector rose by 4.7 per cent.

    At N7.8 trillion, foreign assets of the banking system rose by 3.9 per cent at end to July 2012, in contrast to the decline of 5.8 per cent at the end of the preceding month. The development was attributed to the 4.5 and 1.1 per cent increase in the CBN and banks’ holdings, respectively.

    Also relative to the level at end of December 2011, foreign assets of the banking system grew by 9.5 per cent, reflecting largely, the 15.1 per cent increase in banks’ holdings.
    At end of July 2012, quasi-money rose by 1.5 per cent, to N6.9 trillion, as against the decline of 2.6 per cent in the preceding month.

    When compared with the level in the corresponding period of 2011, it showed an increase of seven per cent. The development was attributed to the increase in savings and time deposits components.

    Other assets of the banking system, on a month-on-month basis, fell by 2.3 per cent to negative N7.5 trillion, in contrast to the 3.6 per cent increase at the end of the preceding month. The decline reflected, largely, the fall in unclassified assets of the CBN.

  • Enterprise Bank issues MasterCard

    Enterprise Bank Limited (EBL) has rolled out the Enterprise MasterCard Verve, an international brand of Master-Card, in partnership with MasterCard and In-terswitch.

    A statement from the bank said the product is accepted worldwide as a means of payment for goods and services at over 30.9 million MasterCard locations and over 1.9million Automated Teller Machines (ATMs) in more than 210 countries.

    Also, the product assists transactions to be consummated in the currency of the country as long as the card is linked to the customer’s Naira account. The successful roll-out exercise follows a strong bid by the bank to guarantee convenient banking services to its growing clientel.

    “The Enterprise Master- Card Verve is available at all branches of Enterprise Bank for easy pick-up by customers with active accounts in the bank while those customers reactivating their accounts and the new ones have the card as part of their ‘Welcome Pack’,” it said.

    The bank said the process of collection of the new cards has also been simplified to ensure quick delivery upon the completion of the relevant e-business form. It also allows all existing Verve Card holders, whose cards have expired, to automatically be migrated to MasterCard Verve as soon as they conclude the renewal process.

    It said upgrading to the Enterprise MasterCard Verve is part of the commitment by the bank to delight its customers with value added service as well as ensure the success of the cash-less initiative.

  • Sterling Bank gives out cash, prizes

    Sterling Bank at the weekend gave out cash prize of N2 million to four of its savings customers in the second monthly draw of the bank’s ongoing Savers’ Promo held in Lagos.
    The winners, who won N500,000 each, are Ofosu Yeboah (Alaba Main ETB Branch), Maurice Henry (Utako ETB Branch), Opakunle Muyibat Keinde (Iwo Road Branch) and Bienonwulu Loveth of (Asaba Branch).

    Other 10 customers also won home theatres and refrigerators as consolation prizes. They include Olatunde Aina, Rufai Oladunni, Onwuka Agbai, Abba Simon, Dioni Asemo among others.

    The winners emerged after electronic draws witnessed by Consumer Protection Council (CPC), National Lottery Regulatory Commission (NLRC), the media and members of staff of the bank. All the 14 winners emerged from 22,814 qualified entries pooled during the draws.

    The bank’s Group Head, Liability Products and Bancassurance, John Akingbade, said that the promo was about rewarding customer loyalty and promoting financial inclusion in the economy. He said the bank is giving priority to the need to firm its financial inclusion strategy to enable it bank millions of the unbanked within the population. “We are aware of the need to enhance financial inclusion and bring the unbanked into the financial system,” he said.

    Akingbade explained that to achieve this, the bank is promoting a classic savings account that allows prospective customers to open account with the bank with zero balance. He said the target of the bank is to ensure that more and more people within the unbanked population are captured into the financial system.

    “We are reaching out to the informal segment of the population like barbers, mechanics, technicians, tailors, and other small retail outlets that have been excluded from banking services,” he said.
    The promo is also expected to strengthen the bank’s deposit liabilities and position it to compete favourably in the industry.

    This qualifies them to win N500, 000 and other gift items such as blackberry phones, home theaters, refrigerators, microwave ovens among others.He encouraged customers of the bank to save more as such will increase their chances of winning the prizes.

    A representative of the Consumer Protection Council (CPC), Mrs Ngozika Obidike, said the commission was happy with the progress made so far in the second draw. She confirmed that the promo was registered with the commission and apologised for the omission of th bank’s name in a recently published advert on registed promos in the country. “The promo is transparent. The bank’s promo was also registered with CPC. It was an outright omission on our part. The Council will apologise to the bank and will include the lender in the next publication,” she said.

    Obidike said the bank has shown a lot of commitment in ensuring that its customers are rewarded an effort, she said, should be emulated by other banks.

  • FirstBank appoints EDs

    First Bank of Nigeria Plc has announced the appointment of Messers Gbenga Shobo and Dauda Lawal as Executive Directors, Retail Banking (South) and Public Sector (North) respectively.

    The bank said in a statement that the appointments, subject to the approval of the Central Bank of Nigeria (CBN), are geared towards further enhancing the capacity of the Executive Management and Board, by deepening specialsation and strengthening the corporate governance culture.

    According to the Bank’s Group Managing Director/Chief Executive Officer, Mr. Bisi Onasanya, the appointments represent the lender’s continuing transformation project, which is focused on exceeding customer expectations.

    “I am pleased to welcome Gbenga and Dauda to the board of FirstBank Nigeria,” he said.Their track records typify our bank’s value systems which are hinged on dependability, entrepreneurship, integrity, resilience, dynamism and service excellence.

    I have no doubt that they will both make the expected impact as we make progress with the bank’s focused transformation for sustainable growth and modernization, leading to enhanced values for all stakeholders, including customers and our esteemed shareholders”, he said.

  • $40b reserves, crude oil prices lift Naira

    $40b reserves, crude oil prices lift Naira

    The naira strengthened against the dollar last week as crude prices and the foreign exchange reserves pushed northwards. The naira rose 0.1 per cent to N157.85 a dollar, putting behind three days of declines of the local currency and increasing confidence that the Central Bank of Nigeria (CBN) can manage its stability.

    The naira has risen 2.8 per cent this year, the best performer in Africa, according to data compiled by Bloomberg.  Nigerian benchmark Bonny Light crude, which has risen 29 per cent from a June low this year, climbed for fifth day rising 0.1 per cent to $116.37 per barrel. The country’s foreign reserves rose to a more than two year high of $40.2 billion on September 11, according to data from CBN’s website.

    The foreign reserves rose to $41.167 billion on September 10, stood at $36.35 billion on August 7; rose to $36.41 in August 8; $36.46 in August 9 and $36.51 in August 10. It had dropped to $36.36 billion in July 20, from $37.19 billion four weeks earlier, losing about $830 million within the period.

    However, the reserves opened the month at $39.2 billion in September 3 and had kept a steady but consistent rise for one week before hitting the current benchmark. The foreign currency reserves rose to $68 billion in August 2008 before the global financial crises impacted negatively on it.

    Analysts at Afrinvest said the CBN needs to build up adequate external reserves to satisfy the genuine needs for foreign exchange as such is consistent with the increase in the growth in economic activity. It will equally assist in conserving resources and withstanding external shocks.

    The apex bank has also said there was urgent need to pursue policies that would foster macro-economic stability, economic diversification as well as encouraging foreign capital inflows.

    It said a higher rate of retention of oil revenues should facilitate the efforts at maintaining exchange rate stability as an antidote to imported inflation without excessive reliance on monetary tightening measures.

    Analysts predicted that Nigeria’s foreign reserves are expected to hit $60 billion by year end as oil production soars. Nigeria’s crude oil production spiked to an all-time high of 2.7 million barrel per day (mbpd) on the 25th of July, the first time in 50 years. This peak represented an increase of 28.57 per cent from the year-to-date average of 2.11 mbpd.

     Market interbank Nigeria’s interbank lending rates climbed to an average of 16.33 per cent on Friday, compared with 13.5 per cent last week, on the back of cash withdrawals by the state oil firm and foreign exchange purchases.

    The secured Open Buy Back (OBB) rose to 15.75 per cent, compared with 12 per cent last week, 3.75 percentage points above the central bank’s 12 per cent benchmark rate, and 5.75 per centage points above the Standing Deposit Facility (SDF) rate. Overnight placement closed at 16.50 per cent, from 14 per cent last week, while call money rose to 16.75 per cent, compared with 14.50 per cent two weeks ago.

    Banks’ capitalisation

    Although Nigerian banks often view their capitalisation as either strong or adequate, Standard & Poor’s (S&P) Ratings Services, a global rating agency, classified their capitalisation as “moderate” or “adequate,” under its criteria.
    S&P said in a report to Reuters that Nigerian banks view their capitalisation stronger than it does because of large amounts of what the lenders classify as surplus capital, above the capital adequacy ratio (CAR).

    “The average CAR for the eight largest Nigerian banks by asset size, according to publicly available financial statements, was 21.1 per cent, versus the 15 per cent regulatory minimum for banks with international operations. However, we calculate that capitalisation was a much lower 6.2 per cent, on December 31, 2011, according to our globally comparable risk-adjusted capital framework,” said Standard & Poor’s credit analyst George Maisey.

    Banknotes, coins Although e-payment is becoming more popular in Africa, banknotes and coins will always be relevant and useful, Central Bank of Nigeria (CBN) Deputy Governor, Tunde Lemo has said.

    Speaking at the Association of African Banknotes and Security Documents Printers (AABSDP) conference in Lagos, he said the cash-less policy of the apex bank is on course.
    Lemo said banknotes and coins will always be useful in consummating transactions.

    He said that the proposed N5, 000 note will reduce cost of banking operations, adding that Africa must embrace change and new technologies in printing of bank notes and minting of coins to keep counterfeiters on check.

    Deloitte, MAN Akintola Williams Deloitte (AWD) and the Manufacturers Association of Nigeria (MAN) have concluded a one day seminar that is geared towards assisting Small and Medium Enterprises to achieve the International Financial Reporting Standard (IFRS) implementation. The IFRS is due to take effect from January 1, 2013.

    IFRS Leader for Deloitte West and Central Africa, Oduware Uwadiae said there are benefits and challenges of IFRS reporting for SMEs, which include IFRS conversion process and the need for early preparation.

    Bond yields Nigerian bond yields are expected to fall around 30 basis points this week as the market prepares for the country’s inclusion in the JP Morgan Government Bond Index – Emerging Markets (GBI-EM) from October. Yields on Nigeria’s 10 and 20-year bonds have shed 300 basis points over the past month on news of the index inclusion, which JP Morgan says could potentially bring up to $1 billion into one of Africa’s most developed debt markets.

    Reueters report said the sharp fall in yields has also been driven by an improved inflation outlook, dealers said. Inflation unexpectedly eased in July to 12.8 per cent year-on-year from 12.9 per cent in June, surprising many analysts.

    Auditors, compliance officers The banking watchdog said there was need to assess skills, qualifications, experience and competencies of staff currently occupying controlled functions in banks. Auditors, compliance officers and other bank staff involved in ensuring that due process is followed in banking operations fall within this group. These were conained in a CBN circular tagged: ‘Assessment of competencies in the Nigerian banking industry’ signed by Y.B Duniya for Director, Financial Policy and Regulation.

    He said such exercise will enable Bankers’ Committee identify at the preliminary stages, gaps that would impede the effective implementation of the Competency Framework for the Nigeria banking industry being appraised by the apex bank. Duniya said that the list of controlled functions is not exhaustive as other important roles and responsibilities may be added.

    N5, 000 banknote/ inflation There is no proven evidence of a correlation between inflation and higher currency denominations, FBN Capital and CEO, Economic Associates, Dr Ayo Teriba said. In a report tagged: ‘New banknote, no inflationary pressure’ FBN Capital said inflation is fuelled by too much money chasing fewer goods and not introduction of higher denomination of banknote.

    The investment and research firm’s view was in response to criticisms against the Central Bank of Nigeria (CBN) currency restructuring programme, which will see N5,000 banknote introduced into the economy early 2013. The currency will become the highest value bill in circulation even as other changes will see the lower denomination bills of N5, N10 and N20 converted into coins. “This will increase the country’s currency structure to 12 from 11, divided equally between coins and notes. As expected, the announcement has generated a lot of controversy,” FBN Capital said in an emailed statement.

    Bank to bank report First City Monument Bank Plc (FCMB) has reassured its various stakeholders and those of FinBank that the two lenders, which have been going through the process of integration will conclude the merger process next month.

    Deputy Managing Director/Executive Director (DMD) of FCMB, Segun Odusanya gave this reassurance in a statement. He said the process is 95 per cent completed. “Our initial target was second quarter of the year, but we got delayed by issues around the Capital Market probe and the removal of the Securities and Exchange Commission Board. Things are now back to normal, and most of the approvals have been obtained,” he said.
    Access Bank’s profit before tax (pre-tax) for the half year to June jumped 143.08 per cent to N30.07 billion as against N12.37 billion in 2011, the bank said in a statement obtained by Reuters.

    Gross earnings rose to N108.75 billion in the same period, compared with N53.65 billion last year. Access Bank, which acquired rescued rival Intercontinental Bank, has proposed an interim dividend of N0.25 per share to its shareholders.

    Fidelity Bank has been adjudged the “Best Telecoms Financing Bank” of the year . The bank won among three other lenders that were nominated for the award at the Eighth Annual Nigerian Telecom Awards held in Lagos.

    The Chartered Institute of Bankers of (CIBN) has commended Unity Bank for collaborating with it in promoting professionalism in the industry. President and Chairman of Council of CIBN Segun Aina disclosed this when he led his members on a courtesy call to the bank in Abuja.

    Aina, who said the institute regards the bank as part of the family, assured his council’s support at all times. He revealed that the institute is putting in place professional programmes aimed at enhancing quality in the industry.

  • Newspaper brand management:

    Newspaper brand management:

    NOT unexpected, though, so many of our readers reacted to our first part of this piece, making known their take on the news around the news magazine and the talk about its likely close-down. Againexpectedly, over 75% of the reactions we got were of directconcern for the NEWSWATCH magazine, wishing that the founding owners were more careful and determined to save it from the present “embarrassment”. Emotions were widely expressed by some of those who reacted, leading to somewhat unprintable comments too damaging for me to reproduce on this page. It turns out that NEWSWATCHmagazine mean so much to so many people; they will rather that it is saved from dying.

    For us at MC&A Digest, out interpretation of the present situation concerning the news magazine and our concern resonates at two fronts – instruction and education. In the first part of this two-part write-up, we did point out the need for a professional engagement in the management of mass communication service brands, much as brands and product outside the mass communication market do. As a reminder, we did point out the illusion leading on to the prevalent situation of DIY (Do-It-Yourself), because brand management can only be safely done by the experts. Even practitioners do not have the opportunity of a DIY when it comes to managing their own brands – it requires an independent and unbiased analysis.

    Notwithstanding the emotional interests, we shall look at the NEWSWATCH magazine as a brand.

    Brands are definite, responsible, structural and responsive to stimuli instructions; they are definitive in character and instructive in cause and outcome analysis. Because of their character and the scientific nature of managing them, they are open to manipulation. In other words, the concept of GIGO (garbage-in-garbage-out) is more apt in the case of brand management. So, the primary challenge for brand managers is charting the course for their brand’s journey along the product life cycle.

    Profiling NEWSWATCH magazine will be from two fronts: as a product and as a brand. As a product, it is describable as an A4-sized glossy news magazine product focused in news reporting. On the other hand, as a brand, NEWSWATCH magazine positioned as a player in the market of news reporting with special focus on investigative journalism. From its value-offer (before the death of Dele Giwa), its marketing objective SHOULD be to meet the need of news readers with the specific desire for in-depth news reporting and analysis, based on reported proofs and support evidence(s) not common with the run-on-the-mills news papers – for a profit!

    NEWSWATCH magazine hit the newsstands on January 28, 1985, and immediately positioned as the pre-eminent newsmagazine in Nigeria, with Dele Giwa as its founding Editor-in-Chief. Beyond the glamour of styling and the controversy stirred by Dele Giwa and his team then, by reason of sensationalism and controversy built around their pattern of news reporting and analysis then, the magazine grew as a brand, and was a market leader because it delivered on uncommon value touch-points that resonated even among illiterates and the barely literate at that time. So, the first lesson here is that a brand will always succeed if it delivers on its market’s critical value touch-point, no matter the market.

    It is that aspect of NEWSWATCH as a brand that the readers and indeed its owners lost sight of then and now (immediately before the living owners handed it over to Jimoh Ibrahim). Between January 28, 1985 and October 1986 when Dele Giwa, the founding Editor-In-Chief was murdered in very controversial circumstances, Brand NEWSWATCH ruled as the market leader without a near-second place follower in news reporting in Nigeria. To Nigeria and the international market, NEWSWATCH was a new phenomenon. Practitioners and journalism students were made proud and the more confident at their aspiration to excel, by reason of the brand’s success. Dele Giwa and his team became instant celebrities. Their times in prisons wadded color to their stardom. Even this writer was greatly encouraged by the Dele Giwa style, then, to pursue a career in journalism. The fun was an all-consuming bug.

    However, the unfortunate thing was that stake-holders were all sucked-in in the groove, and forgot to see NEWSWATCH magazine as a brand.

    Brands are not given to sensationalism. Brands are definite on set-objectives and subject to periodic review on their delivery on carefully identified parameters. Brands are born for the ultimate objective of profitability – that is the leveler for all brands, not minding whether they call themselves non-profit organizations or not! The game is about profit making.

    Globally, the major check-points for brands are (1) introduction/birth/market entry (2) growth (3) maturity (4) decline and (5) death. The excitement in marketing and brands management is all that happens in-between these stop points. The bottom-line is brand sustenance and returns on investors’ funds (ROI). At MC&A Digest, we believe – the greatest assurance towards satisfying the two major interests in any brand is its EQUITY. We have written two articles on the value, power and importance of brand EQUITY in the recent past. The reason we did that was to encourage ailing brands’ managers in these troubling economic times. When “recession” manifests, the first symbol is panic. In the face of negative in the balance sheet, managers are wont to manage cost. If the situation persists it steps on the panic mode and triggers off all sorts – including looking for new INVESTORS for fresh funds.

    However, management science has indicated that a brand’s equity is a store of value that can be called up in times of crises. We must state here that it is the equity of NEWSWATCH brand that its original owners put on the table in their negotiation with Jimoh Ibrahim. The problem is that they wrongly invested their asset – the brand’s equity. NEWSWATCH magazine with such a strong pedigree had no business giving away its majority share holding to a prospect with uncertain interest in its business and concern for its market peculiarity. My worry since the trouble between Ray Ekpu & Co on the one hand and the Jimoh Ibrahim team started has been trying to figure out what the Ekpu-led team was thinking during their negotiation with the ‘new’ investor.

    I know I will earn so much money from the term plate I have designed for situations like this, so I will not lay it out on this page; I will reserve that for my Clients. However, I will like to leave my readers and managers of news papers/magazine managers – the new market environment for print requires creativity and strategic involvement that will see newspaper/magazine brands operate in markets marginally beyond “newspapering” for dependable level of profitability. Take this away with you: there are two major marketing objectives for brands in the print market segment (1) build your brand’s equity (2) engage in value-offering that is immediately outside your primary market – to enable you build a sustainable revenue base for your brand.

    As we always say on this page, we are open for consultation and human capacity development (for brand managers) – and advert placement. We wish the NEWSWATCH team all the best in their quest to save the brand. But they should always have at the back of their minds, NEWSWATCH magazine is a brand, beyond anything else.

    MC&A DIGEST QUESTION FOR THE WEEK: What should NEWSWATCH owners have done to avoid the present situation the brand finds itself?

    Please send your answers/comments to mcandadigestweekly@gmail.com

    All answers/contributions will be published on this page next week. Thank you.

     

  • Consul calls for stronger bilateral trade in Africa

    Consul calls for stronger bilateral trade in Africa

    The Consular General of  South Africa to Nigeria, Ambassador Mokgethi Sam Monaisa, has called for stronger bilateral trade between Nigeria and South Africa for the realisation of the much anticipated growth and development in Africa.
    Monaisa made this known in an interview with journalists at the launching of Ocean Basket Nigeria, recently, at Taimiyu Salvage, Victoria Island, Lagos.
    Ocean Basket is South Africa’s favourite family seafood restaurant. Favourite, because of its friendly people, home-away-from-home atmosphere, fresh in the pan seafood and – above all – great value.
    According to him, the need to strengthen the economic ties between Nigeria and South Africa is very important as the two countries remain the powerful drivers of African growth and development.
    Monaisa said that Africa has immerse human and natural resources but we can only harness them effectively through shared information, technology accessibility, culture and consensus building among member nations.
    He asserted that there are emerging windows of opportunities among Nigeria and South Africa which could help in increased gross domestic product, employment opportunities and stronger institutions that are needed to entrench development in Africa.
    He said “I am happy that the Ocean Basket Outlet is here in Nigeria because we will now be eating South African food that we were used to. Al though, we eat Nigerian food and we feel that we can also introduce our foods to Nigerians.”
    He added “We are here to invest in Nigeria as the market is huge and there are opportunities for expansion especially when you think about investment. The market in South Africa is saturated, thus, we want to expand and invest in other countries.”
    Monaisa noted that we can only harness our potentials, talents, skills, energies and drive among young entrepreneurs in Africa when we provide greater level of competencies, knowledge base and attitude that can guarantee  and sustain growth and development.
    In his welcome address, the Executive Director of Ocean Basket Nigeria, Mr. Kayode Olu-Martins, said that Ocean Basket originated in South Africa and is rapidly expanding worldwide, with almost 190 restaurants, some as far afield as Mauritius, Dubai and Cyprus.  And now the franchise is in Victoria Island, a stone  throw from Lagos with its eight million people, and part of the exciting vibe of world-class restaurants, shopping malls, hotels, bars, night clubs, movie theaters, schools and businesses.
    Martins noted that as “Africa’s most populous country, with a population of some 160 million, Nigeria is one of the most exciting countries on the planet. Vibrant, colourful, with a rich diversity, and one of the world’s fastest-growing economies, where more thrilling to open an Ocean Basket restaurant?”