The Nation Newspaper

Tag: Business

  • NUPENG decries exclusion from business roundtable

    NUPENG decries exclusion from business roundtable

    The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has berated the National Assembly for not inviting it and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to its National Assembly Business Environment roundtable in Abuja.

    In a statement by its President, Igwe Achese, the workers said they were shocked by Senate President Bukola Saraki’s statement that the Petroleum Industry Bill (PIB) would be laid before each chamber of the National Assembly this week.

    Achese said: “NUPENG faults the presentation of the harmonised version of the PIB, when it has continued to call for a stakeholders’ meeting where the grey areas should be ironed out.”

    He added that NUPENG was disappointed that the NASS leadership did not invite NUPENG and PENGASSAN to the National Assembly Business Environment round table, when the bodies are major stakeholders in the oil and gas industry.

    According to Achese, it was better to hear the bitter truth on the happenings in the oil and gas industry from the workers, who produce the hydrocarbon, rather than the rhetorics and semantics witnessed at the round table.

    He said: “NUPENG believes that the non-invitation of the unions to the round table was a slight and must be condemned. The union calls on the NASS to always carry everybody along, especially the unions in the oil and gas industry, when organising such programmes.”

  • FirstBank backs African Business Conference

    FirstBank backs African Business Conference

    FirstBank of Nigeria Limited will be leading a discourse through its support for the African Business Conference 2016.

    The event with the theme “Africa Rising: Leveraging the power of a younger generation” will hold tomorrow at the Lagos Business School.

    The conference, in its fourth series, is a yearly forum that convenes business leaders across several sectors in Africa and investors seeking to do business to move Africa to the next level.

    The conference would build resourceful conversations on enhancing business practices as well as  proffer solutions to issues peculiar to doing business in Africa.

    The keynote address would be delivered by the  Ondo State Governor, Dr. Olusegun Mimiko, with speakers drawn from various experts. FirstBank has supported this conference through the years to facilitate capacity building among business owners, especially SMEs which are pivotal to economic growth and development.

    Meanwhile, the bank  has unveiled its new SME Campaign  designed to help Small and Medium Scale Enterprises (SMEs) grow their business with diverse product and service.

    According to FirstBank’s spokesperson, Folake Ani-Mumuney, the bank is passionate about driving the African Business terrain to enhance the sustainable growth of the African economy and create the right environment for investments. “We would continue to lead and support conversations as well as create opportunities that will make Nigeria and indeed Africa a better continent,” she said.

     

  • Recession biting hard on insurance business, says NCRIB

    Recession biting hard on insurance business, says NCRIB

    •Brokers urged to obey NAICOM rules

    The economic challenges  facing the country are biting hard on insurance business, President, Nigerian Council of Registered Insurance Brokers (NCRIB), Kayode Okunoren,  has said.

    Okunoren, who spoke at this month’s Members Evening in Lagos, called on the Federal Government to diversify the economy, and as well address the present economic challenges. He said the value of the naira has continued to take a downward plunge against the dollar, the pound sterling and other currencies, to the detriment of the nation’s economy.

    He said the resultant effect of this, is negative on the nation’s economic revival efforts, stating that aside from the possibility of stagnating industrial development and favourable trade, the situation is already causing increasing inflationary rate that is affecting the common man on the street.

    “The mono economy has left the country helpless, considering also the continuous downward slide in the price of crude oil in the international market, upstaging the budgetary anticipations of the government. Definitely, the insurance industry is not insulated from these grievous indices of economic recession,” he said.

    On the recent cancellation of broker’s licences by the National Insurance Commission (NAICOM), Okunoren urged brokers to ensure that all necessary documents are filed with the regulatory authorities in good time to forestall sanctions.

    He described practising brokers who wait till their certificates lapse before filing necessary documents with the authorities, as unprofessional brokers.

    He said the Council has succeeded in getting NAICOM to address some issues affecting the broking fraternity, adding that the Commission has acceded to the request for a joint committee to review the list of requirements expected from brokers for rendering returns to the Commission on a yearly basis.

    “I am sure that many of you would be itching to hear from us on efforts made on the recently lapsed certificates of some of our members by the National Insurance Commission late last year.

    “It is an unfortunate incident. We have made concerted efforts to ensure that we get the understanding of the Commissioner for Insurance, Alhaji Mohammed Kari, on the development and happily that has crystalized in the call for re-application by the companies concerne.

    “Whilst still making efforts to continually enlist the understanding of NAICOM on issues relating to our members, I am happy to note that the Commission has acceded to our request for a joint committee to review the list of requirements expected from Brokers for rendering returns to the Commission on a yearly basis.

    “It is believed that the joint adhoc committee will pave the way for better and early compliance of our members. It is however expedient of me to state, without any contradiction, that it is unprofessional for any practicing broker to wait till its certificate is lapsed before filing necessary documents with the authorities.

    “The Governing Board has considered the retention of the help desk earlier established as a standing body to assist members in addressing areas that portend challenges for our members with regards to compliance with regulatory institutions,” he said.

  • Boko Haram: Business back in Mubi

    Business has resumed in the commercial border town of Mubi, Adamawa State, one year after its invasion by the Boko Haram insurgents, the News Agency of Nigeria (NAN) reports.

    The Chairman, Mubi Chamber of Commerce, Alhaji Abdulkadir Musa, spoke in an interview with NAN yesterday.

    He said: “We are grateful to God. Business has resumed in Mubi. We are experiencing shortage of shops, as you can see some people are displaying their goods at the roadsides.”

    He said traders are coming from Cameroon, Chad and Central African Republic.

    Musa said the government had begun rebuilding parts of Mubi main market affected by the fire caused by insurgents.

    He said most banks had reopened, while cattle and grain dealers, particularly those from the South, had returned.

    The chairman thanked the government for awarding 14 road projects “to open up” the town, but urged the Federal Government to rehabilitate the federal road linking the area to other parts of the country.

    “I enjoin the Federal Government to improve power supply and access to loan by our members, to boost small scale industries,” Musa said.

    He hailed security agencies for restoring peace to Mubi, saying since the recapture of the town from the insurgents, there had been peace.

    NAN correspondent, who visited the town, reports that besides the resumption of socio-economic activities in Mubi and its environs, the three tertiary institutions: Adamawa State University, Federal Polytechnic, Mubi and School of Health Technology, have resumed.

  • OLISEH’S STUNNER: I won’t pay for publicity, do player business

    OLISEH’S STUNNER: I won’t pay for publicity, do player business

    Nigeria coach Sunday Oliseh has vowed he will not pay the media to write positive stories about him and do players’ business as demanded by people he now describes as critics.

    “No matter what these critics say, as long as I am coach of the Super Eagles, I won’t pay anybody to write positively about me in the media as some of these critics have asked me to. Some of them come to me from the back and say I should invite their players and we will do business,” he said in a U-Tube recording.

    He singled out his former national team for being his harshest critics.

    “What is unfortunate is that my ex-colleagues are the most critical. When we played they were mostly sitting on the bench and talking. They were not the real actors who made Super Eagles what they were then. They are still doing the same thing, sitting down and talking,” he alleged.

    “If you think you are better, go for a coaching course, or start coaching and show what you can do.”

    He said he will not serve any special interest as long as he is in charge of the Eagles.

    “I didn’t beg for this job, refused this job twice. It needed the intervention of a respected friend in government. I took it not to serve special interest, but to serve Nigeria,” he continued.

    “I’m patriotic, I love my nation, my nation has made me what I am and this is where I belong. You are not hurting me, my players and my team, you are hurting Nigeria. What if we start fighting and we don’t qualify for the next World Cup? God should bless our critics with the same wishes they are wishing us.”

  • Lagos Marathon: Okada riders make brisk business

    Commercial motorcyclists, otherwise called “Okada’’, on Saturday took advantage of the restriction of vehicular movement on certain roads for the Access Bank Lagos City Marathon to operate on restricted corridors.

    The News Agency of Nigeria (NAN) reports that the Okada riders took advantage of the stranded commuters at bus stops along Ikorodu road to charge exorbitant fares in the metropolis.

    NAN reports that between Maryland and National Stadium bus stop in Surulere, they charged as much as N700 and N1,500 for what ordinarily should have been N200 depending on the operator .

    Between Fadeyi and Maryland or stadium, they collect between N500 and N1000.

    NAN observed that people who could not wait till 10 a.m. were the ones who rode on commercial motorcycles, that in most cases carried two persons in violation of traffic law.

    Those who could not afford it resorted to trekking long distances.

    Some commuters who spoke with NAN said one side of the 10-lane Ikorodu road would have been left open since the athletes were only using one side.

    NAN also observed that some people were not aware of the marathon as they were shocked to discover that the roads were empty.

    “I thought it was environmental sanitation day. I don’t know there was anything like marathon that would stop vehicular movement,” Mrs Adebisi Lawal, a trader, told NAN.

    A motorist, who simply identified himself as Raymond, told NAN at Fadeyi BRT bus stop that he had waited at the spot for about three hours.

    Raymond said he was going to Surulere but was stopped by the police to wait till 10 a.m.

  • Telcos: Ambush Business Model (ABM)

    Telephony in Nigeria has had a chequered history and up till this moment, telephone business around here remains a conundrum that has grown impertinently into full-blown, legitimised subterfuge. Forgive Hardball’s uncharacteristically winding introduction, but telecoms companies (that is euphemism for GSM firms) in Nigeria have mastered a new and unwritten business model that thrives on trickery and ambush.

    Let us start from the fact that Nigeria is probably the only country in the world that has completely phased out landlines, thus the entire population numbering about 170 million people depend on the expensive GSM (Global System of Mobile Communications) for voice, messages and all forms of exchange. So what we have is one huge oligopolistic cartel that offers extremely expensive services. And we live with it and boast about our success story in a liberalised telecommunications age.

    But what is our reality? Have you seen the ribald spectacle of a Nigerian desperately trying to make a call? The kind who holds his cell phone to his lips as if it were a chocolate bar? He takes turns to yell into the phone before he places it to his ears to try to listen. In between talking into the phone and pasting it to his ears, the call drops. Unknown to him, he returns the phone to his mouth yelling at the top of his voice; breaking out in sweat.

    It has become impossible to make nary a one-minute call without losing connection; and if one manages to succeed with it, half of the period the connection is poor, perhaps deliberately so (Hardball would want to wager) so most times, subscribers would stay two minutes on the line for what would have been a 30 seconds’ conversation.

    But these are yet benign tactics. Some of the networks choose the company they keep and do business with. One or two networks never seem to interconnect and when perchance the subscriber manages to bridge the gap between them he pays premium. For such antagonistic networks, the story, when you dial, is that “the subscriber is not available”. But how could that be? Even when the subscriber you call is the phone on your left hand…

    If you think these guys are getting away with daylight heist, wait for this: we are now in the age of unsolicited messages and even phone calls. Disruptive messages throng your phones in their dozens daily. If you think you have mastered the art of ignoring and indeed quickly deleting them, you are wrong. Indeed, your are suckered. Some of the networks and their collaborators would sign you on to crazy deals you know nothing about and go ahead to deduct your account.

    And to get the goat in you; as if they are watching you, when you set about doing the things you love most, a call comes in… you pick it… it is a recorded message from your beguiling network… and you could lose your mind if you don’t check yourself.

    Today, all the networks are making us do all over again, a biometric register we had done about twice before. And they set up a tortuous process that could mess up all of two or three days of your life. And nobody seems to care.

  • Issues that’ll shape retail business in 2016

    Issues that’ll shape retail business in 2016

    Last year, the retail industry witnessed massive growth. It was driven largely by innovation and the entry of world-class shopping centres, which not only attracted shoppers, but also enhanced their experiences. TONIA ‘DIYAN looks at some of the innovations that made Nigeria a haven for retail business and how they hold promises of redefining the industry in the year.

    Last year was an eventful year for the  retail industry. It witnessed substantial growth, made possible by customer-centric innovations by an avalanche of big retail shops that entered the country.

    Some of the big retail shops that threw their hats in the ring, attracting shoppers and redefining shopping experiences were Shoprite, Spar, Mr Price, Truworth, Mango, PEP, and Casabella, among others.

    With their entry, shoppers became aware of the benefits of shopping in a more conducive atmosphere. Retailers and owners of malls in the Lagos metropolis introduced various innovations that focused on improving  the environment  for  shoppers. Some  expanded their businesses, while others partnered big players  to enhance the experience of their customers.

    For instance, a big players , Mr Price, opened more stores and created a befitting website where its customers linked with it real time. The clothing store focused more on improving its supply chain processes by providing better value for money. The retailer’s fashion items catered for all age groups and sizes. It had something for everyone within the store. The innovations worked immediate wonders, growing the Mr Price brand equity.

    Shoprite, acknowledged as Africa’s leading retailer, also made significant inroad into the country’s retail industry. Same for Surulere, Lagos-based retail outlet, Leisure Mall. The upscale retail outlet, on account of its innovation, was the destination of choice for families in 2015.

    As sign of its growing popularity and growing clientele, Leisure Mall was able to achieve 100 per cent occupancy before the end of the first quarter. The retail outlet was able to create lots of awareness on its activities and was able to link with Adeniran Ogunsanya Shopping Mall, its neighbour. The first of its kind, the move gave shoppers opportunity for variety in tenant mix, as more brands came in.

    Similarly, Ikeja City Mall and UAC Restaurants sought to give other operators a run for their investments in the retail business. While UAC Restaurants focused more on operations, training, franchisee support and human capital development, which directly affected the quality of service delivery to customers, Ikeja City Mall opted for the strategy of give-away events that offered shoppers quality products and services at the right prices. The mall came up with product choices and innovations to better serve shoppers.

    Yudala also created brand awareness. In five months, the firm impressively made its way into the consciousness of consumers. The online store is in 10 cities and in all these cities, the Yudala billboards will be the first to greet visitors as they make their way through the city.

    From inception, Yudala has been a highly socially responsible brand with the first of its kind social initiative in retailing in Nigeria, Gyming with the Stars, an initiative that promotes wellness, fitness and entrepreneurship amongst Nigerians from different demographics.

    The initiative featured A-list celebrities. After three successful editions in Ikeja, FESTAC and Surulere last year, the online store has promised more editions in the year.

    The firm has experienced a rapid increase in its fan and customer base with respect to social media, newsletter subscription as well as its online platform, www.yudala.com. It has 15 physical stores across Nigeria with four in Lagos (Lekki, Gbagada, Ikeja and Victoria Island); two in Abuja and eight others in Kano, Uyo, Owerri, Ibadan, Asaba, Enugu, Warri and Port Hacourt. It has received three awards from international brands as ‘Online Retailer Store of the Year 2015’, ‘Best Computing 2015′ on two  brands.

    Yudala dictated the trends last year with the first ever drone delivery technology in Nigeria. To empower Nigerians, Yudala launched a unique sale scheme called the YUBOSS, where an average Nigerian can sell from the Yudala inventory to earn decent commissions at the end of the month.

    With zero capital and an investment, a YUBOSS agent can make up to N1 million  in a month. Powered by Yudala, YUBOSS is supported by Airtel and Access Bank.

    The store also partner renowned insurers, Sovereign Trust Insurance (STI) Plc. to provide all risks cover (except theft) on all devices bought from any of its platforms, whether online or from any of its retail outlets nationwide.

    Last October, retailers expanded from merely meeting customers’ purchasing needs to becoming one-stop-shops, which combined the convenience and unique experience of retail, leisure, entertainment, movies, games and health. The year also saw electronic and household retailers review their flexible payment options for shoppers who love to buy and pay later or at instalments.

    Dealers and distributors of electronics, who took the lead in flexible payment options, saw it as a welcome development in retail business. To them, beyond the need to satisfy customers and make life comfortable for them, the flexible payment option is one of their many strategies to push sales, create space for new stock and encourage shoppers to patronise a particular brand or shop.

    The following month, November, more supermarkets were opened. Clothing lines sprung up among which are Florian London showcased by Polo Avenue in Lagos.

     

    Game-changing innovations

    Before last year, e-payments made slow, steady acceptance by shops. But when they saw the need for a world beyond cash where cashless transaction assisted in growing their businesses, improving the lives of their customers and removing risks associated with carrying, using and handling cash, many retail owners embraced e-payment.

    At the end of last year, retailers who werer pessimistic about the idea of a cashless economy were the same people who encouraged their customers to pay using the Automated Teller Machine (ATM) cards and the Point of sales (PoS) machines for payment.

    Checks by The Nation Shopping in 2014 showed that about 70 per cent of retail shops in the Lagos metropolis owned a PoS machine. On the other hand, few still had ample reasons to hold on to their conventional ways, not because the policy is not good, but because they gave room for doubts on its workability for their kind of business or location.

    Most shoppers avoided carrying cash last year. Thanks to the Central Bank of Nigeria (CBN) that had been doing a lot in terms of awareness for a cashless society. The Nigerian retail industry last year witnessed a huge uptake of e-payment solutions to enable people keep within the CBN daily cash limits, thereby saving money instead of spending cash uncontrollably.

     

    Online shopping took centre stage

    In 2015, most online retail shops offered mouth-watering offers to attract buyers to their platform. Among the platforms that offered so much promise was Jumia, arguably Nigeria’s largest online retail outlet. It offered up to 50 per cent slash on all its products as a gift to buyers who wanted to enjoy the Black Friday.

    With the promise of about 90 percent slash in prices, Nigerians had, before the date, compiled a list of products to buy, even as the online shop sustained the media blitz, declaring that the market would open midnight of Thursday, to end in the early hours of Saturday.

    However, many shoppers, who thought they could make some purchases, were disappointed as none of the shops offered up to the 90 per cent slash on any product on offer on their platforms.

    Yudala launched the first  offline Black Friday Sale in Nigeria, which had a huge turnout.

    On Carmudi.com.ng, vehicle ownership increased with the availability of locally manufactured cars, increase in the availability and sale of Nigerian used cars and access to car loans. Use of personal cars also increased.

     

    Why Nigeria is investors’ bride

    The boom in the retail industry last year, according to experts, could be attributed to rapid economic development, as well as favourable economic policies. The population of Nigeria’s working class also increased. And the fact that they are not only desirous of convenience, but also have the purchasing power, contributed to the growth of the retail sector.

    In fact, the potential buying power of Nigerians is recognized all over the world. Foreign and local investors also see huge and enticing opportunities and prospect for bountiful investments.

     

    There are challenges

    Although, Nigeria has become the irresistible bride for investors, given her large population estimated at 170 million, as well as her huge market, Africa’s largest economy is still contending with challenges. For instance, despite a large market to support more malls, lack of infrastructure particularly electricity remains a big challenge.

    Other challenges that have continued to hold down the growth of the economy especially operators in the retail segment, include hash business environment, lack of access to the right land in the right location, insecurity, multiple taxation, and bad roads among others.

    There is also the challenge of capital. Not a few investors in the retail space lament the high project cost, including the limited local expertise. Experts estimate the cost of completing a project in Nigeria at 2.5 times higher than that of South Africa, for instance.

     

    Looking forward

    “As services are steadily experiencing growth in many economies, the retail service is a new frontier that needs to be better tapped for economic growth,” says Head of Retail Leasing at Broll Nigeria, Mrs Gbadebo Erejuwa. According to her, Nigeria has the favourable economic conditions for a retail industry to thrive.

    Mrs. Erejuwa added that with a growing middle class with disposable income, many people are now able to afford some of the brands they hitherto patronise outside the country. “People always want to shop in a modern environment,” she said, adding that retail shops are springing up all over the place.

    “I think a lot of people are interested in malls and shops. A place where you can go in and get everything is more inviting than going to a market where everything is open and it is crowded and crazy,” she said.

    Mrs. Erejuwa noted that the regime of shopping malls development in Nigeria is an icing on the cake of what the future holds for shopping and sight-seeing experience in the country.

     

     

     

  • Freight forwarders warn against impending collapse of import business

    The Chairman, National Association of Government Freight Forwarders (NAGAFF), Murtala Muhammed Airport Ikeja, Lagos, Segun Musa, has accused the Nigerian Customs Service (NCS) of mismanaging both land, air and sea ports across the country  with prohibitive tariff on imports that could lead to the collapse of many  businesses.

    Musa, while speaking to a group of journalists, said a review of the import  tariff had become imperative to sustain many indigenous businesses in cargo clearance, freight forwarding and the supply chain.

    He described  the prohibitive import tariff as being an unfavourable policy affecting players in the freight forwarding  and supply chain .

    He said the manner Nigerian Customs officials go about implementing the new import tariff, has resulted in a sour relationship between importers and Customs  officers.

    Musa said by the time importers relocate to other West African countries to pay  import duties, there would be  significant loss of revenue to the government and her agencies, adding that such a move will make both land, sea and airports redundant for players in the freight forwarding chain .

    He said: “Customs officers mismanaged the ports, they have not brought to the table any meaningful policy that will actually drive the industry. This is because  they are saddled with the responsibility of checking revenue being collected by the freight forwarders. With the way they go about the business , they are actually mismanaging the ports.

    “The revenue leakage is more than the revenue collected for the government of Nigeria. The tariff on imports is so high and that has taken a lot of businesses out of Nigeria.

    “We have criticised the Pre- Inspection  Arrival Report that government should  not saddle the customs with the issuance of that certificate.   But, the customs came with all kinds of explanations that there won’t be any query again when they start issuing the certificate.”

    He called on the Federal Government to engage private sector in policy formulations in order to get things right.

    He clarified that importation is not responsible for the demise of major industries in the country, saying bad roads, insecurity and poor power generation are reasons why many industries have collapsed .

    Musa said freight forwarders  will soon go into a regime of external tariff where every importer is at liberty to import goods and pay tariff anywhere in the world and go to the border to clear their goods without paying to customs.

    “By the time importers start going to Ghana, Togo, Abidjan and Cotonou to pay duties, there will be loss of revenue here and our terminals will be turned into football fields and there will be no activities going on in the shed.

    “So, you can imagine how the Labour market will look like when about three million people will be thrown out of the market,” he warned.

    He noted that Nigeria has the highest number of contraband goods all over the world, adding that it is not in the interest of the nation.

  • Ad/PR business: Fresh threat for older agencies

    Ad/PR business: Fresh threat for older agencies

    The Nigerian marketing communication industry has experienced monumental growth in the last two decades. Having enjoyed bumper harvest before the current recession, new players have merged to challenge older players’ dominance of the public relations and advertising media segment of the industry. To overcome the new threat, experts and stakeholders urge older agencies to innovate or die, writes ADEDEJI ADEMIGBUJI

    After decades of boom, the Nigerian marketing communication business has, in recent times, witnessed a downturn.

    From the boom occasioned by the telecoms revolution in the new millennium, which brought the likes of MTN, Airtel, Glo and Etisalat to the era of banking consolidation, the marketing communication industry enjoyed good times until the global economic recession of 2008 and the global oil price fall in 2013 hit the industry.

    With budget cut, more demands from clients, businesses are no longer guaranteed for older business concerns in the sector. In their boom days, only few big agencies in the businesses of public relations (PR), Advertising (Ad)and media buying are top earners that share the biggest businesses. This was the scenario as industry observers say when one big agency loses a business, it goes to another big agency rather than the start-ups.

    However, with growing competition, quest for new ideas, innovation, the paradigm has shifted. The new start-ups that are barely six years in operation now pose a big threat to bigger ones who have been in the marketing communication business for over 10 years. With size no longer determinant of who gets which juicy business anymore, clients are now paying attention to agencies who deliver impact than the razzmatazz.

    For instance, in the creative segment of the industry, start-ups such as Noah’s Ark and X3M Ideas are giving bigger agencies a run for their money.  Dominant players such as Insight Communication, Rosabel, STBMcCann, PrimaGarnet Ogilvy, DDB, Bate Cosse among others now jostle for businesses and industry awards for professional excellence with those earlier regarded as fringe players.

    In the last five years, records showed that the start-ups have retained top four positions in the Lagos Ideas Festival (LAIF), a brainchild of Association of Advertising Agencies of Nigeria (AAAN). The award reflects how busy the agencies are and how their works stand out from others every year.

    For instance, in last year’s  edition, Noah’s Ark, a creative advertising agency, emerged the overall best. The agency won a total of 10 awards including a Grand Prix, five gold, two silver and two bronze plaques to emerge the number one agency for 2015. The agency beat old generation agencies such as Insight Communications Limited, DDB among others. The agency has been in the top four since day one when it started operation.

    Also, X3M Ideas also remains at the top of the ladder in the creative industry since inception. The agency in the  2015 LAIF demonstrated its unflinching innovative and creative consistencies for an impressive third year running as a young agency. X3M Ideas coasted home with three Gold medals, two Silver and three Bronze to emerge the 4th on the 2015 LAIF medal table.

    The result shows the three-year old agency as the youngest, revolutionary and most consistently improved over the last three years of its entry into the AAAN fold. X3M Ideas as the future-forward marketing communications agency, made its debut at the LAIF awards in November 2013. The agency, which opened shop on August 2012 barely a year then, recorded one gold, two silver and one bronze medals although it entered only part of its works done between August and December, 2013.

    Its second time appearance at the LAIF was two years ago. The agency won two gold, five silver and six bronze medals, carting home an impressive 13 medals, hence it did not only sustain  its initial tempo but showed an improvement over the previous performance.

    Beyond awards, the two leading new generation agencies also edged out big ones at various business pitches. Noah’s Ark also displayed competence against big agencies while pitching for Airtel advertising business. From the five agencies invited for the main pitch after broader credential presentations, Insight Communications, Centrespread Advertising and Noah’s Ark Advertising were selected winners.

    Prior to the selection, the prospective handlers submitted and defended their financial requirements, with a view to availing the client the opportunity to align demands with its realistic budget and financial projection. However, when issues related to finance and the decision to split the account came up, Insight management and Airtel could not agree, hence the need to draft in Centrespread, which was said to have come third in the exercise. To this end, Centrespread and Noah’s Ark are now the handlers of Airtel’s advertising business.

    However, when issues relating to finance and the decision to split the account came up, Insight management and Airtel could not agree, hence the need to draft in Centrespread, which was said to have come third in the exercise.

    In the media buying segment of the market, the big players such as MediaReachOMD, Media Perspective, Capital Media, StarComms Media, MediaComm have lost sleep with the entry of new players-MediaFuse, SBI among others. In a recent report, MediaReachOMD lost multimillion dollar Dano Milk’s advertising business to Vizeum, a media affiliate of Media Fuse Dentsu Aegis.

    The incumbent agency lost the advertising business following a pitch involving Media Fuse’s Vizeum Nigeria, PHD, and MediaReach OMD. Arla Foods, fifth largest milk manufacturer in the world and maker of Dano Milk, said the new agency is expected oversee the firm’s advertising businesses-media strategy, planning, buying-Arla across sub Saharan African markets including Nigeria, Senegal, Cameroun and Cote D’Ivoire.

    The Nation gathered that Arla Foods tested the agencies with a brief to run a campaign for Dano Milk and found Vizeum Nigeria capable of managing the firm’s brand portfolio across sub-Saharan Africa. Transition meetings are expected to take place this month with campaigns planned to begin from the first quarter of this year.

    To create a winning edge against dominant players in the industry, Media Fuse, founded by the former Managing Director of Carat Media Perspective, entered into affiliation with Dentsu Aegis Network, a global marketing conglomerate.  In line with Dentsu Aegis Network’s expansion plans and on-going investment into the African market, Media Fuse after the affiliate venture agreement now operate as Media Fuse Dentsu Aegis Network, joining the strong network of Dentsu Aegis Network brands in sub-Saharan Africa such as Carat, iProspect, Isobar, Posterscope and Vizeum.

    “With this development, Nigeria and indeed, the West African sub-region is set for fresh impetus in brand building and communication experience with global access to tested tools, capacity building processes and the fiscal discipline that the Dentsu Aegis Network is known for on the global stage,” said Chief Executive Officer (CEO) Media Fuse Dentsu Aegis Network, Emeka Okeke.

    Also, within few months of operation, another media agency, SBI, tagged ‘Next Generation’ agency, has within one year of operation cornered juicy account eyed by bigger agencies. The agency now parades DealDey, Konga, Forte Oil, Techno, Eco Bank, Lafarge, and other multinational businesses as clients despite stiff competition between old and new generation media buying and planning agencies.

    Business pitch in the PR business segment of the market also reveals growing profile of new agencies. Despite that The Quadrant Company (TQC), pioneer PR agencies, remains the most structured PR agency in Nigeria, the agency too is not losing sleep as a result of growing credentials of new players. While the agency appears unruffled with the loss of some accounts such as Etisalat, GE, and Guinness Nigeria among others in the last two years to new and fringe players, it remains a model. Yet, the threat of competition such as Brooks & Blakes, Chain Reaction, Xlr8 and few others remains a big factor.

    Recently, the new agencies displayed their might in MTN, Guinness and Etisalat business pitch. In the pitch for the MTN account, two new agencies – Brooks and Blakes and DKK Associates – emerged winners of the PR Accounts of MTN Nigeria 12 years after it domiciled with Marketing Mix, another older agency.

    The process to appoint new agencies began when nine agencies were invited for presentation. The agencies include, JSP Communications, Mediacraft and Associates, Black House Media, Brooks and Blakes and Lead Communications. Others are; Soulcom Communications, DKK Associates, and the former handlers of the account -Marketing Mix and XLR8. But Brooks and Blakes and DKK eventually won the business.

    Brooks and Blake Nigeria Ltd, a perception management company, according to industry observers, represents the face of the future in the PR community. The agency’s profile shut up few years ago when it was appointed to handle the Diageo accounts. Industry analysts say the success of Orijin, SNAP and Guinness products in the last three years could be linked with the agency. As a result, it has won a few industry awards, including the Marketing World’s PR Agency of the Year. This notwithstanding, some industry watchers are of the opinion that Brooks and Blakes may not have the required structure to sustain the tempo of the MTN brand but the way the agency handled the MTN/NCC fine debacle has convinced market players about the competence of the agency.

    Why are the new agencies winning?

    The Managing Director of SBI Media, Mr. Rotimi Bankole said: “I think ‘bigness’ is relative. For us as SBI, we only consider a company/competitor big if it is able to do the near-impossible advert placement when all odds seem to be in place and at the same time being able to generate savings for the client. We are not intimidated by the ‘bigger names’; rather, they spur us to work even harder. So rather than see this as a competition, we see it as a collaboration of Media Agencies for the greater goal of our industry.”

    Also, the Acting Managing Director of Rosabel, an old generation creative agency, Mr. Clement Omemu, said one of the reasons the start-ups ventured into the business was because they are disgruntled and tired of the norm.

    “This young generation feels there are different ways of doing things. So they become restless and they are tired of doing things the same way. What do they tell us? Doing the same thing the same way all the time is insanity,” he said, adding that if older agencies fail to innovate, they will lose more grounds to the new players.

    Also, the Executive Director, Chain Reaction Nigeria, Mr. Lere Ojedokun said global trend is affecting PR landscape. He said with competition, segmentation and innovation becoming the new lexicon in the industry clients are now demanding for new ideas and constrained by budget.

    Meanwhile, the Executive Creative Director, Insight Communication, Chima Okenimkpe, said many old generation agencies fail to transit to new market realities as a result of lack of insight on the part of the founders. He said though Insight Communication is a second generation agency and over 30 years old, the creative philosophy of the founders have made the agency retain its lead in the industry.