The Nation Newspaper

Tag: risk

  • U.S. public pension funds slowly wake up to risk

    THE United State public pension funds are cutting investment return assumptions because of years of zero interest rate policies. They also changing how they manage risk to avoid a repeat of the damage caused by the financial crisis.

    The growing recognition that short-term volatility can have a devastating impact on mature pension plans in the $4 trillion sector could herald a sea of change in the way public funds are invested in the future.

    Since the 2008 financial crisis about two-thirds of the 126 funds tracked by the National Association of State Retirement Administrators have lowered their expected return targets. The average expected return stands at 7.68 per cent versus 8 percent in 2008.

    The financial crisis has left a hole in public pension funds. The average state pension fund has around 80 per cent of the assets it needs to meet its liabilities, according to a 2015 survey by Wilshire Consulting, down from 95 per cent in 2007.

    Perhaps the biggest confirmation of the move to cut back on risk within the U.S. public pension sector may come from the California Public Employees’ Retirement System, the largest public pension fund with $300 billion in assets under management.

    Calpers is considering cutting its expected rate of returns in years following strong investment gains and adjusting its portfolio to reflect those lower return assumptions. The move would essentially cut back on exposure to higher-yielding, but riskier assets as the plan improves its funding levels. It is similar to the liability-driven investing glide path models used by corporate plans. Its use is all but unheard of in the U.S. public pension sector. Such a move, which is yet to be adopted by the Calpers board, would follow recent announcements that the pension fund is cutting back its public equity exposure and raising its fixed-income holdings in addition to eliminating investments in hedge funds.

    “There is this shift to recognizing that risk is a relevant piece of the discussion, it’s not just about how you get the highest returns over a long period of time, but that short-term fluctuations in asset levels can be incredibly detrimental,” said Tamara Burden, an actuary at consulting firm Milliman. On aggregate about 70 per cent of the sector’s assets are invested in equities and other so-called risk assets, according to CEM Benchmarking.

    Others funds, such as California’s San Bernardino County Employees’ Retirement Association and the Teacher Retirement System of Texas, are using options and more active fund management to insulate portfolios from the kind of damaging volatility experienced in August. Burden is seeking to persuade public pension managers to use Milliman’s risk management strategy to reduce equity exposure in portfolios by shorting stock index futures. This means they don’t have to sell their fund’s equity holdings.

    The strategy is being applied to about $70 billion in portfolios with variable annuities, retail mutual funds and collective investment trusts used by 401(k) plans, but so far not in the public pension sector.

    Interest, Burden said, has increased this year with about 15 public pension administrators considering a shift versus five during the same period last year. That could also be due to Milliman’s more active marketing campaign.

     

     

     

  • N100b investments in steel industries at risk

    Over N100bilion investments by private steel manufacturing companies in the country are at the risk of being eroded if urgent steps are not taken by the Federal Government to address challenges besetting the sector, experts have said.

    Raising the alarm on Monday in Lagos was the management staff of African Industries Group and owners of African Foundries Limited, the largest steel manufacturing company operating in the company.

    Giving the report of the nation’s steel sector, the Chief Operating Officer (Steel), African Industries Group, Mr Sanjay Kumar said there are over 30 private steel plants producing various steel products in the country with investments that  are over N100billion since inception, adding that the investments could be jeopardised if nothing meaningful was done to address the issues bedevilling the sector.

    He said: “Already, about four steel plants have completely shut down and more will follow soon because many are currently operating below 30% of production capacity. Most of these steel plants are now operating two weeks a month and are closed for the remaining two weeks of the month due to lack of demand. Cost of restarting each time is very high and adds to the cost burden of the ailing steel companies. Steel consumption is largely driven by government initiative on infrastructure projects.”

    The best way to rescue the steel sector from collapse, he said, “Is for the federal government to make a definite policy of patronising made in Nigeria steel products (iron rods) for all government projects and give specific directive to all their contractors to buy made in Nigeria iron 30% of production capacity.

    “There is complete neglect of the involvement of the players in the steel sector in the formulation of the Nigeria industrial policy. All over the world, due to importance of steel in the development of the economy, the views and opinions of the key players from steel industry are usually sought and obtained by the government in the formulation of economic policies as being done for the oil or financial sectors. Unfortunately in Nigeria, the steel sector has been left out all these years,” he regretted.

    Kumar, who disclosed that African Industries Group is the largest steel manufacturing group in Nigeria, added that the group has four steel manufacturing plants at Ogijo (Ogun State), Ikorodu (Lagos State) and Suleja (Niger State).

    “African Foundries (AFL), the flagship company of African Industries Group is one of the few steel companies  in Nigeria  producing  iron rods meeting British standard (BS 4449-2005 Grade B500B). It has capacity to produce 0.5 million tons of BS 4449-2005 Grade B500B Iron rods. AFL has international standard testing laboratory equipped to measure mechanical and chemical properties of Iron rods and automatically test its geometry done in European steel plants. AFL follows all management practices laid under IFC and World Bank guidelines.”

    The African Industries Group boss recalled that African Industries got involved in the steel manufacturing in their quest to meet a gap between demand and supply at the beginning of democratic dispensation in Nigeria in 1999.

    “At that point in time the government started with the rebuilding of infrastructure and there was a clarion call for direct foreign investment. There was confidence in the Federal Republic of Nigeria for foreign investors to invest because of the democratic ideals.  Furthermore, we wanted to be part of the foundation of the industrial policy of Nigeria knowing too well there would not be any concrete industrial revolution without Steel,” he stated.

    He however, urged the government to create a special power tariff for the steel industry and make available an intervention fund at lower interest costs to prevent the immediate collapse of this private steel industry where many are operating below 30percent capacity and overburdened with high interest costs, while waivers/concession may not stop completely for certain infrastructural development, the portion of iron rod importation in any waiver should be expunged.

    Also, the Director-General , Standards Organisation of Nigeria (SON), Dr. Joseph Odumudu, said most products, including steel products being manufactured in the country are of high qualityand can compete favourably with their counterparts in the global market.

    The SON boss, who was represented by Mr. Bede Obayi, Director, Inspectorate and Compliance, SON, canvassed patronage, saying that such is the only way to encourage local manufacturers.

    “For every products imported into the country, we are exporting jobs out of Nigeria.This is the age of diversification. It is very critical that we patronise made in Nigeria products,” he stressed.

    Also, Director-General, Manufacturers Association of Nigeria (MAN), Mr. Remi Ogunmefun, said the steel industry all over the world plays a strong role in development.

    “Europe, America, developed their industry and that has been the base of development. The steel industry in Nigeria is facing some challenges. One of the areas hurting is patronage. The issue is so simple we have to convince government and put pressure on them on the need to patronise Nigeria made products. Nigerian products are good. Our products can stand out anywhere in the world. This is the age of diversification. We have to create policies that will change the sorry situation,” he said.

     

  • At the risk of being an all-round entertainer

    As the horizon of the Nigerian entertainment broadens, analysts say that gone are the days when actors stick to a lone game. Today, it’s a whole program as many actors and actresses now show their versatility by bridging the gap between singing and acting. Recently we have had high record of actors who have turned their focus from just acting by delving into music.
    Despite the fact that the likes of Genevieve Nnaji, Stella Damasus, Jennifer Eliogu, Omotola Ekeinde, and other Nollywood stars had shown a strong desire for music by releasing singles that couldn’t top the charts, the actresses in the Yoruba genre of Nollywood also seem poised to follow their paths.
    The likes of Dayo Amusa, Ronke Oshodi-Oke, Iya Rainbow, Liz Anjorin to mention a few are intent on showing their skills in singing but, could it be that these new additions just want to be referred to as multi-talented by taking the risk of being referred to as ‘entertainers’?
    The lists below outline multi-talented actresses, who sing alongside their acting careers.

    LIZ Anjorin: For this mother of one, she has been able to showcase her talents as a woman of many parts; acting, as an enterpreneur, and as a musician. She featured indigenous rapper, Jhybo in her single titled, Oronmbo which generated buzz when the photo shoots of the video surfaced on the internet, fuelling rumours that the duo tied the knots secretly.

    Dayo Amusa: in the past, multi-talented, award winning Actress/Musician, Dayo Amusa has proven to be a jack of all trade. She has won different awards and her recent singles Blow My Mind and Aye Mi, are reported to be enjoying massive airplay. The spice things up, the actress also goes by the music name, Adufe. Her second single, Blow My Mind, produced by Psalm Jazzy and mixed by Teepiano is a love song with a highlife tune. A review of the song describes it as “a good try for a first timer. It is believed that the actress can do better if she is able to maintain the high life style she came out with.”

    iya rainbow
    iya rainbow

    Iya Rainbow: Yoruba movie veteran, Idowu Philips, popularly known as Iya Rainbow has joined the growing number of thespians trying to break the boundaries of their creativity by singing. She recently released a gospel track titled Ore Ofe from her forthcoming gospel album. The new single features popular Fuji star, Wasiu Alabi a.k.a Pasuma. The thespian reveals that she has a full gospel album recorded and ready for release. The album, which recorded with the Fuji musician, talks about how God is a politician.  Though the name of the album is yet to be released, the actress will be dishing out singles off the album before the proper launching. Iya Rainbow is said to have began her acting career in 1986 and is believed to have acted in over 500 Yoruba films since then.

    Jennifer Eliogu: After her a hiatus from the make believe world, Jennifer returned as an actress and soul singer. The single mother, in an interview claimed singing was her first love, making it easy for her to delve into it. In an earlier interview, the thespian stated: “Singing is actually my first love. I stumbled on acting because I just went for an audition years back and was chosen. I guess I got carried away by acting. Close friends know how much I love singing and I always do karaoke.”

    Fans of the actress are hoping that she is able to hold on and make a better outing than her debut song Ifunaya. This comes after being on a break to focus on her marriage and family.

    Ronke Oshodi-Oke: As an actress, Ronke is known for her comic gimmick in movies. The mother of two has also joined her colleagues who hold a desire to excel in the music scene. According to reports, Ronke Oshodi-Oke’s musical career began in 2014, the same year she launched her debut album with a single titled Ori Mi featuring 9ice.

    Ronke oshodi-oke
    Ronke oshodi-oke

    She is also said to have had collaborations with other music stars like Pasuma, Oritsefemi, and a couple of others.

    Though it is yet to be confirmed, it is being whispered that the Yoruba actress who recently posted a picture of herself with Daddy Showkey, might be planning a collabo with the Galala king.

    It should be noted that Showkey himself is presently staging a comeback to the music industry after a long hiatus.

    Ronke Oshodi-Oke, began her acting career with a drama group called Star Parade under the leadership of Fadeyi, a Nigerian actor but became an household name in the year 2000 when she featured in a movie titled Oshodi Oke, which has since become her signature.

  • Risk Control Nigeria gets ISO QMS certification

    Risk Control Services Nigeria Limited (RCS), a security firm, has received the ISO QMS 9001:2008 certification, making it the first to reach such the milestone in the background checks and anti-counterfeiting sectors of security industry in West Africa.

    This accreditation affirms that specific requirements for a quality management system are within the organisation headquartered in Lagos.

    The firm earned the recognition after embarking on a one-year rigorous process of systems enhancement and quality improvement, under the supervision of the Standards Organisation of Nigeria (SON).

    Report of SON’s ISO auditor declared that Risk Control Services Nigeria Limited “Conforms with the requirements of ISO 9001:2008 sets of requirements for quality management system planning, implementation and maintenance.”

    Any service company that attains this distinction showed its ability to consistently provide service(s) that meet customers’ and applicable statutory and regulatory requirements.

    On the achievement, RCS CEO Mr Olufemi Ajayi stated:“We are definitely proud of our achievement and convinced that the affirmation by ISO that our background checks and anti-counterfeiting services are offered through a quality management system will make our current and potential customers confident about the quality of service that we render.”

  • Excess belly fat and health risk

    Excess belly fat and health risk

    Excess fat, being overweight or obese can present health risks but this is especially so when it comes to excess belly fat, according to health experts.

    They point out that fat around the waistline is a strong risk factor for heart disease, type 2 diabetes, and even some types of cancers such as colorectal cancer.

    “Excess fat in the stomach area or ‘pot belly’ in local parlance, comes with a lot of health risks,” noted Dr Matthew Ogwa, a medical practitioner. He pointed out that those with very large waistlines are susceptible to many problems especially ‘insulin resistance syndrome or metabolic syndrome.’ “The thing is, those with insulin resistance often develop type 2 diabetes. They also tend to have high blood pressure and too much bad cholesterol, which is a recipe for heart disease,” he added.

    Besides causing these serious ailments, experts also point to the danger excess belly fat pose to the internal organs such as the kidneys and liver. “This type of fat, known as visceral fat is extremely dangerous as it gathers round the internal organs like the heart and kidneys, causing health problems,” warned Ogwa. He added that people with big stomachs have higher risks of dying from cardiovascular diseases and even stroke, than those with slimmer waistlines. “If you know your belly is too big and it’s affecting your overall health and wellbeing, it’s advisable to slim it down to avoid these health risks which can be dangerous,” he cautioned.

     

    Losing the bulge

    Someone whose excess weight including a very big belly was giving her serious health problems was Madam Dina (surname withheld). Narrating her story to the Nation, she said: “I’ve always been big but three years ago in 2012, my weight ballooned to over 150kg. I was having some emotional problems then relating to my marriage and family and I took solace in food. The more I ate, the bigger I got. At a point, my old clothes could no longer fit and I needed a new wardrobe especially loose outfits like boubous and caftans. Those were the only kinds of clothes I could wear as I was so shapeless. I looked a mess and seriously out of shape with my stomach so large, I looked like a nine months pregnant woman. Worse, my health was being affected. Any time, I walked a short distance, I will start panting like someone who just ran a 100 metres race. I developed sores on my thighs as they used to rub together when I walked. I knew I was not fit but I did not know how bad it was until I went to the hospital one day for treatment for fever. The doctor took one look at my blood pressure and promptly admitted me. She told me I was on the verge of having a stroke as my blood pressure was so high. My heart froze when I heard that word, stroke. It was the last thing I wanted as my children were still so young; who would look after them if I was ill, I told myself?”

    Upon discharge from the hospital, Dina decided to do something about her weight. “The doctor advised me to watch my diet especially the intake of fatty foods and to exercise regularly. I bought some exercise equipment and I have been using them regularly. I also jog nearly every morning. My weight has gone down, I’ve lost nearly 30kg and I hope to lose more before the year ends. With the change in diet and exercise, I feel like a whole new person. I feel fitter, stronger, healthier and I don’t get as tired and out of breath as I used to. Best of all, my BP has gone down.”

     

    Healthy lifestyle

    To beat belly fat and lose excess weight, health experts including nutritionists advocate a wholistic approach. This include combining a healthy diet with regular exercise. “Losing your excess belly fat is not a one day thing; it’s something that takes time, commitment and effort,” stated Mercy Ok, a nutritionist and lifestyle coach.

    To her, what you eat plays a major role in getting a large belly. “Some big bellies are due to genetics, for those who are predisposed to be fat due to their genetic make-up. Others are caused by childbirth particularly women who have had many children. For many, however, food is the major culprit. Too much fatty, sugary and calorie filled foods and snacks coupled with a lack of exercise can cause excess weight especially around the waistline. As the body ages, metabolism slows down, thereby burning less calories. The excess calories are stored in the body as fat particularly in the waistline. This is why ‘pot belly’ is more common among the middle aged and elderly people than in the young whose metabolism is still high,” she said.

    She advised a diet plan that includes less fat and sugar and more protein. As she stated: “Those who want to reduce their big belly should eat more plant-based foods such as fruits like pawpaw, watermelon and vegetables like legumes and pumpkin leaf. These are rich in protein, vitamins and minerals which are good for the health. For meat, avoid fatty meats like organ meat, go for white meat like fish and poultry. Eat without the skin and grill to reduce fat from frying. Avoid sugar especially sugary snacks and beverages which are calorie filled but with little essentials nutrients.

    “Exercise is also important. Aerobic exercise- walking, running, swimming, jogging- has been shown to cause reduction in belly fat especially when done regularly. No matter what weight you are, try to keep fit with regular exercise to live a long, healthy and disease free life.

    Regularly detox the system by sipping lemon or lime juice in hot water daily. These both invigorate the liver and help to liquefy fat, which aids in flushing it from your system more quickly.”

    She also advised drinking enough water to flush out toxins, aid digestion and prevent dehydration as mild dehydration can cause the kidneys to call on the liver for help. This can  reduce the liver’s ability to burn fat, thus leading to fat deposits often in the belly, she noted.

  • Sterling director urges SMEs on risk

    Sterling director urges SMEs on risk

    The Executive Director, Finance & Strategy, Sterling Bank Plc, Mr. Abubakar Suleiman, has called on operators of Small and Medium Enterprises (SMEs) to ensure proper risk identification, assessment and analysis to minimise revenue by operators.

    Suleiman who spoke at the 10th Annual CEOs Forum organised by LEAP Africa in Lagos, with the theme: Staying Ahead: Maximising Profit And Mitigating Risk also praised the organisers for focusing on the SMEs.

    He urged SME operators to ensure that their risk profile is adequately assessed even as they are required to improve on their reporting standards and the day-to-day management of their organisations.

    The bank director also encouraged economic awareness to fully mitigate risks associated with foreign exchange fluctuations.

    He informed the participants drawn mainly from the SME segment about the bank’s support for SMEs by constantly educating them through workshops and seminars on capacity building training.

    Suleiman further stated that  the bank organised a capacity training programme in 2014 aimed at enhancing the managerial and entrepreneurial qualities of SME operators with a view to building sustainable businesses in view of the critical roles they play in the development of an economy.

    “We are totally focused on the growth of SMEs in the country and we will continue to assist in taking their businesses to another level. The process for transforming SMEs to become bigger players and a key part of national development does not start and end with finance. A huge part of it starts with education,” he said.

  • Financial regulators widen risk coverage

    Financial regulators widen risk coverage

    The Financial Stability Board (FSB) and the International Organisation of Securities Commissions (IOSCO) have developed assessment methodologies for identifying non-bank non-insurer global systemically important financial institutions (NBNI G-SIFIs)  to strengthen rules on risk coverage.

    The draft methodologies for identifying NBNI G-SIFIs complement those for identifying globally systemically important financial institutions (G-SIFIs) that cover banks and insurers.

    The proposed methodologies aim to identify NBNI financial entities whose distress or disorderly failure, because of their size, complexity and systemic interconnectedness, would cause significant disruption to the wider financial system and economic activity at the global level or NBNI G-SIFIs in short.

    According to the global bodies, these methodologies comprise a high-level framework and an operational framework for identifying G-SIFIs that would apply across NBNI financial entities, as well as detailed NBNI sector-specific methodologies.

    Detailed sector-specific methodologies include near-final methodologies for finance companies and market intermediaries; and a revised proposal on sector-specific methodologies for asset management entities. The latter comprises a revised methodology for investment funds, including hedge funds and a new proposed methodology for asset managers.

    In revising the proposed methodologies, the FSB and IOSCO intend to capture various types of systemic impact posed by a wide range of business models and risk profiles, while also maintaining broad consistency with the existing assessment methodologies for global systemically important banks (G-SIBs) and insurers (G-SIIs).

    Also, the global bodies tried to overcome limitations in data availability and the wide variety of business models in the NBNI space, by allowing a greater role for supervisory judgment in the assessment compared to the G-SIB and G-SII methodologies.

    The NBNI G-SIFI methodologies will thus rely on detailed analysis conducted primarily by national authorities, which is supplemented by supervisory information-sharing and international coordination through the FSB process.

    Chairman, FSB, Mark Carney and Governor of Bank of England, said that the revised proposal marks an important step towards addressing any too big to fail problems, among entities that are neither banks nor insurers. These include finance companies, market intermediaries, investment funds and asset managers.

    According to him, this will also enhance authorities’ understanding of the risks to global financial stability posed by the activities of entities in financial markets, including the distress or disorderly failure of non-banks and non-insurers.

    Greg Medcraft, Chairman of the IOSCO Board and a member of the FSB Plenary, noted that non-bank non-insurer financial space covers a wide range of business models and risk profiles. Medcraft is the chairman of the Australian Securities and Investments Commission.

    Daniel Tarullo, Chairman of the FSB Standing Committee on Supervisory and Regulatory Cooperation, stated that understanding the key drivers and transmission mechanism of risks posed by the failure of an NBNI financial entity to the global financial system is the first step of designing the appropriate policy tools to address such risks.

    FSB coordinates at the international level the work of national financial authorities and international standard setting bodies and it helps to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies in the interest of financial stability.

    FSB brings together national authorities responsible for financial stability in 24 countries and jurisdictions, international financial institutions, sector-specific international groupings of regulators and supervisors, and committees of central bank experts.

    IOSCO is the global standard setter for securities market regulation. The organization’s membership regulates more than 95 per cent of the world’s securities markets in more than 115 jurisdictions.

  • Default at your own risk, CAC threatens companies

    Companies and businesses defaulting in compliance with the provision of the companies and Allied Matters Act, CAMA, will soon face severe sanctions.

    In a statement by the Director, Public Affairs, Mr. Churchill Williams, the CAC has set up a special enforcement committee which had commenced crack down on the operation of some companies.

    He said: “The special enforcement committee had completed the first phase of on-site examination exercise in the Federal Capital Territory and had visited various markets, shopping malls and held collaborative meeting with relevant organisations to sensitise the public on the post incorporation obligation of registered companies and the consequences of operating unregistered businesses.

    “A total of 474 were penalised for non compliance during the exercise in the FCT. The next phase of the enforcement will be carried out in the 36 states of the federation.

    “Under the provision of the companies and Allied Matters Act, CAMA, every company, business name and incorporated association, nongovernmental organisation (NGO), are required to file annual returns every year which informs the commission of the status of a registered entity.”

    Williams said, under section 548 of CAMA, all companies are required to display their registered names and registration number at their offices. Under section 553 of CAMA, every banking or insurance company or deposit, provident or benefit society is required to prepare and display in a conspicuous manner their statement of affairs twice in a year.

    Companies complying with the provision of CAMA stand the benefit of enjoying unhindered treatment of their post registration filling with the commission whereas filings from defaulting companies are rejected out rightly until they update their record.

  • RISK MANAGEMENT

    RISK MANAGEMENT

    Risk management could entail avoiding the risk completely, reducing the negative impact of the risk through risk mitigation actions, transfering or sharing the risks with other parties and retaining the risk; ie, accepting some or all the consequences of the risk and budgeting for it.

  • Social media evolution: are writers at risk?

    IF a twist is to be written on the popular saying; ‘never judge a book by the cover’, circumstances confronting modern day writers, especially with the advent of the internet is likely to have the saying rephrased as “let the buzz judge the book”. The buzz in this sense relates to the amount of awareness and engagements writers drive on the internet through their books. The reality of the age compels writers to embrace the social media platform in promoting their works or stand the risk of decline in their career advancement considering the growing number of the internet savvy population in Nigeria.

    Publishers cannot also deny the fact that the medium is having far-reaching consequences on their trade. Gbenro Adegbola, a publisher involved in learning solutions and resources, claimed that to say that the new media is affecting the fortunes of Nigerian publishing business will be overstating the facts. According to him, “The truth of the matter is that the ecosystem upon which new media strives is still at its infancy here; but it is growing very fast and it is likely to catch many publishers off guard”. The former Managing Director of Evans Book, however, agreed that new media represents a cost-effective means for writers to engage with their public and get word out about themselves and their work.

    Temitayo Olofinlua-Amogunla, the creative director of Wordsmithy Media who also work as a publicist, believes publicity is paramount for both old and new writers to survive in the new terrain. She admonishes writers who cannot do the work themselves to get a publicist, as writers can tap into the platforms provided by the internet to promote their books. “There are loads of online marketing platforms out there. Even advert on Facebook is affordable, yet many are not using it. A Google ad is there also, E-books can also be made and sold. What happened to audio book? Most Nigerian writers are not making use of that”, she exclaimed.

    Writers who wish to survive the times they need to realise that it takes more than just style and structure to make a good book. The new deal is that as a writer pays attention to stylistic effects to tell a good story, they also need to pay attention to the opportunities provided by the internet to promote their books. This is like another standard added to the rules for writers-”be social media conscious or be dammed.”

    Most times, when Emmanuel Iduma introduces himself, people say they know his name but are shocked that he is younger in real life. This is a privilege that he attributes to the visibility of the brand he was able to create using online media. Emmanuel, who published his debut novel Farad last year and was recently featured on Aljazeera, confessed that online media offered him the first chance of publishing some years ago through Africanwriter.com. According to him, “The most important component of the web is its potential to reach millions of people; as a result of this, I believe my work has been seen by a host of people who otherwise would not have seen it.” Iduma, who keeps a blog and tweet, frequently confessed that the publicity for his book has been primarily through social media and the effect has transcended what can be done only by words of mouth and physical distributors.

    Richard Ali, the owner of Parrésia Publishers, attests to the indispensability of social media for writers who want to stay afloat in the modern age. The indispensability of social media to writers and even publishers proved instructive in the way he runs his business operations. For him, one of the biggest coups his company made was when Nigeria’s retail giant www.konga.com came on board as their online retail partner. This makes it possible for books published by Parrésia to be orderable on websites and purchasable with Nigerian ATM cards or with pay on delivery option. Furthering, he said; “The entire publishing process, from editing to cover design, with authors and clients being carried along all steps of the way, are done via the internet. We do not spend money or waste time on post or freight except when absolutely necessary keeping our operations lean and mean”, he told The Nation.

    The tradition where people must go to bookshops before buying books is also fading. These days, the upward mobile order their books online. The internet also has a way of impacting sales as it makes books easily available especially for urbane people. Another trend that writers are keying into is to make their books available on sites like Amazon which is easily accessible by those who read through electronic gadgets. This makes books available to readers all over the world without bearing shipping or inventory costs. Ali testifies to this, “We have seen a phenomenal rise in sales from these channels, especially amongst urban Nigerians”. He also said of social media. “Facebook and Twitter help us drive our market to Konga Amazon and bookstore where they can buy our books” adding that his publishing company would not have had its present cutting edge without the internet.

    David Ishaya Osu, a student who is an avid consumer of literature books, admit to the fact that the internet has restricted his reading frame by opening his eyes to scopes of literature. “Even though I cannot compare the thrill of holding a book in my hand to reading it online but one should appreciate the realities of the age. Thus, I do not have to wait for three months for a book to be posted to me; just a click and I’ve got the e-copy”. People do not want to be told to go to newspapers or even books to locate one’s writing. They want it in their phones, Ipad, tablets. It is even devastating now that many international publishing firms do online submissions.

    Although there is the argument that heavy reliance on the new media as a way of promoting literature detaches the population from critical reading and study of works, the reality is that the changes of the times compels writers to be on guard.

    Writers should embrace using the social media as the platforms enable them to use the interactive web by engaging users to participate and create contents as a means of communicating with their social group.