Archive for nigeriang

Prices of commodities soar in Kano

Prices of commodities soar in Kano

The prices of some
essential commodities such as sugar and cooking oil have shot up in
Kano, a survey by the News Agency of Nigeria has shown.

The survey at
various markets in the metropolis on Wednesday, showed that the price
of sugar and cooking oil recorded significant increases over the past
three months.

A bag of Dangote
sugar, which sold for N8,500 few months ago, costs N11, 500, while a
bag of BUA sugar sells for N11,000 as against N8,000.

The price of a
20-litre container of groundnut oil, increased to N6,500 from N5,500,
just as a 25-litre jerrycan of palm oil shot up to N5,500 from the
initial N3,700.

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Private sector operators fault economic growth claim

Private sector operators fault economic growth claim

Private sector
operators have faulted the claim of the Federal Government that the
country’s economy has experienced growth in the last two years.

The operators, who
were reacting to the minister of national planning, Shamsudeen Usman’s
declaration that Nigeria has moved 10 steps upwards in world’s
development, said that this has not translated to improvement of the
lives of the average Nigerian.

David Iweta, the
president of Warri Chamber of Commerce, Industry, Mines and
Agriculture, described the growth as “artificial”, saying that it has
not translated into the real sector, creating more employment
opportunities.

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Kenya to cut spending in 2011/12

Kenya to cut spending in 2011/12

Kenya expects
overall spending in 2011/12 and its budget deficit to narrow from last
year and for development expenditure to rise, its finance minister said
on Wednesday.

Overall spending is
seen at 975.8 billion shillings in 2011/12, or 31.7 per cent of Gross
Domestic Product (GDP), from a revised 883.9 billion shillings this
year, equivalent to 32.7 per cent of GDP.

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Value of equities improve at the Exchange

Value of equities improve at the Exchange

The value of equities at the Nigerian Stock Exchange (NSE) yesterday rebounded appreciably after negative performances.

The NSE market
capitalisation of the 194 First-Tier equities closed on Wednesday at
N8.077 trillion, after opening the day at N7.983 trillion, reflecting
1.18 per cent or N94 billion gains. The market had last week plunged to
N7.775 trillion due to low investors’ confidence, resulting in high
selling pressure.

Analysts at GTI
Capital, a stock broking firm, attributed the significant growth to
“the release of financial statements of some highly capitalised banks
which stimulated massive bids by investors on bank subsector,” adding
that the move has “created positive effects on the market in general.”

They said the
market should further rebound from its current position if other banks
start reporting positive financial results during this quarter.

Gainers increase

A total of 45
stocks appreciated in price on Wednesday, higher than the 43 recorded
the previous day, while 18 stocks depreciated in value higher than the
15 of Wednesday.

Associated Bus
Company and Vitafoam Nigeria topped the price gainers’ table with an
increase of 5 per cent each, to close at 63 kobo and N5.25 per share,
respectively. Dangote Flour and Stanbic IBTC Bank followed in the chart
with an increase of N4.98 each, to close at N17.48 and N9.27 per share.

On the flip side,
Evans Medical and C & I Leasing led on the price losers’ chart with
a loss of 5 per cent and 4.96 per cent respectively, to close at N1.14
and N1.34 per share. Costain West Africa and Avon Crowncaps followed
with a decrease of 4.94 and 4.92 per cent, to close at N5.96 and N6.57
per share.

Banks maintain lead

The Banking
subsector maintained its lead as the most active with 203.101 million
quantities of shares, valued at N1.665 billion. The subsector’s volume
was largely driven by shares of Unity Bank, Guaranty Trust Bank, First
Bank, and Access Bank.

Trading activities
in the Insurance subsector was second highest yesterday, with 18.394
million shares valued at N20.011 million. Volume in the subsector was
boosted by deals in shares of Unity Kapital Assurance, Continental
Reinsurance, and Custodian and Allied Insurance.

The Conglomerates
subsector was third with 13.903 million shares valued at N225.985
million. Transnational Corporation, PZ Cussons Nigeria, and Unilever
Nigeria boosted volume in the subsector yesterday.

Meanwhile, the Council of NSE recently promoted 26 members of staff
to a new level. Wole Tokede, spokesperson of the NSE, said, “The
promotion exercise shows that four senior managers were promoted to the
position of principal managers.”

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Egypt pound trades at weakest

Egypt pound trades at weakest

The Egyptian pound traded as weak as 5.9605 to the U.S. dollar on Thursday, its lowest level since January 2005.

Bankers expect the
currency to come under pressure in the coming days as foreign investors
sell shares on the Egyptian stock exchange, which reopened yesterday
after political unrest kept it closed for more than seven weeks.

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Nigeria’s Qua slips as rush declines

Nigeria’s Qua slips as rush declines

Nigerian crude oil
grades hovered below two-and-a-half year highs on Wednesday, with
traders adding that the initial rush to buy substitutes for lost Libyan
exports is over. “I think the Libyan shortfall is now fully priced into
Nigerian grades and I see no reason for any upside,” said an oil
trader, with a focus in West Africa. Demand for Nigerian volumes has
been strong because these light, sweet grades are among the best global
substitutes for Libyan exports. Nigerian oil exports are set to fall
slightly to around 2.03 million barrels per day (bpd) in May from a
planned 2.06 million bpd in April. Some discussion was heard at
premiums of up to $1.20 above official selling prices on some grades.
Nigeria raised the official selling price on its benchmark Bonny Light
and Qua Iboe grades to $3.40 a barrel above dated Brent. The Brent
Crude closed yesterday at $115.61 per barrel.

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Gas project to bring in $10b foreign investment

Gas project to bring in $10b foreign investment

President
Goodluck Jonathan has said that the launch of the gas project will
result in a foreign direct investment of about $10 billion over the
next three years.

He
also said when fully implemented, the entire gas master-plan agenda
will result in $25 billion worth of investments in gas processing,
transmission, and downstream gas utilisation projects, positioning the
country as the regional hub for gas-based industries on fertilizer,
petrochemical, and methanol manufacturing.

Speaking
at the launch of the project with the theme ‘Gas Revolution – the
Rebirth of Nigeria’s Industrialization’ at the banquet hall of the
presidential villa yesterday, Mr. Jonathan said the initiative will
result in 500,000 other direct and indirect jobs that involve
logistics, construction, tourism, and agriculture by 2014.

Beyond
the quantum of foreign direct investment, the president said the
economic impact of this agenda will be enormous in terms of employment
and wealth creation, estimating over 100,000 engineering design and
construction-related jobs will be created from about 2012 and beyond to
deliver all these plants.

Multiplier effect

“The
focus is to catalyze a major industrialisation of the country by
seeding in a few anchor investments that have the highest potential to
have far reaching secondary multiplier effect on the economy.

“The
investment being launched today will result in foreign direct
investment of about 410 billion over the next 3 years. The full
implementation of the entire gas master-plan agenda will result in
about $25 billion worth of investments in gas processing, transmission,
and downstream gas utilization projects,” Mr. Jonathan said.

He
also said the full application of the National Content Law means that
another significant portion of jobs will be created for the Nigerian
teeming population.

“Full
application of the National Content Law means that as we stimulate
these opportunities, a significant portion of the jobs created will be
for Nigerians. When we are done, we hope to have created a Nigeria that
we all would be proud of, a nation in which our youth can clearly see
the roadmap to engagement and self-worth as they get gainfully
employed. This is not just a plan, this is now in action,” he said.

More food

The
president disclosed that more food will be produced affordably and a
huge portion for export with the establishment of fertilizer industries
According to him, the revolution is coming with the replacement of the
use of kerosene and fire woods with LPG (Liquified Petroleum Gas) for
household cooking’s and work towards the elimination of gas flaring
that has been wasted in several years past.

“We
can only be successful if our actions impact on the common man in
Nigeria. The agricultural revolution arising from the fertilizer and
blending plants will create affordable food for Nigerians and a lot
more for export.

“The
LPG agenda will touch the lives of many households, as cheaper and
cleaner LPG displaces kerosene. The disposable income that arises from
the savings will result in the purchase of more goods and services,
boosting GDP,” Mr. Jonathan said.

The
minister of petroleum, Diezani Madueke, said the gas-based industries
refers to only those who utilise gas not fuel, as feedstock. These
include fertilizer, petrochemicals, and methanol.

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Profit taking drags market performance down

Profit taking drags market performance down

Profit taking
activities by some investors have been attributed to the decline in
market capitalisation, as witnessed yesterday at the Nigerian Stock
Exchange (NSE).

The NSE market
capitalisation of the 194 First-Tier equities closed lower on Thursday
at N8.009 trillion after opening the day at N8.077 trillion, reflecting
0.84 per cent decline or N68 billion losses. The market had gained N94
billion after Wednesday’s trading session.

Olugbenga Emmanuel,
a finance analyst at WealthZone Company, an investment management firm,
said profit taking was expected following the recent upturn recorded in
the market.

“The market has
been showing mix performances in the past few weeks before it went up
last Friday. And since the recent upturn, investors, particularly the
fund managers, have been taking the little profits on their
investments,” Mr. Emmanuel said.

However, analysts
at BGL Securities, one of the stockbroking firms that recently met the
N70 million minimum capital base requirements instructed by the NSE,
said, “We advise investors to always consider fundamentals (performance
of intended equity) as they make their investment decisions.”

Low Gainers

At the close of
trading on Thursday, a total of 18 stocks appreciated in price lower
than the 45 recorded the previous day, while 34 stocks depreciated in
value, higher than the 18 of Wednesday.

Lafarge Wapco
Cement and Cement Company of Northern Nigeria topped the price gainers’
table with an increase of five per cent and 4.99 per cent, to close at
N40.98 and N11.58 per share, respectively. Transnational Corporation
and United Bank followed in the chart with an increase of 4.71 and 4.70
per cent, to close at 89 kobo and N3.34 per share.

On the losers’
side, Aiico Insurance and HoneyWell Flour Mill led on the price losers’
chart with a loss of five per cent and 4.90 per cent respectively, to
close at 95 kobo and N5.24 per share. First City Monument Bank and
Costain West Africa followed with a decrease of 4.89 and 4.87 per cent,
to close at N6.42 and N5.67 per share.

Most Active

The Banking
sub-sector maintained its lead as the most active with 111.825 million
quantities of shares, valued at N977.489 million. The sub-sector’s
volume was largely driven by shares of Zenith Bank, First Bank, and
Diamond Bank.

Trading activities
in the Insurance sub-sector was second highest yesterday, with 15.194
million shares valued at N12.346 million. Volume in the sub-sector was
boosted by deals in shares of Aiico Insurance, Lasaco Assurance, and
NEM Insurance.

Meanwhile, the
management of Union Bank, on Thursday, officially notified the Exchange
that it has recently executed a Memorandum of Agreement (MOA) with the
African Capital Alliance Consortium, the core investor selected by the
bank’s board of directors.

The bank further
stated that it will within the next few days make “a deal announcement
to advise” all concerned Union Bank’s operators of the signing of the
MOA.

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Central Bank sells $16.6m at debut auction

Central Bank sells $16.6m at debut auction

Central Bank of
Nigeria (CBN) sold $16.6 million in short-tenored foreign exchange
forwards at its first such auction on Wednesday, at rates which
indicated it expected the currency to remain stable or strengthen.

The regulator began
offering 1- 2- and 3-month forwards at its bi-weekly foreign exchange
auctions on Wednesday as part of efforts to smooth dollar demand and
help businesses in sub-Saharan Africa’s second biggest economy hedge
currency risk.

It sold $10 million
worth of 1-month forwards at 152.18 naira, $620,000 of 2-month forwards
at 153.97 naira, and $6 million of 3-month forwards at 154.10 naira at
the auction, currency dealers said on Thursday.

The naira, which
eased to its weakest level in 18 months last week, ahead of April
elections, was trading at 155.90 to the dollar at the interbank market
on Thursday, compared to Wednesday’s close of 156.05.

Increase demand

Although demand at the maiden forwards auction was relatively low, analysts expect it to pick up over time.

“Although
yesterday’s forward auction could be perceived as a relative failure
given the marginal level of demand, we note this was the first attempt
by the Central Bank to formally launch derivative products,” said Samir
Gadio, emerging markets strategist at Standard Bank.

“This was more a test auction and volumes could still increase in the future as more corporates get set up to bid,” he added.

Dollar demand rose
to $584 million at the Central Bank’s bi-weekly spot forex auction, the
highest for months, but the regulator sold only $400 million at 151.27
on Wednesday. It met all the demand at the forward auction.

Businesses and rich
Nigerians are going long dollars to hedge against the risk of any
prolonged political upheaval due to a April 9 presidential vote, in
which President Goodluck Jonathan is seen as the front runner.

Boost liquidity

It is hoped that
developing naira forwards will boost liquidity in the foreign exchange
market, but analysts say the move may not be sufficient to ward off
short-term volatility in the run-up to the polls.

“We expect the
forward market to help smooth aggregate forex demand only gradually in
the medium to long run rather than immediately, notably given the
speculative nature of the current pressures on the exchange rate,” Mr.
Gadio said.

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BRAND MATTERS: When brands speak consumer language

BRAND MATTERS: When brands speak consumer language

I remember vividly
when I was a manager in the strategy/account planning department of
Centrespread FCB, an advertising agency. I had the onerous task of
conducting consumer insights on lottery business operations for Lotto
Nigeria. The agency developed some brand slogans ‘Levels fit change’
and ‘Level go change’. These slogans were tested across the key
geographical regions in the country.

‘Levels go change’
was eventually selected based on consumer insights. Consumers believed
it was their own language and in line with their thinking. They
believed the slogan definitely inspired them, that with a new lottery
company, their lives would experience transformation, as they would
never operate on the same level again.

In essence, the
slogan captured their language because it resonated with what they
wished and desired. Consumers tend to respond to any brand that deploys
their language to communicate with them. They develop both emotional
and physical attachments to brands that speak their language. Times are
really changing, and consumers want to maintain a direct relationship
with brands. When ‘Levels go change’ was being tested, the consumers
were already desirous to know the company that wanted to change their
levels for the better. The name of the brand was not revealed then.
Despite this, there was an instantaneous connection because the brand
communicated the language of the consumers.

The only way to get
true connection with consumers is to develop real, long-term
relationships with them. A major way to achieve this is through
language. It has been revealed through several researches that
consumers want to be reached in their own ways. Their own ways revolve
round their language, culture, and thinking. The era of developing
sophisticated communication campaigns is gone. Consumers want simple
and direct communication, and when brands identify with this, it builds
positive perception and fosters relationships.

They are further
captivated and engaged when brands speak the language that aligns with
their yearnings. Brands that speak consumer language can never fade
from their minds.

Etisalat deployed
this tactic in the ‘one million dollar’ promotion campaign. “I don
hammer o” was the language of the winner on the billboards after the
promotion. This strongly sends a signal to others that they can also
“hammer” (which means hitting a goldmine) with Etisalat. Brands should
touch local sentiments and make messages more endearing to the
consumers.

Companies should
engage consumers, listen to them closely, and deploy the major way to
communicate in their language. Companies with consumer mass appeal
brands can also breathe a new life into their brands by speaking
consumer languages. The brand image can be revitalised by speaking
consumers’ minds. I believe Airtel achieved this in their outdoor
communication. One of such is “With Airtel, there is no congestion”. A
traffic jam was the image used to depict ‘no congestion’. This is one
that refreshes the brand in the minds of consumers.

Though the written
or spoken language can be powerful as the imagery deployed, language
also unlocks the values trapped within the brand that consumers desire
or long for. The time has come indeed for companies to make their
brands forward thinking by adopting a strategy to think and act like
the consumers.

This can only be achieved through a strategic deployment of consumer language.

Kudos to my lecturers

I had a chance
meeting with some of my lecturers after several years, in the course of
promoting my company’s writing academy. I was at Redeemers University
where my former lecturer, Bayo Oloyede, is currently the head of the
Mass Communication department.

Mr. Oloyede was the
one who taught me courses like Writing for the Mass Media and Editorial
Writing. I also visited Caleb University, where I met the big don, Lai
Oso, the professor who taught me courses on Theories of Communication,
Communication and Development, at the Ogun State Polytechnic.

They and their
other colleagues are noble men who have impacted lives .They have
laboured to train several successful professionals who now excel in the
marketing communications industry. Through the thick and thin of pains
and toils, they remain in the ivory tower, moulding lives.

I appreciate their unfavoured commitment to nurturing even the upcoming generations, despite the ingratitude of the society.

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