Nigeria Content Online

Youth unemployment
across the world has climbed to a new high and is likely to climb
further this year, a United Nations agency said Thursday, while warning
of a lost generation as more young people give up the search for work.

The agency, the
International Labour Organisation, said in a report that of some 620
million young people ages 15 to 24 in the work force, about 81 million
were unemployed at the end of 2009 the highest level in two decades of
record-keeping by the organisation, which is based in Geneva,
Switzerland.

The youth unemployment rate increased to 13 per cent in 2009 from 11.9 per cent in the last assessment in 2007.

There’s never been
an increase of this magnitude both in terms of the rate and the level
since we’ve been tracking the data, said Steven Kapsos, an economist
with the organisation. The agency forecast that the global youth
unemployment rate would continue to increase through 2010, to 13.1 per
cent, as the effects of the economic downturn continue. It should then
decline to 12.7 percent in 2011.

The agency’s 2010
report found that unemployment had hit young people harder than adults
during the financial crisis, from which most economies are only just
emerging, and that recovery of the job market for young men and women
would lag behind that of adults. The impact of the crisis also has been
felt in shorter hours and reduced wages for those who maintain salaried
employment.

In some especially
strained European countries, including Spain and Britain, many young
people have become discouraged and given up the job hunt, it said.

The trend will have
significant consequences for young people, as more and more join the
ranks of the already unemployed, it said. That has the potential to
create a lost generation comprised of young people who have dropped out
of the labor market, having lost all hope of being able to work for a
decent living.

The report said that young people in developing economies were more vulnerable to precarious employment and poverty.

About 152 million
young people, or a quarter of all the young workers in the world, were
employed but remained in extreme poverty in households surviving on
less than $1.25 a person a day in 2008, the report said.

The number of young
people stuck in working poverty grows, and the cycle of working poverty
persists, the agency’s director-general, Juan Somavia, said.

Young women still
have more difficulty than young men in finding work, the report added.
The female youth unemployment rate in 2009 stood at 13.2 percent,
compared with the male rate of 12.9 percent. The gap of 0.3 percentage
point was the same as in 2007.

The report studied
the German, British, Spanish and Estonian labor markets and found that
Germany had been most successful in bringing down long-term youth
unemployment. In Spain and Britain, increases in unemployment were
particularly pronounced for those with lower education levels.

Data from Eurostat,
the European Union’s statistical agency, showed that Spain had a
jobless rate of 40.5 percent in May for people younger than 25.

That was the
highest level among the 27 members of the European Union, far greater
than the 9.4 percent in Germany in May and 19.7 percent in Britain in
March.

New York Times

In any brand
communication campaign, knowing the pulse of consumers, gauging their
perceptions, and understanding their feelings are crucial to the
success of the communication process. Such insights thus become
imperative in building an enduring relationship between brand and
audience. An effective way to build relationship is by gaining insights
into consumer behaviour.

In this age, brands
need to connect directly with the consumers. Brands that warm their way
into the hearts of consumers are the ones that impact lives, because
they identify with the aspirations and yearnings of the consumers.

Some of the key
things to do is to focus on who is buying the product or service, what
their needs or goals are, key characteristics of the consumers, how
communication or brand messages should be tailored to fit consumer
preferences and how best to use that to capture their interest.

An incisive and
thorough knowledge of consumers may provide brands the complete
understanding of consumers about their reactions and responses to brand
messages.

A brand targeted at
children should make conscious efforts to touch base with the mothers.
This has become evident in the advertising of the various noodles
brands as they focus on the mothers and their children. Mothers play
influential role in purchase decisions and home keeping. A brand like
noodles for instance should stimulate the interest of mothers and
capture them to influence the eating habit of their children. Such
brand should also take cognizance of shopping pattern, spending habits
and lifestyle of the mothers.

Through consumer
insights, brands can build loyal and active consumer base as consumers
identify a true value from the brand. When consumer insights drive the
communications process, consumers are put in the driver’s seat and as a
result, valuable insights are gained that will ultimately translate to
success for the brand in the market place.

From research to insight

It has become
pertinent to move from the realm of market research to consumer
insights. Though market research is an indispensable tool but a brand
can maximize its understanding of the consumers to fully exploit growth
and build equity for the brand.

A dipstick research
recently conducted in some fast food outlets in Lagos show that some
brands have eroded consumer confidence. A large percentage of them have
not factored in the feelings, and purchasing habits of their consumers
into their service delivery. It is vital for brands to engage in
building and refining their consumer insights to secure a vantage
positions in the consumers’ mind.

The integration of
insights into key decisions such as marketing, product development and
service delivery to a large extent project the brand attributes and
this lead to success.

There should be
several touch points for the brand to interact with consumers. Every
interaction should impact on how customers think and feel about a
company and its brands. A brand is no longer identified by its name and
logo alone but it should be a total experience for the consumer. The
need to create actionable insights, go a long way in differentiating a
brand offering from its competitors.

Insights provide value to the brand as they are the objective voice of the consumer.

Consumer insights
allow brands to improve their service delivery, review consumers
perception and open new perspectives on attitudes, behaviours and
consumer expectations. Insights are also utilised to guide the creation
and evaluation of product concepts.

For any brand
communication to achieve the desired objective, it must through
consumer insights identify and know the most appealing message to
consumers, evaluation of key brand messages, perception of quality and
its effects on pricing and intent to purchase. “Now you are talking”,
the payoff of Etisalat, is one that has resonated well with the target
audience. With the latest TV commercial, it captures the whole essence
of bonding with consumers. That campaign is one that depicts the desire
of an average Nigerian to have access to affordable call rates.

Where do we go from
here? It is for brand custodians to focus on consumer insights and
ensure it is given a premium place to build brand equity. Consumer
insights and perception must align with the brand values and
attributes. Consumers can maintain both emotional and physical
attachment to brands through consumer insights.

AYODEJI AYOPO, a Communication Strategist and Public Relations Specialist, is the CEO of Shortlist Ltd.

The
continued delay in the takeoff of the Asset Management Corporation of
Nigeria (AMCON) is already taking a toll on the financial markets.
Since the signing of the AMCON Bill into law by President Goodluck
Jonathan on 19 July, the regulators concerned have been working to set
it running.

AMCON
was expected to stimulate the recovery of Nigeria’s financial system
from its recent crisis by boosting the liquidity of troubled banks
through buying their non-performing loans, helping their
recapitalisation, and increasing access to restructuring or refinancing
opportunities for borrowers. The Central Bank proposed its formation in
December 2009 as part of moves to revive the banking industry and
strengthen the financial market.

Analysts’ anxiety

However,
the uncertainty over its form and structure has continued to generate
anxiety among operators. Analysts at Afrinvest, a firm of investment
bankers, said the effect was evident in the bond market.

“PDMMs
(Primary Dealers and Market Makers) who usually take long term position
at the beginning of the month, have instead been selling off
securities. This may be related to the slow start in AMCON operations.”
According to the report, average yields for the three year, five year,
seven year, 10 year and 20 year bonds had dropped to 6.7 per cent, 6.9
per cent, 5.8 per cent, 7.5 per cent and 9.3 per cent respectively at
the end of a fortnight by 6 August.

Apart
from AMCON’s absence, other operators said recent developments in the
capital market have created uncertainties about the market’s direction.
Only last week, the Securities and Exchange Commission (SEC) intervened
in the stock market by sacking the director general of the Nigerian
Stock Exchange (NSE), Ndi Okereke-Onyiuke, and the council president,
Aliko Dangote. Since then, the market has been on a downward slide
though SEC immediately appointed Emmanuel Ikhazobor as the interim
administrator of the stock exchange.

Volume drivers

Joshua
Omo-Kehinde, managing director of Marimpex Finance, a stockbroking
firm, said the major problem with the stock market was beyond the issue
of who heads the stock exchange. Mr Omo-Kehinde said there was need to
stimulate demand and supply of equities by having institutions that
would be capable of driving volume in the market.

“It
does not matter whether they are appointed or unofficial, what this
market needs at this time are market makers that would be able to buy
huge volume of shares when available and sell huge volumes when there
is demand.” Another stockbroker, Davis Adonri, the managing director of
Lambeth Investment and Securities Limited, said it was difficult to say
precisely what was responsible for the market slowing down.

Mr. Adonri said that despite the good results declared by Guaranty
Trust bank and National Salt Company, shares of both companies were not
generating the kind of patronage that is expected. He said some
extraneous factors were responsible for the market lull, adding that
the liquidity position was a factor to consider. “It has almost become
a trend now that at the beginning of the month, the market slows down
and picks up once the FAAC allocation (Federation Accounts Allocation
Committee) starts to come in.”

Investors at the
Nigerian Stock Exchange (NSE) recorded additional losses at the close
of trading on Thursday, as the market measuring parameters plunged by
0.18 per cent, making it the fourth day that it had followed a downward
trend.

The Exchange market
capitalisation closed yesterday at N6.111 trillion after opening the
day at N6.121 trillion, reflecting 0.18 per cent decline or over N10
billion in losses. Meanwhile, about N183 billion has been lost since
trading started this week.

The NSE All-Share
Index also shed 0.18 per cent or a loss of 44.06 units on the previous
day’s figures of 25,032.09 basis points, to close at 24,988.03.

Union Homes Savings
& Loans, RT Briscoe, and Fidelity Bank were the most traded stocks
yesterday, followed by First City Monument Bank and Guaranty Trust Bank.

A finance analyst
said the changes in the Exchange’s management “might be a contributory
factor” for the recent downward trend in the market, but not the only
reason. Femi Awoyemi, the chief executive officer of Proshare, said,
“The market has really not had a significant up trend for over three
weeks. Although we reversed the original downtrend after the passage of
Asset Management Corporation Bill, it appears that market participants
are beginning to realise that the passage of (the) bill will not
improve liquidity issues confronting the NSE.” Mr. Awoyemi also said
that “it seems that there is not a lot of appetite for huge risks”
again in the market.

Gainers and losers

At the close of
Thursday’s trading, a total of 25 stocks appreciated, higher than the
23 stocks recorded on Wednesday; while 29 stocks depreciated in value,
lower than the preceding day’s 45.

Unilever and Okomu
Oil topped the price gainers’ table with an increase of N1.17 and 60
kobo on their initial prices of N23.50 and N12.20. Cadbury followed in
the chart with an increase of 50 kobo to close at N29.00 per share.

On the losers’
table, Nigerian Breweries and Access Bank led the chart with a loss of
N1.55 and 25 kobo, from their opening prices of N70.65 and N8.45 per
share. Despite leading as the second most traded stock after Union
Homes Savings yesterday, RT Briscoe followed in the losers’ chart with
19 kobo loss to close at N2.65 per share.

In spite of
investors’ low patronage in the market, the banking subsector still led
the most active subsectors’ chart with 79.484 million volumes of
shares, valued at over N520.752 million.

Financial accounts

At the Exchange’s
floor on Thursday, Flour Mills of Nigeria and United Nigeria Textile
presented their financial accounts to market operators.

Flour Mills’
unaudited financial result for the first quarter ended 30 June shows
11.94 per cent increase in turnover, from N38.882 billion to N43.524
billion. The company’s profit after tax also grew by 47.26 per cent
from N2.222 billion to N3.272 billion while total net asset appreciated
by 9.26 per cent, from N35.384 billion to N38.659 billion.

Last month, Flour
Mills in its audited year result ended March 31, 2010, proposed, to its
shareholders, a dividend of N2 per share and a bonus of one for every
10 units of share own.

The audited result
year ended December 31, 2009 for United Nigeria Textile shows a
turnover of N9.223 billion from 2009’s figure of N12.218 billion;
representing a 24.51 per cent decline.

It is now mandatory
for all international oil and gas companies operating in the country to
submit their Nigerian content development plans to the federal
government on a quarterly basis to facilitate adequate planning and
budgeting.

Ernest Nwapa,
Executive Secretary of the Nigerian Content Development and Monitoring
Board (NCDMB), said none of the operating joint venture partners with
the Nigerian National Petroleum Corporation (NNPC) has complied, so
government will soon wield the big stick against them.

Mr. Nwapa, spoke at
a workshop for journalists on the provisions of the recently unveiled
Nigerian Content Act as part of activities to commemorate 100 days of
the introduction of the monitoring board to the petroleum industry.

“We have resolved
to ensure regular monitoring review of the local content values of the
international oil companies,” Nwapa said.

Though he said the
monitoring board would not depend solely on data provided from the oil
majors to know their content values, Mr. Nwapa said the board would
regularly collaborate with other government agencies to develop
community-based manufacturing capacity, and for the training and
certification of seafarers and development of shipyards.

“We have templates
now. We do not depend on the oil companies figures for Nigerian Content
values. We have independent people that work on this, although the IOCs
are still given forms to fill based on their various content values,”
he explained.

Commendable directive

Lola Amao, chief
executive, Lonadek Consultants, a Lagos-based oil and gas industry
consultancy firm, said on phone on Wednesday that the directive on
submission of plans, quarterly, was commendable, particularly as it
will be beneficial to both the Board and the indigenous firms in their
planning.

“The arrangement
will help the Board incorporate the submitted plans of the companies
into its overall budget, particularly in relation to how much the
companies intend to spend on specific activities and programmes to
develop the policy,” Mrs. Amao said.

“Besides, it will
show the indigenous contractor where investment opportunities that are
available for the provision of their services, to help them take
advantage of. It will help strategic planning and development of
capacity to provide quality industry services.” On the importance of
the Nigerian Content Act, Mr. Nwapa said the signing into law by Mr.
President shortly after its passage by the National Assembly was in
response to the yearnings of discerning Nigerians as well as a
demonstration of the commitment of the present administration to
squarely address the longstanding issues of lack of local capacity and
the near absence of meaningful indigenous participation in the oil and
gas industry.

The issue of Nigerian Content, the monitoring board boss said, is no
longer new considering that the board has sufficient domain knowledge
to guide its successful implementation of the provisions of the
enabling law, which, according to him, was developed with high level of
industry participation in the legislative process.