Nigeria Content Online

The youth segment
is now a major target of brands. Youth have become powerful due to
their adventurous and trend-setting lifestyle. Companies create
strategies aimed at connecting directly with the youth.

The telecom
companies have adopted the music platform as a verifiable channel to
tap enormously into the youth market. Banks have also developed
youth-centric products which are aimed at stimulating and sustaining
the interest of these energetic lot. Some of these products speak the
language and exemplify the dynamic, vibrant, and adventurous lifestyle
of the youth.

The rise of social
media has also redefined the importance of the youth market. The youth
market grows in leaps and bounds and they tend to experiment with
brands that align with their status. I just stumbled on information
that young people in South Africa have a mobile penetration of about 86
per cent. I know the figure can be higher in Nigeria.

With this scenario,
companies need to create strategic youth marketing plans that enable
the brand gain relevance, which translates to building brand equity.
There should be a core brand strategy that focuses on youth.

It is obvious that
any brand that ignores the youth market does so at its own peril. Brand
messages should be tailored to align with the lifestyle, culture, and
aspirations of youth. The social media has become a key tool in
aligning with the culture of youth and brands need to recognise the
impact of social media revolution on the youth.

For any brand to
effectively connect with the youth, it should understand what resonates
with them and what is popular amongst their peers. The concept of wants
and needs cannot be divorced from youth too, as priority should be
given to their needs in order to empower them. They also want brands
that are desirable and trustworthy. The Sprite Triple Slam is hinged on
drama, sports, and music platforms. It showcases the talents and skills
of youth in these areas. Through these platforms, the brand has been
able to connect and bond with youth more.

The truth is that
youth always experiment with different brands, as they are
trendsetters. Any brand that aligns with their culture automatically
wins them over. Messages should be direct and concise, as youth have
short attention span due to the immediacy of the digital world. They
want brands to provide them with up to date, improved services on a
regular basis. When a brand refuses to meet up with their expectations,
they move on to any other brand that satisfies their yearnings.

The role of word of
mouth cannot be underestimated among youth. When a brand satisfies
their yearnings, they ‘mouth’ it to others and it generates influence
and advocacy for the brand. This also underscores the edge of social
media networking amongst youth, as a community is built around this. It
explains why the youth market is seriously pursued by marketers. A
brand is not connecting with today’s youth if it is not social
networking.

Youth are shifting
to social media to connect, network, and influence one another as they
pay attention to online brand messages which appeal more to them.

There should be a
positive connection between brands and youth. There are key messages
that resonate with young people and brands should leverage on such.
When brands connect with youth, they develop long and memorable
relationships.

The world has
indeed become a digital village and the youth have embraced technology
to broadcast their opinion on a global platform. They want their voices
to be heard and they want brands to empower them to do this.

With the marketing
space being crowded, brands that deploy appropriate strategy definitely
engage and retain young consumers. Youth engagement tools should be
adopted to influence youth and their community.

It is also
important that consumer demographics is focused on from concept to
execution stage in the brand communication campaign. This ensures that
the communication approach is relevant with youth lifestyle.

The youth market
has, to a large extent, helped brands to rethink, re-work, and reinvent
their communication strategies to align with the real needs of youth.

In the most damning
official U.S. report yet produced on Wall Street’s role in the
financial crisis, a Senate panel accused powerhouse, Goldman Sachs, of
misleading clients and manipulating markets, while also condemning
greed, weak regulation, and conflicts of interest throughout the
financial system.

Carl Levin,
chairman of the Senate permanent subcommittee on investigations, one of
Capitol Hill’s most feared panels, has a history with Goldman Sachs.

He clashed publicly with its Chief Executive, Lloyd Blankfein, a year ago at a hearing on the crisis.

The Democratic
lawmaker again tore into Goldman at a press briefing on his panel’s
639-page report, which is based on a review of tens of millions of
documents over two years.

Mr. Levin accused Goldman of profiting at clients’ expense as the mortgage market crashed in 2007.

Military police
fired tear gas on Thursday to disperse a crowd of more than 1,000
marching to the centre of the Ugandan capital, Kampala, in protest
against steep rises in food and fuel prices, Reuters witnesses said.

Opposition leader,
Kizza Besigye, President Yoweri Museveni’s closest rival in February
elections, marched with the demonstrators, who had gathered in a
Kampala suburb and defied police attempts to scatter them before they
reached the city centre.

Opposition and
civil society groups launched their first “walk to work” protest
against steep rises in the cost of living on Monday, but it was swiftly
stifled by police, and opposition leaders were detained.

The groups had vowed to continue protesting every few days and the march on Thursday was their second demonstration.

Uncomfortably high
oil prices, unsustainable sovereign debt burdens, and Japan’s uncertain
future cloud the global economic outlook, as world finance leaders
gathered yesterday.

Group of Seven
members, who met behind closed doors in the evening, tried to assess
the economic damage from Japan’s earthquake to uprisings in the Arab
world.

“There’s very high
uncertainty about Japan’s outlook,” said Naoyuki Shinohara, deputy
managing director of the International Monetary Fund.

The larger G20 club
of advanced and developing economies held a working dinner later to
push forward a plan for building a more stable global economy less
prone to the booms and busts that have marked the last two decades.

Neither groups is expected to release a statement with the G2O waiting until it wraps up a day-long meeting today.

France chairs the G20 this year.

Royal Dutch Shell
said on Thursday it had resumed production at its Nigerian Bonga
offshore oil and gas facility after routine maintenance which started
in February.

Bonga has a
nameplate oil production capacity of more than 200,000 barrels per day
(bpd) — around 10 percent of total Nigerian output — but produces
less. It also has the capacity to produce 150 million cubic feet per
day of gas.

“Production will be gradually ramped up over the coming weeks,” the company said in a statement quoted by Reuters.

Bonga crude exports were expected to rise steadily to around 130,000
bpd in April and 155,000 bpd in May, from 32,000 bpd in March,
according to loading programmes.

United Bank for
Africa (UBA) said on Thursday it was making a provision of 50 million
naira for monthly losses in Cote d’Ivoire but planned to start resuming
operations there from May 2.

Foreign banks including UBA suspended operations in Cote d’Ivoire
earlier this year due to a bloody power struggle that ended with the
arrest on Monday of Laurent Gbagbo, who refused to step down after
losing a November election.

As the the federal
government gears up to involve the private sector in the power sector,
it has promised to engage labour unions in its power reforms agenda.

Bolanle Onagoruwa, managing director, Bureau of Public Enterprises, said this at a power reform workshop in Lagos on Wednesday.

“The Federal
Government is committed to ensuring that the labour unions are carried
along in our process and that adequate provision is made for the
entitlements of workers. Due consideration has been given to the
demands of the unions, and we are optimistic that negotiations will
commence in the not too distant future,” Ms. Onagoruwa said.

She had earlier stated that the list of companies who won the bid for the power companies would be released next month.

“It is important to
state that the reform of the power sector presents enormous
opportunities to transform the lives of Nigerians. We are humbled by
the fact that we have been entrusted with this responsibility.

“We do not take it
lightly, and we are committed to working hand in hand with all the
stakeholders in the electric power sector to achieve the goals which
the progenitors of electric power sector reform program and the current
administration have set through the Power Sector Roadmap,” she added.

Memorandum and proposal

She said
pre-qualified bidders will receive an Information Memorandum and
Request for Proposal and will be given access to physical and e-data
room so as to be able to carry out physical due diligence.

They will also be
issued with draft copies of the Multi-Year Tariff Order (MYTO) and
encouraged to submit comments on MYTO. The bidders comments on MYTO
will be subject of a conference to be organised by sector regulator,
the Nigerian Electricity Regulatory Commission (NERC.)

Labour unions have
expressed worry about the way the whole reform sector has been going on
and have complained about the no dialogue, no negotiation attitude
displayed by the government.

Joe Ajaero, the
secretary general, National Union of Electricity Employees, said the
workers are adamant that the electricity companies cannot be sold
without first addressing the issues on ground.

He insisted that
nothing can take place there, as one cannot transfer ownership without
addressing the pending issues of the existing workers.

The power sector in
Nigeria is characterised by gross inefficiencies in all segments of the
value chain and failure to deliver its mandate.

The BPE says this
could be attributed to poor operational performance, transmission and
distribution infrastructure, low tariff, poor revenue collection,
inadequate metering, poor billing and electricity theft.

Others are poor
maintenance culture, ineffective regulation, inappropriate industry and
market structure, unclear delineation of roles and responsibilities.

An estimated 100 million Nigerians are without access to electricity whilst the remainder receive low or irregular supply.

The Electric Power
Sector Reform (EPSR) Act 2005, which was drafted to provide a
legislative framework for the reform of the Nigerian power sector,
removes operational and regulatory responsibilities of the electricity
industry from the Federal Government.

It provides the
legal backing for the unbundling of PHCN and the formation of successor
companies to take over the various functions, assets, liabilities, and
staff of NEPA.

The management of
Intercontinental Bank yesterday denied that there was a court order to
seal up its headquarters on Danmole Street, Victoria Island, Lagos.

Sources however
confirmed that a former employee of the bank secured the order to seal
up the place. Two employees of the bank who work at the headquarters
corroborated that policemen came to the premises to effect the order
but they did not carry out the order after a meeting with the bank’s
management.

At about 4:30pm
yesterday there was a heavy presence of policemen at the bank’s
reception, an indication that something was amiss.

An angry man,
dressed in native attire, was also seen at reception giving orders to
the security officers to close the bank’s entrance door. When
approached and asked why he gave the order, he refused to speak on the
matter. However, it appeared his words had no effect as the officers
left the door open to visitors while staff carried on with their duties.

Eddy Ademosu, the
bank’s spokesperson, claimed that the bank was not aware of any court
order restraining it from carrying out its operation. “Our door is not
locked as you can see,” Mr. Ademosu said, adding, “It is not as if
there are no issues in court relating to shareholders, the bank itself,
or customers’ perceptive, but even issues in court are being resolved
as a responsible organisation.”

According to him,
“If there are issues, it would have been brought to our attention.
Maybe somebody will come tomorrow with a court order — I cannot say,
but as I speak we are not aware of any court injunction.”

He said the heavy presence of security personnel is not new because
“security has always been part of the bank” since the Central Bank
intervention, while he also said the persons giving orders might be
telling the officers to lock the door since it was closing time.

The International
Monetary Fund has said the persistent increase in oil prices over the
past decade suggests that global oil markets have entered a period of
increased scarcity.

In its April
edition of World Economic Outlook, the Fund says given the expected
rapid growth in oil demand in emerging market economies and a downshift
in the trend growth of oil supply, a return to abundance is unlikely in
the near term.

According to the
reports, “Adverse effects could be much larger, depending on the extent
and evolution of oil scarcity and the ability of the world economy to
cope with increased scarcity. Sudden surges in oil prices could trigger
large global output losses, redistribution, and sectoral shifts.”

After about two
years of gradual global recovery, natural resources are again in the
headlines. Consumption levels of many natural resources, including
crude oil, have already risen above pre crisis peaks, largely
reflecting robust demand in emerging and developing economies.

The price of a
barrel of Brent crude oil crossed the US$100 portal in January 2011.
The prices of many other commodities have also risen to either meet or
surpass their pre crisis peaks, and commodity futures markets point to
further price increases in the next year or two, according to experts.

Oil is said to be
scarce when its supply falls short of a particular level of demand. If
supply cannot meet demand at the prevailing price, prices must rise to
persuade more supply and to ration demand. In this instance, IMF says
oil scarcity is reflected in the market price.

Recommended policy action

The Fund says there
are two broad areas for policy action that economies must consider for
the looming oil scarcity to be tackled.

According to the
report, “At current high levels, commodity price developments and
prospects can have important global economic repercussions. The
increases in the trend component of oil prices suggest that the global
oil market has entered a period of increased scarcity.”

“First, given the
potential for unexpected increases in the scarcity of oil and other
resources, policy makers should review whether the current policy
frameworks facilitate adjustment to unexpected changes in oil scarcity.

“Second,
consideration should be given to policies aimed at lowering the risk of
oil scarcity. If the tension intensifies, whether from stronger demand,
traditional supply disruptions, or setbacks to capacity growth, market
clearing could force price spikes, as in 2007-08,” the report further
said.

It urged policy
makers to strengthen measures to reduce the risks from oil scarcity as
a precautionary step and to facilitate adjustment, if such shifts are
larger than expected.

A persistent
decline in oil supply levels could have sizable negative effects on
output, even if there is greater substitutability between oil and other
primary energy sources.

At the same time,
in the medium term, the oil-induced wealth transfer from oil importers
to exporters can increase capital flows, reduce the real interest rate,
and widen current account imbalances.

The IMF in its
report added that oil scarcity will not inevitably be a strong
constraint on the global economy. However, the risks it poses should
not be underestimated either, as the implications could be important
and far-reaching.

Bismarck Rewane,
managing director, Financial Derivatives Company, a finance research
and analysis firm, said average oil price has increased by 11.6 per
cent to $117.8 per barrel in March.

“The spread between
spot and budgeted oil price has increased by 9 per cent to $44.8 per
barrel. It is expected to trade at an average above $100 per barrel in
April. Oil production remains above two million barrel per day but
declined by 4.2 per cent to 2.08.

“Fear remains about
the sustainability of oil production at over two million barrel per day
due to elections, which might provoke unrest. The turmoil in North
Africa and Middle East is sending oil markets into a frenzy,” Mr.
Rewane said.

“High oil prices
could pose the most significant threat to demand in 2011. Global oil
demand is estimated at 87.7 million barrels per day (mbpd). Growth in
demand is forecast at 1.4 mbpd in 2011. Global oil supply in March is
approximately 88.1 mbpd,” he added.

The Organisation of
Petroleum Exporting Countries (OPEC) has said crude oil output fell by
363,000 barrels per day in March to 29.02 (mbpd), representing a 33 per
cent of global oil supply.

According to him,
increased output of 300, 000 (bpd) from Saudi Arabia is inadequate to
plug the gap, as Libyan oil production dropped by 995, 000 (bpd) in
March.

The uncertainties
surrounding the Libyan situation and political turmoil in the Middle
East has pushed oil prices significantly higher since January.

The Bonny light
increased by 3.4 per cent in March to close at $119.77 per barrel while
the Year to Date (YTD) gain of 23 per cent Nigeria’s oil output
averaged 2.13 mbpd in January and February 2011.

Nigeria will draw
up a shortlist of bidders over the next three weeks for power stations
and electricity distribution firms that the government is offering as
part of a multi-billion dollar privatisation plan.

Bolanle Onagoruwa,
director general of the Bureau for Public Enterprises (BPE), said
companies would be chosen for the six power stations and 11
distribution firms on their ability to reduce transmission losses in
the network.

“Over the next
three weeks, we should have the results of who the short-listed bidders
are before we then go to the actual submission of technical and
financial proposals,” Mrs. Onagoruwa told a news conference in the
commercial capital, Lagos.

President Goodluck
Jonathan, who faces an election on Saturday, has made ending chronic
power shortages in Africa’s most populous nation one of the
cornerstones of his campaign, and his administration is keen to show
progress with the plans.

Blackouts are a
major brake on growth in sub-Saharan Africa’s second-biggest economy,
and the potential returns for investors in the country of 150 million
people are huge.

Utilities and
engineering firms from Europe, North America, India, and China are
among those that attended road shows in Dubai, London, New York, and
Johannesburg this year.

The BPE received
174 expressions of interest for the four thermal and two hydro power
stations, and 157 for the 11 distribution firms, in which investors
will be allowed to take stakes of up to 70 per cent.

Some industry
executives have said they are reluctant to make final commitments until
the outcome of the elections is clear and until they see that Nigeria
is able to implement a solid regulatory framework to govern the sector.

“We basically said
to them that the process has been designed in such a way that they
don’t have to pay their money until they have a clear idea of what the
next government will do,” Mrs. Onagoruwa said.

“So that gives them some confidence … They can start due diligence,” she told the news conference.

The ruling party
candidate has won every election in Africa’s most populous nation since
the end of military rule in 1999, and Jonathan is considered the
front-runner. But the opposition is hoping it can force a run-off.

Under the blueprint
for reform, power generation and distribution will be privatised.
Government will continue to own the national grid but its management
will be privatised.Reuters