Nigerian Idol: Top Contestants Thrill Nigerians With Admirable Talents In First Live Performance

The first live performance of the widely acclaimed Nigerian Idol reality show Season 6, screened on Sunday signposts the numerous music talents that abound in the country, as the 11 contestants demonstrated they have the capability to outwit the other for the winning prize.

The show which will continue till the finale on July 11, will see the winner clinching the prize of a recording contract with a leading record label and N50, 000,000 (Fifty Million Naira) worth of prizes.

It was an evening of excitement and display of musical prowess from the contestants who appeared on stage with their stunning outfits, thus making the show more colourful. They include Kingdom Kroseide, Akunna Okey, Faith Onyeje, Dotun Deloye, Francis Atela, Daniel Ikechi, Beyonce Ajomiwe, Clinton Francis, Comfort Alalade, Emmanuel Elijah, Faith Mac Ebiama.

And with the breathtaking rendition from the first performer, Akunna Okey, followed by Beyonce Ajomiwe, Clinton Francis and others, all made the reality show quite enjoyable.

Also, the performance of the contestants spurred the nice comments by Seyi Shay, one of the judges, to Emmanuel Elijah that sang “Remember Me” by Lucky Dube.  “Your stage performance today was electrifying and energetic; you have been able to hold the entire audience throughout your rendition,” she said.

Consequently, DJ Sose, who is also a judge at the show, applauded Faith Mac Ebiama, who sang a legendary song Jeromi by Victor Uwaifo, saying, “Indeed you are a superstar.”

The other judge, Obi Asika, could not hide his feelings with the smile on his face, commending the singers whose fates for the next show on Sunday, May 16, will depend on the numbers of votes attained, as two with the lowest votes will be evicted.

Interestingly, the widely viewed reality TV show which is aired on DStv Channel 198 and GOtv Channel 29, is sponsored by Rite Foods Limited, a truly World-Class and Proudly Nigerian Food and Beverage Company, through its premium Bigi soft drinks brand.

The brand which has set the pace in the beverage sector with its 12 leading variants, consist of the Bigi Cola, Bigi Orange, Bigi Apple, Bigi Bitter Lemon, Bigi Soda Water, Bigi Lemon & Lime, Bigi Tropical, Bigi Chapman, Bigi Tamarind, Bigi Cherry Cola, Bigi Ginger Lemon, and the Bigi Ginger Ale.

Other Rite Foods’ products comprise The Rite Spicy, Bigi Beef and Rite Sausages which have been the mark of excellence for the industry, while its Bigi Premium Table Water, produced with global best practices in purification, offers quality, freshness, confidence and reliability.

Established in 2007 as a subsidiary of Ess-Ay Holdings, Rite Foods’ inventiveness has earned high recognition in the energy drinks market with the first-ever packaged polyethylene terephthalate (PET) bottle brands for the Fearless Red Berry and Fearless Classic.

Wema Bank Unveils ‘Hackaholic 2.0 Bootcamp Winners

Wema Bank’s Hackaholics 2.0, an acceleration aimed at helping startups scale and gain entrance into the market, came to an exciting end as the finalists were unveiled on Wednesday, May 5, 2021, at the Bank’s corporate head office in Marina, Lagos.

Themed, “Connecting Worlds” the Acceleration Program was a two-day virtual pitch which ran from October 30 – 31, 2020, for 20 participants across five industry pillars – Fintech, Agritech, Edutech, Gaming, and Healthtech, who qualified from a pool of over 100 entries received.

Wema Bank Unveils 'Hackaholic 2.0 Bootcamp Winners-Brand Spur Nigeria
L-R: Head, Corporate Transformation & Innovation, Wema Bank PLC, Olatunde Mumuni; Head, Marketing, Corporate Communications & Investor Relations, Wema Bank PLC, Funmilayo Falola; Hackaholics 2.0 Bootcamp Fintech category Winner, Oladayo Awotokunbo of Plumter; Gaming category winner, Ernest Akinlola of Virtual Online Services, and Chief Digital Officer, Wema Bank PLC, Olusegun Adeniyi during the prize presentation ceremony of Wema Bank’s Hackaholics 2.0 Bootcamp at the Wema Bank Towers, Lagos.-Brand Spur Nigeria

The Bank presented four startups comprising two people each with an N2,187,500.00 startup fund. The winners emerged across each industry after a four-week Bootcamp under the supervision of a best-in-class acceleration curriculum delivered by seasoned faculty and tech specialists from GreenHouse Capital, official partners of the event.

 The Managing Director/CEO, Wema Bank, Ademola Adebise congratulated the winners and expressed satisfaction with the quality of competition and the entire process. 

Wema Bank Unveils 'Hackaholic 2.0 Bootcamp Winners-Brand Spur Nigeria
L-R: Chief Executive Officer/Managing Director, Wema Bank PLC, Ademola Adebise; Hackaholics 2.0 Bootcamp Fintech category winner, Oladayo Awotokunbo of Plumter, and Deputy Managing Director, Wema Bank PLC, Moruf Oseni, during the prize presentation ceremony of Wema Bank’s Hackaholics 2.0 Bootcamp at the Wema Bank Towers, Lagos.-Brand Spur Nigeria

 “We are happy to see the winners emerge and are positive that you guys will be the unicorns of tech solutions in the next couple of years,” he said.

“For us at Wema Bank, we will continue to support innovations and innovative ideas, support our youths, and support our women to thrive. We believe that is the way to go and significantly grow and support the economy,” Adebise said.

FSDH Funding SPV PLC Lists Series 1 Bonds on FMDQ Exchange

FMDQ Securities Exchange Limited (FMDQ Exchange) is pleased to announce the approval, by the Board Listings and Markets Committee, of the listing of the FSDH Funding SPV PLC ₦7.05 billion Tranche A and ₦4.95 billion Tranche B Series 1 Fixed Rate Bonds under its ₦30.00 billion Debt Issuance Programme on its platform.

FSDH Funding SPV PLC is a special purpose vehicle set up to raise capital from the Nigerian debt capital market for FSDH Merchant Bank Limited. 

Speaking on the successful issuance of the Bonds, the Director, FSDH Funding SPV PLC, Mr. Adekunle Awojobi, stated that

“We are pleased about the successful ₦12.00 billion capital-raise under the FSDH Funding SPV PLC’s ₦30.00 billion Debt Issuance Programme. The bond issue is the first series under the programme and comprises two Tranches (Tranche A & B) of subordinated and senior bond notes, each with a 5-year tenure.

FSDH

The listing of the bonds on FMDQ’s platform will help provide visibility and enhance the liquidity of the bonds. The net proceeds of the bond issue will be used to fund the growth of risk assets of the Sponsor, FSDH Merchant Bank Limited (the “Bank”). A portion of the bond issuance will serve the dual purpose of shoring up the Bank’s Tier 2 capital, in line with its Internal Capital Adequacy Assessment Process”.

He concluded by saying

“We would like to thank and commend Union Capital Markets Limited for facilitating the listing of the bonds on FMDQ Exchange and the issuing houses, Stanbic IBTC Capital Limited, FSDH Capital Limited, Rand Merchant Bank Nigeria Limited, and United Capital PLC for their support in ensuring the successful capital raise”. 

Also, the Director, Union Capital Markets Limited (the Sponsor of the Bond on the Exchange and a Registration Member Listings of FMDQ Exchange), Mr. Egie Akpata commented,

“We are delighted at the successful listing of the ₦12.00 billion FSDH Funding SPV PLC Series 1 (Tranche A & Tranche B) bonds on FMDQ Exchange. The listing of the bonds on the Exchange allows for liquidity and trading of the bonds which is positive for the investors.

We are glad that Union Capital Markets Limited was instrumental in the successful listing of the bonds on FMDQ Exchange and thank the Board and Management of FSDH Merchant Bank Limited for the opportunity to work with them”. 

As issuers continue to tap the Nigerian debt capital market to meet their funding needs effectively and sustainably, FMDQ Exchange will continue to work collaboratively with market stakeholders to align the nation’s debt capital markets to international standards, and will, through the promotion of product and service innovation and the championing of key market development initiatives, take commendable steps to ensure that growth and development opportunities abound for the markets under its purview. 

FMDQ Group is Africa’s first vertically integrated financial market infrastructure group, strategically positioned to provide registration, listing & quotation services, seamless trading, clearing, settlement, risk management, and depository of financial market transactions, as well as data and information services, across the debt capital, foreign exchange, derivatives and equity markets, through its wholly-owned subsidiaries – FMDQ Exchange, FMDQ Clear Limited and FMDQ Depository Limited.

Orange Leads Solar Panel Deployment Across Africa And The Middle East

Orange is accelerating its solar projects in Africa and the Middle East to reduce its carbon footprint to zero by 2040. Across the entire region, many sites are not connected to the electricity grid and when they are, the quality of the grid often requires alternative backup solutions.

To avoid using generators that run on fuel (fossil energy that emits CO2), Orange is putting in place several initiatives such as solar panels.

In several of its subsidiaries, Orange is deploying innovative solar solutions and the latest generation batteries with partners specializing in energy. To reduce its environmental footprint, the Group is positioning itself in these countries as the biggest deployer of solar panels, with a renewable energy use rate already at over 50% for Orange Guinea, 41% for Orange Madagascar and 40% for Orange Sierra Leone.

These solar panel solutions have also been or will soon be deployed in other African and Middle Eastern countries where Orange is present, like Liberia, for instance, where 75% of Orange’s telecom sites are equipped with solar panels. In total, Orange has installed solar panels at 5,400 of its telecom sites (some 100% solar, others hybrid) saving 55 million liters of fuel each year.

Furthermore, in Jordan, Orange has launched three solar farms to switch to clean and renewable energy helping to reduce its carbon footprint. In 2020, these solar farm projects covered over 65% of Orange Jordan’s energy needs. Since 2018, the company has successfully reduced its CO2 emissions by 45 kilotons thanks to this solar infrastructure.

Alioune Ndiaye, CEO of Orange Middle East and Africa says: “We are proud to be the first company by a number of solar panels in 5 countries in Africa and the Middle East. As a stakeholder in the energy transition, Orange has included in its Engage 2025 strategic plan the objective of meeting 50% of the Group’s electricity needs from renewable sources by 2025. We are aiming for net-zero carbon by 2040.”

Orange is present in 18 countries in Africa and the Middle East and has around 130 million customers as at March 31, 2021. With €5.8 billion in turnover in 2020, Orange MEA is the Group’s main growth region. Orange Money, with its mobile-based money transfer and financial services offer, is available in 17 countries and has 50 million customers. Orange, a multi-service operator, benchmark partner of the digital transformation, provides its expertise to support the development of new digital services in Africa and the Middle East.

How To Apply For Salary Advance From Access Bank

As a salary earner, Access bank provides loan services designed for you and your needs and one of those services is the salary advance loan where you get to access up to 200% of your net monthly salary and repay for 6 months with Salary Advance.

What is the salary advance loan? You might be wondering about what the loan is about, this is an instant digital loan product that is targeted at salary earners who meet the Bank’s Risk Acceptance Criteria (RAC) and this loan is accessible to salary earners with an account in access bank which has been fully operational for three months before loan application.

The features of this loan include;

  • No documentation required
  • No collateral required
  • Six (6) months tenor
  • Once your loan request is successful, your Access Bank account is credited immediately.
  • The interest rate for the Salary advance is 1.9%. Other charges are: 1% Management fee, 0.20% Credit life insurance.

To be eligible for this loan, you must be an account holder and you must earn a minimum  ₦50,000. So you may be wondering about what can affect your eligibility and they are:

  • If you have any outstanding loan(s) in Access Bank or other banks.
  • If you apply using a phone number that is not linked to your BVN.
  • If there is no evidence that you received salary payment in the previous month.
  • If you have taken a previous digital loan and exceeded your eligible amount.
  • If you have an existing loan and the monthly repayment is higher than your eligible amount.

Applying for this loan has been made easy for customers as you can now request for this loan through any of the following ways:

  • Dial the USSD code *901*11*1#
  • Download the QuickBucks App, available on Google Playstore or Apple App Store. QuickBucks is a Mobile Banking Application for digital loans.

If you  have a need that requires you getting a loan then salary advance is probably a loan worth exploring.

How To Apply For Small Loans From Guaranty Trust Bank

Humans have various needs that have to be satisfied but there are limited resources available for this to be accomplished and the more your needs are left unsatisfied, the more unfulfilled all your wants and desires appear.

Guaranty Trust Bank has various small loans or advances that helps fulfill your needs in which account holders can benefit from and in this article I would be highlighting some of them and how to apply for each of them.

Guaranty Trust Bank offers various forms of personal and small loans which include:

Salary advance

School Fees Advance

Max Advance

For the salary advance loan, here is what you need to know:

This advance offers up to 50% of your net monthly salary upfront and it is available to staff of private companies and government agencies with active salary accounts domiciled in Guarantee Trust Bank.

So you may be asking what I tend to gain from this application and her are the benefits:

  • Up to of 50% of net monthly salary in advance.
  • Tenor of 30 days. Renewable monthly.
  • No collateral required.
  • Minimum salary of N 25,000 for public sector and N 50,000 for private sector employees.
  • Salary advance will be made available within 24 hours.

You can apply for this loan by simply log in to Internet Banking or just dialing *737*8*2# to apply or alternatively, you can visit any Guaranty Trust Bank branch or ATM near you.

As a parent or guardian who is need of funds for their child or ward, you can get a school fees advance for the payment of tuition fees for child from Guarantee Trust bank.  School Fees Advance is a loan facility designed to finance the payment of your child or ward’s school fees for schools in Nigeria only. This facility is available to members of staff of public and reputable private organizations whose salaries are domiciled with the Bank.

So why should I consider the school fee advance? If you are currently facing difficulty paying your ward’s school fees then here is why you should consider it:

  • Up to N5 Million School Fees Advance. Maximum tenor of 4 months per request.
  • Very Competitive interest rate. Equal monthly repayments comprising of principal and interest.
  • Immediate access to funds for the prompt payment of your child/wards school fees.
  • Minimum loan amount is N50,000 and maximum loan amount of N1 million per child.

Here is how to apply to be a beneficiary of this loan programme:

  • Submit Completed Application Form and Employer Undertaking Form. The forms are available for download via the Guaranty Trust bank website: https://www.gtbank.com/personal-banking/loans/school-fees-advance
  • Provide School Fees bill and Credit Insurance.
  • Ensure that staff terminal benefit is domiciled in Guaranty Trust Bank or obtain Corporate Guarantee.

Another loan scheme available is the Max advance. Max Advance is designed to facilitate personal loans to staff of select corporate and government organizations whose staff salary accounts reside with Guaranty Trust Bank. The minimum amount that the bank will avail to a customer is N100, 000.00 and the maximum amount for a MaxAdvance facility is N10,000,000.

The minimum tenor is 3 months while the maximum tenor for this loan is 48 months. And for the repayment an equal monthly repayment comprising principal & Interest. Monthly repayment shall not exceed 33.3% of net monthly.

The documents for application includes:  Application form and Employee Undertaking to domicile salary and terminal benefits. To download the form or gain more information, kindly visit: https://www.gtbank.com/personal-banking/loans/maxadvance

These are some of the loan facilities offered by Guarantee Trust bank in the bid to address customers’ needs.  For more updates on loans offered by Guarantee Trust bank, stay tuned to this platform.

 

 

What do Big Brother Naija and the Super Bowl have in common?

It may appear absurd to compare it to the Super Bowl. However, a game show that receives 915 million votes from an audience of 309 million during a global pandemic is worth paying attention to.

Big Brother Naija (BBN), Nigeria’s version of the Dutch reality TV competition franchise, will hold auditions for its sixth season from May 3 to 16, 2021. Last season was huge, and this season has every chance to be even bigger. The winner will earn N5 million more in prizes than last year’s winner (bringing the prize up to N90 million).

I watched the show religiously for the first time in 2020, and I could see why it has legions of fans. For months, it dominated social media conversations, garnering over 1 billion impressions on Twitter and Facebook. Big Brother Naija is prime television. Besides religion and politics, nothing else drives engagement and conversations like it.

On the surface, it may appear absurd to compare it to the Super Bowl, the annual championship game of the National Football League (NFL) and the most-watched television event in the United States. However, when a game show receives 915 million votes from an audience of 309 million (according to DSTV Media Sales figures) spread across the continent during a global pandemic and an impending economic recession, it is worth paying attention to.

The Super Bowl is the most-watched single station broadcast in US history, and its record viewership came in 2015 with an average of 114.4 million viewers. BBN pulled in more than double that last year. In comparison, the average viewership of the most-watched FIFA World Cup Finals is 562 million (Brazil 2014).

Big Brother Naija

Similarities between Big Brother Naija and the Super Bowl

1. Both are prime television real estate.

Big Brother Naija and the Super Bowl are at the pinnacle of television programming in their respective markets. The Super Bowl is America’s most-watched television event. In Nigeria, it’s BBN, especially on eviction nights when housemates (as participants are known) are eliminated. However, BBN’s audience extends beyond Nigeria into several African countries, including Angola, Botswana, Cape Verde, Central African Republic, Djibouti, Kenya, Somalia, South Africa, etc.

In addition to having a large audience, both shows dominate conversations in ways that few other topics can. They produce and are products of cult followings. Fans talk about their favourite teams and housemates with strong emotions that are impossible to overlook.

2. Both rake in enormous advertising revenue.

Category sponsorship of BBN costs N750 million ($1.5 million*) while product sponsorship costs N200 million ($416,666*), and each season (which lasts 90 days) has multiple sponsors. This does not include other sponsors who pay as much as N50 million ($104,167*). The sponsorship packages include 30-second ad slots, product integration, online activation, and other offerings.

* = Parallel market rate (N480/$1)

Super Bowl advertising goes for as high as $5 million for 30 seconds. In 2020, advertisers spent $449 million on in-game advertising, up from $339 million the previous year.

However, this is where their similarities end. While the Super Bowl’s producers and advertisers have learned to leverage the programme’s elite status, Big Brother Naija’s producers and advertisers are yet to realise the extent of their power.

Big Brother Naija

Television advertising in the age of social media

For a programme that airs in 49 African countries, Big Brother Naija can and should do better with the quality of its advertising. This is important because what happens on television does not stay on television. People watch things and talk about them with their friends or online, a concept now more pronounced with the advent of social media.

There is a link between traditional television advertising and online social media conversations, as a study in the Journal of Advertising Research found. It concluded that the relationship is mutual and that both media platforms work together to enhance brand engagement. When people watch something they like on television (a show, movie, advert, etc.), they are more likely to talk about it online. This essentially converts paid media into socially-driven earned media.

For example, a TV show that airs to a large audience on Sunday night will likely be the main topic of discussion on social media by Monday morning. You see this often with some shows from Africa Magic, Game of Thrones, How to Get Away with Murder, The Men’s Club, Skinny Girl in Transit, etc. Talking about the shows online generates a ripple effect, attracting more attention and eventually converting interest into viewership. The same holds true for advertising. People see great ads during major TV events, they talk about them online, resulting in more publicity and exposure for the advertised product.

Super Bowl advertisers have understood this over the years, to the point that Super Bowl advertising has become its own sport. Advertisers ensure their ads are of the highest quality and are engineered for virality. Year after year, trade publications and mainstream media rank and review the ads, and advertisers battle to top the lists. Essentially, they know that if they play their cards right, the money invested in those 30-second ads will lead to significantly higher exposure online than they would otherwise have paid for. But this was not always the case. Super Bowl advertising was not always the sport that it is today. It took a special ad from one company to break ground and show others what was possible.

Apple’s ‘1984’ ad and the re-invention of Super Bowl advertising

On January 22, 1984, Apple aired its blockbuster ‘1984’ advert during the third quarter of the Super Bowl. That created the template for what Super Bowl ads are today: cinematic, engineered for virality, and optimised for social engagement.

According to the Wall Street Journal, “The ad sparked a creative revolution among advertisers and garnered massive media attention.” To the extent that “by the 1990s, companies sought bragging rights for making the best ad of the night.”

Long before social media democratised virality, ‘1984’ sparked controversy, caused debate, and shattered everyone’s perception of what a conventional Super Bowl commercial should be. It also helped the organisers and the advertisers realise the programme’s full potential. From then on, the cost of advertising in the Super Bowl ballooned. Advertisers employed tactics to outdo one another, some going as far as reserving the bulk of their annual advertising budget for those 30 seconds alone.

What does this have to do with Big Brother Naija?

Advertisers in Nigeria are notoriously biased towards functionality, and this is understandable. Psychographic analysis of the average person in the mass audience shows that they will almost always prioritise what a product or service can do for them and how easily accessible it is over how appealing it looks because of Naira’s ever-decreasing purchasing power. (Basically, functionality and availability take precedence over aesthetics.) As a result, advertisers assume that the same premise applies to media consumption preferences.

This assumption influences the constraints they impose on their advertising agencies and the standards they use to judge the viability of an ad. It is not necessarily wrong, but it neglects the bigger picture, especially if the ads run during the BBN season.

Here’s the thing, though. The quality of Big Brother Naija adverts reflects the state of the industry, just as the quality of Super Bowl adverts reflects the state of the American advertising industry. Advertising in Nigeria used to be far more creative and audacious than it currently is.

I spoke to an industry expert about this and they highlighted two main reasons:

  1. The tendency for safe ads. Advertising is largely driven by what the client wants. And, as we have established, Nigerian advertisers tend towards functional ads that will immediately move the sales needle. These ads are often built around trending topics and personalities. Timeless ads (which require deeper regard for the elements of storytelling) don’t seem to have an immediate effect on sales figures, so they are unlikely to be approved. The fault for this, the expert says, rests between the agency and the client.
  2. The dearth of talent and the stifling of good ideas. Good ideas don’t come easily. You have to hunt for them, and only a handful of people are properly equipped to do this in many agencies now. Agencies can do better with the quality of training they give their staff, especially concerning cognition.

On the other hand, when clients are consistently adamant about functionality and senseless virality, the advertising creative who was once teeming with great ideas will eventually be forced to dial them down and conform to the status quo. That is if they want to keep their job and please the client.

Knowing this, however, there is a special case to be made for advertising on Big Brother Naija. It is expensive. So, anyone who can afford it can’t possibly lean on budgetary constraints as an excuse. That said, Big Brother Naija adverts are currently not optimised to make the most of their platform. Perhaps this is because the advertisers underestimate the value of the asset.

If over 300 million people from 49 African countries watch the show over three months and 10% of them see an ad three times or more, that’s a solid foundation to build on. Then imagine that 10% of those 30 million people talk about the advert on social media repeatedly. That’s extra engagement from 3 million people who will expose your product to thousands more within their network. The engagement you did not have to pay for.

When viewers talk about Big Brother Naija online, they talk about everything, just like Super Bowl viewers. They talk about the housemates, the drama, the game nights, how housemates dress to the Saturday night parties, and the adverts. They talk about the adverts, too. They ridicule the bad ones (which, frankly, are the majority) and praise the good ones.

There is another layer. The mainstream media is now more sensitive to and influenced by social media conversations than ever before. If something trends online, it will spread to radio, television, newspapers, blogs, and other media outlets. We’ve seen this trend whenever something significant happens on Big Brother Naija. We’ve seen it happen when Twitter users descend on a controversial topic, and it floods the airwaves by noon. These are behavioural patterns that Big Brother Naija show producers and advertisers can more deliberately capitalise on.

Now that we’ve established all this, what does the ideal scenario look like going forward for BBN adverts?

A roadmap for going big with Big Brother Naija adverts

1. Optimise for social engagement.

Let’s go back to learning from the Super Bowl. According to Snapchat, “In 2020, there were notable spikes in the conversation for advertisers like Google and Pringles when their commercials aired [during the Super Bowl].” Remember what the research says. There is a relationship between what people watch on television and what they talk about online. People talk about Super Bowl ads in the same way they talk about their teams. But these ads do not generate the level of conversation they do by chance. They are designed to do so.

Super Bowl advertisers often release their ads on social media while they air on television to maximise engagement. In addition to releasing the ads on multiple platforms, the companies also infuse social media-friendly elements. They use characters and storylines and explore topics they know will get people talking. Apple set the stage with ‘1984’. Nobody had done it before. It only takes one company to pick up the gauntlet here.

If a company is going to spend so much to advertise on the biggest TV show on the continent, it makes business sense to go the whole nine yards and milk the exposure for all it’s worth. If the show’s audience will be talking about it constantly for 3 months (and beyond), then it is worth asking how your company can positively be a part of those conversations. And optimising your ads and marketing strategy for social engagement in a way that is not tacky but worth talking about is the route forward.

2. Respect the audience.

The quality of storytelling and production in an advert reveals two things. One, it demonstrates how much the advertiser values their target audience and how sophisticated that audience can be. (If you think your target audience are idiots, your ad shows it.) Two, it indicates their understanding of the medium through which they are advertising. Super Bowl advertisers are deliberate with the quality of their adverts because they value the audience and understand how big of a deal advertising during the Super Bowl is.

Big Brother Naija is a cultural phenomenon and easily one of the biggest television events in the world. But most advertisers on the show do not realise the extent of its power. It’s likely that, or they don’t appreciate the audience enough. If they did, they would do better with their adverts.

3. Show producers must help to improve the quality of the adverts.

Incentives drive business (like human nature). The only way the show producers of Big Brother Naija will be motivated enough to step up their production and advertising quality is if they have enough incentive to. Here, I’ll present one out of several.

Africa is not the wealthiest continent, but it is vast and has enormous economic potential. This is not a vacuous cliche. It is a fact that is integral to any global or forward-thinking company. And it is something that international companies looking to expand are aware of. SpotifyNetflix, Facebook, Twitter, Google, and many others, know this. All technology companies that desire global scale must expand into (and contribute to the development of) emerging economies such as those in Africa. And, in the process of expansion, they will spend billions of dollars on global marketing. Some of those billions could go to Big Brother Naija, but only if there is a strong enough attraction.

This means that the show producers have a unique opportunity to attract bigger fish than they currently do. However, they will need to think differently and improve their production quality, attention to detail, and the quality of marketing material they allow on the show.

Conclusion

I think that Big Brother Naija is big enough to replicate the economic power of the Super Bowl. But the producers first need to improve the quality of their offering. From conversations with past sponsors and advertisers, I know that they can do better with their planning, timelines, and execution. (Although this is sometimes dependent on how quickly sponsors pay up.) The planning inefficiencies also affect the timelines of said sponsors and advertisers and how well they make their marketing material.

The producers have a far more sophisticated audience than they realise, and the show has a much higher ceiling than is immediately apparent. They must recognise their show for what it is, a global event, and adjust production and commercialisation accordingly.

The Super Bowl does this well and has a much smaller audience than Big Brother Naija, but it commands astronomically more money. There are reasons for this, and the closer Big Brother Naija’s producers can look into them, the bigger the show can become.

This article was originally published by David I. Adeleke in Communiqué (link: http://davidiadeleke.substack.com), a monthly media analysis newsletter.

Guinness Nigeria: Strong Bottomline Growth Despite Cost Pressures

Guinness Nigeria Plc (Guinness) reported a strong earnings growth in Q3 2021, attributed to price and volume improvements during the period. In Q3 2021, revenue grew by 54% YoY to N42.61bn from N27.69bn in Q3 2020.

Operating profit rose by 137% YoY from N1.66bn in Q3 2020 to N3.93bn in Q3 2021, while profit before tax grew from N71mn in Q3 2020 to N3.17bn in Q3 2021.

Higher Prices Drive Revenue Growth

Guinness Nigeria’s topline performance improved materially on the back of gradual economic reopening, after an initial pressure in previous quarters, owing to the coronavirus pandemic between March 2020 to September 2020. The closure of bars and hotels implied the shutdown of major sales points of the Company.

Therefore, we believe that as the economy gradually reopened towards the end of 2020, more volumes were sold. Also, we posit that price increases took place during the quarter, to reflect the impact of higher input costs – due to exchange rate pressures.

Margins Decline Due to High Costs

The Company recorded a 72% YoY increase in the cost of sales from N16.74bn in Q3 2020 to N28.76bn in Q3 2021.

Given the Company’s exposure to the exchange rate, we link the higher costs to be induced by the currency devaluation in 2020. We note that the 54% revenue growth relative to the 72% cost increase suggests that the Company did not pass the entire cost burden to customers, which we attribute to the intense industry competition.

Consequent to the higher cost of sales incurred in Q3 2021, the Company’s gross margin shrank by 800 basis points from 40% in Q3 2020 to 32% in Q3 2021.

Lower Finance Cost and Other Cost Optimisation Efforts Support Bottomline Growth

Operating expense margin declined from 34% in Q3 2020 to 24% in Q3 2021. The decline in operating expense margin majorly resulted from lower administrative expenses incurred, and a relatively slow increase in marketing and distribution expenses.

The cost-saving recorded in operating expense (in the form of a lower margin) totally offset the decline in gross margin. Operating profit surged by 137% YoY from N1.66bn in Q3 2020 to N3.93bn in Q3 2021. By implication, the operating margin improved from 6% in Q3 2020 to 9% in Q3 2021.

Net finance cost declined by 52% YoY from N1.59bn in Q3 2020 to N755mn in Q3 2021, thus boosting profit before tax from N71mn in Q3 2020 to N3.17bn in Q3 2021. Profit after tax grew from N838mn in Q3 2020 to N2.16bn in Q3 2021.

Q3 Historical Trend

Guinness Nigeria
Source: Company Accounts, WSTC Research

Earnings Rebound but Below Historical Levels

On a cumulative basis, revenue grew by 20% YoY from N96.02bn in 9M 2020 to N114.96bn in 9M 2021. Operating profit grew by 46% YoY from N5.22bn in 9M 2020 to N7.64bn in 9M 2021, while profit before tax grew by 123% YoY from N2.01bn in 9M 2020 to N4.46bn in 9M 2021.

Outlook

We forecast a N2.20 FY 2021 EPS for the Company (previous: N1.29), which incorporates the strong Q3 2021 performance, and our expectations of sustained revenue growth driven by higher volumes and sale of higher-margin products. We also note the low base in Q4 2020, where the Company incurred significant impairment losses on assets. We do not expect the asset impairments to recur in Q4 2021, thus resulting in a potentially higher bottom line growth.

Based on our revised earnings and dividend projections, we arrived at a N28.19 fair value. At the current market price of N29.00, the total return (price return and dividend yield) on the stock, based on our estimates, stands at 2%.

Hence, we recommend a HOLD.

Nigerian Breweries’ Chairman Acquires Shares Worth ₦2.2Million

Nigerian Breweries Plc (NBPLC) has notified the Nigerian Stock Exchange that its Non-Executive Chairman, Chief Kolawole Babalola Jamodu, has acquired 40,000 additional units of Nigerian Breweries Plc, worth ₦2,211,200.00.

Insider dealings give clues on insiders’ sentiment and director unlike before the new transparent policy where shareholders do not know what executives that formulates policy that impacts their desire stocks are doing.

In a statement released and made available to Brand Spur, the company secretary bought the shares at varying prices and volumes as detailed below on May 6, 2021, at the Nigerian Stock Exchange in Lagos, Nigeria.

Transaction details:

  • 896 shares at N54.25
  • 5000 shares at N55.05
  • 10,000 shares at N55.15
  • 4,104 shares at N55.20
  • 5,000 shares at N55.30
  • 5,000 shares at N55.50
  • 5,000 shares at N55.55
  • 2,338 shares at N55.60
  • 2,662 shares at N55.95

Summarily, 40,000 units were purchased at an average price of N55.28 per unit.

Nigerian Breweries Plc Reports 39.1% Rise in Profit After Tax to ₦7.7Bn

In the first three months of the year 2021, Nigerian Breweries Plc recorded a 38.6 per cent growth in profit before tax to N11.5 billion from N8.3 billion achieved in the first quarter of 2020.
The Brewer’s profit after tax climbed to N7.7 billion, 39.1 per cent higher than N5.5 billion recorded in the same period of 2020.

Nigerian Breweries’ net revenue for the period jumped to N105.6 billion, 27 per cent stronger than the figure posted in the first quarter of last year, Nigeria’s biggest beer-maker stated in its unaudited earnings report.

According to the financial statements analysed by Brand Spur Nigeria, the revenue increased to N105.7 billion from N83.2 billion, while the cost of sale rose to N66.0 billion from N48.3 billion, leaving the organisation with a gross profit of N39.7 billion compared with N48.3 billion recorded in the corresponding period of 2020.

Biography of Kolawole Jamodu

Kolawole Babalola Jamodu is a businessperson who has been at the helm of 9 different companies and presently occupies the position of Chairman for Nutricima Ltd. and Chairman at Nigerian Breweries Plc.

In his past career, he occupied the position of Chairman of PZ Cussons Plc Chairman at PZ Cussons Nigeria Plc and Chief Executive Officer for Paterson Zochonis Plc (both are subsidiaries of PZ Cussons Plc), Chairman & Chief Executive Officer at Unilever Plc, President at Harvard Business School Association of Nigeria, Chairman at Universal Trust Bank Plc and President for Manufacturers Association of Nigeria.

Nestle Ups Shareholding in Nigerian Unit, Buys Additional 29,770 Shares

Nestlé S.A, has acquired 29,770 additional shares in its Nigerian subsidiary, Nestlé Nigeria Plc worth N41,678,000.00.

Brand Spur Nigeria gathered that the acquisition was undertaken on May 7.

Previously, the consumer giant acquired more shares in the last one year. You can check more detail of shareholding transactions here.

Nestle Nigeria - Supply chain disruption amid high inflationary environment dampen profitability

A look at Nestle Nigeria Financials in 2020

Although Nestle reported an increase in top-line, its bottom-line took a beating due to high financing cost, the high inflationary pressure, increased excise duty, value-added tax, and the coronavirus pandemic.

Net financing cost soared by 302 per cent from N938 million to N3.78 billion. The increase in finance cost was primarily due to a multi-fold increase in foreign exchange losses to N1.7 billion from N37.3 million in 19.

Consequently, profit before tax fell from N71.124 billion to N60.638 billion, while profit after tax printed at N39.212 billion, compared with N45.683 billion in 2019.

Food segment profit slipped 15.8 per cent to N39.6 billion, while beverage segment profit edged 0.8 per cent lower to N24.8 billion in 2020,”

Nestle Nigeria Plc also decided to dip its hands into its retained profit to pay shareholders a higher dividend for the year ended December 31, 2020.

The move is in order to maintain its robust dividend policy.

Insider Dealing Brandspurng Nestle S.A Acquires 229,697 Shares in Nestle Nigeria Plc

Nestle Nigeria Plc is well known for rewarding shareholders with a good dividend. Although the company’s profit fell 14 per cent from N45.683 billion to N39.212 billion, it has recommended a higher dividend payment ratio.

The directors recommend the payment of a final dividend of N35.50 per share having earlier declared an interim dividend of N25, to bring the total dividend to N60.50. The dividend payout amounted to N47.95 billion, which is higher than the N39.212 billion profit recorded in 2020.

The proposed final dividend of N35.50 comprise N24.50 from the after-tax profit for the year ended 31 December 2020, and N5.00 and N6 from the after-tax retained earnings of the years ended 31 December 2019 and 2018, respectively.