Economy
Nigerian Newspapers Rake N143b In Advert Revenue In 10 Years
By Modupe Gbadeyanka
Advertising income for Newspapers in Nigeria hit N143.1 billion between 2006 and December 2015, revealing a wavy pattern that reached its peak in 2014 with N25 billion; and declined to 23.7 billion at the end of 2015.
According to a special edition of mediafacts in the last 10 years, by mediaReach OMD titled: mediafacts Nigeria 10 Year Trend Review (2006 to 2016), the N4.4 billion advert income in 2006 moved up to N4.8 and N4.9 billion in 2007 and 2008 respectively. The newspapers got N15.8 billion in 2009 and N16.5 billion in 2010.
The figure declined to N15.4 in 2011 and slipped further to N9.0 billion in 2012. The downward slope however changed in 2013 with an advert income of N18.5 billion and rose to its peak in 2014, hitting N25.8. The figure went down by N2.1billion in 2015 when the newspapers received N23.7 billion.
mediaReach OMD explained that the newspapers tend to mostly attract their highest advert patronage in the second and third quarters, with exception of 2013 and 2014 which had their highest spending in the fourth quarters of the year.
In terms of regional spending in the last ten years, the split is between Lagos and North, with Lagos constantly attracting the dominant share of advert spending year after year. The product analysis however shows that Glo has consistently dominated the list of press advertising, rising steadily in the last three years to tie with Guaranty Trust Bank ahead of others while MTN currently occupies the third position.
But in terms of advertising expenditure across board, the TV medium consistently enjoyed the lion share of advert budget over the years. It is followed by the Out of Home (OOH) medium except for 2014 and 2015, when the print medium followed the leading TV medium. The newspapers had however experienced the highest growth rate in terms of advert spends especially in the last three years.
For total advertising expenditure, the year 2013 enjoyed the highest spending with N103.8 billion, representing a marginal increase over year 2011 spending of N 102.8 billion. There was a decline in 2014 as compared to the high spending in 2013.
The general economic outlook during the period under review showed a Gross Domestic Product, GDP estimated at 6.1 per cent in 2014, owing to continued strong performance mainly in services, but also in industry. The oil sector was in decline, albeit at a slower rate than in the previous year. Also in 2014, oil and gas GDP was estimated to have declined by 1.3 per cent, relative to a decline of 13.1 per cent in 2013.
Managing Director and Chief Executive Officer, mediaReach OMD, Mr. Tolu Ogunkoya, said: “Nigeria’s media is one of the most dynamic in Africa. Each of the 36 states has at least a TV station and one radio. There are hundreds of radio stations and terrestrial TV stations, as well as cable and direct-to-home satellite offerings.”
Not a few analysts however agree that the newspaper industry in Nigeria is caught in the web of great depression and recession. It has fallen victim to a combination of intertwined factors. The first is the tough economic environment, which has reduced advertising revenue, as well as the purchasing power of the reading public, and driven up the cost of production to an almost unmanageable level.
With a foreign exchange regime that is unstable, and virtually every input required for production imported from abroad, or sourced locally at cut-throat prices, an average newspaper which used to cost almost nothing in the 70s, is now priced beyond the reach of many Nigerians.
The mediafacts Nigeria 10 Year Trend Review is a ten year longitudinal review and trend analyses of year on year mediafacts, with key insights into annual statistical performance and the dynamics of key players on critical indices of the media, advertising and marketing industry in Nigeria.
mediaReach OMD has since 2001 through its publication; mediafacts been given insights into the Media and Marketing industry of Nigeria, Ghana, West and Central Africa regions. It also provides marketing media professionals with evidence based information that has become a veritable tool for practitioners and companies to compete for market space in these markets.
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By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange further appreciated by 0.58 per cent on Tuesday, May 19, buoyed by strong investor appetite for unlisted securities.
Data from the bourse showed that the volume of securities traded during the session ballooned by 365,661.8 per cent to 1.9 billion units compared with the previous day’s 514,142 units, as the value of transactions surged by 30,433.9 per cent to N5.3 billion from the preceding session’s N17.4 million, and the number of deals increased by 22.2 per cent, as these trades were executed in 60 deals versus the 27 deals recorded a day earlier.
Great Nigeria Insurance (GNI) Plc ended the trading session as the most traded stock by value on a year-to-date basis, with the sale of 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units transacted for N6.5 billion, and Central Securities and Clearing System (CSCS) Plc with 60.9 million units exchanged for N4.1 billion.
GNI Plc was also the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units sold for N6.5 billion, and Resourcery Plc with 1.1 billion units traded for N415.7 million.
During the session, there were three price gainers and one price loser, led by Afriland Properties Plc, which went down by 5 Kobo to trade at N16.90 per share versus the previous day’s N16.95 per share.
But FrieslandCampina Wamco Plc appreciated by N12.45 to N151.79 per unit from N146.55 per unit, CSCS Plc expanded by 62 Kobo to N70.62 per share from N70.00 per share, and UBN Property Plc added 20 Kobo to close at N2.24 per unit versus N2.04 per unit.
At the close of business, the NASD Unlisted Security Index (NSI) rose by 24.05 points to 4,157.75 points from 4,133.70 points, and the market capitalisation chalked up N14.39 billion to close at N2.487 trillion compared with Monday’s N2.473 trillion.
By Adedapo Adesanya
The Naira further depreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Tuesday, May 19, by 17 Kobo or 0.01 per cent to trade at N1,373.87/$1 compared to the previous day’s N1,373.70/$1.
However, the domestic currency appreciated against the Pound Sterling in the same market window by 5 Kobo to close at N1,839.61/£1 versus Monday’s rate of N1,839.66/£1, and gained N5.97 against the Euro to settle at N1,594.52/€1, in contrast to the preceding session’s N1,600.49/€1.
Data from GTBank FX bench showed that the Naira appreciated against the US Dollar yesterday by N2 to sell at N1,381/$1 versus N1,383, and at the parallel market, it remained unchanged at N1,390/$1.
The outcome across the board came as Nigeria’s external reserves have shown signs of improvement in recent weeks, which may provide some support for FX market interventions by the Central Bank of Nigeria (CBN) and broader macroeconomic stability efforts.
Currency traders and investors are expected to continue monitoring CBN policy direction, foreign portfolio inflows, crude oil earnings, and external reserve performance as key indicators influencing the naira’s trajectory in the coming months.
The Monetary Policy Committee (MPC) meeting began on Tuesday with announcements of decisions expected later on Wednesday after inflation ticked up in April.
In the cryptocurrency market, major digital coins were down as traders focused on macro data, oil prices, and inflation, while the US Senate advanced a measure that could force President Donald Trump to seek congressional approval for the Iran war.
Ripple (XRP) went down by 1.3 per cent to $1.36, Dogecoin (DOGE) slid by 0.9 per cent to $0.1034, Cardano (ADA) dropped by 0.7 per cent to $0.2499, Ethereum (ETH) declined by 0.5 per cent to $2,124.02, Solana (SOL) depreciated by 0.5 per cent to $84.67, TRON (TRX) dipped by 0.4 per cent to $0.3551, and Binance Coin (BNB) slumped 0.1 per cent to $641.39.
On the flip side, Bitcoin (BTC) appreciated by 0.3 per cent to $77,114.20, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Dipo Olowookere
The Nigerian bourse rebounded by 0.57 per cent on Tuesday despite weak investor sentiment triggered by a negative market breadth index after finishing with 26 price gainers and 31 price losers.
Customs Street was saved from a further decline due to buying interest in some mid and large-cap equities, which offset profit-taking in others.
It was observed that the insurance sector bled by 1.64 per cent and the consumer goods index depreciated by 0.93 per cent. However, the industrial goods space appreciated by 2.27 per cent, the banking counter improved by 0.98 per cent, and the energy industry rose by 0.11 per cent.
Consequently, the All-Share Index (ASI) gained 1,430.59 points to settle at 251,635.42 points compared with the previous day’s 250,204.83 points, and the market capitalisation chalked up N917 billion to close at N161.280 trillion versus the N160.363 trillion it ended a day earlier.
FTN Cocoa led the advancers’ chart after rising by 10.00 per cent to trade at N9.79, Zichis increased by 9.97 per cent to N29.13, SAHCO jumped by 9.79 per cent to N156.95, Caverton flew by 9.76 per cent to N6.75, and Japaul grew by 9.73 per cent to N3.72.
Conversely, Unilever Nigeria depreciated by 10.00 per cent to N153.00, Trans-Nationwide Express crashed by 9.92 per cent to N6.99, Sovereign Trust Insurance fell by 9.81 per cent to N2.39, McNichols slumped by 9.26 per cent to N7.25, and Austin Laz declined by 7.28 per cent to N4.20.
The busiest stock on the floor of the Nigerian Exchange (NGX) Limited yesterday was Access Holdings with 88.4 million units sold for N2.3 billion. Linkage Assurance transacted 46.2 million units valued at N83.5 million, Sterling Holdings traded 44.9 million units worth N349.3 million, Secure Electronic Technology exchanged 35.0 million units valued at N31.6 million, and Zenith Bank sold 30.4 million units for N4.0 billion.
At the close of trades, a total of 704.0 million units worth N32.2 billion were executed in 64,539 deals versus the 800.5 million units valued at N37.1 billion traded in 87,096 deals on Monday, implying a decline in the trading volume, value, and number of deals by 12.06 per cent, 13.21 per cent, and 25.90 per cent, respectively.
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