General News
CRD, Operators Count Costs to Leverage N500Bn Warehousing Sector
The promising warehousing sub-sector in Nigeria, which stakeholders estimate would be worth over N500 billion annually, would need legislative backing to achieve its full potential.
According to analysts, the warehousing sub-sector, which is mainly private sector driven, is still evolving in Nigeria and piqued by economic, technical and legislative factors.
With technology, the trend, globally, is that warehousing injects live into the supply chain (management).
Speaking at a two-day workshop on ‘Warehousing in Logistics’ organized by the Courier Regulatory Department of NIPOST for stakeholders in the industry, Dr. Simon Emeje, senior assistant postmaster general of the Federation and head of CRD, said that the workshop was motivated by the quest to unleash warehousing potentials in the Nigeria and redirect the business ideas of come courier operators.
Emeje told Nigeria CommunicationsWeek that, CRD has “a philosophy to look for areas, through our surveillance and research, of development. It was as a result we felt that warehousing is a very good are for courier operators to expand their business towards it and have a better horizon in terms of better grasp of the business perspective. We have found out that majority of the operators deemed courier as just delivery of annual general meeting reports or notice of meetings.
“We know there are so many things involved in courier; logistics is a critical area, which many of them are not looking at. We have had similar workshop on leveraging e-commerce to boost the operators’ business portfolios and fortunes”.
Viability Of The Market
On his part, Obiora Madu, director general, Africa Centre for Supply Chain, said that shared visibility of the trading partners in the contemporary business climate has made third party platforms (warehouses) critical part of the distribution chain.
Hinting on the supply chain strategic importance to the economy, he identified SCM as the integration of the activities that procure materials and services, transform them into intermediate goods and final products, and deliver them through a distribution system.
He added that, invariably, competition has shifted from companies to supply chain managers.
Madu said, “Supply chain is a network of partners who through the process of adding value, collectively transform inputs, material and information, into a finished products outputs, that is, goods and services, that is valued and gives satisfaction to end users. No business can survive; much less thrive, without satisfied customers”.
While reeling out principles operators must adopt to deliver satisfactory services, the DG said that, the enabling factors include being customer friendly, process integration such as de-emphasizing functions and departments as no function is more or less important; transparency at all levels; clear, quantifiable performance management system and ultimately, the use of information technology.
He added that practitioners must be willing and capable to embrace momentous paradigm shift, the critical part emphasized by CRD too.
The Place of Technology
Also speaking, Fidel Anyanna, a logistics consultant, told Nigeria CommunicationsWeek that Warehouse has evolved over the years, especially with the help technology.
Anyanna said, “It has ditched in the background, the era when some people, presumed to be ‘never-do-well’, are pushed to work as store-keepers. Today, technology has transformed it into professional inclined. A lot of people are making a living from warehousing today. In UK, for instance, third party logistics providers provide warehouse services and companies do not see the need to have warehouses, as they rely on those third party platforms.
“The future of warehousing is bright, even in Nigeria. For the distributive system, it is a new frontier that the managerial achievements have not even gone half-way. So, anybody who is taking up warehousing services now is making a right decision.
On regulating the sector, he said, “Right now, the industry is not officially regulated. Meanwhile, the only regulation I think should come into play, will force on condition of practice and the environmental preservation. How it is operated has to do, more with business indices, which might not really need government’s regulations”.
Toyin Adeoju, managing director, Cross-Country Courier, also described technology as interventional tools to overhaul the courier industry.
He said, “There are new technologies in logistics and new ideas springing up, almost on daily basis. However, there is an improvement in our operations too as courier operators. From this workshop too, we are taking away the important message that, there are sophisticated technology that can be deployed to make logistics much easier.
“As globalization keeps evolving due to the dynamism of the technology, it also plays important role in rediscovering various measures to lift the courier industry. For example, before now, our parents engaged labourers to lift items to load lorries, but with just the click of buttons, items of different weights and sizes are lifted with ease. Through the help of scanners, barcodes, infrared, among others, items can easily be discovered in a warehouse without physically searching for them.
Lack Of Funds And Dearth Of Infrastructure
The practitioners also picked holes in government’s attitude towards the industry and banks’ inability to project into the future by giving long term loans to help liberate the market.
Also speaking to Nigeria CommunicationsWeek, Mrs. Grace Igwe, managing director and chief executive officer of Cysanthel Chihill Ventures, said that in as much as the regulators are focusing on the need for operators to leverage the warehousing sub-sector, there is need to evaluate the operating environment.
She said, “For instance, just the least, how many trailer drivers will like to ply the kind of roads we have in Nigeria, in traffic congestion and to interiors areas-where there will be space to erect warehouses we can be proud of.
“I am talking about constructing a warehouse in Ikorodu or Badagry, where you still have large expanse of land. At the same time, the manufacturers would prefer the warehouse is close to their factory, because that will give them confidence about delivering goods to the customers on time and as need may rise. Are we considering the way Apapa port is congested? These are economic indices that courier operators put into considerations and most time get overwhelmed.
Aside that, how buoyant is our manufacturing sector? The power supply, has it become stabilized? Now, does the government have warehouses? They do not have; this could be part of the reasons they see no reason in proper regulations or to care for the postal or courier sector. Apart from NAHCO, SAHCOL and other small shades, does NIPOST have a warehouse, it doesn’t. It is capital intensive.
To Lara Okuneye, managing director and chief executive officer of PTL Courier, “NIPOST should help in talking to banks to give long term loans that will support this industry. If I had resources, there are so many ‘empty’ warehouses in Nigeria, some are not been used properly. That is why they are turned to churches. The churches are buying the warehouses. If the courier companies have the money, we would have invested on the sub-sector”.
Shye also suggested two ways to raise the capital, “through the commercial banks or directly from the government. I learnt that Sure-P is giving grants to some people, but will they recognize the right places to invest on? I doubt that. That is the unfortunate thing about what the government is doing and the lukewarm attitude towards the courier industry.
Nodding in agreement, Igwe said that to invest in a warehouse costs hundreds of millions.
“To support, government can build warehouses and sublet them to the professionals to handle. Emphatically, it should be for the indigenous courier companies through the associations. The truth is that we have licences that cover so many areas of courier, but they are not been exploited due to funds. If they should do that, as you are renewing your licence, you pay government certain amount accruable from the warehouse. That will go a long way to help us.
These factors also worry Adeoju, who said, “Warehousing has been neglected in Nigeria due to obvious reasons. I can tell you that it’s not like we (the courier operators) shy away from that multi-billion naira worth of sub-sector, the funds are not readily available. The funds required to revolutionaries the market is huge.
“Painfully, banks are not interested in this kind of business, but they can afford to sponsor music shows in schools where students can download music and the returns comes in per seconds. Even the roads are not motorable. In warehousing you have to include the freight, probably, for the manufacturers who wouldn’t want to hear about delays in the distributions of their products. Both the government and the banks are looking elsewhere. As the market is capital intensive, the banks and the governments do not care, it hurts.
But, Emeje shared some pieces of advice with the industry.
On funding he said, “Actually, it is part of the things we are looking at. In one of our trainings, we brought up the issue of entrepreneurship financing. Through that way we tried to introduce the operators to the banks; we went as far as bringing people from financial institutions; as a way of creating atmosphere for them to network.
“Secondly, we have emphasized on the issue of synergy. Warehousing could be expensive, but some companies can team together and say, ‘look, let’s make some contributions, get a warehouse’, and develop it for other operators that may even want to use.
Regulations
Emeje said that, “The best way to enforce regulations is by exposing the operators to the best approach to practice. However, we intend that as the operators get into the practice of logistics, as an aftermath of this workshop, through our monitoring we will get to know their challenges, and what recommendations to give them.
“Definitely, there could be challenges between the operators and their clients. Even where there are synergies. So, the only way we have designed to come in on the regulatory point is to oversee them, and monitor their activities as they play in the field”.
Nigeria’s inflation rate surged to 34.80 percent in December 2024 from 34.60 percent in November according to the latest Consumer Price Index and inflation data released on Wednesday, January 15 by the National Bureau of Statistics, NBS.
The December inflation data showed that the country’s inflation further rose marginally by 0.20 percent due to heightened demand for goods and services during the festive season.
On a year-on-year basis, the December inflation rate marked a significant increase of 5.87 percentage points compared to 28.92 percent in December 2023.
“On a year-on-year basis, the headline inflation rate was 5.87 percent higher than the rate recorded in December 2023 (28.92 percent). This shows that the headline inflation rate (on a year-on-year basis) increased in December 2024 compared to the same month in the preceding year (i.e., December 2023),” NBS stated.
Meanwhile, NBS said Nigeria’s food inflation dropped marginally to 39.83 percent in December 2024 from 39.93 percent in November on a year-on-year basis.
While the country’s inflation continues to rise, the Centre for the Promotion of Private Enterprise, CPPE, has stated how Nigeria’s inflation rate can drop.
Reacting to the report, CPPE highlighted that Nigeria’s inflation can moderate on pause of the monetary tightening policy by the Central Bank of Nigeria, reducing fiscal risks.
“To ensure a further moderation in inflationary pressures, CPPE recommends as follows: “Pause on monetary policy tightening and interest rate hikes by the CBN to reduce business operating costs.
“Reduction in fiscal risks to macroeconomic stability through a reduction in fiscal deficit and deceleration in growth of public debt,” the CPPE stated.
To safeguard telecom consumers and streamline regulatory operations, the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Communications Commission (NCC) have signed a Memorandum of Understanding (MoU).
The agreement, finalized on Tuesday in Abuja, establishes a unified approach to addressing telecom-related issues, benefiting both consumers and operators while enhancing collaboration between the two regulatory bodies.
The MoU was signed by the Executive Vice Chairman/Chief Executive of the FCCPC, Mr. Tunji Bello, and the Executive Vice Chairman/Chief Executive of the NCC, Dr. Aminu Maida.
Speaking at the event, Mr. Bello emphasized the importance of the partnership, aligning it with President Bola Tinubu’s vision of promoting economic growth through regulatory collaboration, market efficiency, and prioritizing consumer welfare.
“This partnership will benefit both operators and consumers. It will foster harmonious collaboration between our organisations, streamline operations for telecom operators through a one-stop-shop approach, and ensure robust consumer protection, fair competition, and the eradication of exploitative practices,” Bello stated.
He highlighted the MoU as a critical milestone, noting that it represents the convergence of two diligent regulatory agencies to eliminate gaps in oversight while complying with legal requirements.
He called on other sector regulators to emulate this framework as mandated by Section 105 of the FCCPA.
Dr. Aminu Maida, the NCC’s Executive Vice Chairman, described the agreement as the result of extensive engagements aimed at protecting Nigerian consumers, especially within the telecom sector.
“In an era of rapid technological advancements, the significance of collaboration between regulatory bodies cannot be overstated.
“The telecommunications sector has become the cornerstone of Nigeria’s economic and social development, making it imperative to ensure a level playing field for all stakeholders while protecting consumers who depend on reliable and affordable communications services,” Maida said.
He added that the MoU symbolizes a shared vision of fostering a transparent, competitive, and consumer-focused telecommunications industry. By aligning efforts, the NCC and FCCPC aim to avoid regulatory uncertainty, promote clarity, and further the Federal Government’s Ease of Doing Business objectives.
The agreement also underscores the necessity of synergy in addressing challenges such as market abuses, consumer rights violations, and the complexities of a digital economy.
Maida commended the FCCPC’s leadership for its dedication to consumer protection and fair competition and urged all stakeholders to embrace the spirit of collaboration represented by the partnership.
“This MoU ensures that our respective mandates are harmonized to achieve maximum impact. Together, the NCC and FCCPC can drive innovation, inclusivity, and sustainability in Nigeria’s telecommunications sector and beyond,” Maida concluded.
The signing of this MoU marks a pivotal step in protecting telecom consumers and fostering a robust telecommunications ecosystem in Nigeria.
By Reuben Kalu
In the evolving digital marketing landscape, 2025 is shaping up to be a transformative year. Traditional paid media, once the backbone of marketing strategies, is becoming increasingly irrelevant. Instead, earned media and owned media are taking center stage, offering unparalleled opportunities for brands to connect authentically with their audiences.
In this article, we’ll explore how earned media has disrupted the dominance of paid media and how you can leverage your owned media assets to turbocharge your marketing efforts.
The Rise of Earned Media
Earned media refers to the organic exposure a brand receives through word-of-mouth, media coverage, social shares, reviews, and recommendations. Unlike paid media, which requires financial investment for visibility, earned media is driven by trust and authenticity—two critical factors that modern consumers prioritize when making purchasing decisions.
According to a Nielsen report, 92% of consumers trust earned media more than any form of advertising. This trust stems from the fact that earned media is unsolicited and unbiased, making it far more credible than paid advertisements. As a result, brands that focus on generating earned media are seeing higher engagement rates and improved customer loyalty.
Why Paid Media Is Losing Relevance
Paid media isn’t entirely obsolete, but its efficacy is waning. Here are some reasons why:
- Ad Fatigue: Consumers are bombarded with ads every day, leading to desensitization and ad fatigue. Many now use ad blockers, making it harder for brands to reach their target audience through paid media.
- Rising Costs: The cost of digital advertising has skyrocketed, especially on platforms like Google and Facebook. Small businesses often find it difficult to compete with larger corporations with bigger budgets.
- Declining Trust: Modern consumers are skeptical of paid ads, often viewing them as intrusive or misleading. This lack of trust significantly diminishes the ROI of paid campaigns.
- Algorithm Changes: Social media algorithms are increasingly favoring organic content over paid promotions. This means brands that rely solely on paid media are at a disadvantage.
The Power of Owned Media
While earned media’s authenticity is its strength, owned media provides the platform to control and amplify your brand’s voice. Owned media includes channels you control, such as your website, blog, email newsletters, and social media profiles. By strategically optimizing these assets, you can create a robust marketing ecosystem that works harmoniously with earned media.
Strategies to Maximize Your Own Media Opportunities in 2025
- Create High-Value Content
Content remains king in 2025, but not just any content will do. Focus on producing high-value, shareable content that solves real problems for your audience. This could be in the form of:
- Educational Blog Posts: Address common pain points in your industry with actionable solutions.
- Interactive Media: Infographics, videos, and quizzes can significantly increase engagement.
- Case Studies: Showcase your expertise by highlighting success stories that resonate with your audience.
- Leverage SEO and Content Optimization
Your owned media is only as effective as its discoverability. Search engine optimization (SEO) ensures your content ranks high on search engine results pages (SERPs). Key tactics include:
- Conducting keyword research to understand what your audience is searching for.
- Optimizing on-page elements like meta descriptions, headers, and image alt texts.
- Building backlinks to establish authority and credibility.
- Develop a Strong Email Marketing Strategy
Email marketing remains one of the highest-ROI channels for owned media. Personalize your emails to cater to the unique needs of your audience segments. Use tools like automation and A/B testing to refine your campaigns and drive higher engagement rates.
- Engage Authentically on Social Media
Social media platforms are an extension of your owned media. Rather than treating them as one-way communication tools, use them to foster genuine engagement. Respond to comments, participate in discussions, and share user-generated content to build trust and loyalty.
- Build an Online Community
Communities foster loyalty and provide a platform for earned media to thrive. Create forums, Facebook groups, or Slack channels where your audience can engage with your brand and each other. Encourage discussions, host Q&A sessions, and reward active participants to keep the community vibrant.
- Integrate Data Analytics
Use data analytics to measure the effectiveness of your owned media strategies. Tools like Google Analytics, HubSpot, and SEMrush can help you track metrics such as website traffic, bounce rates, and conversion rates. Data-driven insights enable you to fine-tune your approach and maximize ROI.
How Earned Media Complements Owned Media
Earned and owned media work best when integrated effectively. Here’s how:
- Amplification: Use your owned media channels to amplify positive earned media, such as reviews, testimonials, and media mentions.
- Engagement: Encourage your audience to share your owned media content, turning it into earned media.
- Credibility: Highlight earned media on your owned channels to build trust and authority.
For instance, if your brand receives a glowing review in a reputable publication, feature it prominently on your website and share it across your social media platforms.
Examples of Successful Earned and Owned Media Strategies
- Glossier: This beauty brand leveraged user-generated content (earned media) on social platforms and amplified it through its owned media channels, including email newsletters and blog posts.
- Spotify Wrapped: Spotify’s year-end feature encourages users to share their listening habits on social media (earned media), driving massive organic reach. The feature’s landing page on Spotify’s website (owned media) further strengthens engagement.
- Apple’s “Shot on iPhone”: Apple’s campaign used customer-generated photos (earned media) and showcased them on its website and billboards (owned media), creating a seamless synergy between the two.
The Risks of Overlooking Earned and Owned Media
Brands that fail to adapt to the shift from paid to earned and owned media risk falling behind their competitors. Over-reliance on paid media can result in:
- High Costs with Low Returns: Diminishing ROI makes paid media an unsustainable long-term strategy.
- Missed Opportunities: Authentic engagement and trust-building opportunities are often lost.
- Decreased Credibility: Consumers may perceive your brand as overly promotional and inauthentic.
Conclusion: Turbocharge Your Marketing in 2025
In 2025, the most successful brands will be those that prioritize earned and owned media over traditional paid strategies. By focusing on authenticity, value, and engagement, you can build trust, foster loyalty, and drive sustainable growth.
Take the first step by optimizing your owned media assets and crafting a strategy to generate earned media. The result? A marketing approach that not only keeps pace with the times but also positions your brand as a trusted leader in your industry.
Call to Action:
Ready to elevate your marketing game? Partner with us to unlock the full potential of earned and owned media. Contact [Your Company Name] today for tailored strategies that deliver real results.
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