As investors become cautious following uncertainties in the direction of Nigerian economy and the delay in the oppointment of cabinet members, marketing communication operators have expressed fears that the development may negatively affect marketing communication budgets of companies.
The fear is informed on the reality that marketing communication industry is a part of the larger business eco- system which has been somewhat in a lull as investors want to see what path the Buhari administration wants to walk in terms of policy direction.
“In times like this, companies usually become cautious in their spending and over the time we have seen that the marketing communication budgets suffer first when expenses are cut”, an analyst said.
Dare Ogunyombo, a public commentator who said “professionally, non-announcement of the ministerial list should not affect business activities, however stated that the political architecture of Nigeria may require that big conglomerates and multinationals exercise some restraint in rolling out their business plans prior to the announcement of the ministerial appointees.
“What has been observed over the years is that some Ministers may not want to follow through on the plans of their predecessors, for which some businesses might have benefited or other wise. More so, some of the new Ministers may come up with policies that may ultimately require a temporary or definite change in business plans for the affected organizations. In line with these possibilities, it is not surprising that some businesses are really taking their time in this regard,” he said.
Charles Igbinidu, a public relations expert based in Lagos said the uncertainty in terms of economic and political policies are already having deleterious impact on the economy.
He said one of the areas of uncertainty includes petroleum subsidy as there is uncertainty both as to what the government will do and what the consequences will be.
“What we must also understand is that factors driving the uncertainty begin with who the policymakers (Ministers/Advisers) will be, which is uncertain. Second, there is uncertainty as to what the policies will be. Third, uncertainty can be caused by inaction, as is the case in different sectors of the economy. Finally, uncertainty is also being affected by non-economic factors, such as national security (Boko Haram insurgency) and the polarisation within the ruling party – APC.
“If you ask me, I will advise that the government moves fast to take care of some of, if not all the factors that are responsible for the uncertainty in the nation because sustained economic uncertainty will definitely have an adverse impact on future economic performance”.
Igbinidu said since the inauguration of the administration of President Muhammadu Buhari, discussions on policy uncertainty have dominated the economic landscape more than any other period, partly because and perhaps this is the first time that political power has transited from one political party to another. Matters are also not being helped by the taciturn posture that the President has adopted in terms of policy direction, he said.
In his comment, Israel Opayemi said clearly the uncertainties will affect the marketing communications sector in Nigeria. The sector is a part of the larger business eco-system which has been somewhat in a lull. “There has been a recommendation to reduce the number of Ministries from 31 to 19. Now there are businesses that get all sorts of approvals from these Ministries. Many of them are already holding back pending when this decision is made. “Unfortunately I do not see that being decided expeditiously because it would require a constitutional amendment”, he said.
Opayemi said President Buhari and his team will need to realise that the nation has alreadylost the first half of the year partly due to the postponement of the elections and post election crisis in the National Assembly. “There are companies postponing some of their major corporate events because the relevant Ministers are not in place. Unless something is urgently done, the marketing communications sector will be a major casualty of the current lull”, he said.
Daniel Obi
