Last two years, till first quarter of 2019 has been difficult for Nigeria’s marketing communication industry. Simply put, it has really been tough for the industry that generates communication strategies and approaches engaged to improve the growth of companies that employ millions of Nigerians and contribute enormously to GDP.
There has been general slow pace of business as companies who rely on the performance of the economy reduced their brand communication activities due to elections and overall impact of economic challenges.
Second quarter which has gone half way is also not showing positive signs for the N150 billion integrated marketing communication industry as full scale brand activities are yet to peak up.
Feeling in the industry is that unless dramatic things happen to bolster the economy, such as full implementation of 2019 budget of N8.9 trillion, support for infrastructure, improvement in electricity supply, security, support for agriculture, massive support for SMEs and improvement in non-oil export, many sectors including the marketing communication industry will continue to face headaches. This will also have reverberating effect on employment rate.
Highlights of the 2019 budget include: capital expenditure of N2.094 trillion and recurrent expenditure of N4.055 trillion.
Looking at agriculture sector that supposed to be the backbone of the nation, Mike Nzeagwu, a communication expert, expressed displeasure at frequent killing of farmers in certain parts of Nigeria, an unfortunate development that has put clog in that promise.
He said if budgets such as that of 2019 are fully implemented, it will give real sector fillip to function well and improve the operators’ capacity and when this happens, both employment and other sectors such as marketing communication will thrive.
According to other stakeholders, months ahead do not appear to be bright for the agencies as their clients are still hard hit by unfavourable environment. Many of them suspended product promotions and brand campaigns because of harsh environment.
The tough situation, according analysts really calls for new survival thinking among the agencies. This includes mergers and acquisitions, diversification and creation of new businesses and relocation of offices to better but low rent areas.
Daniel Obi
