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Recession hits Newspaper firms, owners slash salaries by 50%

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Nigeria has boasted to have the freest and most outspoken press among other African states, though the industry has consistently been the target of harassment by past military dictatorships, and even in some cases, by democratically elected Governors and Presidents. Many journalists have been imprisoned, exiled, and tortured.

As we speak, the industry and practitioners are facing a different kind of torture. This time around, not by any political office holder, but by a looming recession that has befallen the industry. Though the industry had been battling with several hurdles before the advent of Coronavirus, the pandemic is threatening its survival amid other uncertainties.

The sector, according to some journalists and industry watchers, is currently grappling with several problems, ranging from COVID-19 pandemic, depleted funds due to the lockdown across major cities, loss of revenue due to lower ad sales, looming job loss, and salaries slashed, among others.

The staff of most of the print news platforms are going through bad times. While a lot of them were informed of salary cuts from April 2020 till further notice, some have lost their jobs as their employers embarked on ‘Operation Cut Cost at all Cost’.

The unfortunate thing is that the sack is on-going. What that means is that anyone that was not sacked in April should not be over-confident, as the firms are rolling out more letters of dismissal or slash in staff salaries.

In separate interviews, some staff of The Nation, BusinessDay, Punch Newspapers, Television Continental (TVC), and Cool FM, among others, lamented over fears of either losing their jobs or suffering more salary cuts.

A lot of them told Nairametrics that their managements had told them that it would never be ‘Business as usual’, as no one could tell when the COVID-19 pandemic would be over.

In the case of The Nation, findings revealed that the medium is currently serving some staff across departments letters of disengagement. Already, over 100 out of about 500 workers (across Nigeria) have been sacked and still counting.

One of the medium’s managers, who claimed anonymity, told Nairametrics that the management told employees that the exercise would continue until the company stabilized, a time which no one can tell for now.

That is not all, The Nation has also slashed salaries of everyone earning over N60,000 by 50%.

He said, “It started when the company reduced the pages of the Newspaper from 48 to 32 pages and the excuse then was that it was due to the lockdown, which crashed the readership of the newspaper.

Another notice followed that a certain percentage of the staff strength would be reduced.

“As if that was not enough, we got another notice that salaries would be cut by 50%, which was the final straw. We got confused because we had thought if people are sacked, there wont be a pay cut.

This is indeed a bad time for the industry and for us here because if more people are sacked, few of us left would have to do their jobs with less pay.”

For Punch, one of the reputable and widely read newspapers in Nigeria, this is indeed a trying period. After exploring other options like slashing pages of the dailies from 62 to 32 (depending on the numbers of advertisement), the Ademola Osinubi led-management also took a COVID-19 induced decision and informed its staff beforehand. Here is an excerpt of the memo Osinubi sent to all staff:

This pandemic has dealt with our business telling and severe blows. Our circulation and advertisement revenues dipped dangerously, compounding the operational and revenue challenges birthed by the migration of a majority of print newspaper readers and adverts to digital platforms.

“I am not at liberty to disclose all of the measures that the management has taken so far. But the ones that could be made public include an immediate reduction in print pagination; staff furloughing to comply with government and expert advisories on social distancing; the temporary shutdown of the sports newspaper; and significant financial reengineering.

“All projections point at a bleak and uncertain future for the media industry and the economy. Notwithstanding, the company’s commitment to the welfare of its staff remains cardinal, hence, the decision to pay 100% salaries in the month of April and fulfil all annual leave obligations, despite the dip in revenues.

All staff, including our colleagues, asked to stay away from work in April, have been paid their full salaries.”

But does that mean the workers should not expect full salaries in the month of May?

“Considering the fact on the ground and the body movement of the board, full salaries may not be paid in May and some people, especially in the newsroom, would be forced to resign.

“The management has started from the Sports desk and would soon move to other desks. The idea is to concentrate more on the online version of the platform and start a significant financial re-engineering,” a source in the company told Nairametrics.

The Nation and Punch Newspapers are not the only firms that have either slashed salaries or dismissed staff. While Tribune Newspaper reduced pages from 46 to 32, and slashed salaries between 10 and 35% depending on the level of the staff, BusinessDay also reduced the pages of its Monday editions, which is its major product, from 65 to 32, and New Telegraph dropped pages from 48 to 32 among others.

In the broadcast sub-sector of the industry, the workers of AIM Group, owners of Nigeria Info, Cool FM, Wazobia and Arewa, have to swallow the bitter pills too.

While trying to ensure that the majority of its staff are retained, the group had no choice but to let some of the staff embark on unpaid leave.

The Head, Human Resources of the Group, Oyinkan Adeniyi, in an internal memo seen by Nairametrics,  said:

The Management of AIM Group has had to weigh a lot of options that can be taken during this trying times to minimize the negative impact the pandemic has had on our operations, ensure the majority of our staff are retained while still meeting up with financial obligations to you our highly esteemed employees, suppliers and other stakeholders.

“We have reached a very difficult position of placing all staff who are currently at home, not working since the commencement and who will not be working now that skeletal services will be commencing on a Furlough (unpaid leave) until things normalize.

This means that while staff who are home now and not working remain our staff, they will not be paid salaries for the period not worked and until they are recalled back to the office.”

How long it will take the media organizations to rebound, and re-engage their employees to work optimally, depends on how early the nation survives COVID-19 or how soon the Federal Government offers bail-out to operators in the industry.

Though, the bail-out option may be a tall order, stakeholders are optimistic that the industry may soon be out of the woods.

Business

Hoodlums loot Shoprite store in Ilorin, stole iPhone 11 mobile sets, others

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Some suspected hoodlums l allegedly looted the Palms Mall on Fate road, Ilorin, Kwara State capital. The mall hosts stores of Shoprite, and Lifemate Furniture among other stores including Mobile phones retailers.

This was revealed by an eye witness.

He said, “They allegedly stole iPhone 11 mobile sets, other mobile sets brands, Refrigerators, and households items among others.”

According to him, the suspected hoodlums forced their way into the Mall after they have stormed and allegedly looted Kwara Agro Hall, an agro resettlement centre, where they carted away Aluminium roofing sheets, mattresses, bags of cement and bags of flour among others.

Back story: Similarly, similar incidents had occured in Lagos when suspected hoodlums looted at Shoprite Malls across Surulere, Sangotedo.

According to reports, suspected thugs from Orile have invaded the mall and the neighbourhoods.

The alleged looters were seen with a cartload of goods on the streets along Ajah Road.

An eyewitness account also submitted that the hoodlums were looting shops around Bode Thomas and Adeniran Ogunsanya.

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Business

India seeks closer ties with Nigeria as trade volume reaches $14 billion

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India has expressed its readiness to deepen economic ties with Nigeria towards promoting investment and trade between both countries.

Amb. Abhay Thakur, High Commissioner of India to Nigeria, said this during a courtesy visit to Gov. Abdullahi Ganduje on Friday in Kano.

Thakur noted that India and Nigeria had long-standing relations based on mutual respect that predates the independence of the two countries.

”We are Nigeria’s largest trading partner and the country is our largest trading partner in Africa.

“Our bilateral trade volume reaches $14 billion in 2020 and we export various goods ranging from machinery and agriculture products to the tune of $3.5 billion to Nigeria,” he said.

Thakur called for greater bilateral trade co-operation between Nigeria and India as a way of fostering the existing friendly trade and economic relations between the two countries which dated back to 1960.

In his response, Ganduje said that relations between the countries have been warm and cordial; and have witnessed growth and transformation.

The governor called for effective collaboration between India and Kano on energy, health care and film industry.

He said that Indian farm implements have helped to boost rice production in Nigeria.

Ganduje said that Indian companies are doing very well in the state including an hydro power project and the Indian rice mill in Kano which he said is the biggest in West Africa.

He said that the state government has sponsored hundreds of students to study in India.

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Business

#EndSARS: LCC says it didnt remove CCTV before Lekki Toll Plaza shooting

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The management of Lekki Concession Company (LCC) has disclosed that the perimeter CCTV cameras were not removed and there was no instruction from anyone to remove the perimeter CCTV cameras.

This was disclosed by the management of the company in a press release, which was released by the company.

Backstory

Several allegations had been channeled at the company by Nigerians over the removal of the CCTV cameras at the Lekki toll gate on Monday a few hours to the shooting of #EndSARS protesters at the toll gate by security operatives.

However, members of the public have aired their respective opinions on social media about the alleged removal of the perimeter CCTV Cameras as some believed it was an attempt to compound the ongoing civil unrest and the breakdown of law and order.

 

What they are saying

The management of Lekki Concession Company strongly condemns the shooting of peaceful protesters at the Admiralty Circle Toll Plaza on 20th October 2020.

LCC management stated that there was no instruction from ANYONE to remove the perimeter CCTV cameras, and the company would never support or condone such an unscrupulous act meted out on unarmed protesters.

However, in the press release LCC reiterates that as the perimeter closed-circuit television system (CCTV) are Mobotix Digital cameras, it is impossible for the cameras to be removed, as removing them will require the use of machinery to reach the heights that they have been installed.

Other issues discussed

The company provided insight as to why there was a total power outage at the toll plaza on Monday Night, the company said;

“LCC receives power from the IPP grid, the power albeit stable is taken off from time to time. At such times, LCC relies on the backup generators for power supply. However, following the declaration Of the curfew by the state governor, LCC withdrew ALL her staff from the office locations. This is the reason why the lights could not be restored when the mains from IPP went Off temporarily. This is verifiable.

Additional statement in the press release reads; “CC sincerely regrets the unfortunate incident at the Lekki toll plaza and condemns the shooting of unarmed protesters.

“Since the commencement of the protests, the company cooperated with the protesters from, identifying with the cause and need to end the police brutality. This prompted the company to provide lights, toilets among other items to the youths as a show of solidarity.”

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