Public Adminstration

Administration is concerned with ‘what’ and ‘How’ of the government. The what is the subjectmatter, the technical knowledge of afield which enables the administrator to perform his tasks. The ‘How’ is the technique of management according to which co-operative programmes are carried to success.”

1.      n.) The act of administering; government of public affairs; the service rendered, or duties assumed, in conducting affairs; the conducting of any office or employment; direction; management.

2.      (n.) The executive part of government; the persons collectively who are intrusted with the execution of laws and the superintendence of public affairs; the chief magistrate and his cabinet or council; or the council, or ministry, alone, as in Great Britain.

3.      (n.) The act of administering, or tendering something to another; dispensation; as, the administration of a medicine, of an oath, of justice, or of the sacrament.

4.      (n.) The management and disposal, under legal authority, of the estate of an intestate, or of a testator having no competent executor.

5. (n.) The management of an estate of a deceased person by an executor, the strictly corresponding term execution not being in use.

Public administration houses the implementation of government policy and an academic discipline that studies this implementation and that prepares civil servants for this work. As a "field of inquiry with a diverse scope" its "fundamental goal... is to advance management and policies so that government can function." Some of the various definitions which have been offered for the term are: "the management of public programs"; the "translation of politics into the reality that citizens see every day"; and "the study of government decision making, the analysis of the policies themselves, the various inputs that have produced them, and the inputs necessary to produce alternative policies."

Public administration is "centrally concerned with the organization of government policies and programmes as well as the behavior of officials (usually non-elected) formally responsible for their conduct" Many unelected public servants can be considered to be public administrators, including heads of city, county, regional, state and federal departments such as municipal budget directors, human resources (H.R.) administrators, city managers, census managers, state [mental health] directors, and cabinet secretaries.^[  Public administrators are public servants working in public departments and agencies, at all levels of government.

In the US, civil servants and academics such as Woodrow Wilson promoted American civil service reform in the 1880s, moving public administration into academia. However, "until the mid-20th century and the dissemination of the German sociologist Max Weber's theory of bureaucracy" there was not "much interest in a theory of public administration." The field is multidisciplinary in character; one of the various proposals for public administration's sub-fields sets out six pillars, including human resources, organizational theory, policy analysis and statistics, budgeting, and ethics

 

The functions and impact of Theories of Public Administration as follows:

These seven types of functions which shows the impact in Public

Adminstration theories are as follows -

1. ‘P’ stands for planning

2. ‘O’ stands for organization

3. ‘S’ stands for staffing.

4. ‘D’ stands for Directing.

5. ‘Co.’ stands for Co-ordination.

6. ‘R’ stands for Reporting

7. ‘B’ stands for Budgeting

1. ‘P’ stands for Planning -

Planning is the first step of Public Adminstration. i.e. working out the broad outline of the things that need to be done.

2. ‘O’ stands for organization -

It means establishment of the formal structure of authority through which the work is sub-divided, arranged and co-ordinated for the defined objective.

3. ‘S’ stands for staffing -

It means the recruitment and training of the staff and maintenance of favourable conditions of work for the staff.

4. ‘D’ stands for Directing -

It means the continuous task of making decisions and embodying them in specific and general orders and instructions, and thus guiding the enterprise.

5. ‘Co’ stands for Co-ordination -

It means interrelating the various parts of organization such as branches, divisions, sections of the work and elimination of overlapping.

6. ‘R’ stands for Reporting -

It means informing the authority to whom the executive is responsible as to what is going on.

7. ‘B’ stands for Budgeting -

It means accounting, fiscal planning and control.

Evaluation -

POSDCORB Perspective about the impact and functions in Public Adminstration is limited and narrow. It stressed on the tools of Public Adminstration. It does not show the substance of administration. It is a technique oriented perspective, not a subject oriented.

Reference

Nigeria (2001) National Office of the Information Economy, Government Online, Online Survey Results, March 2001.

 Michael (1992) Breaking Through Bureaucracy: A New Vision for Managing in Government (Los Angeles: University of Ibadan Press).

 Michael (2001) The New Public Management: Improving Research and Policy Dialogue (Berkeley: University of Ibadan Press).

Bellamy, Christine and Taylor, John A. (1998) Governing in the Information Age (Buckingham: Open University Press).

Caiden, Gerald E. (1982) Public Administration, Second Edition (Pacific Palisades: Palisades Publishers).

Introduction to Communications in Marketing

Introduction to Communications in Marketing

What are communications in marketing?

Communications in Marketing is a subset of the overall subject area known as marketing. Marketing has a marketing mix that is made of price, place, promotion, product (know as the four P's), that includes people, processes and physical evidence, when marketing services (known as the seven P's).

How does communications in marketing fit in? Marketing communications is 'promotion' from the marketing mix.

Why are communications marketing 'integrated?' Integrated means combine or amalgamate, or put simply the jigsaw pieces that together make a complete picture. This is so that a single message is conveyed by all marketing communications. Different messages confuse your customers and damage brands. So if a TV advert carries a particular logo, images and message, then all newspaper adverts and point-of-sale materials should carry the same logo, images or message, or one that fits the same theme. Coca-Cola uses its familiar red and white logos and retains themes of togetherness and enjoyment throughout its marketing communications.

Communications in Marketing has a mix. Elements of the mix are blended in different quantities in a campaign. The marketing communications mix includes many different elements, and the following list is by no means conclusive. It is recognised that there is some cross over between individual elements (e.g. Is donating computers to schools, by asking shoppers to collect vouchers, public relations or sales promotion?) Here are the key of the marketing communications mix.

Communications in Marketing - Meaning and its Process

communications Marketing  is essentially a part of the marketing mix. The marketing mix defines the 4Ps of marketing and Promotion is what marketing communications is all about. It is the message your organization is going to convey to your market. You need to be very particular about different messages you are going to convey through different mediums. Traditionally printed marketing was the whole sole method of conveying the messages to the consumers. However, in recent times, emails, sms, blogs, television and company websites have become the trendy way of conveying the organization’s message to the consumers. It is important though that the message you give in one medium should tally with the message provided in other medium. For example, you should use the same logo in on your website as the one you use in your email messages. Similarly, your television messages should convey the same message as your blogs and websites.

For the above reason, people controlling the marketing communication process are very important for the company. These executives make it an integrated marketing communication process. You would now understand why it has to be ‘integrated’. The reason is that the messages to be conveyed through different mediums should be the same.

Let us now look at the communication in marketing process. It is very important to have a process in place because then your advertising will reap proper benefits. There is an old advertising joke “I know my advertising works, I don’t know which half.” That’s why if the marketing communication process puts a tab on advertising because companies cannot bear to lose dollars on wrong type of advertising. Things have to be well-defined and integrated to get maximum revenues. Your communication in marketing process would look like:

The communication in marketing process identifies where the investments are being done and what is bringing more return on investment. Therefore, you can alter the advertising campaign to reap maximum benefits.

The process begins at the strategic development stage. You start by creating a communications in marketing program. At this point, you decide what all will fall in your advertising bracket. At the next stage, you capture responses of your consumers. These responses are then recorded and maintained as advertising data. The executives then analyze and evaluate the collected data. They generate the all important reports which will help to allocate the integrated and communications in marketing budget.

The integrated communications in marketing is a data-driven approach which identifies the consumer insights and develops a strategy with the right combination of offline and online channels which should result in a stronger brand-consumer relationship. It has grown manifolds in recent years due to several shifts in the advertising and media industry. This is the reason why it has developed into a primary strategy for the developers. Some examples of shifts are from media advertising to the multiple forms of communication, from general focus advertising to data based marketing and so on.

Selecting the most important communications elements is crucial for the success of company’s business. The advertising campaign should be effective across all platforms. Once the integrated marketing process is set, the company can reap rich dividends from it. These days, there are companies that specialize in creating the communications in marketing process for you. So you can either do it on your own or take their services. But an effective communication in marketing process is the order of the day!

The Importance and effectives of Communication in Marketing

Communication in Marketing is easily overlooked, but the ability to communicate effectively is necessary to carry out the thoughts and visions of an organization to the people. The importance of speech and words whether through a paper or a voice is a communication medium to convey directions and provide synchronization. Without communication, there is no way to express thoughts, ideas and feelings.

There are many ways to provide communication from the organization to the people of your community. Whether through a phone, fax, email, letter, website, instant message softwares, social networking websites (facebook, twitter, myspace) and etc… you are able to communicate your organization to the world. Things can be expressed, ideas can be shared, and thoughts can be joined.

The ability and the importance of communication in Marketing become much more crucial when you are on a mission or need to fulfill a goal. Without a means to communicate, your organization will become isolated. The ability to effectively communicate is very important when it is usually underestimated and overlooked.

Communication in Marketing is a necessity as we use it to network, spread ideas, and promote. Communicate effectively through well known mediums and convey it simply and precisely. The importance of communication is crucial to the success of your organization because you need to reach out in order to fulfill your mission.

The Importance of Effective Communication in Marketing.

We communicate all the time. Verbally, nonverbally, in person, in the media, through documents, via the internet, in our heads, with our families, with our neighbors, co-workers, people, with God.

We are constantly sending out a message or receiving one. But for the sake of keeping to MY topic, lets talk a little bit about the importance of effective communication when you are  through media.

Here are 3 things you must keep in mind when you get the “spotlight” opportunity:

Image- Do worries about how you look. This will be to really put yourself out there and thousands of people will see you and make a judgment about you and it is safe to say that more than 50 percent of that judgment will be based on how you look. Unfair? Maybe, but really it’s just how it is. Now by image I don’t mean you need to fit a certain standard. No. You have to look sharp! Get a trendy haircut, go get a facial so that your face is glowing and on the day of the interview. Make sure your makeup is done properly. With colors and tones that suit you. Do you wear glasses? Are they boring and old fashion? Consider getting a more “trendy” pair. Women, get the eye brows and nails done. I once saw a woman on T.V. with chipped off nail polish talking about . It was distracting and hard to see her as the expert that she was when she looked so undone. So really polish yourself up and aim at looking your best on that interview.

Voice Modulation-One of the most important things I do as a Media Coach is teach people how to modulate their voice. Some people either speak in a very low voice or a very high voice. Some tend to start off just right and then die out towards the end of what they are saying. Learn to speak in a tone of voice that is consistent, clear, and leveled. And it may sound easy. But it takes practice. So start recording yourself and listening to how you sound. And we always hate our own voices so have someone critique it or hire a Media Coach to help you modulate that voice.

Talking Points-You would think that if someone was trying to get on the media they would know what they wanted to say. Well, think again. It is so taken for granted. Figure out what your main point is and come up with 4 or 5 key points that you can communicate in quick sound bites. When you are on-air you only have a couple of minutes if not seconds, depending on the type of media venue you are appearing on, to say what you have to say. So be prepared to condense all your knowledge into simple to understand points.

Remember that ultimately what you want is to gain the trust of the public. Would you trust a sloppy, unprepared, whisperer? Probably not. So go that extra mile and really pamper yourself to look and expose the sassy expert that you are!

Establishing Total Marketing communications Budget

Personal communication is often more effective than mass communication, mass media might be the major means of stimulating personal communication. Mass communications affect personal attitudes and behavior through a two-step process. Ideas often flow from radio, television, and print to opinion leaders from these to the less media-involved population groups.

This two-step flow has several implications. First, the influence of mass media on public opinion is not as direct, powerful, and automatic as supposed. It is mediated by opinion leaders, people whose opinions are sought or who carry their opinions to others. Second, the two step flow challenges the notion that consumption styles are primarily influenced by a “trickle-down” or “trickle-up” effect from mass media. People interact primarily within their own social groups and acquire ideas from opinion leaders in their groups. Third, two-step communication suggests that mass communicators should direct messages specifically to opinion leaders and let them carry the messages to others.

One of the most difficult marketing decisions is determining how much to spend on promotion, John Wanamaker, the department store magnate, once said I know that half of my advertising is wasted but I don’t know which half.

Industries and companies vary considerably in how much they spend on promotion. Expenditures might be 30-50% of sales in the cosmetics industry and 5-10% in the industrial-equipment industry. Within a given industry, there are low and high spending companies. How do companies decide on the promotion budget? Four common methods are: the affordable method, percentage-of-sales method, competitive parity method, and objective-and-task method.

Affordable method:

Many companies set the promotion budget at what they think the company can afford. The affordable method completely ignores the role of promotion as an investment and the immediate impact of promotion on sales volume. It leads to an uncertain annual budget, which long range planning difficult.

Percentage-of-sales:

Many companies set promotion expenditure at a specified percentage of sales (either current or anticipated) or of the sales price. Automobile companies typically budget a fixed percentage for promotion based on the planned car price. Oil companies set the appropriation at a fraction of a cent for each gallon of gasoline sold under their own label.

Supporters of the percentage-of-sales method see a number of advantages. First, promotion expenditures will vary with what the company can “afford. This satisfies financial managers, who believe that expenses should be closely related to the movement of corporate sales over the business cycle. Second, it encourages management to think of the relationship among promotion cost, selling price, and profit per unit. Third, it encourages stability when competing firms spend approximately the same percentage of their sales on promotion.

Reference

An Exploratory Analysis of Marketing Budget Allocation: Advertising vs. Sales Promotion（Kim）111 of the In-Store Marketing Communication”, Journal of Management and Information Science (University of Lagos), No.9, pp.15-32.

Okuse, Y. (2000) “Advertising and Promotion Management in the Integrated Marketing

Communication”, The Economic Review (University of Jos), Vol.50 No.2･3, pp.293-305.

Quelch, J. A. (1983) “It’s time to make trade promotion more productive”, Harvard Business Review, Vol.61 No.3, pp.130-136.

Rossiter, J. R. and L. Percy. (1997) Advertising Communication & Promotion Management (2nd

edition), The McGraw-hill Companies, Inc.

Teramoto, T (2001) “Shuyou Moyorihin me¯ ka¯ no Ryu¯ tsu¯ Hansokuhi no Doukou (The Trend of Sales promotion in Convenience Goods Manufacturer)”, Ryu¯ tsu¯ zouhou (The Journal of Marketing and Distribution), No.389, pp.15-23.

Consumer Protection Council Nigeria (Increasing Sales Promotion in Nigeria (1): Decreasing Effects of Mass Advertising Media Tool), CPC Marketing Journal, 4 July 2008.

Consumer Protection Council Nigeria（ 2）: Consumer Protection Council Nigeria (Increasing Sales Promotion in Nigeria (2): the Impact of Sales Promotion on Consumer Decision Making Process),cpc Marketing Journal, 11 July 2009.

Consumer Protection Council Nigeria（ 3）: Consumer Protection Council Nigeria Lagos (Increasing Sales Promotion in Nigeria (3): Regional Marketing versus National Marketing), cpc Marketing Journal, 18 July 2010.

http://www.citeman.com/3097-establishing-total-marketing-communications-budget.html#ixzz2Cm506664, May 1, 2008

Introduction to Communications in Marketing

What are communications in marketing?

Communications in Marketing is a subset of the overall subject area known as marketing. Marketing has a marketing mix that is made of price, place, promotion, product (know as the four P's), that includes people, processes and physical evidence, when marketing services (known as the seven P's).

How does communications in marketing fit in? Marketing communications is 'promotion' from the marketing mix.

Why are communications marketing 'integrated?' Integrated means combine or amalgamate, or put simply the jigsaw pieces that together make a complete picture. This is so that a single message is conveyed by all marketing communications. Different messages confuse your customers and damage brands. So if a TV advert carries a particular logo, images and message, then all newspaper adverts and point-of-sale materials should carry the same logo, images or message, or one that fits the same theme. Coca-Cola uses its familiar red and white logos and retains themes of togetherness and enjoyment throughout its marketing communications.

Communications in Marketing has a mix. Elements of the mix are blended in different quantities in a campaign. The marketing communications mix includes many different elements, and the following list is by no means conclusive. It is recognised that there is some cross over between individual elements (e.g. Is donating computers to schools, by asking shoppers to collect vouchers, public relations or sales promotion?) Here are the key of the marketing communications mix.

Communications in Marketing - Meaning and its Process

communications Marketing  is essentially a part of the marketing mix. The marketing mix defines the 4Ps of marketing and Promotion is what marketing communications is all about. It is the message your organization is going to convey to your market. You need to be very particular about different messages you are going to convey through different mediums. Traditionally printed marketing was the whole sole method of conveying the messages to the consumers. However, in recent times, emails, sms, blogs, television and company websites have become the trendy way of conveying the organization’s message to the consumers. It is important though that the message you give in one medium should tally with the message provided in other medium. For example, you should use the same logo in on your website as the one you use in your email messages. Similarly, your television messages should convey the same message as your blogs and websites.

For the above reason, people controlling the marketing communication process are very important for the company. These executives make it an integrated marketing communication process. You would now understand why it has to be ‘integrated’. The reason is that the messages to be conveyed through different mediums should be the same.

Let us now look at the communication in marketing process. It is very important to have a process in place because then your advertising will reap proper benefits. There is an old advertising joke “I know my advertising works, I don’t know which half.” That’s why if the marketing communication process puts a tab on advertising because companies cannot bear to lose dollars on wrong type of advertising. Things have to be well-defined and integrated to get maximum revenues. Your communication in marketing process would look like:

The communication in marketing process identifies where the investments are being done and what is bringing more return on investment. Therefore, you can alter the advertising campaign to reap maximum benefits.

The process begins at the strategic development stage. You start by creating a communications in marketing program. At this point, you decide what all will fall in your advertising bracket. At the next stage, you capture responses of your consumers. These responses are then recorded and maintained as advertising data. The executives then analyze and evaluate the collected data. They generate the all important reports which will help to allocate the integrated and communications in marketing budget.

The integrated communications in marketing is a data-driven approach which identifies the consumer insights and develops a strategy with the right combination of offline and online channels which should result in a stronger brand-consumer relationship. It has grown manifolds in recent years due to several shifts in the advertising and media industry. This is the reason why it has developed into a primary strategy for the developers. Some examples of shifts are from media advertising to the multiple forms of communication, from general focus advertising to data based marketing and so on.

Selecting the most important communications elements is crucial for the success of company’s business. The advertising campaign should be effective across all platforms. Once the integrated marketing process is set, the company can reap rich dividends from it. These days, there are companies that specialize in creating the communications in marketing process for you. So you can either do it on your own or take their services. But an effective communication in marketing process is the order of the day!

The Importance and effectives of Communication in Marketing

Communication in Marketing is easily overlooked, but the ability to communicate effectively is necessary to carry out the thoughts and visions of an organization to the people. The importance of speech and words whether through a paper or a voice is a communication medium to convey directions and provide synchronization. Without communication, there is no way to express thoughts, ideas and feelings.

There are many ways to provide communication from the organization to the people of your community. Whether through a phone, fax, email, letter, website, instant message softwares, social networking websites (facebook, twitter, myspace) and etc… you are able to communicate your organization to the world. Things can be expressed, ideas can be shared, and thoughts can be joined.

The ability and the importance of communication in Marketing become much more crucial when you are on a mission or need to fulfill a goal. Without a means to communicate, your organization will become isolated. The ability to effectively communicate is very important when it is usually underestimated and overlooked.

Communication in Marketing is a necessity as we use it to network, spread ideas, and promote. Communicate effectively through well known mediums and convey it simply and precisely. The importance of communication is crucial to the success of your organization because you need to reach out in order to fulfill your mission.

The Importance of Effective Communication in Marketing.

We communicate all the time. Verbally, nonverbally, in person, in the media, through documents, via the internet, in our heads, with our families, with our neighbors, co-workers, people, with God.

We are constantly sending out a message or receiving one. But for the sake of keeping to MY topic, lets talk a little bit about the importance of effective communication when you are  through media.

Here are 3 things you must keep in mind when you get the “spotlight” opportunity:

Image- Do worries about how you look. This will be to really put yourself out there and thousands of people will see you and make a judgment about you and it is safe to say that more than 50 percent of that judgment will be based on how you look. Unfair? Maybe, but really it’s just how it is. Now by image I don’t mean you need to fit a certain standard. No. You have to look sharp! Get a trendy haircut, go get a facial so that your face is glowing and on the day of the interview. Make sure your makeup is done properly. With colors and tones that suit you. Do you wear glasses? Are they boring and old fashion? Consider getting a more “trendy” pair. Women, get the eye brows and nails done. I once saw a woman on T.V. with chipped off nail polish talking about . It was distracting and hard to see her as the expert that she was when she looked so undone. So really polish yourself up and aim at looking your best on that interview.

Voice Modulation-One of the most important things I do as a Media Coach is teach people how to modulate their voice. Some people either speak in a very low voice or a very high voice. Some tend to start off just right and then die out towards the end of what they are saying. Learn to speak in a tone of voice that is consistent, clear, and leveled. And it may sound easy. But it takes practice. So start recording yourself and listening to how you sound. And we always hate our own voices so have someone critique it or hire a Media Coach to help you modulate that voice.

Talking Points-You would think that if someone was trying to get on the media they would know what they wanted to say. Well, think again. It is so taken for granted. Figure out what your main point is and come up with 4 or 5 key points that you can communicate in quick sound bites. When you are on-air you only have a couple of minutes if not seconds, depending on the type of media venue you are appearing on, to say what you have to say. So be prepared to condense all your knowledge into simple to understand points.

Remember that ultimately what you want is to gain the trust of the public. Would you trust a sloppy, unprepared, whisperer? Probably not. So go that extra mile and really pamper yourself to look and expose the sassy expert that you are!

Establishing Total Marketing communications Budget

Personal communication is often more effective than mass communication, mass media might be the major means of stimulating personal communication. Mass communications affect personal attitudes and behavior through a two-step process. Ideas often flow from radio, television, and print to opinion leaders from these to the less media-involved population groups.

This two-step flow has several implications. First, the influence of mass media on public opinion is not as direct, powerful, and automatic as supposed. It is mediated by opinion leaders, people whose opinions are sought or who carry their opinions to others. Second, the two step flow challenges the notion that consumption styles are primarily influenced by a “trickle-down” or “trickle-up” effect from mass media. People interact primarily within their own social groups and acquire ideas from opinion leaders in their groups. Third, two-step communication suggests that mass communicators should direct messages specifically to opinion leaders and let them carry the messages to others.

One of the most difficult marketing decisions is determining how much to spend on promotion, John Wanamaker, the department store magnate, once said I know that half of my advertising is wasted but I don’t know which half.

Industries and companies vary considerably in how much they spend on promotion. Expenditures might be 30-50% of sales in the cosmetics industry and 5-10% in the industrial-equipment industry. Within a given industry, there are low and high spending companies. How do companies decide on the promotion budget? Four common methods are: the affordable method, percentage-of-sales method, competitive parity method, and objective-and-task method.

Affordable method:

Many companies set the promotion budget at what they think the company can afford. The affordable method completely ignores the role of promotion as an investment and the immediate impact of promotion on sales volume. It leads to an uncertain annual budget, which long range planning difficult.

Percentage-of-sales:

Many companies set promotion expenditure at a specified percentage of sales (either current or anticipated) or of the sales price. Automobile companies typically budget a fixed percentage for promotion based on the planned car price. Oil companies set the appropriation at a fraction of a cent for each gallon of gasoline sold under their own label.

Supporters of the percentage-of-sales method see a number of advantages. First, promotion expenditures will vary with what the company can “afford. This satisfies financial managers, who believe that expenses should be closely related to the movement of corporate sales over the business cycle. Second, it encourages management to think of the relationship among promotion cost, selling price, and profit per unit. Third, it encourages stability when competing firms spend approximately the same percentage of their sales on promotion.

Reference

An Exploratory Analysis of Marketing Budget Allocation: Advertising vs. Sales Promotion（Kim）111 of the In-Store Marketing Communication”, Journal of Management and Information Science (University of Lagos), No.9, pp.15-32.

Okuse, Y. (2000) “Advertising and Promotion Management in the Integrated Marketing

Communication”, The Economic Review (University of Jos), Vol.50 No.2･3, pp.293-305.

Quelch, J. A. (1983) “It’s time to make trade promotion more productive”, Harvard Business Review, Vol.61 No.3, pp.130-136.

Rossiter, J. R. and L. Percy. (1997) Advertising Communication & Promotion Management (2nd

edition), The McGraw-hill Companies, Inc.

Teramoto, T (2001) “Shuyou Moyorihin me¯ ka¯ no Ryu¯ tsu¯ Hansokuhi no Doukou (The Trend of Sales promotion in Convenience Goods Manufacturer)”, Ryu¯ tsu¯ zouhou (The Journal of Marketing and Distribution), No.389, pp.15-23.

Consumer Protection Council Nigeria (Increasing Sales Promotion in Nigeria (1): Decreasing Effects of Mass Advertising Media Tool), CPC Marketing Journal, 4 July 2008.

Consumer Protection Council Nigeria（ 2）: Consumer Protection Council Nigeria (Increasing Sales Promotion in Nigeria (2): the Impact of Sales Promotion on Consumer Decision Making Process),cpc Marketing Journal, 11 July 2009.

Consumer Protection Council Nigeria（ 3）: Consumer Protection Council Nigeria Lagos (Increasing Sales Promotion in Nigeria (3): Regional Marketing versus National Marketing), cpc Marketing Journal, 18 July 2010.

http://www.citeman.com/3097-establishing-total-marketing-communications-budget.html#ixzz2Cm506664, May 1, 2008

A GUIDE TO DOING BUSINESS IN NIGERIA

A GUIDE TO DOING BUSINESS

IN NIGERIA

FORMS OF BUSINESS ENTERPRISE

Business activities may be undertaken in Nigeria through any of the following

vehicles; that is:

(i) Private or Public limited liability Company;

(ii) Unlimited liability company;

(iii) Company limited by Guarantee;

(iv) Foreign Company (branch or subsidiary of a foreign company);

(v) Partnership/Firm;

(vi) Sole Proprietorship;

(vii) Incorporated Trustees;

(viii) Representative Office.

All business enterprises, both local and foreign must be registered with the

Registrar-General of the Corporate Affairs Commission (“Registrar of

Companies”), and must comply with the internal regulations applicable to

particular businesses. The law governing the formation and regulation of

business enterprises in Nigeria is the Companies and Allied Matters Act, 1990

(“CAMA”), and under this law is the Corporate Affairs Commission, which is

the body responsible for the registration and regulation of companies.

Foreigners may invest and participate in the operation of any enterprise in

Nigeria. By virtue of the provisions of the CAMA, a foreign investor, wishing

to set up business operations in Nigeria is obliged to take all steps necessary

to obtain local incorporation of a Nigerian company, or branch or subsidiary

of an existing company, which would be a separate and distinct entity from

its parent company. Until so incorporated, a foreigner may not carry on

business in Nigeria or exercise any of the powers of a registered company.

The CAMA, however, sets out exceptions to the general rule that all foreign

investors doing business in Nigeria must incorporate in Nigeria. These

exceptions include companies engaged by the Federal Government to

execute specific projects, companies undertaking approved loan projects on

behalf of donor countries or international organizations, and foreign

government owned companies engaged wholly in export promotion activities.

These exemptions are granted for a fixed period of time (usually three

years), are hardly ever renewed and may be revoked by the Federal

Executive Council. Investors envisaging a long-term existence in Nigeria are

therefore well advised to incorporate a local company.

Foreign companies may also set up Representative Offices in Nigeria. A

Representative Office however, cannot engage in business, conclude

contracts or open or negotiate any Letters of Credit. It can only serve as a

promotional and/or liaison office. In this circumstance, its local operational

expenses have to flow in from the foreign company. A Representative Office

also must be registered with the CAC.

REGISTRATION OF A COMPANY AND APPLICATION FOR START-UP

APPROVALS

As stated earlier, under the Companies and Allied Matters Act, 1990

(“CAMA”) the body responsible for the registration and regulation of

companies is the Corporate Affairs Commission (“CAC”), which has its head

office in Abuja, the Federal Capital Territory.

Procedure for Company Incorporation

An application for incorporation is made to the Registrar-General of the CAC.

Prior to the application being made, submitting a written application to the

CAC, and paying a prescribed fee may reserve the name of the proposed

company. Subsequently the application to the Registrar-General is submitted

in the prescribed form along with the following documents:

• A copy of the Memorandum and Articles of Association of the

Company (which must be subscribed to by at least two persons,

together holding at least 25% of the company’s authorized share

capital together with evidence of payment of stamp duty.

• A statement of the authorized share capital of the company together

with evidence that the stamp duty payable in respect of the amount

of share capital has been paid.

• A statement of the particulars of the initial directors of the company,

of which there must be at least two.

• A notice of the situation of the registered office of the company.

• A declaration, sworn to by a Lawyer that all matters preliminary to the

registration of the company have been complied with.

Stamp duty and filing fees are payable to the Federal Commissioner for

Stamp Duties and the Registrar - General of Companies respectively. If the

application is approved, a Certificate of Incorporation will be issued and the

company can commence business subject to its having obtained the

necessary investment approvals.

Investment Authorizations and Approvals

The principal laws regulating foreign investment in Nigeria are, the Nigerian

Investment Promotion Commission (“NIPC”) Act No. 16 of 1995, and the

Foreign Exchange (Monitoring and Miscellaneous Provisions) Act No. 17 of

1995.

Once registration is completed, there are other approvals that the foreign

Investor would require, to secure enhanced returns from an investment and

remit the proceeds of such investment. Some of these approvals are

mandatory, others are only required where the company wishes to employ

expatriates or take advantage of certain incentive schemes. The nonmandatory

approvals are asterisked (*).

Registration with the NIPC

The Nigerian Investment Promotion Commission (“NIPC”) was established

under the Nigerian Investment Promotion Commission Act, 1995, which

provides that any enterprise in which there is foreign participation must be

registered with the NIPC. The NIPC Act permits foreigners to own up to

100% of any business enterprise with the exception of enterprises on the

“negative list” of the Act. The negative list includes enterprises involved in

the production of and dealing in arms, ammunition, narcotic drugs and

psychotropic substances.

Procedure for obtaining NIPC Registration

• Application is made to the Nigerian Investment Promotion Commission

• Completed copies of the NIPC Form 1 (Original and 3 copies)

• Original copy of receipt of purchase of NIPC Form 1 (and three

copies)

• A copy of COMPANYs’ Certificate of Incorporation (and three copies)

• Evidence that COMPANY has a minimum share capital of

=N=10million. (3 copies)

• COMPANYs’ Allotment of shares and Particulars of Directors (3 copies)

• Details of the shareholding structure of COMPANY (3 copies)

• Joint Venture, Shareholders’ or Partnership Agreement, where

applicable (3 copies).

Business Permit

In order for an enterprise in which there is foreign participation to undertake

any business in Nigeria, it must obtain a business permit from the Ministry of

Internal Affairs. A business permit will only be granted in respect of

companies having an authorized share capital of at least =N=10,000,000.00

(approximately 80,000 US Dollars). One of the documents that a company

applying for business permit is required to submit is a Certificate if Capital

Importation to evidence the importation of the foreign investor’s

capital/equity contribution into Nigeria.

Procedure for obtaining Business Permit

• Application is made to the Ministry of Internal Affairs

• Completed copies of the NIPC Form 1 (Original and 3 copies)

• Original copy of receipt of purchase of NIPC Form 1 (and three

copies)

• A copy of COMPANYs’ Certificate of Incorporation (and three copies)

• Evidence that COMPANY has a minimum share capital of

=N=10million. (3 copies)

• COMPANYs’ Allotment of shares and Particulars of Directors (3 copies)

• Details of the shareholding structure of COMPANY (3 copies)

• Joint Venture, Shareholders’ or Partnership Agreement, where

applicable (3 copies).

Certificate of Capital Importation

Investors who wish to be able to remit dividends to non-resident

shareholders or repatriate capital on disinvestments must ensure that they

obtain a Certificate of Capital Importation from the Nigerian bank through

which the payment is transferred into Nigeria.

Procedure for Obtaining Certificate of Capital importation (CCI)

• Application will be made to COMPANY’s bankers

• The foreign shareholders will instruct their bank (“the remitting bank”)

by telex to transfer the necessary funds either directly to COMPANY’s

bankers or to their foreign affiliate;

The transfer must be accompanied by a telex stating that the money

being remitted to the bank is for the account of COMPANY and that

the money represents the foreign investors’ capital contribution to the

equity of COMPANY;

• Upon confirmation that the funds have been remitted to Nigeria,

COMPANY is required to send a formal letter of application to the

receiving bank to issue a CCI in respect of the equity contribution.

• The following documents must be submitted together with the letter

of application:

o A Board resolution of COMPANY authorizing the foreign

investment;

o A letter from COMPANY stating the purpose for which the

money has been remitted;

o A copy of the certificate of incorporation of COMPANY;

o A copy of the swift message from the remitting bank.

• If satisfied with the documentation the receiving bank will issue a CCI

in respect of the funds. The receiving bank is required to notify the

CBN whenever it issues a CCI.

Expatriate Quota*

A company wishing to employ expatriates must obtain an Expatriate Quota

position for each expatriate it wishes to employ. The Expatriate Quota

establishes the maximum number of expatriates that the enterprise may

employ. A company having a paid-up share capital of not less that

=N=10,000,000.0 (Ten million Naira only) (approximately 80,000 US Dollars)

is entitled to one automatic quota positions, while a company capitalized at

=N=20,000,000.00 (twenty million Naira only) (approximately 155,000 US

Dollars) is entitled to four automatic quota positions.

Procedure for obtaining Expatriate Quota

• Application is made to the Ministry of Internal Affairs

• In addition to the requirements listed under Business Permit

application, the following requirements have to be met for Expatriate

Quota applications:

• Evidence of acquisition of operational machinery and equipment

Management and Technical Services Agreement

• Minimum authorized share capital of =N=10million

• Tax Clearance Certificate

• Company applying for Permanent Until Reviewed (PUR) Quota slots

must show evidence of payment of tax for minimum of =N=1 million.

• Names, addresses, qualifications and positions to be occupied by the

expatriate

• Project Implementation Program

• Training Program for Nigerians and a Management Succession

Schedule

Approval for Transfer of Technology and other Agreements*

By virtue of the provisions of the National Office for Technology Acquisition

and Promotion Act, 1992 any agreement under which a foreigner is to

provide foreign technology, management, or assistance, to a Nigerian

company must be approved by the National Office for Technology Acquisition

and Promotion (“NOTAP”). Fees payable for the provision of such

technology or services must also be approved by the NOTAP.

Registration with the Department of Petroleum Resources*

Companies that wish to engage in petroleum operations in Nigeria are

required to register with the Department of Petroleum Resources (“DPR”).

The DPR issues Permits, upon application, in respect of oil exploration and

production activities, as well as oil service activities. Fees payable depend on

the category of operations for which the company applies.

THE TAX SYSTEM

The Tax Structure and Taxing Authorities

The federal, state, and local governments levy taxes. The Federal Board of

Inland Revenue (“FBIR”) administers Federal Taxes through its operational

arm called the Federal Inland Revenue Service (“FIRS”), State taxes are

administered by the Internal Revenue Boards of respective States, while the

various councils administer local Government taxes.

Principal Taxes

Taxes on income and gains

• Companies Income Tax

• Personal Income Tax

• Capital Gains Tax

• Petroleum Profits Tax

Taxes on transactions

• Value Added Tax

• Stamp Duty

• Customs and Excise Duty

Other taxes

• Sales Tax (Lagos State only)

• Local Government taxes

Double Taxation Relief

Nigeria currently has seven comprehensive double tax treaties. Treaties on

income and capital gains are currently in force with:

• United Kingdom and Northern Ireland

• Canada

• France

• Netherlands

• Belgium

• Romania

• Pakistan

CHECKLIST FOR ESTABLISHING A BUSINESS IN NIGERIA

 Incorporate Local Company

 Register with Tax Authorities and Obtain First Tax Clearance

Certificate

Open Corporate Bank Account/s in the name of the Local Company

and obtain a Certificate of Capital Importation from the Bank in

respect of any imported capital sum

 Apply for Business Permit and Expatriate Quota

Obtain Residence Permits for Expatriate Staff

 Register with Appropriate Regulatory Authorities Relevant to the

Company’s Business (such as NCC, DPR, NAFDAC, etc.)

 Secure Office Space/ residential accommodation for Expatriate Staff

These are the first steps to be taken by any person that wishes to

establish business in Nigeria. At the end of the first financial year, the

company would be required to file Tax and Annual Returns. In addition,

the Company would be required to appoint External Auditors and a

Company Secretary.

For further information and help contact:

aauprightguy59@gmail.com

07067797854