http://www.huffingtonpost.com/phillip-van-niekerk/why-the-developing-world_b_565815.html

The upstart newspaper, 234Next is fighting desperately for survival. Staff are being owed salaries, many staff have been let go and resignations are becoming the order of the day.

Why? Apparently powerful and corrupt forces are trying to strangle this fledgling paper into oblivion. They've stepped on too many toes - powerful toes like Ibori, Turai etc. These forces have hit the paper at its vulnerable point: adverts and its distribution network.

This will be a tragedy for the fight against corruption if this paper goes under - 234Next is the closest thing we have to good reporting in this nation where 'brown envelope' journalism holds sway.

I believe they 'll pull through this difficult period.
Their current difficulty shows fighting the corrupt system is perilious
And that it will cost you something
This we've seen in the travails of Nuhu Ribadu and Nasir El Rufai
Though I must say it is just a strengthening phase for them
I must add when their brain dead Yaradua story broke, I thought it was sensationalism @ best
But when they were not shut down by the security agencies and with other events unfolding, they have been vindicated @ last
It's refreshing to know that one can read a newspaper that is awash with doctored stories we read in all newspapers particularly The Punch ,The Sun or worst of all Daily Trust
If they need funds where can I drop my own 'save their soul' offering like it was done for Daar Commuinications sometime back when their creditors had their jugular

Its business and there is a gestation period. The point is not to be cowed in the face of adversity. All successful businesses have stories to tell, of near liquidation, salary backlogs etc. Check this, most media houses - print and electronic default in responsibility to staff. The worse is Thisday, where it is reported that staff are barely paid and they survive on brown envelopes.

On another note, the promoters now know that there is a world of difference between being professional journalists and activity driving entrepreneurs.

Why? Apparently powerful and corrupt forces are trying to strangle this fledgling paper into oblivion. They've stepped on too many toes - powerful toes like Ibori, Turai etc. These forces have hit the paper at its vulnerable point: adverts and its distribution network.

can you explain?

Did same Ibori/Turai stop you from advertising?

otawa:

can you explain?

Did same Ibori/Turai stop you from advertising?

There's a link above what i posted. If you can't be bothered to click on it and read the contents, then i am not obliged to answer your foolish questions.
And no, i am not affiliated with 234Next in any way.

otawa:

can you explain?

Did same Ibori/Turai stop you from advertising?

You dont get it? do u?

And how much will his advert be worth as compared to what Ibora & cohorts will spend from their stolen loot to advertize or do image laundary?

they should concentrate on soliciting for assistance and forget about ibori/turai propaganda.

i   dont think it will work.

stormm:

Its business and there is a gestation period. The point is not to be cowed in the face of adversity. All successful businesses have stories to tell, of near liquidation, salary backlogs etc. Check this, most media houses - print and electronic default in responsibility to staff. The worse is Thisday, where it is reported that staff are barely paid and they survive on brown envelopes.

On another note, the promoters now know that there is a world of difference between being professional journalists and activity driving entrepreneurs.

This is much more than a gestation crisis, this is a full blown fight for survival as my sources tell me. Morale is low, the junior employees are living on borrowed funds and people are polishing their CVs.
For some reason they aren't selling well, and the article i linked up there claims it is sabotage.
I heard their desire to publish all the truths all the time led to their previous sponsor pulling out.
I understand your point, but the initial days of a paper are the make-or-break days. And if they can't sell more papers, they are in trouble. Which would be a shame indeed.

For some reason they aren't selling well, and the article i linked up there claims it is sabotage.

yah, yah.

Am sure Ibori and Turai stop NIGERIANS from advertising and buying their newspaper!

Considering the have huge tarffic online, they should consider foreign products targetted at nigerian and even MNC in nigeria or africa, google ads will make it messy but it might still bring in some

Now the Cabal is gone, business will surely bounce back- all those dodgy bank CEOs threw money about back then- bankers award etc etc

If only they can contact me. There are multiple ways to overcome all these rubbish.

@texazzpette

I won't withdraw this. There's a whole world of difference btw being a pro and being an entrepreneur. Now they've learnt 1 or 2 lessons. They'll definitely forge ahead. At one time it took the might of the Ibrus to make Guardian stay afloat. After getting the conceptual framework right, they sacked Macebuh. At a time Abiola(late) supported Punch by giving them newsprints. Concord Newspapers never made profit until the demise of its alter ego, now its dead. Please business is business and it should be treated as such. Professionalism(Next) or sensationalism(late prime pple/city pple) does not detract from the business perspective. Did they ever got the business angle right? Were they not carried away with the superstars in their employ?

Ted Turner was never a journalist. CNN is a global and commercial success.  So many other success stories pls

Dis Guy:

Considering the have huge tarffic online, they should consider foreign products targetted at nigerian and even MNC in nigeria or africa, google ads will make it messy but it might still bring in some

Now the Cabal is gone, business will surely bounce back- all those dodgy bank CEOs threw money about back then- bankers award etc etc

Cabal is never gone.

stormm:

@texazzpette

I won't withdraw this. There's a whole world of difference btw being a pro and being an entrepreneur. Now they've learnt 1 or 2 lessons. They'll definitely forge ahead. At one time it took the might of the Ibrus to make Guardian stay afloat. After getting the conceptual framework right, they sacked Macebuh. At a time Abiola(late) supported Punch by giving them newsprints. Concord Newspapers never made profit until the demise of its alter ego, now its dead. Please business is business and it should be treated as such. Professionalism(Next) or sensationalism(late prime pple/city pple) does not detract from the business perspective. Did they ever got the business angle right? Were they not carried away with the superstars in their employ?

Ted Turner was never a journalist. CNN is a global and commercial success.  So many other success stories pls

sad how naive people can be - do you have any idea how many other businesses the ibrus had that could pump mone into the guardian?

you have absolutely no idea what you are talking about . there are airlines that will not freight this day papers up north because of a story they covered

remember eedres abdulkareem of mr lecturer fame? after jaga jagaand obsanjos expression of displeasure with the song - his career died.


this is how it works - newpapers make their income from advertising revenue.

all your government bigwig has to do is let it be known - advertise in that paper and we will make it hot for you - end of story.

more to the point most nigerian business is dirty, and most of our so called enterpreneurs - ibru and co - would rather see a paper like next dead - it could be their dirty laundry being aired in the future - much batter a this day that can be counted on to issue spurious awards

234next has International readership.Probably they should consider a token registration fee for access to their online publications.And like one of the commentators said above, they(234N) should endearvor to get the business angle situated well.All operations should be balance.Brazen and strategical advertizing should be embarked upon to get more patronage worldwide-that's where the money is if the circulation at home is getting poorer from whatever machineries 'anyone' set in place to strangle them.
The truth will not die, may faint for a while ,but sooner or later it will recuperate.

Gilbertman:

234next has International readership.Probably they should consider a token registration fee for access to their online publications.And like one of the commentators said above, they(234N) should endearvor to get the business angle situated well.All operations should be balance.Brazen and strategical advertizing should be embarked upon to get more patronage worldwide-that's where the money is if the circulation at home is getting poorer from whatever machineries 'anyone' set in place to strangle them.
The truth will not die, may faint for a while ,but sooner or later it will recuperate.

That might just totally send them into oblivion my friend. I believe the politics being played by these media houses is become a bit too complex!
While some are getting shot to death, others are being driven out of business! How then can we get UNBIASED news and reporting?

@oyb
You are just a clown. The News Group, did they ever have any govt patronage? Did they not survive under the most difficult operating environment? Tell magazine for a very long time never had any govt patronage and they survived it. Comet newspapers ressurected as The Nation and until recently did NOT have advertising revenue.

Yes in the days of Daily Times, it survived not just because of Govt patronage but largely because of circulation. Daily advertising revenue was in excess on N500k(1990-93).

Advertisers are very prudent spenders. While page layout and aesthetics play a little role, the bottom line is circulation, reach and intensity. Every other thing is pure lingo. Get yours facts right pls.

^^^

the question that is eluding you is where is the funding of the papers you mentioned coming from? is it from only advertising/sales, or do they have wealthy businessmen as patrons

the concord you were blathering about is a prime example - what kept it afloat in the past was not advertising revenue, or readership per se, but abiola's cash injections


are you really so slow as to think that tell's survival had nothing to do with support from prominent members of the opposition in the dark days of abacha?

Advertisers are very prudent spenders. While page layout and aesthetics play a little role, the bottom line is circulation, reach and intensity. Every other thing is pure lingo. Get yours facts right pls.

olodo - you have no idea about the mechanics behind advertorials in papers. i have seen papers post meaningless adverts for corporate organizations in exchange for killing stories . you have absolutely no idea of the corruption in the business.

stormm:

@oyb
You are just a clown. The News Group, did they ever have any govt patronage? Did they not survive under the most difficult operating environment? Tell magazine for a very long time never had any govt patronage and they survived it. Comet newspapers ressurected as The Nation and until recently did NOT have advertising revenue.

Yes in the days of Daily Times, it survived not just because of Govt patronage but largely because of circulation. Daily advertising revenue was in excess on N500k(1990-93).

Advertisers are very prudent spenders. While page layout and aesthetics play a little role, the bottom line is circulation, reach and intensity. Every other thing is pure lingo. Get yours facts right pls.

Tell owe their staff salaries for months while The Nation now has political patronage. What is your point? Circulation? There is only so much that circulation can bring in especially in a country like Nigeria where we have so many freeloaders aka free readers club. If your paper costs N100 and you manage to sell 5000 a day, that is N500000 in one day. In a 30 day month that is N15million. Then we have not talked about wage costs, operating costs, transportation costs?

My friend, circulation in this day and age cannot make a paper survive.

This is business and if your major source of income is from adverts then anything related to the advertisers would come into play from favorable stories about the advertisers to their business interests.

Now, why would advertisement be the major source of income? Can't they change this common strategy and fashion out ways to reach more reading public at cheaper rates? Create alternative distribution channels if the present ones are sabotaging it.

You cannot do the same thing over and over again and expect different results. They understand the politics of the business and the consequences of their actions.

Put differently, they should learn to think outside the box.

hmmm. . . . 234next dying. . . . . Sad !

The truth is the company made any financial blunders in its early days.
Spending so much money when the company had not earned 1 kobo in revenue and had not even begun printing.

They spent heavily on recruitment (which was good though cos they got some really good graduates), they spent heavier on training as well.

Some staff were earning as much as 500,000 naira monthly doing little or nothing. Bearing in mind that the company was yet to begin publication. As a matter of fact, very few people knew about the coy as at that time.

Rather than printing here in Nigeria, they felt there was no printing company that could meet their standards so they chose to print the papers in UK and fly them over to Naija, which was why the started initially with 'next on sunday'. End of the day, most of the newspapers remained unsold.

On the issue of circulation, It took them a long while to get their bearing right with circulation and the last time i was in Lagos, i didnt see their newspapers with vendors on the street (like other papers like punch, etc) although i do not know if that has changed how. However, as at that time, their papers were displayed in hotel lobbys, high brow salons, etc. Newspapers sell on the streets and not in fancy shops !!!!!

Now adverts: i heard that glo pulled out from sponsorship because they ran a story on Adenuga or so. Dunno how true this is. They had plans other plans of generating revenue. eg. breaking news alerts sent to subscribers mobile phone but containing message from their sponsors .eg. ''glo with pride''. I do not know what happened to that business idea but i am yet to hear about anyone talking about that service from NEXT.

Rumour has it that Olojede got a loan from First Bank to start the company. Rumour also has it that he had to mortgage his private property just to get the company started. So, it's rather sad if the company is now headed this way. The company started well with so much fanfare and looking at the vision of Mr. Olojede and the pioneer editor (heard the guy has also resigned, cant remember his name, but the guy owns Farafina books coy). There is nothing as terrible as owing your staff salary. I thought this issue had been resolved cos i first heard this salary gist in November 2009, so to now read here that staff are still being owed salary as at May 2010 is really sad.

Meanwhile, i heard that most of the people that collected the ''fat pay package'' during the early days of doing almost nothing have resigned.

Anyways, we hope the newspaper will withstand this storm.

@oyb

Extremely preposterous. While  I'm not surprised at your vocab, I'm rather perturbed that people here can't discuss issues without resort to abuse. The virus seemed to have eaten deep into you.

olodo - you have no idea about the mechanics behind  advertorials in papers. i have seen papers post meaningless adverts for corporate organizations in exchange for killing stories . you have absolutely no idea of the corruption in the business.

Are you now saying you support corrupting the news media? Businesses owe, any big deal? I've witnessed start-ups that never really started up- The Anchor Newspapers for example. It died at infancy. Are you saying Segun Babatope, the Publisher did not have enough clout or government leverage to stay afloat?

Its all about your business model. Adverts, advertorials, supplements etc are strategies for raising short term funds. One-offs are not the mainstay for media houses. Do you know how advertising works? Please I have the last publication by mediareach OMD, the leading independent media buying company in Nigeria, I'll be lend you if you wish.

@ funkybaby

GBAM!

Aahhh, omo funky yi ma fun won ni business grounding o.

Wa she're omo! Na you biko. 

@stormm
But that's the point! Without a broad reader base, it is not attractive to advertisers. Also  their style of reporting the unbiased news has led to many of their prospective clients abandoning the paper. In Nigeria, it is not in the best interests of the elite for the truth to be reported.
How do you explain the fact that advertisers are not flocking to their website, even when it's now the most popular Nigerian news website?

I don't think they have the manpower to get as much news as their rivals so they rely on a few expose like stories to captivate readers. The danger is, many Nigerians now know that if they visit the NEXT website, they can pretty much get all the scoops without paying a dime. You can see how 234Next has resorted to truncating their lead stories up until 12 noon in a desperate bid to boost sales.

But i agree with some of what yourself and funkybaby have stated; there are a couple of things they could have done better. Their website is now the most popular Nigerian news website, yet it is almost bereft of ads. There are many more things they could have done to hook the few regular readers they had, and get new ones in the process. Perhaps a better effort could have been made to secure foreign readers.

What i'd like to point out to you is that the Guardian et al that you mentioned had very wealthy sponsors/patrons behind them. 234Next has an idealistic fellow operating on a loan.

funkybaby:

hmmm. . . . 234next dying. . . . . Sad !

The truth is the company made any financial blunders in its early days.
Spending so much money when the company had not earned 1 kobo in revenue and had not even begun printing.

They spent heavily on recruitment (which was good though cos they got some really good graduates), they spent heavier on training as well.

Some staff were earning as much as 500,000 naira monthly doing little or nothing. Bearing in mind that the company was yet to begin publication. As a matter of fact, very few people knew about the coy as at that time.

Rather than printing here in Nigeria, they felt there was no printing company that could meet their standards so they chose to print the papers in UK and fly them over to Naija, which was why the started initially with 'next on sunday'. End of the day, most of the  newspapers remained unsold.

On the issue of circulation, It took them a long while to get their bearing right with circulation and the last time i was in Lagos, i didnt see their newspapers with vendors on the street (like other papers like punch, etc) although i do not know if that has changed how. However, as at that time, their papers were displayed in hotel lobbys, high brow salons, etc. Newspapers sell on the streets and not in fancy shops !!!!!

Now adverts: i heard that glo pulled out from sponsorship because they ran a story on Adenuga or so. Dunno how true this is. They had plans other plans of generating revenue. eg. breaking news alerts sent to subscribers mobile phone but containing message from their sponsors .eg. ''glo with pride''. I do not know what happened to that business idea but i am yet to hear about anyone talking about that service from NEXT.

Rumour has it that Olojede got a loan from First Bank to start the company. Rumour also has it that he had to mortgage his private property just to get the company started. So, it's rather sad if the company is now headed this way. The company started well with so much fanfare and looking at the vision of Mr. Olojede and the pioneer editor (heard the guy has also resigned, cant remember his name, but the guy owns Farafina books coy). There is nothing as terrible as owing your staff salary. I thought this issue had been resolved cos i first heard this salary gist in November 2009, so to now read here that staff are still being owed salary as at May 2010 is really sad.

Meanwhile, i heard that most of the people that collected the ''fat pay package'' during the early days of doing almost nothing have resigned.  

Anyways, we hope the newspaper will withstand this storm.

Good one!

This is a complicated story.
The painful truth is that newspaper publishing is almostnot a profitable venture in Nigeria.
Most are set up for political gains (the Nation, Independent, daily trust etc) with no interest in profitability,the few that are able to break even have ben in existent for over 3 decades (Punch, Guardian and Vanguard) then you have the likes of likes of Newswatch, Tell and The News that are barely able to survive and have diversified into allied services despite the unsuitability of such services in view of the fact your unbias is compromised in the process.Finally you have Thisday, a company that is obviously not profitable by any stretch of the imagination but whose true operations are unknown to outsiders.

In the light of this, it is difficult to understand how Olojede (an inteligent man) could pursue a newspaper venture with limited bank loans.In the school of good money/bad money theory, this is a classic case of bad money.loans require instant growth and almost instant profitability.
growth and profitability in newspaper business takes a longtime and even longer time in Nigeria,where ''free readers association" hold sway.
newspaper publication is a cartel.Not just in Nigeria, as Nduka Obiagbena found out when he tried to pull his razzmatazz in South Africa.it takes more than a quality print and good writers.You have to be accepted in the brotherhood of the beloved, else you are screwed.
You do not even need Ibori and Turai to do the screwing.Of course it gets worse if they join the party.
Another curious point is this idea of positioning a daily newspaper as a premium product by targetting upscale resuturants,shops and hotels.When the same elite read it online for free.That was a strategy doomed to fail.

Instead of bank loans, private equity and venture capital was a more stable route for financing for a project like this.

I hope the paper makes it, especially now they have started my favourite column.

N800m Stolen at THISDAY
•7 arrested, 2 on the run
05.19.2010

THISDAY Newspapers has lost over N800 million to fraudsters in the employ of the company.
The fraud was perpetrated through the collaboration of Accounting, Audit and Circulation sales staff over the last one year.

The police have arrested seven of the suspects, while two of the ringleaders – Messrs Dirisu Andrew Eshorame from Okpella in Edo State and Sola Popoola from Okemesi in Ekiti State - are at large.

Dirisu was the newspaper’s Kakawa, Lagos Island, Sales Representative, while Popoola was its Sales Auditor at the Account Department.
The fraud was carefully carried out by the suspects who had been stealing the organisation’s newspaper sales proceeds using fake bank tellers.

In a petition to the Divisional Police Officer (DPO), Apapa Police Station, Apapa, Lagos, the organisation’s Managing Director, Mr. Eniola Bello, said: “On Wednesday April 28, 2010 a routine check of the account where our newspaper sales are deposited in GTBank showed some discrepancy in what was sold and what was actually paid in from our Kakawa sales point.”

Bello explained that on getting a query about the discrepancy in the payment, Dirisu quickly paid N1 million two days after he should have deposited the money into the account.
Also, Dirisu, Popoola and others paid another N10.8 million, triggering suspicion by senior management.

The suspicion led to investigation which uncovered massive fraud, showing that they had been stealing between N10 - N20 million per week by using fake bank tellers.
Furthermore, it was discovered that in Lagos Island alone, N175 million has been stolen from Kakawa sales point since January this year.

Bello therefore requested the police to assist the newspaper in apprehending Popoola, whose last known address was 9 Idowu Williams Street, Off Toyin Bus Stop, Agbado Road Iju Ishaga, Lagos.
In addition, the paper’s MD asked the police to apprehend Dirisu whose last known address was 30 Ogunbowale Street, Ilasamaja Lagos.

Bello added that THISDAY believes that both Popoola and Dirisu are in a good position to name others involved in the fraud.
The MD also called on members of the public who have information about the suspects to furnish the police with same.
Meanwhile, up to seven accounting and sales staff have been arrested and are currently facing questions.

mbulela:

N800m Stolen at THISDAY
•7 arrested, 2 on the run
05.19.2010

THISDAY Newspapers has lost over N800 million to fraudsters in the employ of the company.
The fraud was perpetrated through the collaboration of Accounting, Audit and Circulation sales staff over the last one year.

The police have arrested seven of the suspects, while two of the ringleaders – Messrs Dirisu Andrew Eshorame from Okpella in Edo State and Sola Popoola from Okemesi in Ekiti State - are at large.

Dirisu was the newspaper’s Kakawa, Lagos Island, Sales Representative, while Popoola was its Sales Auditor at the Account Department.
The fraud was carefully carried out by the suspects who had been stealing the organisation’s newspaper sales proceeds using fake bank tellers.

In a petition to the Divisional Police Officer (DPO), Apapa Police Station, Apapa, Lagos, the organisation’s Managing Director, Mr. Eniola Bello, said: “On Wednesday April 28, 2010 a routine check of the account where our newspaper sales are deposited in GTBank showed some discrepancy in what was sold and what was actually paid in from our Kakawa sales point.”

Bello explained that on getting a query about the discrepancy in the payment, Dirisu quickly paid N1 million two days after he should have deposited the money into the account.
Also, Dirisu, Popoola and others paid another N10.8 million, triggering suspicion by senior management.

The suspicion led to investigation which uncovered massive fraud, showing that they had been stealing between N10 - N20 million per week by using fake bank tellers.
Furthermore, it was discovered that in Lagos Island alone, N175 million has been stolen from Kakawa sales point since January this year.

Bello therefore requested the police to assist the newspaper in apprehending Popoola, whose last known address was 9 Idowu Williams Street, Off Toyin Bus Stop, Agbado Road Iju Ishaga, Lagos.
In addition, the paper’s MD asked the police to apprehend Dirisu whose last known address was 30 Ogunbowale Street, Ilasamaja Lagos.

Bello added that THISDAY believes that both Popoola and Dirisu are in a good position to name others involved in the fraud.
The MD also called on members of the public who have information about the suspects to furnish the police with same.
Meanwhile, up to seven accounting and sales staff have been arrested and are currently facing questions.

Can't these guys put enough measures in place to check, prevent or track any fraudulent activities?

^^^
No need.
While Next s complaining of poor sales Thisday is losing 800m without knowing.
Thisday, the more you look the less you see.

I dont subscribe to the sabotage story.

We all know that publishing is a very tough terrain so their problems are business problems and not political problems.

I never liked their grandiose entry into the market. It doesnt always work that way in publishing in Nigeria.

^^^^^
But Nduka was even more grandiose.
If it worked for Ndula why should it not work for NEXT?
If Nduka is raking in so much millions that 800 can go missing and he did not realise, why should NEXT not find the witch sabotaging there efforts?

akinalabi:

I dont subscribe to the sabotage story.

We all know that publishing is a very tough terrain so their problems are business problems and not political problems.

I never liked their grandiose entry into the market. It doesnt always work that way in publishing in Nigeria.

mbulela:

^^^^^
But Nduka was even more grandiose.
If it worked for Ndula why should it not work for NEXT?
If Nduka is raking in so much millions that 800 can go missing and he did not realise, why should NEXT not find the witch sabotaging there efforts?

Who told you Nduka's money comes from ThisDay? If you know the billions this mysterious Nduka of a man is worth then you'd realise there's a lot more to him than meets the eye. The man is a legendary 'frontman' for all kinds of deep 'stuff'; berra open your eyes.

@topic
Isn't it ridiculous to blame Turai/Ibori and such characters for the newspaper's woes? Since they set out to practice fearless and 'toe-stepping' journalism, they ought to have anticipated the dangers, and institute strategies for overcoming such dangers. It is only a foolish man that goes into a big fight ill-prepared and later whines about the black eye he received in the process. To me, the whole witch-hunt/sabotage story is a cock and bull story. Publishing newspapers in Nigeria is a remarkably unprofitable enterprise - what percentage of the population can afford/have the interest in newspapers? So only very few newspapers can endure the prolonged battle to breaking even. It would interest you to know that, apart from the old titles like Punch, Vanguard, Guardian and Tribune, the other 'successful' newspapers are owned by filthy rich politicians:

1. The Sun= Orji Kalu
2. The Nation= Asiwaju Bola Tinubu
3. Daily Independent= James Ibori
4. The Compass= Gbenga Daniel
5. ThisDay= forces behind Nduka.

Of the whole lot, only The Sun has broken even and achieved profitability in so short a time. The rest are surviving due to the infinitely deep pockets of their owners/sponsors. So, 234next can liquidate if they want to, but they shouldn't blame their collapse on some imaginary elements. Business failure, simple!