Marketing communication giant WPP Scangroup is set to kick-start an advertising joint venture in Nigeria. This is coming few days after settling a five-year legal dispute that had blocked its entry into the Nigerian market.
According to a statement by Ogilvy & Mather Africa BV (a subsidiary of Scangroup) said that it has settled the dispute with Nigeria’s Prima Garnet Communications as directed by a Lagos High Court on December 15.
The two parties have confirmed the dispute settlement agreement they had applied for in which the Judge had given both parties two weeks to execute the terms.
WPP-Scangroup CEO, Bharat Thakrar termed the settlement as mutually beneficial which provides an opportunity to recommit WPP-Scangroup’s investment into the Nigerian advertising industry.
“Nigeria is an important market for our expanding Pan African business. It is imperative that we harness and customize our top-drawer marketing services solutions for one of Africa’s largest and most dynamic markets,” said Thakrar
The Nigerian firm had sued Scangroup’s subsidiary in Nigeria January 2013, arguing that the company had orchestrated a plan to deny it business.
The Nigerian firm argued that it had an agreement with Ogilvy that neither of the companies would enter into new alliances while their partnership was still active.
WPP Scangroup Limited, formerly Scangroup Limited, is engaged in the provision of marketing communication services.
It offers services in over six disciplines, including
- Advertising.
- Media investment management.
- Advertising research.
- Public relations
- Digital advertising and specialty communication.
Its advertising services are offered through Ogilvy & Mather (Eastern Africa) Ltd.
Advertising services remain the largest revenue source for group, and is behind the company’s push for launch of the business line in Nigeria as part of its Pan African expansion strategy.
Kenya accounts for the largest market of Scangroup’s sales, with the rest coming from its regional units in Uganda, Tanzania, South Africa and Ghana.
Nigeria is seen as an attractive market due to its status as Africa’s biggest economy. The group will take a 24.9 per cent stake in the planned joint venture in line with current limits on foreign ownership
