The Chairman, Broadcasting Organisations of Nigeria (BON), John Ugbe had, recently in Abeokuta said that, the broadcast media houses in Nigeria are currently gasping for breath.
Speaking during an interactive session on advertising industry reforms, Ugbe, who was represented by the Executive Secretary of BON, Yemisi Bamgbose disclosed that, “one of the issues that have negative impact on the broadcast industry is the age long problem of debt recovery from advertisers even after deligent implementation of contractual agreement.”
According to him, one of the major stakeholders in our industry is the advertiser and the advertising regulatory agency which is APCON, therefore, we considered it expedient to engage APCON and other stakeholders on a regular basis.”
He stated that, many stations especially the private ones are finding it difficult to survive because of huge debt and payment delay by advertising agency, noting that, the essence of the interactive session is to brainstorm on the way forward with the regulatory agency of the advertising sector on the modalities that will be beneficial to both media organisation and advertisers in their relationship.
He pointed out that, the interactive session is first in its series as the engagement with APCON, and other stakeholders will be taken to other geopolitical zones, adding that, it will be recalled that last year, BON forwarded to all CEOs of media houses the new policy introduced by APCON which is the Advertising Industry Standard of Practice (AISOP) which was drawn in line with what is obtainable in other countries.
He disclosed that, “I want to make it abundantly clear that, BON is in total support of the new policy developed by APCON as it’s capable of finding lasting solution to perennial issue of debt accumulation by advertisers and advertising agencies, stressing that.’
“there’s the need for public awareness that there are omimus signs that danger of high magnitude is looming in Nigeria as the conventional media that has been the stabilizing factor in maintaining political stability, security and order is under serious threat because of harsh economic environment. Public power supply had been epileptic at best, and the bills for the non power supply have continued to increase unabated.” He said.
Ugbe further disclosed that, “there’s lingering scarcity of diesel and petroleum products which power the generating sets of these organisations, and the prices of these products have gone up more than double over the last mine month.”
“all broadcast stations, private and public are supported by the same pool of advertisers, and while the broadcast stations are increasing in number, advertising spend keep reducing on the last ten years due to dwindling economy and this has affected the income of broadcast organisations even as operation cost continued to increase on a daily basis.” He added.
In his brief remarks, the Registrar/Chief Executive Officer of Advertising Practitioners Council of Nigeria, (APCON), Dr. Olalekan Fadolapo said “aside the statutory imperative of the Advertising Industry Standard of Practice, AISoP, we firmly believe that a robust engagement such as this, will create an enabling platform for all of us to brainstorm in a constructive manner on how to harness the necessary inputs that will boost Nigeria’s economy.
According to him, bringing stakeholders together to come up with strategies that will support industry development, as well as the implementation and success of the advertising regulatory reform in line with the Federal Government’s reformative plans is, in all honesty very important.
“it has become absolutely necessary for us to ensure that the objectives of AISOP, an all-encompassing framework are achieved through the provision of a conducive environment for the sector in line with best global practices.” He added.
Earlier, in his welcome address, the Commissioner for information and strategy, Ogun State, Abdulwaheed Odusile who welcomed everyone to the event disclosed that, “as a practitioner, I know that media houses, especially, broadcast stations are going through tough time orchestrated by harsh economic environment due to global economic crisis, poor power supply and exorbitant price of diesel as well as high cost of broadcast equipment.”
According to him, the situation is even more worrisome when the little resources that are suppose to be paid to media houses by advertisers through advert placement are delayed longer than necessary and in most cases, payment are not made to media houses despite execution of contract.”
“it’s therefore a positive development that, APCON and BON are working together to develop reforms that will to lead recovery of huge debts which advertisers and advertising agencies are owing media houses as well as coming up with modalities that will mitigate against further accumulation of debts accordingn to international best practice.” He added.
