Finance

August 27, 2012

Billboard Demolition: Outdoor industry in limbo

At a time the dust seems to be settling down, Outdoor Advertising Association of Nigeria (OAAN) members appear to be facing another round of demolition in Kano State.

The present situation in Kano State has moved advertising practitioners under the auspices of OAAN to drag the Kano State Urban Planning and Development Authority to court over what it described as indiscriminate demolition of its members’’ billboards.

The association said it instituted the legal action to avoid a repeat of what happened in Lagos where a similar action by Lagos State Signage and Advertising Agency (LASAA) made OAAN members lose millions of Naira , while some died in the process, leaving huge debt for their families to pay.

In the ensuing court action, OAAN has secured a motion exparte via suit number k/340/2012 dated 1st August 2012 in the High Court of Kano State before Justice Ibrahim Musa Muhammad, restraining Kano State Urban Planning and Development Authority, Chris Parkes Marketing Solutions (CPMS) Limited and the Attorney General of Kano State from further pulling down billboard belonging OAAN members.

The exparte reads thus; the respondents are hereby restrained jointly and severally and by themselves, agents and privies, staff and officials from further destroying, pulling and bringing down, blanking out the billboards or signs belonging to member companies of the plaintiff in Kano State pending the hearing and determination of the motion on notice already filed in this siut

Just like OAAN president, Mr. Charles Chijide had pointed out presumably at the 2012 Advertising day forum where he spoke on the topic, “Outdoor Advertising Regulation and Control in Nigeria” organised by Advertising Practitioners Council of Nigeria (APCON), that the regulation and control of advertising processes be x-rayed in the areas of inherent complications, excesses and challenges as they affect stakeholders.

However, observations have shown that the new trend among state governments to engage the services of consultants for regulation, monitoring and control of outdoor advertising within their state is becoming a routine.

Some of the consultants do not have the basic knowledge of outdoor advertising or been a member of a regulating body like APCON or a member of OAAN.

Some of the consultants do not know or understand what it takes to erect a billboard and the financial involvement in the business, whilst embarking on wanton demolition of structures worth millions of Naira.

The major thing to do is engage the services of a professional as a regulator in the state who understands the outdoor advertising system, who understands the pain when billboards are pulled down.

Where dilapidated billboards are pulled down it is understandable as a measure to give a befitting aesthetics to the environment for businesses to grow and thrive, because businesses thrive in serene and beautiful environment.

The Kano state government should draw example from its Oyo State counterpart, particularly from states that have toed or toeing the line they intend to follow.

To carry out sanitisation like Kano State council is doing presently, there should be stakeholders forum where to feel the pulse of the practitioners, rather than giving a mandate.

It is important states increase their internally generated revenue (IGR), but such step should take cognizance of the provisions of the relevant sections of the constitution of the Federal Republic of Nigeria which has vested the collection of display of rates on the local government.

The present business environment shaped along the line of aggressive income generation by states has led to increase in practitioners operating costs which has also led to the fall out over 70 percent of hoardings now vacant and many more agencies have had to reduce their staff strength by over 50 percent, thereby increasing the number of unemployment in the country.

Added to this huge operating cost is the burden of multiple taxation and levies from various signages and advertisement agencies, local councils and their agents in some cases, Federal Water agencies, Federal Ministry of Works, Environment, Concessioniers e.g like the Lagos-Ibadan express, Relevant waterways in the state etc.

On these reasons, the outdoor which is a major component of the advertising practice, in recent years had suffered some decline, especially as a result of various regimes of regulation at various levels resulting in high cost of operations for the practitioners making the hoardings too expensive for clients, this was the candid submission of Mr. Lolu Akinwunmi, APCON, Chairman at the 2012 advertising day celebration.

Expanding the scope further, Akinwunmi warned, and said, “Nigeria as a signatory to many international protocols on trade and investment which makes it possible for foreigners to set up and own majority interests in advertising and related companies, “special care should be taken in allowing foreigners own majority interests in our communication companies. Who controls the channels and organs of communication will control the minds of the people. There is no foreigner who can communicate better with Nigerians that Nigerians.

This however gives credence to giving professionals advertising jobs and being a marketing practitioner does make one an advertising practitioner.

The appointment of CPMS to regulate and control, as well incease the IGR of Kano State is not a better dummy sold to the government, there are ways to go about the regulation in the state rather than the express ultimatum handed the practitioners via an advert in one of the national dailies to before it on or before May 31, 2012.

Before embarking on any demolition, the Kano state government should note that there is a provision by the constitution that billboard owners reserve the right to be compensated for demolished billboards, because there was a financial commitment abinio to the government.