By Merit Ibe
Heads of Advertising Sectoral Group (HASG), a sectoral group made up of integrated marketing communications professionals and advertisers has urged the Governor of Lagos State, Babajide Sanwo-Olu and Kaduna State, Nasir El-Rufai to intervene in the onslaught against Out-of-Home (OOH) advertising platforms in their states.
HASG made this appeal in Lagos where its members comprising Association of Advertising Agencies of Nigeria (AAAN); Advertisers’ Association of Nigeria (ADVAN); Media Independent Practitioners Association of Nigeria (MIPAN); Outdoor Advertising Association of Nigeria (OAAN) and Experiential Marketers’ Association of Nigeria (EXMAN) were in attendance. The call is in response to the recent plan by the Lagos state government to concession seven major roads in the state and the demolition of billboards in Kaduna through its agency, Kaduna State Urban Planning and Development Authority (KASUDA).
They stated that if the issues are not urgently addressed with inclusive discussion with stakeholders, it will cripple the outdoor adverting industry, increase unemployment and lead to a decline in government revenue generation through taxes. Emmanuel Ajufo, OAAN President said his association received seven (7) days’ notice and while conversations were still ongoing, the demolition took place. The decision according to the state is due to its urban renewal policy to replace all existing static billboards in the state metropolis with Light-Emitting Diode (LED) platforms.
He disclosed that some of his members operating in the state are now battling debt and health-related issues emanating from the threats and loses, stressing that the planned concessions of some major roads in Lagos to bidders would bring about monopoly and increase in the cost of engaging Out-of-Home media platforms by advertisers and therefore should be reconsidered.
In response to this, Osamede Uwubanmwen, ADVAN president said if the cost becomes high its members would move their advertising budgets to other media platforms to reach their target audience, a decision that might further affect the OOH industry. Experts had forecast that the industry will generate a lot of revenue this year especially due to political and brand campaigns but the new development that might not be visible in Lagos and Kaduna.
Steve Babaeko, AAAN President said Small and Medium Enterprises (SMEs) contribute to economic growth, urging Lagos and Kaduna governments to suspend the move, stating that billions of Naira must have been lost by OOH practitioners in Kaduna even as OAAN President said the value of what has been lost will soon be reported.
Tunji Adeyinka, MIPAN President on his part said OOH employs a lot of people and the concession would further increase the unemployment rate while Eki Adzufeh, Executive Secretary, MIPAN said government needs to revisit the decision and engage industry stakeholders.
The HASG in its statement points out that “LASAA’s plan to concession seven (7) of the major roads in the state to bidders, and the successful ones to own and operate franchises on such roads for a period of 10 years, is no doubt a grave danger, and the HASG is calling on the government of Governor Sanwo-Olu to prevail on the Agency to shelf it. The HASG is of the informed opinion that such exercise will not stimulate the growth of the advertising industry, but can only, at best, lead to monopoly, which will ultimately lead to increase in the cost of engaging Out-of-Home media platforms by advertisers.
“If allowed, the backlash would include the loss of businesses and the means of livelihood of those who currently operate along those corridors.
There is also the certainty of unemployment issues. We believe very strongly that this plan will also have spiral social effects on the environment which will suffer greatly from the indiscriminate display of materials, leading to visual blight. Added to that, the larger advertising industry will be adversely affected: rates would go up, and advertisers will seek cheaper alternatives including moving on to the social media platforms,” it said.
HASG statement reads further that “The HASG wishes to caution both LASAA and KASUPDA as well as those other states that might be planning such acts as highlighted above, that they are acting illegally and that they will end up creating more problems for the industry. For the avoidance of doubts, the HASG wishes to inform all the states that this Group will not hesitate to issue a boycott instruction to all advertisers against any state that engages in such infractions as have been committed by LASAA and KASUPDA.”
HASG also added, “Concessions and franchises promote monopoly and the HASG is opposed to it in whatever form.
“The body now calls on LASAA and KASUPDA to urgently review their relationship with members of the Outdoor Advertising Association of Nigeria (OAAN) with a view to making it easy to engage in this business, especially in the areas highlighted above.
