Our Resilient Outdoor Advertising Sector

I commend the sheer doggedness of Nigeria’s outdoor advertising sector, which, in spite of operating in an environment characterized by uncertainties, manages to thrive. To understand the dilemma of our outdoor advertising practitioners, take a look at some of the numerous promulgations binding on the practice: the FEPA Act 1988, Schedule IV Nigerian Constitution 1979 (which gives the various local government councils in the country the power to pass by-laws thereby enabling them to exercise control of outdoor advertising and hoardings), Control of Advertisement (Federal Highways) Act Cap 66 LFN, Control of Advertisements (Lagos State) Act, 1965, Land Use Act 1990 LFN, Lagos Local Government by-laws, 1958, and Cap 7, Laws of the Federation, 1990, otherwise known as the Advertising Practitioners (Registration, etc.) Act, etc.

How do our advertising practitioners survive all these laws? While speaking with Charles Chijide, rpa, managing director of Charella Nigeria Limited, a frontline outdoor advertising company based in Lagos, I found that multiple taxation had always been the bane of outdoor advertising practice in Nigeria. A well-traveled professional, Chijide strongly believes that there should be specific and uniform tax laws governing outdoor advertising in the country rather than the multifariousness presently being witnessed.

From Lagos to Ibadan, Enugu to Port-Harcourt, Kano to Abuja, etc. state governments struggle with their federal counterpart over the control of outdoor advertising. What is the attraction? I hear outdoor advertising is a gold-mine and this may not be far from the truth if people I know in the profession were to serve as benchmarks. Recently, I asked Mr. Ade Bamtefa (the helmsman at Corpavent Limited, another forward-looking outdoor advertising company) who, obviously, has traversed almost the length and breadth of the globe, if multiple taxation was the norm abroad.

According to Bamtefa, “In Europe and the Americas, for example, there are not multiple taxes or levies. You pay to the local authorities while evaluation appraisal and recommendation are made on you and your site if all is right.” However, there is an irritating interference in the outdoor advertising practice which I find absolutely disturbing: the social miscreant phenomenon, a.k.a “area boys.” There is no doubt that it is taking its toll on the practice.

A couple of years ago, I was in a practitioner’s office when two well-dressed men came to be “settled.” The rapport was so surprisingly natural that I could not believe that they were “area boys.” My friend addressed them by their first names and actually saw them off to their Mercedes Benz car after much assurance from the “landlords” that “nothing go touch your board, oga!”

While Bamtefa, like me, believes that the government should protect practitioners from harassment and attack by “area boys” since they diligently fulfill their financial obligations to it, Chijide would rather appreciate a comprehensive and workable rehabilitation programme for youths who have decided to opt for “area boys” lifestyles. There is no doubt that all these distractions will affect the outdoor business. Chijide confesses that the current style of regulating outdoor advertising in Nigeria adversely affects profit margins, creates a clog in the wheel of outdoor advertising progress and eventually leads to delays in the execution of contracts.”

However, Bamtefa is of the opinion that regulation is a necessary evil but cautioned that it (be it voluntary or statutory) be controlled and managed by relevant bodies. That way, according to him, “outdoor advertising practice can be very interesting.” I still salute the courage of our bona fide outdoor advertising practitioners for wanting to be innovative in spite of the intimidations. I commend them for the Wall Scapes, the Roller Visions, the Computer Digital Displays, etc. Of course how can I forget the imposing Bulletins and the awesome Tower Billboards? The Balloons, Motion Displays, Backlits, Lamp Posts, Bridge Posters, etc. hardly give a hint of the frustration these guys are wading through.

Even in the United States, there have been several governmental and legislative attempts to quash the progress of outdoor advertising. Like Nigeria, however, this trend has not prevented America’s outdoor advertising market from continuing to expand and prove itself a viable, effective and an increasingly attractive advertising medium. Unfortunately, cluttering is threatening the professional aspect of the business in Nigeria and I wonder why OAAN should have as many as a whopping 100 companies on its membership list- that is a crowd!

From Catford to Bermondsey, Brockley to Peckham, Forest Hill to Honor Oak, Eltham to Woolwich, Sydenham to Beckenham, High Holborn to Elephant and Castle, Vauxhall to Victoria, Surrey Quays to Charlton, Thamesmead to Abbeywood, Chelsea to Camberwell, Deptford to Plumstead, Leyton to Hackney, all in London, I could not see more than three names behind all the outdoor hoardings. Even when I made it to Manchester and Kent (Lower Rochester, Chatham and Gillingham), Clear Channel and J.C. Decaux clearly dominated ownership.

Asked if our outdoor sector would gladly welcome mergers and acquisitions, Mr. Chijide excitedly replied in the affirmative stressing that it would be the best thing to happen to Nigeria. He strongly opined that it would enable the outdoor market to easily access funds through the stock exchange. The emergence of mega outdoor companies, according to Bamtefa, would help develop the outdoor advertising industry should there be mergers and acquisitions. For him, inviting the likes of Clear Channel, incidentally an American company, to Nigeria in an M&A deal, would not be a terrible idea.

What I saw in the UK was not bad at all though Chijide believes it is better in America. According to him, Nigeria should, in the next decade, strive to be a well-organised outdoor advertising industry as obtainable abroad. What excites him about overseas practices is the fact that practitioners’ hoardings are accepted as collaterals by banks. In Nigeria, your hoarding is a risk, subject to a faceless regulator’s bulldozer! But that should not, according to Bamtefa, discourage practitioners from ensuring that advertisers get value for their money in terms of coverage and impact per Naira.

Though our outdoor advertising practice is not yet comparable to that of countries like the UK, USA and even South Africa, there is hope that things will get better with time.