In a bid to address the economic challenges facing the broadcasting industry, the new Director-General of the National Broadcasting Commission (NBC), Charles Ebuebu, yesterday engaged stakeholders in Abuja for a way forward.
The NBC DG, dur?ing the ?Interactive Stakeholders meeting yesterday, ?explained that the new NBC would move to meet emerging economic challenges in the country as it affects the Broadcasting, as requested by the Chairman of the Independent Broadcasting Association of Nigeria (IBAN), Alhaji (Dr.) Ahmed Tijjani Ramalan.
He ?further said he will also soon consider and propose the review of the 2.5% gross revenue remittance imposed on broadcast stations in Nigeria in the Review of the NBC Code 6th Edition.
IBAN Chairman, Ramalan, who is the Executive Chairman of Liberty TV/Radio FM Stations, in his contributions, said the negative impact of the removal of fuel subsidy, wave of the incessant insecurity in land and its impact on the economy, 300% hike in power tariff, high cost of diesel, uncertain Forex rates, reduction of Media Budgets by Clients’ media agencies and Federal and States MDAs and many other factors has seriously disrupted business in the broadcast industry.
He urged for a review of the 2.5% gross revenue remittance on broadcast stations.
The IBAN Chairman said this proposal aims to alleviate financial burdens exacerbated by factors such as fuel subsidy removal, insecurity, and soaring operational costs.
According to him, therevenue-generating capacity of the industry hasbeen adversely affected. Consequently, the industry is currently faced with the great challenge of paying monthly staff salaries as well as meeting huge operational costs.
Ramalan further said, “The reality is that most broadcast stations are barely in business, and some that are operating for few hours in the day and/or are about to shut down.
“We have a combined direct and indirect workforce of over 1,000,000 staff; despite financial pressures, most of us are doing everything possible to keep these workers in employment while awaiting the promise of the Hon. Minister of Information for the survival and Intervention Fund for the Creative and Media Industry and also access to the N200billion to energize the MSMEs by the Bank of Industry, (BoI).
“At this critical point that the President Bola Tinubus ‘Renewed Hope’ administration is working assiduously to address the scourge of unemployment, poverty and insecurity. We cannot afford to aggravate the situation by growing the unemployment market. The positive multiplier-effect on the economy of sustaining this huge workforce in our employment should be considered as a necessary sacrifice.
“We have supported the administration in diverse ways, including using our vibrant platforms on Corporate Social Responsibility (CSR) to mobilise support for policiesand programmes of the administration.
“The current situation whereby members are hugely indebted to NBC, even with the Ministerial Waiver of some percentage, should be seen as clearly inevitable and not a deliberate infraction, as we seek the NBC to assist us with a total Ministerial Waiver, in view of present predicament we all found ourselves”.
The IBAN Chairman further said: “Beyond the loss of jobs and slash in pay; furlough and closure of media outlets are also dangers recently permeating the media industry.
“The media, being a service industry, is badly affected by the economic crisis; and there has been a drastic fall in income for TV, Radio stations, journalists and newsrooms. Only the Federal and states-owned TV and Radio Stations may not be adversely affected due to the provision of the States budgetary provisions subvention and grants.
“Most broadcast media organizations have resorted to salary cut for employees (as low as 20-40% of actual salary) and/or sending staff on months compulsory leave. Many Broadcast Media organisations who have taken these measures are equally not happy, but the present financial crisis has necessitated such actions.
“However, it is important to note that this financial downtimes are affecting the morale of our management and staff”.
Dr. Ramalan also stressed that, “Besides, the Nigerian broadcast media houses also go through the sacrosanct responsibility of updating the citizens with variants ofnewsstories on Government activities, security issues, finances, politics, and election updates, etc.
According to him, the present financial jeopardy of Broadcast media houses must be met with a hybrid of Federal Government financial intervention to the media.
He said, “Recently, the FG has committed a 500billion naira (3.3 billion dollars) to the aviation industry and spent over 3trillion naira in the last 8 years, bailing out banks according to our investigation. Similarly, such benevolence should be extended to the news and media industry”.
PROPOSED REVIEW OF NBC CODE
Ramalan further appealed to the NBC towards reviewing and implementing the NBC Code and New Licence Regime tograciously commence the immediate implementation of the full provisions of Chapter Nine of the NBC CODE 6th Edition, as follows:
TIERS OF BROADCASTING
a. Public Broadcasting
b. Commercial Broadcasting
c. Community Broadcasting
Pursuant to the Federal Government’s commitment to the African Charter on Broadcasting, Nigeria Broadcast Policy document, and in response to calls for media independence, Freedom of Information, universal access to information and the need to enhance democratic culture and values, broadcasting should be in public interest and contribute to the socio-economic and cultural development of the country.
NBC DIGITIZATION ROLL-OUT FOR TV AND RADIO
Ramalan, while briefing the stakeholders, said, “As the world is witnessing a shift from traditional radio broadcasting to digital platforms it is now time for the ‘Renewed Hope’ Federal Government and National Broadcasting Commission (NBC) to invest in the Super Structures in order to key-in to the new global broadcasting techniques as part of the digitalization programme for the Radio alongside the Digital Switch-Over, (DSO).
DSO FOR RADIO
–Digital Radio Mondiale (DRM)
The DRM Terrestrial Radio Broadcasting Standard has been created by Broadcasters for broadcasters.
A case study is the Digital Radio Mondiale (DRM), which is a new digital receiver manufactured to replace the analogue receivers for effective and complete digitalization of those countries that are committed to the digital radio rollout. Reports say that DRM can save broadcasters up to 80% in energy and maintenance costs.
– Digital Audio Broadcasting Standard (DAB)
Digital Audio Broadcasting Standard is a Digital Radio standard for Broadcasting Digital Audio Radio Service in many countries around the world. Also, a BBC research shows DAB is the most energy-efficient radio platform.
The findings of this research are now being shared far and wide to educate the community and seek change through industry collaboration.
DSO TV
The Digital Switch Over, (DSO), and Media Development.
On the DSO, he said is the most discussed issue in the broadcast sector in Nigeria, largely because its a global pact by all member countries of the International Telecommunications Union (ITU) for all signatories to exit analog transmission of signals and embrace digitization, which frees well sought-after spectrums for other valuable uses in all countries.
Nigeria had pledged to comply by the year 2012. As we speak, we are nowhere near of 15% of where we ought to be.
It is about the slowest moving project in Nigeria. It is mired in different shades of controversies.
It is unfortunate that a project that has the potential to revolutionize the growth of television and Radio in Nigeria, open the space for more players, frequencies, reduce the cost of operations, deepen and broaden content development, and importantly, level the playing field for advertising patronage, is caught in the web of intrigues and incompetence.
For the DSO to succeed, in our view however, a new Business model must be put in place by NBC, to be agreed by all Stakeholders
ADVERTISING REVENUE AND MEDIA RATINGS:
He said Industry watchers say about the sum of N200 billion is in actual circulation as advertising spend in Nigeria before the present Economic Crisis; that was when private and public sectors spending are combined.
For most advertising big brands from the private sector, their media-buying is determined by media ratings. However, most of the clients and agencies informed some members that due to unfavourable economic climate, their clients have reduced about 50% of their Media 2024 Budget, which is currently affecting most IBAN members in the six zones.
Media Ratings
The dominant broadcast media rating agency in Nigeria is the Media Planning Services (MPS). Subscribing to their monthly ratings and demographic data is essential to being in the loop, and in line of sight of the media-buying agencies and clients.
NBC may need to facilitate an NBC/ARCON/IBAN/BoN/MPS Meeting to bring about a more scientific method by MPS in their field demographic surveys.
ARCON
The DG NBC and Executive Secretary of ARCON to assist and intervene as our Regulators regarding prompt settlement of advert revenues to stations immediately after satisfactory completion of 90 Days of the Media Order.
With over a million direct and indirect employees at risk, stakeholders emphasised the urgent need for government intervention and the implementation of the NBC Code’s provisions to sustain the industry’s workforce and operation.
Key Points for Consideration
1. Reviewing the 2.5% Gross Revenue Remittance on Broadcast Stations.
2. Implementing Chapter Nine of the NBC Code 6th Edition.
3. Digitization Roll-out for TV and Radio, focusing on the Digital Switch Over (DSO).
4. Addressing Advertising Revenue and Media Ratings challenges.
5. Collaboration between NBC, ARCON, IBAN, and other stakeholders to facilitate industry growth and sustainability.
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