Tag: rules

  • CBN sets rules for accessing N500b export stimulation cash

    •Apex bank pegs maximum loan access at N5b

    The Central Bank of Nigeria (CBN) has started the implementation of the Non-Oil Export Stimulation Facility (NESF) that will enable non-oil exporters access N500 billion facility.

    The fund is meant to engender growth in the non-oil sector and foreign reserves accretion, but each borrower is not allowed to access above N5 billion loan.

    CBN Director, Financial Policy and Regulation Department, Hassan Mahmud, who announced the policy shift in a circular to banks, said the NESF was introduced by the apex bank to diversify the revenue base of the economy, and to boost the non-oil sector growth.

    He said the scheme will help redress the declining export-financing and reposition the sector to increase its contribution to development.

    He said firms accessing the NESF must be registered under the Companies and Allied Matters Act, have verifiable export off-take contracts and satisfactory credit report from at least two credit bureaux firms.

    He said eligible transactions that shall qualify under the NESF scheme include export of goods processed or manufactured in Nigeria, export of goods and services allowed under the laws of Nigeria, and other structured trade finance arrangements.

    He listed banks and Development Finance Institutions (DFIs)  financial institutions eligible to participate in the scheme.

    Term loans shall not exceed 70 per cent of verifiable total cost of the project subject to a maximum of N5 billion at 10-year tenor, which shall not exceed last December 31. The facility shall be granted at all-inclusive interest rate of nine per-cent per annum while repayment of the principal and interest shall be quarterly and in accordance with the agreed repayment schedule.

    Also, interest charges at the time of implementation or construction phase will be dependent on the status and transactional structure of the projects.

    The CBN statement said: “The Non-oil Export Stimulation Facility (NESF) has been introduced to engender growth in the non-oil sector of the economy and foreign reserve accretion. The facility will help redress the declining export financing and reposition the sector to increase its contribution to economic development.

    “We hereby inform all participating financial institutions that implementation of the NESF has commenced. The following shall be eligible to participate under the facility: Deposit Money banks and development Finance Institutions (DFI).

    “The loan facility will have a tenor of up to 10 years, not exceeding the 31st December, 2027; while, the principal and the seven per cent annual interest will be repaid quarterly and in accordance with the repayment schedule.”

  • CBN suspends new clearing rules for banks

    CBN suspends new clearing rules for banks

    The Central Bank of Nigeria (CBN) has suspended a review settlement banking arrangement to all clearing sessions for banks and merchant banks, expected to begin January 2.

    In a circular to all banks and the Nigeria Interbank Settlement System (NIBSS), CBN Director, Banking and Payments System Department, ‘Dipo Fatoku, said: “Please note that the new policy on extension of settlement banking to all clearing sessions with effect from January 2, 2018 is hereby suspended until further notice.”

    The apexbank’s Monetary, Credit, Foreign Trade and Exchange Guideline, says it can only maintain a Settlement Account for a commercial bank that provides clearing collateral of not less than N15 billion worth of treasury bills. The regulator said achieving the benchmark gives a bank the right to engage in clearing and settlements operations in the country.

    Fatokun had in an earlier circular issued last month, said it was imperative for the banks to extend the settlement banking arrangement to all the clearing sessions.

    Specifically, he said the settlement of net clearing obligations from Central Securities Clearing System (CSCS), cheques, cards Automated Clearing House (ACH), NIBSS Instant Payment (NIP), National Electronic Funds Transfer (NEFT) and other clearing instruments shall be through the account of settlement banks only.

    Besides, such a Settlement Bank, will have the ability to offer agency facilities to other banks and settle on their behalf, nationwide. It will equally have a branch network in all the CBN locations even as the guidelines will be reviewed from time to time.

    It said that banks that meet the specified criteria will continue to be designated as “Settlement Banks”. This implies that non-settlement banks, called “Clearing Banks” will continue to carry out clearing operations through the settlement banks under agency arrangement.

    In the circular titled: Extension of Settlement Banking Arrangement to all Clearing Sessions’, Fatokun recalled that the CBN introduced settlement banking framework on April 1, 2014.

    “The framework categorised deposit money banks into settlement and non-settlement banks. The settlement banks settle their net settlement obligations and that of their non-settlement banks arising from cheque clearing and other instruments during sessions 1 and 2.”

    He said that non-settlement banks should going forward, enter into agency agreement with settlement banks and pledge appropriate collaterals accordingly. “The aforementioned framework has been working well and contributed to the relative stability in the net settlement operations for settlement of clearing sessions 1 and 2 on the Real-time Gross Settlement System (RTGS),” he said.

    “In view of this, it has become imperative for the bank to extend the settlement banking arrangement to all the clearing sessions, with effect from January 1, 2018. Specifically, the settlement of net clearing obligations from CSCS, cheques, cards ACH, NIP, NEFT and other clearing instruments shall be through the account of settlement banks only”.

    The CBN advised settlement banks to update the agency agreements with their respective non-settlement banks. “Merchant banks that do not have settlement banks should appoint a settlement bank and inform the CBN Director, Banking and Payments System Department on or before December 15, 2017 with a copy of the letter from the settlement bank, accepting to settle for them,” it said.

  • CBN sets clearing rules for banks

    CBN sets clearing rules for banks

    The Central Bank of Nigeria (CBN) has reviewed the settlement banking arrangements for banks and merchant banks.

    The CBN’s Monetary, Credit, Foreign Trade and Exchange Guideline says it can only maintain a Settlement Account for a commercial bank that provides clearing collateral of not less than N15 billion worth of treasury bills.

    The apex bank said achieving the benchmark gives a bank the right to engage in clearing and settlements operations in the country.

    In a circular to all banks and the Nigeria Interbank Settlement System (NIBSS), CBN Director, Banking and Payments System Department, ‘Dipo Fatoku, said it had become imperative for the banks to extend the settlement banking arrangement to all the clearing sessions, with effect from January 1, 2018.

    Specifically, he said the settlement of net clearing obligations from Central Securities Clearing System (CSCS), cheques, cards Automated Clearing House (ACH), NIBSS Instant Payment (NIP), National Electronic Funds Transfer (NEFT) and other clearing instruments shall be through the account of settlement banks only.

    Besides, such a Settlement Bank will have the ability to offer agency facilities to other banks and settle on their behalf, nationwide. It will equally have a branch network in all the CBN locations.

    The guidelines will be reviewed from time to time.

    It said that banks that meet the specified criteria will continue to be designated as “Settlement Banks”. This implies that non-settlement banks, called “Clearing Banks” will continue to carry out clearing operations through the settlement banks under agency arrangement.

    In the circular titled: Extension of Settlement Banking Arrangement to all Clearing Sessions’, Fatokun recalled that the CBN introduced settlement banking framework on April 1, 2014.

    “The framework categorised deposit money banks into settlement and non-settlement banks. The settlement banks settle their net settlement obligations and that of their non-settlement banks arising from cheque clearing and other instruments during sessions 1 and 2.”

    He said non-settlement banks should going forward, enter into agency agreement with settlement banks and pledge appropriate collaterals accordingly. “The aforementioned framework has been working well and contributed to the relative stability in the net settlement operations for settlement of clearing sessions 1 and 2 on the Real-time Gross Settlement System (RTGS),” he said.

    “In view of this, it has become imperative for the bank to extend the settlement banking arrangement to all the clearing sessions, with effect from January 1, 2018. Specifically, the settlement of net clearing obligations from CSCS, cheques, cards ACH, NIP, NEFT and other clearing instruments shall be through the account of settlement banks only”.

    The CBN advised settlement banks to update the agency agreements with their non-settlement banks. “Merchant banks that do not have settlement banks should appoint a settlement bank and inform the CBN on or before December 15,” it said.

  • Shareholders back NSE’s  one-kobo pricing rules

    Shareholders back NSE’s one-kobo pricing rules

    Retail shareholders have expressed support for the planned implementation of a new pricing rule that will allow stocks on the Nigerian Stock Exchange (NSE) to trade below their nominal value and as low as one kobo.

    The Nation had reported exclusively last week that the NSE has concluded arrangements to begin implementation of new pricing rules that will remove the current stopgap that has supported stocks at their nominal value and allow shares of quoted companies to trade as low as one kobo. The new rule shall stake effect on Monday January 29, 2018.

    President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar said the new rule will lead to more effective price discovery at the stock market.

    “It is good, there are many stocks that are not worth more than one kobo at the market but currently pegged at 50 kobo because of the nominal value rule,” Umar said.

    National President, Constance Shareholders’ Association of Nigeria, Mr. Shehu Mikail, said the new pricing rule may lead to increased liquidity in the dormant stocks since new price discovery may encourage investors to take risks in the low-priced stocks.

    According to him, the new pricing rule may enable dormant companies to attract new investors who are looking for bargains.

    “The new rule will create opportunity for most of the companies that have not been traded for a long time to come back on board. It may also make directors of the companies to take their share prices more serious,” Mikail said.

    However, Chairman, Standard Shareholders Association of Nigeria, Mr. Godwin Anono, said the new rule will lead to more losses for investors, urging the Exchange to sustain the current rule that limits price decline to the nominal value.

    He described the new rule as a double-edged sword that can fuel hostile acquisitions and cause disruptions in the market.

    He said the Exchange should focus on providing more accurate information about the market and protecting the integrity of the market rather than tinkering with rules.

    “It is another way of grounding a lot of companies. Leave it at 50 kobo, there are many ways of stimulating price discovery, it is not good,” Anono said.

    Under the new pricing rules, share prices shall be allowed to trade as low as a floor price of one kobo. The new rule will effectively remove the current rule which places minimum allowable price to trade for any stock at its nominal value, irrespective of the market forces.

    The new rules stipulates that “notwithstanding its par value, the price of every share listed on the Exchange shall be determined by the market, save that no share shall trade below a price floor of one Kobo per unit”.

    Par value is the nominal value of a share as stated in the Memorandum of Association of the company while price floor means the amount below which the price of one unit of a share shall not be permitted to trade, and the minimum amount which must be paid for a share in the event of a drop in the unit price of that share.

    Regulatory documents obtained by The Nation had indicated that the amendments to the pricing technology at the stock market will also see a categorisation of quoted companies under three groups with different pricing rules.

  • Ensure compliance with rules, regulations, Ortom urges HoS

    Ensure compliance with rules, regulations, Ortom urges HoS

    Benue State Governor Samuel Ortom has urged the new Head of Service, Mr George Edeh, to ensure compliance with civil service rules and regulations.

    He gave the advice yesterday at the swearing-in of Edeh, who replaced the former Head of Service, Mr. Inwata Adaikwu, who retired recently.

    Governor Ortom noted that the appointment came at a time that the service was facing many challenges which included indiscipline, non-commitment to duty, absenteeism and dwindling performance.

    He said Benue State, like many others in the country, was also passing through difficult times with paucity of funds which has slowed down the momentum of service delivery to the people of the state.

    “The development demands sacrifices, more commitment and renewed zeal by all civil servants in the discharge of their duties”, he stated, adding that “the new Head of Service will be required to focus attention on these areas”.

    “The service is a system that is deeply rooted in rules and regulations which are well spelt out, consequently, its leadership has to ensure compliance with all these in addition to providing motivation and guidance”.

    “We are happy to note that Edeh is coming into office with many years of experience not just as a civil servant but as a permanent secretary and we believe that he will create effective synergy between his office and other key functionaries of our administration”, Governor Ortom stressed.

    He assured that the committee set up on the State of Emergency on salary payment had already swung into action on the matter.

    “In view of all these, we call for continued support, patience and understanding of all as we attempt a multi-faceted approach to address this challenge”, he said.

    In his response, the new Head of Service expressed gratitude to Governor Ortom for his elevation and pledged to work for the success of his administration.

     

     

     

  • Be guided by rules, registrar tells lab institutions

    Be guided by rules, registrar tells lab institutions

    The Acting Registrar/CEO of Medical Laboratory Science Council of Nigeria (MLSCN), Tosan Erhabor, has urged Colleges and Schools of Science and Technology to stick to their areas of jurisdiction at all times.

    He made the call while presenting certificates to 10 approved schools and eight others that received full accreditation  in Abuja.

    Erhabor told the gathering that the the institutions were approved   after a rigorous process,pledging its support in the training of technicians.

    Erhabor said although the council had issued similar certificates in the past without fanfare, it decided to do things differently in tandem with the change mantra of the present administration. He urged them to guard their reputation jealously.

    “Your official conduct and the quality of your training will have a far-reaching implication on how the council is perceived as a regulatory body,” he said.

    Noting that the institutions are manned by people with high pedigree, Erhabor urged those in charge to bring their wealth of experience to bear on the quality of training available to the students, adding that the institutions were established to reduce the shortage of middle-cadre manpower in the country. This, he said, is line with the government policy to take primary healthcare closer to the people by building at least one functional Primary Health Care (PHC) centre in every ward in the country.

    Erhabor said the council would not deter any institution from accomplishing their goals provided such is done within the ambit of the law, but warned: “Your relationship with the Council is that of the regulated and regulator, and the lines must be respected at any given time.”

    He said the MLSCN Act 11 of 2003 empowers the Council to ensure that all cadres of competent and well trained medical laboratory personnel are available in every nook and cranny of this country,  “You must, therefore, help to change the narrative of rural areas, as not being fit for purpose, bearing in mind that 70 percent of our citizens live there, and they are part of the citizens we are trained to serve,” he said.

    He enjoined the training institutions to continue support for the council to achieve its mandate as he promised that Council would continue to upscale the quality of its services to clients and stakeholders.

    Replying on behalf of the training institutions, Mr Seni James Barka representing Gombe State College of Science and Technology, Katungo, Gombe State, expressed appreciation to the Acting Registrar/CEO and his team for giving them the opportunity to contribute their quota to the growth of the medical laboratory services sector, adding that the occasion was the first of its kind. He promised that the training colleges would not let the Council down.

    Certificates of approval were presented to 10 Colleges to commence the training of medical laboratory technicians, while eight received certificates for full accreditation.

  • Thou must play by the rules

    Thou must play by the rules

    Unpopular marketing approach or de-marketing of rival brands has become a ritual, especially in major cities, such as Lagos. WALE AJETUNMOBI writes that players must obey the rules to avoid making consumers panic unnecessarily

    It started with a video. And the impression any unsuspecting viewer of the video went away with was that he should avoid Amstel Malta, a malt drink produced by the Nigerian Breweries. Consumers, such as Mrs Tosin Kesington, a teacher in Igbogbo, a suburb of Lagos, truly believed there was a fake Amstel Malta in town. But the truth is: there was nothing of such.

    While experts say there have been instances of faking of popular products, such as Close Up and Seaman Schnapps,  the new tactic is to create the illusion of a faked product when there is nothing of such, which saw not a few consumers avoiding the product because of the fear that they could end up consuming the faked version.

    What is clear, following investigations, is that competitors were only looking for ways to cut rivals to size.

    Amstel’s trouble has a root in a campaign it launched last August.  The credential campaign #WhyAddMore# was to reflect the new NIS logo of the by the Standards Organisation of Nigeria (SON). The difference in logos was all the makers of the video latched on to make consumers believe they should flee from Amstel.

    Soon after this, consumers were greeted with another offensive video of an Amstel Malta can drink allegedly containing a strange object. A faceless consumer recorded an alleged contaminated drink and circulated it on social media.

    Nigerian Breweries reported the defamation attempt to the security agencies for further investigation. The SON, the statutory body that is vested with the responsibility of standardising and regulating the quality of all products in Nigeria, debunked the fake Amstel Malta claims.  Its Deputy Director, Mr. Fred Akingbesote, who represented the Director-General, told reporters in Lagos that Nigerian Breweries met all SON safety and quality requirements and complied with all requirements of the new National Industrial Standard (NIS) logo. He added that the people behind the defamation were playing on the intelligence of Nigerians.

    “We have a web site (www.son.gov.ng) which contains all information on our standards and quality regulations. Every Nigerian who has doubts about any product certified by SON should crosscheck the facts,” he said.

    Forensic and marketing analysts have also observed that it is very clear that the same source that initially created a video of a purported  ‘fake ’ or ‘original’ Amstel is the source of the video of discovery of foreign content in an Amstel Malta can.

    Analysts and observers agreed that this might be coming from the enemy’s camp as the recording left many gaps to cast a doubt on the genuineness of the video. For instance, the can was opened before the video recording, thus failing the basic test of validity.

    Experts’ summations on the video are: “The can was not transparent for a consumer to see the content before pouring it. It is technical impossible to have a foreign object in non-reusable container like a can. The content was poured into a bowl instead of a cup ready for drinking. The content was not foaming like the normal Amstel Malta.  All the persons in the video were faceless. The video camera was targeted severally at the can to flash the logo of the product to cause more damage to the premium brand. The ‘consumer’ did not tell us how he got to know that there was an object in the can. There was no mention of where it was bought or any intention to confront the retailer.”

    A Lagos-based marketing analyst submitted last week:  “The video is nothing but another dimension to our usual ‘PHD’ (pull him /her down) attempt characteristic of people on the floor. Let us spoil a good name if we can’t be as good. It is therefore surprising that anybody would want to attack the reputation of one of our premium products whose market leadership is undisputable in its segment.”

    Nigerian Breweries Plc Corporate Affairs Adviser Kufre Ekanem explained that the Amstel Malta was one of the first brands to comply with SON directives. He added that the brand revised its packaging in line with the guidelines and approval of National Agency for Food, Drug Administration and Control (NAFDAC) and in compliance with the new mandatory NIS quality logo from the SON.

    “In the normal course of product and packaging renovation, old packaging and the new introduction co-exist in the market until the old one dries out. In view of the twelve month shelf life, we currently have Amstel Malta with both the old and new packaging in some parts of the market,” Ekanem said.

    He maintained that Nigerian Breweries is a world class multinational company that has operated in Nigeria for over 70 years and that the quality of its brands has been one of the key success factors of the company across these decades.

    “Every pack of Amstel Malta is produced to the highest quality-control standards of Nigerian Breweries,” he said.

    Also, the company through the hash tag; #stillthesame# sensitised the public.  In one of its facebook posts, it explained that “As per NAFDAC & SON regulates, our pack has changed slightly. But don’t worry; it’s the same premium Amstel Malta You Love.”

    That was after the first video. The second video later surfaced, giving the impression that a competitor just chose not to play by the rules.

    A marketing lecturer at the Ahmadu Bello University, Zaria, Dr. Farouk Abubakar, said: “Brand wars are not alien to this part of the world. Brand promoters are known to fight dirty when their brands are at the receiving ends. Could this be as a result of that?”

    An industry observer, Mr. Aniete Udoh, said Nigerians must be careful about believing everything on the social media, especially when it has to do with consumers’ interest.

    Udoh said: “Sadly, social media has become a dumping ground because access to it is unregulated and free. Looking at the recent video used to spread the adverse campaign against Amstel Malta, one would observe that it was a calculated attempt to give a negative image to Amstel Malta, which is known to currently occupies the leadership of its segment in the market.”

     

  • NAF rules ok!

    Hardball sure has a few things in common with Africa music legend Fela Anikulapo-Kuti. Hear, hear, you probably sneer, my dear reader but don’t we all love to associate with greatness? But if you knew Fela in his heyday and if you are a regular reader of this small strip, you would no doubt have noticed the glaring similarities in constitution, character and temperament of Fela and Hardball.

    Let’s try a shortlist: Fela was audacious in a rather rambunctious manner. He was supremely confident and self-assured in the pursuit of his convictions. It did not matter to him whether you were a military of civilian president; it did not matter the shade of colour of your uniform and indeed it bothered him not whether you were bearing a machine gun or a horse-whip.

    He loathed injustice and would not only spot it miles away, but would pursue it with the single-mindedness of a train-robber just to win succour for victims. It was his life passion. So also was pulling down all the high, shiny, façade of hubris and of course roiling inept governments too. Remember it was Fela at his brilliant best who described uniform as mere cloth made by mere tailor. He also sang about “Army Arrangement”, “Unknown Soldier” and the inimitable “Zombie,” among numerous other timeless masterpieces.

    Hardball has done some too in his own little way and on this small piece of space. He has taken on presidents both sitting and expired. He has poked his grubby nose into the affairs of all manner of compatriots, especially such affairs that are ribald and injurious to our collective well-being.

    One such is the matter at hand today which concerns men of the Nigeria Air Force (NAF). Last Sunday, a detachment of NAF at the airport in Lagos behaved in a manner we know too well. They forgot that as the great Fela said long ago, uniform na cloth made by tailors; and Hardball can add that guns are toys just any man can carry.

    Why are we saying this? A group of NAF men (described as officers, but Hardball doubt that officers would be in such a duty post) had pounced on one Muhammed Shuaibu, said to be a protocol officer of the Federal Airports Authority of Nigeria (FAAN) and beat him to a pulp. If the NAF authority had remained mute and unknowing, Hardball would have forgiven them for honestly being mute and unknowing. But in an official response to the victim’s cry for justice, NAF spokesman, described as Command Public Relations Officer, Logistics Command, NAF, named Joel Abioye, told us that Shuaib was beaten (not to a coma though as he pretends) by his men for “breaking the rule” and seeking to use his position to outsmart his men.

    Dear reader, be informed that this bloody turf war happened right in front of the departure area of our international airport. A dozen and one questions beg for answer. One, what are armed Air Force officers doing around the airport directing traffic? Two, why is our idea of security always about persons in uniform bearing arms? Three, is this how other countries secure their airports? Four, are NAF officers trained to brutalise fellow citizens who break their “rule”?

    Let’s just say NAF rules ok at the airport!

     

  • Board to issue rules for accessing $600m fund

    The Nigerian Content Development and Monitoring Board (NCDMB) is to roll out new guidelines for accessing the $600 million Nigerian Content Development Fund (NCDF), its Executive Secretary,  Simbi Wabote, has said.

    He spoke at the Sixth Practical Nigerian Content Conference in Abuja.

    Noting that operators had been complaining about problems in accessing the fund, Wabote said the guidelines would remove barriers.

    He said the fund had grown over the years, adding that six companies had accessed it. He did not list them.

    Wabote said: “I must say that it is not directly giving money to those six Nigerian contractors; it is about guaranteeing some of the loans that they got from the banks because we are not a funding institution.

    “Not much has been expended from that fund for capacity development. Part of the strategy of this new board is to come out with a very transparent process through which genuine Nigerian contractors involved in the oil and gas sector will have access to the fund.’’

    The Board pledged to expand its operations to the midstream and downstream sectors of the oil and gas industry in line with Section 106 of the Nigerian Content Act.

    Wabote listed the Floating Production Storage Offloading (FPSO) integration yard of LADOL in Lagos, which carries part of Total’s Egina FPSO, as one of the great achievements of the Nigerian Content. The project will begin operation between next year and 2019.

    Besides, Wabote said the Board would unveil a five-year roadmap that would chart a new Nigerian Content implementation path to increase value addition in the industry.

    He confirmed that the Board was rejiging the Nigerian Oil and Gas Parks Scheme (NOGAPS) to domicile oil and gas components manufacturing close to oil fields and involve local businesses in operations.

    According to him, the sites for the parks have been acquired while designs will soon begin. “We have set a timeline for every milestone we intend to achieve in the next couple of months; at least we should have one up and running to test the benefits before we replicate,” he said.

    The NCDMB chief said the major focus of the Nigerian Content Law was not “Nigerianisation” of the  sector, but “domiciliation” of value-adding activities.

    He said there were investment opportunities in fabrication and construction; manufacturing of component parts, equipment,  spare parts, accessories, drilling fluid, sub-sea production systems, line pipes, and personal protective equipment (PPE), among others.

    “While some people are worrying about the money they have contributed, many are not making their contributions as enshrined in the Act. This board will look at strategies to make them comply with the provisions of the Act,” Wabote said.

  • Ad operator decries stiff rules

    Ad operator decries stiff rules

    Troyka Group Chairman Biodun Sobanjo, has called for mergers and acquisitions in outdoor advertising to survive the harsh economic climate.

    Sobanjo, who spoke at a poster award by Outdoor Advertising Association of Nigeria (OAAN), said to get out of the woods, outdoor advertising players should seek mergers and acquisitions, just as in banking.

    Complaining about the proliferation of outdoor agencies  when the sub-sector is facing an all-time slump, which has led to job loses and closure of some agencies, Sobanjo said stakeholders should consider a merger.

    He said:“When you have an economy that is no longer vibrant, one of the first casualties is the integrated marketing communications sector, which is why operators have to innovate or die. There is no reason to have so many outdoor agencies choking the industry when they could converge to be stronger and more efficient.”

    According to him, like other developed economies, France has five out-of-home agencies. The same goes for many other civilised countries. Sobanjo said over-regulation is also killing the industry, noting that  no global outdoor organisation would want to practise in Nigeria because  regulations would ‘kill them’.

    He said: “What we are saying is: it is time for us, regulators and operators, in this sector to come together in order to understand the industry. Currently, OAAN members are paying 50 per cent of their revenue as rate cost.”

    Information Minister, Alhaji Lai Mohammed, who was represented by the Registrar, Advertising Practitioners Council of Nigeria (APCON), Alhaji Garba Bello Kankarofi, said the government wiould create the enabling environment for the practice of outdoor advertising.

    OAAN’s President, Mr Tunde Adedoyin, said the unfriendly business environment has endangered profitability in the industry.

    He said: “Primary among the issues that have seriously challenged our practice is the emerging unfriendly environment to profitably engage in outdoor advertising practice in Nigeria, occasioned by the almost suffocating regulations, very high financial demands by way of outrageous and unjustifiable permit fees. Policies of the signage and advertising agencies and their likes that have now mushroomed across the country both at the state and federal levels leading clients to either cut down drastically on their budget or out rightly abandon us for other media platforms such as digital media.”

    However, he said there was need for stakeholders including the regulators to come together and pull the outdoor advertising business out of the woods.

    He said: “What we are saying is it is time for us in this sector to come together, regulators and operators, in order to understand the industry. Currently OAAN members are paying 50 per cent of their revenue as rate cost.”