Former AAAN President, Kelechi Nwosu proposes a roadmap to recovery for OAAN
In a letter that conveys his yearnings and enthusiasm for the development of the outdoor industry in Nigeria; former President of Association of Advertising Agencies of Nigeria (AAAN) Kelechi Nwosu has highlighted possible solutions to the crisis rocking the outdoor industry in Nigeria.
Mr. Nwosu stated in his short but passionate letter to the current President of AAAN Kayode Oluwasona, suggesting that the industry needed a form of stimulant intervention package that included a six-months freeze on payment of charges to Lagos State Signage and Advertisement Agency (LASAA), and another one time cut of between 30 – 50 percent on LASAA fees to give the industry respite from its crushing indebtedness to the regulatory agency.
“I suggest we consider the following starting with Lagos which probably accounts for 40 percent of the market: Agree with LASAA, a moratorium on payment of fees to LASAA for a period of six months. Consider a recession stimulus: One time (for one year) cut of the LASAA fees by 30- 50 percent depending on the size of the hoarding: i.e. the bigger the size, the larger the discount,” the former AAAN President said.
Continuing, he said, “ask OOH practitioners to reflect the payment moratorium of six months for clients (for existing boards); only posting costs to be billed to Clients. Also charge reduced percentage of prices (30-50 percent) for six months only after the moratorium.
“To balance it : LASAA and OOH practitioners will require clients to commit to an 18 month media order at the pre- agreed rates , i.e. the charge will be from the date after the payment moratorium period. This is where the stimulus makes sense and works for all parties,” Nwosu, who is the Managing Director of TBWA Concept, said.
“The above in my view can also be challenged and improved upon. The idea is to do something to get businesses going again in the OOH side,” the agency boss said.
Mr. Nwosu is optimistic that if implemented his proposal will lessen the debt burden which has belaboured the industry and undermined its growth. Many Out-of-Home agencies in Nigeria are struggling for survival having accumulated huge debt in fees payable to LASAA. But no one can say if LASAA will be as optimistic.
The agency has over time maintained a hardline stance to some of the complaints raised by members Outdoor Agencies Association of Nigeria (OAAN). Their call for a reduction in regulatory fees and a structured repayment of debt that allows for a truly flexible payment have not been met with positive response by LASAA.
However, in recent times there have been some compromises from LASAA with regards to offering flexible payment plan and reducing the charges but operators are still not pleased because the fees are still considered too high.
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