Hope brightens for OAAN over N1.3b LASAA debt
There is every possibility that monies owed to the outdoor agency operators in Nigeria by the Lagos State government would be paid any time soon. MARKETING EDGE learnt that talks have reached advanced stage between relevant stakeholders for the over one billion naira debt to be paid.
The matter which has dragged on for more than two years with very little chance of being resolves has finally picked up pace as the Presideny is now interested in the quick resolution of the dispute. The Economic and Financial Crimes Commission (EFCC) have also drafted in to investigate the matter and ensure that justice is done.
The liability accrued following Outdoor Advertising Association of Nigeria’s (OAAN) involvement in the 2015 All Progressive Congress (APC) campaign for the Lagos State and the Presidential elections. The outdoor members decided to donate their platforms for the APC campaign when LASAA, through its former CEO George Noah brokered a gentleman deal with the association with an assurance that the debt accrued will be paid once the elections were over. Till date the about N1.3billion debt is still s subject of dispute.
President of the Outdoor Advertising Association of Nigeria (OAAN), Tunde Adedoyin, sounding upbeat about the issue, noted that he was confidence that the money will be paid soon. “We seriously believe that we are going to collect our money, because we are talking to government. We have had series of meetings in the last few weeks about it and it has got to the highest level of authority. I can assure you that we’ll get the money.”
This is the first time in a long while that OAAN President is optimistic about getting the money. Before now, negotiations between OAAN and LASAA had broken down almost irrecoverably, with the Lagos regulatory agency defiantly rebuffing every pleas by the outdoor operators for payment. When LASAA would not bulge, OAAN desperately sought help from the Lagos State House of Assembly. That again failed.
But with the intervention of the Presidency, and the subsequent involvement of the EFCC, there seem to be light at the end of the tunnel for the longsuffering out-of-home industry. MARKETING EDGE learnt that the office of the Acting President has given assurance that the crisis would be resolved amicably and monies owed paid.
This piece of goodnews represent a major boost and opportunity for turnaround for an industry that has been buffeted by a challenging regulatory environment, where exorbitant rate are forced on the operators with little regard for economic realities. The industry has also endured multi-billion naira outdoor budget cut by multinationals who are equally crushed by economic recession. As a result, the sector has been plagued by large number of vacant boards across the country, leading to major revenue losses and increasing job losses.
While the money will make significant on the balance sheet, the industry is certainly not out of the wood yet, large amount of debt are still being owed it members by a good number of companies, including Glo whose debt has climbed up to N300million. The association has responded by placing an embargo on Glo billboard adverts because of the company’s refusal to pay up its debt and the recent unilateral cancelation of contract midway into execution without paying for jobs already done.
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