LASAA shuns OAAN, insist on payment for backlog

The relationship between Outdoor Agencies Association of Nigeria (OAAN) and Lagos State Signage and Advertisement Agency (LASAA), seems to have gotten even worse, despite an earlier indication of friendship, which led to the setting up of a reconciliation committee earlier in the year.

The committee which is made up of members from OAAN and LASAA was established in the spirit of harmony, and its terms of reference was to address areas of disagreements between both parties, with a view to restoring normalcy, in the overall interest of the industry. But several months after the body was set up, it is yet to have its first meeting.

The General Secretary of OAAN and Managing Director of 21st Century Media Femi Ogala, confirmed to MARKETING EDGE in an exclusive interview recently that the body was yet to have its inaugural meeting. This is despite repeated calls by OAAN members for the committee to meet. No reason has been given by LASAA for failing to honour the meeting.

“We have not been able to meet, we have been asking for a meeting. The last time we were to meet they shelved it,” Ogala said.

The failure of the committee to hold a session and the seeming non-committal attitude of the regulatory agency has ramped up tension in the industry and even further undermined effort at finding a lasting solution to major issues like payment on vacant billboards.

And though LASAA has offered a 70 percent discount on vacant billboard for 2016 as part of effort to encourage OOH operators, OAAN has insisted that it is not enough.

“They tell people they gave us 70 percent discount. The discount does not come until you clear your debt. So is that a discount? You have not earned money and somebody is offering you a discount on this year’s bill, but before i can enjoy that discount i must clear what i owe. Then you don’t want to give him a discount.

“If you want to give him a discount for vacant billboards, give it to him for the ones that are vacant this year, then you give him a payment plan for what he owes you,” OAAN secretary said.

Ogala says OAAN’s inability to pay up its backlog of debt to LASAA is mainly as a result of the economic recession which has forced clients to cut down on their marketing budget. He therefore called on LASAA to agree to a restructuring of the backlog.

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