HASG rejects FG’s order on adverts on foreign media channels

The Heads of Advertising Sectoral Groups (HASG) has rejected the Federal Government’s order on adverts on foreign media channels.

The HASG as a body is made up of Advertisers: Advertising Agencies, Media Agencies, Marketing Activation Agencies, Out-of-home Media Agencies and Broadcasting Company groups stated via a press release signed by the HASG and made available to the media in response to the minister’s statement, explained that advertisers put their advertising investment where the eyeballs of Nigerians are.

“The media decisions are driven by the consumers’ interest, passion, inspiration and aspirations. CNN and other international news channels are watched by Nigerians locally and internationally, the world is now a global village and Nigerians do not only live within our physical boundaries. Nigeria based news channels and contents developed locally are also consumed across many countries beyond our borders, with no special fines and levies imposed on companies who place adverts within them” they stated.

While understanding the merits of supporting the local industries, the HASG still urged the Minister to allow the support for locally produced content develop organically sighting the example of the Nigerian music and entertainment industry, as well as the movie industry, which only developed through organic growth and creativity of the practitioners and not by forced legislative fiats.

They stated that the government can support the growth of the industry by funding it in the areas of technical infrastructure, content development grants, and investment in tools of measurement of advertising effectiveness and efficiency.

The HASG further urged the Minister as well as the National Assembly to engage and involve the industry players and practitioners more, especially in formulation and development of policies that will affect the industry.

Federal government had said that it will impose a fine of N100,000 each time any Nigerian brand that create their adverts abroad but broadcast them on CNN and other international stations broadcasting in Nigeria.

The government also said that local brands which run adverts during foreign matches must compulsorily advertise during Nigerian Premier Football League games.

Lai Mohammed, minister of Information and Culture, who stated this on NTA’s ‘Good Morning Nigeria’ programme on Monday, said this was one of the rules included in the Broadcasting Code which has been rejected by many in the industry.

Mohammed, also said that measure was the only way to help the local league thrive.

He said, “Let’s assume you have brought in La Liga, and during the matches, Guinness is advertised, we will compel you, we will compel Guinness to also advertise when we are playing a local league. That is the only way we can grow this industry but as can be expected, we have had very few supporters.”

He said in the event that the brand wants to run the advert on a local station like NTA, the brand would pay a N100,000 fine each time it is broadcast.

Mohammed added that adverts promoting Nigerian brands must be directed and authored by Nigerians inside the country.

The minister said  “If you do an advert in South Africa, you put it on CNN and we look at that advert and we see that the advert was not made in Nigeria but actually made in South Africa, or you see that five times a day, it is on CNN, you pay half a million to us. The half a million will go to the Content Development Fund.”

He further stated that the NBC had been asked to implement a regulation mandating exclusive licensees and broadcasters to share exclusive rights with other broadcasters.

Mohammed said this policy would ensure that Multichoice would no longer have the monopoly of broadcasting the English Premier League.

The minister added, “What is common today is to see products made in Nigeria but the advert for those products are actually probably done in South Africa or in the US. So, we amended the code to say that if a product you want to advertise in Nigeria territory is made in Nigeria, grown in Nigeria or processed in Nigeria, then you must make sure that the advert is also produced in Nigeria.

“Gulder is made, processed in Nigeria. If you go to South Africa to produce an advert which you are going to air to Nigerians because Nigerians consume Gulder, what we have amended the code to say is that for every time that advert is aired in Nigeria either on radio or television, you pay a fine of N100,000. We are not stopping you from making your production in America or South Africa but if you are going to advertise in Nigerian territory, you will pay a fine of N100,000.

“In other words, if Gulder makes an advert in South Africa and it is shown on NTA, if it shows it 10 times a day, it will pay N100,000 fine 10 times.”

Mohammed pointed out that if any Nigerian company invests in a foreign league, the firm must invest at least 30 per cent of that money in Nigerian football.

“We went further to say that if a company should invest $1m in bringing EPL to Nigeria, that company must also be ready to spend 30 per cent of that $1m in producing a local content along the same line.

“In other words, if Maltina or Guinness decides to bring in EPL, which is English football, we have no problem with that. But they must also invest in covering our local league to the tune of 30 per cent of what he has paid,” the minister said.

Mohammed argued that until the anti-competitive and monopolistic tendencies are expunged from the broadcast sector, Nigeria would not be able to grow local content.

“The NBC has issued about 30 pay-TV licences but only one is managing to survive. Why? Because of these anti-competitive and manipulative tendencies of these foreign companies,” he explained.