Covid-19: FG unveils intervention for broadcast industry

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TEXT OF THE PRESS CONFERENCE BY THE HON MINISTER OF INFORMATION AND

CULTURE, ALHAJI LAI MOHAMMED, ON THE INTERVENTIONS BY THE FG TO ENSURE

FINANCIAL SUSTAINABILITY AMONG BROADCAST STATIONS IN THE COUNTRY….IN

ABUJA ON MONDAY, JULY 6TH 2020

Good afternoon gentlemen and welcome to this press conference, which

we have called to announce a number of measures aimed at instituting

financial sustainability among broadcast stations in the country.

As you know, the Covid-19 pandemic has affected all sectors of

the nation’s economy. The Broadcast Industry has been particularly

hard-hit due to falling revenues occasioned by the dwindling adverts

and sponsored programmes, in the wake of the pandemic.

Indeed, on 6 May 2020, I received the officials and other

representatives of the Broadcasting Organizations of Nigeria (BON),

who made a comprehensive presentation on the effects of the pandemic

on the industry and sought critical interventions by Federal and State

Governments.

Gentlemen, the Post-Covid-19 Initiatives Committee for the

Creative Industry, which we set up to help mitigate the negative

effects of the pandemic on the Creative Industry as a whole, has

submitted its report, which contained recommendations that will

benefit all component parts of the larger Creative Industry.

However, without prejudice to those recommendations, I want to

announce today a number of Broadcast Industry-specific measures aimed

at giving a lifeline to the industry which, though largely a business,

continues to function as a critical social service of sorts, which is

relevant to the information and enlightenment needs of the people.

These measures are in addition to the two-month licence-fee waiver granted

to terrestrial broadcast stations in the country by the NBC, as part of efforts

to ease the negative effects of the Covid-19 pandemic on the Broadcast Industry.

According to the National Broadcasting Commission (NBC), many

Nigerian radio and television stations remain indebted to the Federal

government to the tune of 7. 8 billion Naira in total. Also, many of the

stations are faced with the reality that their licenses will not be

renewed, in view of their indebtedness.

Against this background, the management of the NBC has therefore

recommended, and the Federal Government has accepted, the following

measures to revamp the Broadcast Industry and to help reposition it

for the challenges of business, post-Covid-19:-

a) – 60 percent debt forgiveness for all debtor broadcast stations in

the country.

b)◦ The criterion for enjoying the debt forgiveness is for debtor

stations to pay 40 percent of their existing debt within the next 3

months

c) – Any station that is unable to pay the balance of 40 percent

indebtedness within the 3 months window shall forfeit the opportunity

to enjoy the stated debt forgiveness.

d) – The existing license fee is further discounted by 30 per cent

for all Open Terrestrial Radio and Television services effective July 10th, 2020

e) – The debt forgiveness shall apply to functional licensed

Terrestrial Radio and Television stations only

f) – The debt forgiveness and discount shall not apply to pay TV

service operators in Nigeria.

g) – The effective date of the debt forgiveness shall be July 10th

2020 to October 6th, 2020

The Federal Government has made these interventions with a view to

re-positioning the Broadcast Industry to play its critical role of

promoting democracy and good governance in Nigeria. It is our

expectation that the sector will cash in on this unique opportunity to

make itself an effective catalyst for national development.

I thank you all for your kind attention. I will now take your

questions, strictly on the newly-announced measures.

lai mohammed