The President Out-of-Home Advertising Association of Nigeria (OAAN), Mr. Sola Akinsiku disclosed that the Association is overburdened with multiple taxation which is affecting the subsector of the advertising industry.
According to him, with the growth of the sub sector come this cankerworm of multiple taxation and this is the major problems that they have in the subsector of the economy.
Speaking during an interview session in Lagos at the weekend Akinsiku said: “I will like to equate the taxation in our industry with the prosperity for states to discover oil. At a point, I felt convinced, I still feel convinced that some states believe that after oil and gas, it is out- of- home and they expect so much from out of home; the signage agencies, the local governments, the government agencies, all kinds of departments.”
He explained further that there are all kinds of department laying claim to aspects of out-of- home practice for which payment must be made.
“Then you come to the regular tax arena; profit before tax, profit after tax, company income tax, education tax; to put it mildly, I think we’re overburdened with the issue of tax.
“Unfortunately, even the smaller platforms have become unbearably expensive, consequent on the taxation we experience. I don’t know if there is any other segment of the economy that is as heavily taxed as out-of- home. We are heavily taxed,” he added.
Giving reasons why the subsector is being burdened with taxes, Akinsiku said one of the reasons they are exposed to double taxation or multi taxation is because of the regulations from all sides.
He explained further: ARCON is a creation of Law for the regulation of the practice of advertising in Nigeria and the only area that ARCON comes in is in the display that will be on the billboard. Without ARCON’s approval, you cannot have your display on the billboard; it’ll be illegal if it’s not been approved by ARCON.
He added that ARCON does not control the distance between billboards, the size of the billboards, the location of the billboards, and who can install billboards. The only thing ARCON does is to approve the material.
“We would have been comfortable if there was a group that controls, that brings everything together; our own expectation now is that the side of the campaign material to be on the billboard is being controlled by ARCON. Now, let the side that relates to the installation of billboard, allocation of billboard size, who can install billboard, who can have billboard location; let those ones be under a group.
“And we are looking at the possibility of the ministries that are involved, Ministry of Environment, Department of Town Planning and all of that, they should come together and then maybe we have a body of law. Now, for you to have your billboards today, you go to the signage agencies or the local governments departments, which is not too good for us as professionals,” he explained.
On the solution to the issue, the OAAN President said the Association has tried to go through ARCON because the only known body set up by the Nigerian law to regulate and control the practice of advertising in all its ramifications and aspect; but there is a limit to which ARCON can go because ARCON does not have control over the environment and others.
“But what we’re trying to do is create a situation where the subsector of out- of- home practice is even chartered. It is not true to say that outdoor platforms are essentially for advertising, the same way you cannot say that advertising or advertisements or commercials are the basic thing that radio stations or television do.
“So in the main, we can say we do that but there are other things we do. But we are looking at the possibility and we are working towards it; on having a body of law that will charter individuals to go into out- of- home practice.
“It will dignify the practice in Nigeria. It will reduce Charlatanism or remove it completely. It will set the standard from entry point; it’ll protect the interest of advertisers. Therefore, if the practice of out –of- home is now chartered, it becomes illegal for anyone to go into it without having been licensed to do so.
“This industry, practice is where we make a living, so we’re interested in ensuring that that other leg is also protected. We might end up with the National Assembly with a bill for the creation of a chartered body, maybe a body chartered for the control of out- of- home practice that makes it mandatory for individuals that must go into out of home practice to subscribe to the details of that charter.” He disclosed.
On succession plan for the sector, Akinsiku said the issue of succession is a problem in the kind of economy the country has, adding that the problem is not only in out of home, not only in advertising, it cuts across: even in banking. “For our industry, there are companies that have been existing in a long while and they’re still existing. I think it’s more about the objective of setting the company.
“What we do is when we screen new members, we look out for something, the authorized share capital. You must first be a limited liability company, not Just entrepreneur. When you have a limited liability company, chances are that it will outlive the owner.
Speaking on the guidelines for members who want to be chartered, OAAN President explained that it will cover who can have out- of -home media platform, “the level of education that the individual must have, the level of education that the individual will have to acquire, that is, you can be an accountant even if you read law, all you need is to pass the exams and become a chartered accountant. Those are some of the things that’ll be there. It will therefore not be an all comer’s affairs.
On the proliferation of illegal billboards, he said the agencies have a whole lot of work to do in that regard. “Like I said earlier on, out- of- home platforms as an alternative to oil and gas and it becomes the business of the highest bidder. There are states that are looking at stretches of road to concession, not for any particular reason but because they want to make more money.
“But we want them to always put individuals that are practicing on those routes in mind and if there is any new thing they want to introduce, invite them. OAAN, this is our plan, we want to bring state of the art platforms and it is only individuals that can do that, that can practice along this streets. That does not call for giving out routes or concession,” he stated.
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