As Fresh Crisis Looms in Lagos Outdoor Sector

Raheem Akingbolu writes on the recent appeal made by the leadership of the Outdoor Advertising Association of Nigeria to Lagos State Governor, Babajide Sanwo-Olu, over some regulatory issues in the Lagos outdoor corridor and its likely implication

Since 2006 when Lagos State Government established the Lagos State Signage & Advertisement Agency (LASAA), as part of the state’s revenue driven approaches, there has been a trust issue between the agency and members of the Outdoor Advertising Association of Nigeria (OAAN).  After a series of court cases involving overlapping functions, multiple taxations and regulatory arrogance, the two bodies have, in recent times, retreated. 

Despite the quietness from both sides, it has been established that there still exists a cold war between the agency and the practitioners over vacant board discount policy, road concession and other issues. Under the administration of former Governor Akinwumi Ambode, LASAA hosted a stakeholders’ forum with the aim of resolving the lingering issues. The then Managing Director of LASAA, Mr. Mobolaji Sanusi, had earlier met members of the OAAN and sued for peace.

He also revealed his plans to breathe fresh air into the agency. Few weeks later, the relationship appeared chummy with frequent engagements, both virtual and physical but it was not long before it crumbled again.       

After months of cat and mouse relationship between the current leadership of both bodies, OAAN has come out from its shell, urging the Lagos State Governor, Babajide Sanwo-Olu, to prevent a looming crisis between its members and LASAA.

LASAA and Its Regulatory Functions

As a regulatory agency, LASAA was established to redefine the aesthetic landscape of Lagos as well as promoting global best practice in the industry. Over the years, the agency’s internal processes have been improved while seamless business processes have been put in place to bring about improved service delivery, revenue generation and debt recovery. Again, for easy accessibility, the agency’s branch offices have been realigned. 

According to a document that speaks to the functions of the agency, LASAA is; “responsible for the management, regulation and control of the signage and outdoor advertising environment in Lagos State. By implication, we are responsible for managing all forms of signage and outdoor branding opportunities in the state.”

The agency has “embarked on the implementation of a ‘Streetscape Optimisation Process and System (SOPS)’ for all facets of the city’s streetscape, including, signage of all forms, outdoor advertising, and street furniture within the Lagos State boundaries.”

It believes that outdoor advertisement mediums can be used as a tool for supporting infrastructural developments. For an advertisement to run from dawn to dusk, infrastructures that support the outdoor medium of outdoor advertising must be functional.

As a result of this, “LASAA is involved in the provision of infrastructures, which promotes good advertisements. This includes Streetlights, Bus shelters etc. The street light advertisement project, for example, guarantees illumination on our major roads 24 hours a day, seven days a week. Revenues generated from such advertisements will support the maintenance of such streetlight lamp poles.”

OAAN as a Professional Body

On the other hand, OAAN was established to develop and maintain standards for outdoor advertising in Nigeria, as well as to regulate and control the practice in conformity with statutory and industry guidelines.

It was also established to develop a vigilant, informed and active membership, which is conscious of its rights, interests and obligations and alive to its professional responsibilities and to maintain an effective safeguard against abuse.

OAAN also aimed at promoting and advancing the use of outdoor advertising mediums to protect the industry against any discriminatory or repressive legislation and wanton destruction and provide a forum for dispute settlement/resolution between members or between members and other parties.

More importantly, the agency was established to co-operate with other bodies and associations in furtherance of mutual interests and propose, promote and support any legislation or subsidiary legislation deemed to be in the interest of the outdoor advertising industry and members of the association.

The Crisis 

The bone of contention now is the decision of LASAA to concession seven major roads in metropolitan Lagos for up to 10 years, to certain parties and, obviously, some individuals, that will have “concession rights to exclusively install, own, manage and operate all fixed and stationary advertising infrastructure and assets…”

The affected roads are, Ikorodu Road, LASU/Isheri Road, Lagos Badagry Expressway, Funsho Williams Avenue, Apapa/Oshodi Expressway, Obafemi Awolowo Way, Ikeja and Mobolaji Bank Anthony Way, Ikeja.

Last year, LASAA had, in a ‘Request for Expression of Interest (EOI),’ disclosed that the state intends to concession the rights to manage and operate the advertising assets and infrastructure along seven roads in Lagos State.

According to the publication, the Lagos State Government is desirous of stimulating the growth of the advertising industry by creating an enabling environment to attract significant investment in long-term modern advertising infrastructure such as digital infrastructure that has the added benefit of beautifying the state.

The publication gave details of the concession rights, adding that the objective is to align the significant capital expenditure with a long-term revenue framework that will deliver the maximum benefit to both the state and the selected concessionaire.

But in a letter written to Lagos State Governor, Babajide Sanwo-Olu dated January 31, 2022, OAAN President, Emmanuel Ajufo stated that the move by the Lagos State Government, through LASAA, is without regard to the fact that some of their members currently have their billboard structures on these roads.

Thus, he said, it is just a question of time before such companies that currently operate on such roads, having been duly granted approval by the same agency, are driven away from the affected roads and be thrown out of business.

Ajufo felt LASAA should not compete with the industry it seeks to regulate. He argued this would negate the essence of regulation in the first place as the desire for more money would ultimately compromise the process and platform of regulation.

“The plan by the state, through the agency, to auction some of the prime roads in metropolitan Lagos to certain individuals, for outdoor advertising purposes. This simply means that the roads are being given out on concession basis to certain individuals, who may not necessarily be registered practitioners in advertising, and who may not have been licensed by APCON to engage in outdoor advertising practice in Nigeria.”

According to him, “we are convinced that, with the planned concession, LASAA will end up creating an environmental nuisance with billboard platforms that will spring up along the listed roads, and which will badly affect the aesthetics of the respective corridors. Ultimately, if LASAA is allowed to go ahead with the auctioning exercise, the environment will suffer from visual blights.”

He further insisted that this move would badly affect the industry, as it would create an unhealthy monopoly, which, no doubt, is expected to come with the attendant implications for the advertisers, and ultimately the consumers.

To him, auctioning of such roads should be limited to those that are just being built (and such would include that the eventual winner of the franchise would spend their resources to build such roads). “Such, in our opinion, should not be extended to existing roads as the case is at the moment,” he reasoned.

In addition, he said most of the members currently operating on the listed roads took loans to build and install the structures, and are yet to fully offset such loans.

He added that the impending ejection from the roads, coupled with the fact that most investors are yet to fully recover from the downturn in business, occasioned by the COVID-19 induced lockdown; portends grave consequences for the industry.

He also identified the impending danger of massive loss of jobs and means of livelihood in the industry that would be suffered by the members and their staff.

Furthermore, he stated that the move would badly affect the industry, as it would create an unhealthy monopoly, which would no doubt come with the attendant implications for the advertisers, and ultimately the consumers.

Additionally, he said “we are of the very strong conviction that auctioning of roads should be limited to those that are just being built (and such would include that the eventual winner of the franchise would spend their resources to build such roads). Such, in our opinion, should not be extended to existing roads as the case is at the moment.”

He said, “It is important to state that most of our members currently operating on the listed roads took loans to build and install those structures, and are yet to fully offset such loans. Thus, the impending ejection from those roads, coupled with the fact that most of us are yet to fully recover from the downturn in business, occasioned by the COVID-19 induced lockdown of last year, portends grave consequences for our industry, including litigations by the financial institutions from which our members had taken loans to fund their businesses that LASAA now wants to destroy.”

Conclusively, he disclosed, “there is also the impending danger of massive loss of jobs and means of livelihood in the industry that will be suffered by our members and their staff who work for, and depend on, them if the concession is allowed to see the light of the day.”

Similarly, OAAN General Secretary, Sola Akinsiku, reasoned that it is illegal for the state to give out federal roads, where there is no collaboration between the two arms of government.

Even in the event that the two tiers of government have agreed on the exercise, he also said there is the likely effect of the unemployment of their members and those that work and depend on them if the concession is allowed to see the light of the day.

He said regulation should not be seen or used by agents of the government as an avenue for making money. Thus, he argued that if LASAA becomes a business platform for the sole purpose of driving revenue, the new order will negate the essence of regulation as the desire for more money will ultimately compromise the process and essence of regulation.