N8bn media debt causes ripples

Fresh facts emanating from the Nigerian media and advertising landscape have revealed that a whopping sum of N8billion media debt has been generating controversies and ripples in the competitive but highly fragmented Nigerian media market.

The huge media debt profile of client companies, many of whom are multinational companies, have been creating some operational challenges to the media especially those in the out- of-home advertising, electronic and the print media.

An Industry sources revealed that all the agencies are facing acute liquidity crisis largely due to the massive debts being owed by the client companies.

The delay in payment, it was gathered has been attributed to the sudden twist in the existing payment due date of 45 days by multinational companies who are said to be demanding for 180 days to process media invoices before payment.

A very senior industry operator, Mr. Sola Bamgbose who is a consultant brand handler to a telecom company described as “uncharitable the request by the multi-nationals asking for 180 days of grace to settle the media debt.

He stated that such a request in this modern era negates the true spirit of fairness and justice as some of these companies does not ask consumers of their goods, products and services to come and pay them after 180 days of consumption.”

The Chairman of StB Mccan Sir Steve Omojafor enjoined media owners to jointly write petitions to Advertisers Association of Nigeria (ADVAN) with a view to getting the buy-in and support of the advertisers umbrella body in cajoling members to pay the media.

Similarly, President of the Outdoor Advertising Association of Nigeria, (OAAN) Mr. Babatunde Adedoyin said the huge debts being owed its members by the advertisers have almost grounded the operations of all out-of-home companies in Nigeria.