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Reprieve For Broadcast Stations As FG Gives Them ₦4.2bn Debt Relief
The federal government has written off 60 percent of the debt owed to it by broadcast stations to ameliorate the effects of COVID-19 on the industry.
Mnister of information and culture, Lai Mohammed made this known at a media briefing on Monday.
He said the broadcast industry was the worse-hit by the pandemic owing to dip in revenues occasioned by decline in adverts and sponsored programmes.
He said many Nigerian radio and television stations remained indebted to the government to the tune of N7.8 billion while many of them 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 recommended, and the federal government has accepted 60 percent debt forgiveness for all debtor broadcast stations in the country,” he said.
Mohammed, however, noted that the condition for benefitting from the debt cancellation was for indebted parties (stations) to offset 40 percent of their existing debt within the next three months.
According to him, any station that is unable to pay the balance of 40 percent within the stipulated period would forfeit the opportunity to enjoy the debt forgiveness.
The minister said the government also approved that the existing license fee of the broadcast stations be further discounted by 30 percent for all open terrestrial radio and television services effective July 10.
He said the debt forgiveness will apply to functional licensed terrestrial radio and television stations only.
“The debt forgiveness and discount shall not apply to pay TV service operators in Nigeria,” he said.
“The effective date of the debt forgiveness shall be July 10 to October 6th, 2020.”
Mohammed said the measures were 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.
He averred that the measures taken by the government would rebuild the industry as well as help reposition it for the challenges of business in the post-COVID-19 era.
He said: ”The federal government has made these interventions with a view to repositioning the broadcast industry to play its critical role in 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.”
The minister also said similar measures will be extended to the print industry by the government.
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