The Broadcasting Organization of Nigeria, BON, has said that due to the biting economic situation in the country, the role of the broadcast stations as the most reliable source for information, entertainment and public enlightenment, is under serious threat.
BON, in a statement over the weekend said media houses may be forced to cease operation if nothing was done to reverse the trend.
It said the current scarcity of petroleum products which fuels the generating sets of media organizations has doubled in price, over the last four months.
Part of the statement reads,
The statement read, “There is a lingering scarcity of petroleum products and diesel, which fuels the generating sets of these organisations, has more than doubled in price over the last four months.
“The value of the Naira has tumbled so badly while remaining very scarce affecting the repairs and replacement of broadcast equipment, all of which are imported.
“The National Broadcasting Commission’s levy of 2.5 % on turnover (not profit) outside of Station License fees, Federal Statutory taxes, State and Local Government taxes and Levies combine to impose a huge burden on the retained revenues of Broadcast Licensees.
“All broadcast stations (Radio and Television, Private and Public) are supported by the same pool of advertisers and while broadcast stations are increasing in number, the advertising spend has been reducing over the last ten years, owing to the dwindling economy, and this has adversely affected the income of Broadcast Organisations even as operating costs are increasing daily.
“Radio and Television stations typically need approximately 500,000 to 700,000 and 700,000 to 1,000,000 daily to run generators, which have become their main sources of power supply, to maintain their transmissions and keep the equipment at the optimal temperatures necessary for the efficient performance and sustaining the projected lifespan of their equipment.
“Broadcast media, being the source that public turn to for authenticating breaking news, must gather information, produce programmes and transmit same to keep the public informed and entertained. With diesel costs averaging more than N700 per litre and having to resort to buying petrol, from the black market, at more than N2000 per litre, Broadcast Organisations are recording such huge deficits that have resulted in staff salaries being delayed.
