OAAN/LASAA: New fight outside the ring

Since the establishment of Lagos State Signage and Advertisement Agency, LASAA in 2006, the outdoor advertising industry in Lagos has not been the same. The agency which is responsible for the management, regulation and control of the signage and outdoor advertising environment in Lagos State and the operators in the industry have always been in cat and dog relationship.

At earlier stage, practitioners were livid over what they termed as high-handedness by LASAA as many of their billboards were pulled down with aim to give Lagos a mega status without business lost consideration. Since then, it has either been issues of insensitivity, over-regulation or high taxes allegations by OAAN which the members believe were stifling their businesses.

This time, it appears members of OAAN and LASAA are set for another altercation over purportedly N1billion political advertisement debt allegedly incurred by the Lagos agency under the former managing director, George Noah.

Recent allegations by OAAN members indicate that George Noah had used about 30 outdoor operators to execute All Progressives Congress, APC presidential and gubernatorial campaign in the state amounting to about N1 billion cost. Part of the agreements, as alleged was that debts the outdoor companies owed the LASAA would be cancelled by the costs each operator incurred in their supposedly deal.

It was said that these outdoor companies ensured that Buhari and Ambode billboards took over 95% of the available billboards in Lagos but one year after they have not been paid nor their debts to the agency cancelled, said the OAAN members according to reports. Available information also indicates that the new LASAA CEO, Mobolaji Sanusi has equally refused to honour the payment agreements on the excuse that George Noah, acted on his own and not on behalf of the agency.

A reliable source in the industry told BusinessDay that unlike before, this is a fight outside the ring. The source believed that Noah entered into the political advertisement deal with the about 30 outdoor agencies through a company he called Mediaworth and not LASAA.

“The outdoor agencies should have known that they were entering in to the deal with another company appointed by Noah and not LASAA and that is why Sanusi, the present CEO of the agency is not honouring the payment”.

According to the source, the agencies were perhaps misled on the fact that Noah was the CEO of LASAA and they, without thorough due diligence committed themselves to the business.

It was also gathered that OAAN as a body had taken up the case of its members with a letter to Lagos State assembly but the assembly, it is said, is not ready to discuss the matter in the floor of the house as it has set up a committee to look in to the issue.

However, the owed members are presently being chocked over the debt, compounded by environmental challenges including cut in advertisement by clients.

Attempts to contact George Noah and Mobolaji Sanusi to comment on the issue were not successful but it was also gathered from another source who prefers anonymity that OAAN may have resolved to employ dialogue for a resolution in the interest of all parties.