By Modupe Gbadeyanka
The Executive Director, Heritage Bank, Mr Jude Monye, has said deposit money banks (DMBs) would have loved to lend to advertising players but some issues are making them be reluctant to do so.
Speaking at the 2021 Out-of-Home Advertising Conference and Exhibition organised by the Lagos State Signage and Advertisement Agency (LASAA), Mr Monye described these obstacles as “unstructured issues” which he said if addressed, would make the sector attractive to banks.
“I think lots of unstructured issues that we face and most of the banks that you see on digital media outside is not borne out of the need to advertise because it has not appealed to them, or engaging to their audience, but some of them just pay back for the loan that they have given,” he stated.
However, he expressed optimism that if the issues are looked into, the banks would play big in the industry through the provision of funds, which will, in turn, boost the sector.
He also disclosed that one of the ways the out-of-home advertising industry can attain massive growth was via the adoption of the public-private partnership (PPP) model to ensure its sustainability.
“If you have deposit money bank, that is the commercial bank coming in with huge portfolio, you will see massive growth in this industry and to crown it all for me, the governor said what I didn’t know of, all the things that the government is doing with the fibre optic projects which are towards the smart city that LASAA has also shown to us.
“With that alone, the PPP model, the banks are going to key into funding this so that the industry can grow,” the bank executive said at the event held in partnership with Heritage Bank.
Mr Monye commended the Governor of Lagos State, Mr Babajide Sanwo-Olu, for his administration’s implementation of the smart city plan with the rollout of 6,000km metro fibre optics, which is the requisite infrastructure for the smart city project.
He emphasised that the move by the Lagos State government for the adoption of digital technology would lead to increased patronage and rev banks’ participation.
Mr Sanwo-Olu, while speaking at the programme through his deputy, Mr Obafemi Hamzat, stated that the state was making appreciable progress in the ongoing laying of the metropolitan optic fibre, as well as the installation of smart cameras in strategic locations across the State, affirmed that the technology would help enhance and support the growth of advertising in the Lagos.
The Governor, who spoke on the Road map for the Growth of Signage and Out-of-Home Advertisement post-COVID-19 in Lagos, said his administration would continue to leverage technology to transform the state’s economy while easing impediments for businesses to flourish.
On his part, the MD/CEO of LASAA, Mr Adedamola Docemo, said the agency would be rolling out policies and programmes that would improve sectoral investment, drive sustainable growth, encourage regular engagement and development of the State.
He stated that with Lagos being the leading state in Out-of-Home advertising investment in Nigeria, the industry has evolved and has consistently contributed its quota over time to the growth and development of Lagos state.
