COVID-19: Nigerian Government Writes Off N4.6bn Debt From Radio Stations

FG Gives Radio Stations 4.6bn in Debt Waiver
The Nigerian Government on Monday said it has forgiven in debts sixty percents of debts some radio stations owe it across the country in a move to support their fight against the Coronavirus.

The reprieve, as announced by the country’s Minister of Information an Culture, Mr. Lai Mohammed, amounted to a whopping 4.6 billion Naira. Mohammed made made the announcement at a press conference on the interventions by the FG to ensure financial sustainability among broadcast stations in the country in Abuja on Monday.

The Minister however, noted that the criterion for enjoying the debt forgiveness which amounted to N4.6 billion is for debtorstations to pay 40 percent of their existing debt within the next  three months. 
“I want to announce today a number of broadcast industry-specific measures aimedat giving a lifeline to the industry which, though largely a business, continues to function as a critical social service of sorts, which is relevant to the information and enlightenment needs of the people.

“These measures are 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 on the Broadcast Industry.
“According to the National Broadcasting Commission (NBC), many Nigerian radio and television stations remain indebted to the Federal Government to the tune of 7. 8 billion Naira in total. Also, many of the stations 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 therefore recommended, and the Federal Government has accepted, the following measures to revamp the Broadcast Industry and to help reposition it for the challenges of business, post-Covid-19.
“60 percent debt forgiveness for all debtor broadcast stations in the country.
“The criterion for enjoying the debt forgiveness is for debtor stations to pay 40 percent of their existing debt within the next 3 months.”Any station that is unable to pay the balance of 40 percent indebtedness within the 3 months window shall forfeit the opportunity to enjoy the stated debt forgiveness.”The existing license fee is further discounted by 30 per cent for all Open Terrestrial Radio and Television services effective July 10th, 2020.

“The debt forgiveness shall 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. The effective date of the debt forgiveness shall be July 10th 2020 to October 6th, 2020
“The Federal Government has made these interventions with a view to re-positioning the Broadcast Industry to play its critical role of 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,” he said.