Continued from yesterday
Operators and stakeholders in the media industry, particularly those in the print segment are losing sleep over likely closure and subsequent loss of jobs. And they have reasons to be so afraid. For one, the crippling effects of the policy are coming at a time the cost of newsprint has skyrocketed, forcing many newspaper publishing outfits to adopt cost-cutting measures, including a reduction in both print run and paginations.
Traditionally, there are two streams of income for newspaper houses – the number of copies sold or advert patronage. Unfortunately, advert revenues have dropped sharply in recent time, a trend which observers blame on the dwindling economy.
According to a media specialist, the rising cost of production caused by lack of basic infrastructure, especially electricity remains a common threat to operators. The specialist told The Nation that the print media faces peculiar challenges, which, if not addressed, would lead to closure of many media houses and subsequent staff lay.
He listed some of the challenges to include poor reading culture, drop in copy sales and declining print run, adding that even if copy sales goes up, most newspaper houses would still be unable break even unless the adverts roll in.
He also said this might be difficult considering the current situation where many advertising agencies place adverts in newspapers, collect money from their clients and refuse to credit the accounts of the newspapers.
As if this is not enough heartache for print media owners, the expert said because of rising cost of production, most newspapers are cutting down their number of pages, thus inadvertently making themselves vulnerable to threat of competition from digital media.
Incidentally, digital media, he noted, have also been affecting advertising revenue to the traditional media. Besides, readers now have options of switching to online or digital media to get the same news the traditional media offer. Worse still, newspaper owners are reducing the number of pages despite retaining the same price.
The specialist, whose experience spanned several African countries, said the CBN policy has succeeded in adding to the woes of operators in the print industry, whose fortunes have been dwindling lately. He said the country may have to brace for possible closure of more media houses and massive job losses.
Noting that the bleak future of the media industry, he said the CBN would have to review its policy to avert the impending doom, adding that such a review could be outright cancellation, or the introduction of some soft-landing measures to cushion the effect on the media industry, considering its critical role.
Call for special intervention
Former Abia State Governor and publisher ofThe Sun newspaper titles, Dr. Orji Uzor Kalu, said the media industry deserved a special intervention fund from government at a reduced interest rate among other palliatives if it must carry on with the business of publishing.
He called on the President Muhammadu Buhari administration to come to the aid of print media owners to avoid job loss due to increasing production cost.
Kalu said the print media industry was getting closer to the edge of the precipice as the industry runs at a loss due to rising operational cost. He, therefore, appealed to the President to urgently intervene to prevent job cuts by media owners and for them to stay afloat.
“The operational cost media houses have to contend with is huge and keeps rising daily. We are dying from the burden. Our businesses are suffering,” he lamented.
Kalu, who spoke in Lagos, recently, said media owners are reeling under the weight of rising cost of newsprint, ink, blankets and plates and other consumables in the print media.
Using The Sun Publishing Ltd. As a case study, he said the company uses 2, 800 tons of newsprint every month and when added to the cost of freighting, the dwindling fortunes of the naira and power challenges, it becomes obvious that newspaper publishing business is facing more difficulties by the day.
His words: “The Federal Government needs to come to our aid. If this bad tide is not stemmed, media owners may resort to downsizing to save cost and that will further worsen the nation’s already bad unemployment figures.”
Kalu informed that all media houses have producing every copy of the newspapers at a loss.
“The average cost of printing a copy of a newspaper is N500 and we sell for N150 or N200. That means, media owners are subsidizing every copy our readers get with N300. How long can we go on like that and stay in business? The government has to intervene to ensure journalists keep their jobs and we stay afloat,” he said.
Oil and gas industry no longer at ease
The policy has also raised the blood pressure of operators and workers in the oil & gas industry. Some of them who spoke with The Nation expressed concern over the heavy toll the forex policy is taking on their operations, warning that the situation may compel employers to lay off workers.
Major Oil Marketers Association of Nigeria (MOMAN) Secretary Olufemi Olawore blamed the rising petrol and diesel prices on the high exchange rate. He said the directive issued by the Federal Government to reduce the level of exposure of oil companies to forex market instability contributed to the current fuel scarcity.