Introduction

This memo provides an overview of the current market landscape as well as a high level summary of the television license registration procedure in Nigeria.

• Free-To-Air Television
  • Free-to-air (FTA) television stations are a clear (unencrypted) form of TV service broadcast that allow any person with the appropriate receiving equipment to receive the signal and view the content without requiring any subscription, ongoing or one-off fees.
  • Free-to-air channels can be viewed from all parts of Nigeria on various platforms using satellite television reception equipment. There are more than 23 satellites broadcasting TV channels in West Africa. The most popular device used for receiving FTA channels in Nigeria is a Strong Receiver. Strong decoders are used by various PAY-TV platforms and have various models, all of which can be used to scan and receive various FTA channels from broadcasting satellites.
  • Nigeria has nearly 70 government-controlled national and regional TV stations, with each of the 36 states operating at least one TV station. Nigeria also has the largest terrestrial TV network in Africa, the Nigerian Television Authority (NTA) with over 96 stations nationwide.
  • Find below a list of some of the major FTA stations in Nigeria:
    • Channels TV: Founded in 1995
    • Africa Independent Television: Founded in 1996
    • Galaxy TV: Founded in 1994
    • Silverbird TV: Founded in 2003
    • NTA: Founded in 1977
    • LTV: Founded in 1980
    • TVC: Founded in 2002
    • Superscreen TV
    • MITV: Founded in 1996
    • Delta Broadcasting Service: Founded in 1994
    • OGTV: Founded in 2003
    • AKBC: Founded in 1996
    • ABS: Founded in 1994
    • ITV: Founded in 1997
    • COOL TV: Founded in 2012
  • Towards obtaining a competitive edge, FTA stations are regularly faced with the following primary challenges:
    • Presence of Public Operators

State owned FTA channels can pose a significant challenge to other privately owned FTA channels as they are likely to be prioritized over private sector competitors with regards access to local content, funding and government policies. However, state owned FTA channels have been notoriously slower to adapt to new technology and market factors than private sector stations.

• Technological Evolution, Convergence and Structural Changes

As in any market, remaining updated with technological evolution is essential to success. Nigeria is currently piloting its transition to digital for terrestrial television and although it has experienced a number of delays, it is well on its way to full implementation.

• Emergence of New Products

The ability to constantly produce new and different content is pertinent to maintaining and increasing market share. Early research has shown peak viewership amongst Nigerians for drama series.

• Other Market Factors

Various other market factors affect the success of FTA stations such as cost of doing business in Nigeria, regulatory compliance, type of content and target audience size and behaviour.

• To operate an FTA television station, the government requires each entity to obtain a TV license through an application made to the Nigerian Broadcasting Commission (NBC).
• To ensure local content, the NBC requires every licensee to adhere to a minimum of 60% local broadcast content for open television and 80% local broadcast content for radio. The cable/satellite retransmission stations are mandated to reflect a minimum of 20% local content in their programming.

• Demographics
  • According to the CIA World Factbook, Nigeria is Africa’s most populous country with an estimated population of 181,562,056 and a population growth of 2.45%. With over 250 ethnic groups, Nigeria’s most populous and politically influential are: Hausa and the Fulani (29%); Yoruba (21%); Igbo (18%); Ijaw (10%); Kanuri (4%); Ibibio (3.5%); and Tiv (2.5%).
  • English remains the official language of Nigeria, which has over 500 additional indigenous languages including the three most popular languages, Hausa, Yoruba and Igbo.
  • Each of the 250 or more ethnic groups in Nigeria can converse in Pidgin English, although they usually have their own additional words. However, in as much as Pidgin English has its different variations, it is more or less understood by everyone.
  • The country is comprised of roughly 50% Muslims, 40% Christians and 10% practicing indigenous beliefs.
  • Nigeria’s age structure is estimated in the following manner (2015 estimate):
    • 0 – 14 years: 43.01% (Male: 39,960,275; Female: 38,123,266)
    • 15 – 24 years: 19.38% (Male: 17,978,154; Female: 17,210,308)
    • 25 – 54 years: 30.56% (Male: 28,470,583; Female: 27,018,101)
    • 55 – 64 years: 3.94% (Male: 3,491,784; Female: 3,669,348)
    • 65 years and over: 3.11% (Male: 2,687,373; Female: 2,952,864)
  • As of 2016, the estimated total median age in Nigeria is 18.3 years (Male: 18.2 years; Female: 18.4 years).
  • 8% of the total population (86,786,663) is regarded as “urban population,” while the rate of urbanization is estimated at a 4.66% annual rate of change. The major urban areas are: Lagos (13.123 million), Kano (3.587 million), Ibadan (3.16 million), Abuja (2.44 million), Port Harcourt (2.343 million), and Benin City (1.496 million).
  • Research has shown that more women in Nigeria watch free-to-air TV stations than men do in both metropolitan and regional markets across most age groups. The consumption pattern of the average Nigerian FTA TV viewing is as follows:

• An estimated 74.6% of Nigerian households have a television set. However, with the advent of Internet and the penetration of mobile phones into Nigeria, more and more young people have instant access to online platforms and mobile applications used to stream or download television shows.
• Nigerians remain avid consumers of free-to-air TV especially content related to news, music, sports and television shows.

• Digital Terrestrial TV Broadcast
  • Digital Television is a new, more versatile form of television transmission in Nigeria. The switch from analogue to digital TV commenced in 2016 in Jos, Plateau State and has now been implemented in Abuja as well as a handful of other states. The digital switch will be implemented across the rest of the country in phases.
  • One of the devices required for digital terrestrial TV broadcast is a Set Top Box. As part of efforts to ensure the sustainable funding of the national digital terrestrial infrastructure, there will be a fixed annual service charge payable on all digital terrestrial TV set top boxes and TV sets. This fee is known as Digital Access Fee (DAF).
  • Digital TV broadcasting offers many advantages over the analogue system for end users, operators and regulators. Apart from increasing the number of programmes, digital systems have the capacity to provide new innovative services, such as interactive TV, electronic programme guides and mobile TV as well as transmit image and sound in high-definition (HDTV) and ultra-high definition (UHDTV). Digital TV also requires less energy to ensure the same coverage as for analogue while decreasing overall costs of transmission. Digital television broadcasting can use different platforms: cable, satellite or terrestrial. Each platform uses different transmission systems.

• Procedure for Obtaining Free-To-Air Terrestrial Television License
  • The applicant shall be a Limited Liability Company registered under the Companies and Allied Matter Act with a minimum Share Capital of One Million Naira and one of its objects clauses relating to Broadcasting.
  • Religious and political organizations are prohibited from consideration for the grant of a broadcast licence.
  • The Applicant shall write a letter addressed to the Director General of the Nigerian Broadcasting Commission seeking approval to purchase an application form for the purpose of applying for a broadcast licence indicating the category of licence and proposed location(s).
  • Upon approval, the applicant would be directed to purchase an application form at the cost of N50, 000.00 (Fifty Thousand Naira) in bank draft payable to the Commission from any of its zonal offices across the Country.
  • The applicant should duly complete the triplicate copies of the application form and return to the Commission with the following:
    • Certificate of Incorporation;
    • Certified copy of Memorandum and Articles of Association;
    • An Engineering design of system including feasibility study;
    • A letter of undertaking in accordance with the provisions of Section 9 (1) (d) of the NBC Act;
    • Letter from its Bankers prepared to give financial guarantees.
  • The application would be processed and if in conformity with the statutory requirements above, it would be recommended through the Honourable Minister of Information and Culture to the President, Commander-in-Chief for the grant of License.
  • After the grant of License by the President, the Commission would convey a provisional approval for an initial term of five years (subject to renewal), indicating appropriate license fee, coverage area and other terms/conditions.
  • After payment of the licence fee, appropriate frequencies would be assigned to enable the company install facilities, invite the Commission to inspect and approve test transmission as a prelude to commissioning / full transmission.

We hope you find guidance in the foregoing.

ANDI DAZE