Delivering a Successful Digital Switch Over (DSO) in Broadcasting

PROTOCOL

Let me formally welcome you all to this press conference, which I have called to give an update on the Digital Switch Over (DSO) and to announce and inaugurate the Ministerial Task Force which I have set up to drive the DSO rollout across the country.

2. As you may be aware, gentlemen, the Federal Executive Council has recently approved the outstanding payments to key stakeholders in the DSO, thus removing what has constituted a roadblock to the entire process in the past three years.

3. Today marks the third year that we last launched the DSO in any state, and that was in Osun State on Feb. 23rd 2018. You will recall that we launched the pilot programme in Jos, Plateau State, on April 30th 2016, followed by Abuja on Dec. 22nd 2016, then Ilorin, Kwara State, on Dec. 20th 2017; Kaduna two days later on Dec. 22nd 2017, Enugu on Feb. 12th 2018 and finally, as I said earlier, Osogbo on Feb. 23rd 2018.

4. With the payment approval by FEC, and with 31 states to cover, we have our work cut out for us. We have no more excuses for not rapidly rolling out the DSO across the country, hence my decision to set up a 14-member Ministerial Task Force, which I will personally chair, to take charge of the rollout.

5. Before I announce the composition of the Task Force, let me make some comments about the DSO process. At a stakeholders’ meeting here on Aug. 25th 2020, I said we will be pursuing a private-sector driven DSO, that there will be no more subsidies, either of Set-Top-Boxes or of Signal carriage, and that the process must be self-sustaining. I want to reiterate that point today.

6. We have studied the trend and it is clear that we have to reduce government involvement in the DSO ecosystem and allow the private sector to take the lead, on purely commercial terms. With the devastating effects of Covid-19 and the fall in government revenues, the Federal Government can no longer afford to subsidize the program, especially the Set-Top-Boxes and the Signal carriage, which ordinarily can and should be highly-competitive commercial ventures. And in order to begin the commercialization of the DSO, we need to create a structure and an ecosystem that is self-sufficient, self-reliant and able to generate revenue which will drive strategic growth in key areas. The details of that structure are for the Task Force to explore.

7. Gentlemen, my decision to set up the Ministerial Task Force to drive the DSO process is hinged on the fact that a successful Digital Switch Over is a massive job creator and a huge revenue generator, This process is capable of creating over 1 million jobs over the next three years. As part of our efforts to maximize the opportunities available in the process, we have made necessary changes in the Broadcast Code to protect local jobs and production, we have started the process of introducing world class Audience Measurement and Media Monitoring to deliver on our potential 1-billion-dollar TV and Online Advertising revenue market and now we will ensure that the DSO ecosystem delivers value to the economy.

8. As I have just mentioned, the DSO process is capable of delivering over 1 million jobs. These are not phantom jobs. They are real jobs, as I will demonstrate shortly.

 

a) Manufacturing alone can create between 40 and 50 thousand jobs. This is because Digitization requires all homes to have a Set-Top-Box or Smart TV. Connectivity to the Internet is also possible via a dongle attached to the boxes. And here we are talking about 24 million boxes/TVs, for the over 24 million households that have television sets today in Nigeria. Not even 20 Set-Top manufacturers can comfortably produce the initial requirements to feed the market. Furthermore, our position in West Africa, coupled with our size, makes us the definite source of these products for the whole sub-region.

b) TV Production alone can create 200,000 jobs. Digitization will make it possible to have at least 180 state channels, 30 regional channels and at least 10 National channels, catering for local music, news, film, children programming and sports, among others. This will create better competition because with the Audience Measurement and media monitoring system put in place you can now measure which programs people are watching so that value is rewarded. Digitization will also enhance the full propagation of local content being emphasized by the National Broadcasting Commission. Consequently more people will go into the TV production business.

c) Film Production can generate 350 to 400,000 jobs. Just as Nollywood moved from VHS tapes to VCD and DVD, it will now, with Digitilization, move to Push and Subscription Video-On-Demand on the Set-Top-Boxes and online, thus curbing piracy, making distribution cheaper and easier and putting more money into the pockets of film producers, who will in turn create more films of better quality, ultimately surpassing the current 2000 movies a year. The number of writers, lightning/sound/camera technicians, editors, actors and actresses, costume makers, etc, will grow exponentially, and the over 24 million Digital TV Households will become Nollywood customers in a more transparent, closer and formal manner due to digital distribution.

d) As an extension to the booming production business, another 200,000 jobs can be created as Nigeria finally grows the capacity to meet the quality demand of fully-indigenous content creations, which will bring back the over 100 million dollars currently exported to South Africa, Europe and the United States by Nigerian producers, while seamlessly expanding the tourism potential of Nigeria as the rest of Africa come to the country for high quality production.

e) Distribution: To supply the market with Set-Top-Boxes, TVs and Dongles required for internet connection, Nigeria will need at least 100,000 wholesalers, retailers, electricians, installers, marketers and payment solution providers in order to cover the entire country.

f) TV and Online Advertising can create a further 50,000 jobs: The concept of advertising will become more local than national, because you can target customers at the bottom of the income bracket with products specific to their needs and location and, of course, fast moving consumer goods will have more forensic proof of their customers and what they watch and where they are.

g) Finally, with a successful DSO, the problem of internet connection to every home will finally be solved. The Set-Top-Box in every home will deliver internet and consequently access and commerce to every home. Apps will be created to offer goods and services and for interaction and entertainment at every level. Most importantly, the spectrum that is freed up by digitization will become much more monetizable by the mobile/data companies and therefore more valuable to the government. This is capable of creating 200,000 jobs by internet entrepreneurs.

9. Please note that I have not even touched on education and training for the industry, financing its various facets via venture capital and direct infrastructural requirement as well as equipment and management and/or consulting services, the foreign exchange earnings from selling and distributing our Films, Music and TV shows all over the world and the foreign direct investments into the country by companies looking for a slice of the last frontier. What about the boost to the Advertising Industry that will finally bring it to the level that our GDP dictates. I have no doubt in my mind that a successful DSO is not just a job spinner, creating over 1 million jobs in three years, but also a money spinner. The challenge to all of us now is to make the process a success.

10. And now, gentlemen, it is my pleasure to unveil the Ministerial Task Force on the Digital Switch Over (DSO). I will now unveil the members and the organizations they represent.

1. Alhaji Lai Mohammed (Federal Ministry of Information and Culture, Chairman);

2. Prof. Armstrong Idachaba (National Broadcasting Commission)

3. Engineer Edward Amana (Digiteam);

4. Dr. Tunde Adegbola (Digiteam);

5. Hajia Sa’a Ibrahim (Broadcasting Organizations of Nigeria);

6. Engineer Sadeeq Musa (ITS);

7. Mr. Godfrey Ohuabunwa (Set-Top-Box Manufacturers); who is also standing in for the BON Chair

8. Dr. Lekan Fadolapo (APCON);

9 Ms. Aisha Shehu Omar (Federal Ministry of Finance, Budget and National Planning);

10. Mr J. O. Attah (Nigeria Customs Service); represented here by Mr Dalhatu

11. Mr. Nnanna Ibom (Federal Ministry of Information and Culture);

12. Engineer Olusegun Yakubu (Pinnacle Communications);

13) Mr. Toyin Subair (Inview)

14) And Mr. Joe Mutah (Federal Ministry of Information and Culture) who will serve as Secretary.

11. The Ministerial Task Force, saddled with the responsibility of driving the Federal Government’s Digital Switch Over project, is hereby inaugurated. Ladies and gentlemen, I thank you all for agreeing to serve on this Task Force. The success of the Digital Switch Over (DSO) process now rests on your shoulders.

12. Gentlemen of the press, I thank you for your kind attention. I will now answer your questions, which must be restricted to the DSO process.