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Having a thorough understanding of the regulatory landscape in Nigeria is crucial for business success, yet it's often one of the most challenging parts of setting up a business. Depending on the industry, obtaining specific licenses and business permits in Nigeria is not only necessary for compliance but also builds trust with clients and partners.

This guide provides a comprehensive breakdown of essential licenses and business permits to maximally operate in Nigeria. Understanding these requirements can reduce delays, avoid fines, and support a smoother operation for businesses in Africa's most populous nation.

 
 

                How to Acquire a Radio/TV Broadcasting License in Nigeria

In Nigeria, obtaining a broadcasting license involves applying to the National Broadcasting Commission (NBC), which regulates the industry. Applicants must be registered companies without foreign interests and must meet specific criteria. The process varies by license type—radio, TV, or satellite—and requires submitting key documents and fees. Understanding these steps is essential for anyone aiming to enter the broadcasting sector in Nigeria.

 

The National Broadcasting Commission (NBC) is the broadcast regulator in the Federal Republic of Nigeria, established under the National Broadcasting Commission Act, Cap. NII, Laws of the Federation, 2004.

The NBC is vested with responsibilities that include regulating and controlling the broadcasting industry in Nigeria.

Overview of NBC’s Powers to Grant Licenses

The NBC holds the authority to grant broadcasting licenses based on specific criteria, ensuring that applicants meet the following requirements:

1.     Legal Status: The applicant must be a body corporate registered under the Companies and Allied Matters Act (CAMA) or operated by the Federal, State, or local government.

2.     Foreign Interests: The applicant must demonstrate that they are not applying on behalf of any foreign interest.

3.     Policy Compliance: The applicant must comply with the objectives of the National Mass Communication Policy related to electronic media (radio and television).

4.     Promotion of National Interests: The station must promote national unity and cohesion without offending religious sensibilities or promoting sectionalism and hatred.

5.     Availability of Frequencies: The grant of a license is contingent on the availability of broadcast frequencies.

Licensing Considerations

In determining the grant of a license, the NBC considers:

  • The structure of shareholding in the broadcasting organisation.
  • The number of shares held in other media establishments.
  • The geographical distribution of stations and establishments (urban, rural, etc.).

License Categories

1. Radio Broadcasting License

There are three types of radio broadcast licenses:

  • FM (Frequency Modulation) License: Open to federal, state, local governments, communities, and private operators.
  • MW (Medium Wave/AM): Offers larger coverage than FM, available to various operators.
  • SW (Short Wave): Restricted to the federal government for international broadcasts.

2. TV Broadcasting License

The NBC assigns channels for VHF and UHF licenses, allowing for low-power or high-power transmitters based on application conditions.

3. Satellite Broadcasting License

This is subdivided into:

  • Direct to Home (DTH): For re-distribution of broadcast signals via satellite.
  • Satellite Broadcast Signal Distribution: For distribution of signals to select users.
  • Direct Satellite Broadcast: For services transmitting directly via satellite.

Procedure for Obtaining a Broadcast License

The procedure for obtaining a broadcast license as stipulated by the NBC Act can be categorised into three groups:

1. Free-to-Air Terrestrial Television and FM Radio License

  • Eligibility: Must be a limited liability company registered under CAMA with a minimum share capital of ₦1 million.
  • Application Process:

1.     Submit a letter to the Director-General of NBC to request approval to purchase an application form.

2.     Upon approval, purchase an application form for ₦50,000 via bank draft at any NBC zonal office.

3.     Complete the application form in triplicate and return it with the following documents:

§  Certificate of Incorporation

§  Certified copy of Memorandum and Articles of Association

§  Engineering design and feasibility study

§  Letter of undertaking as per Section 9 (1) (d) of the NBC Act

§  Bank letter providing financial guarantees.

4.     The application will be processed, and if compliant, recommended for license approval.

2. Satellite Television Services

  • Eligibility: Same as Free-to-Air, with application process similar to the terrestrial license.

3. Community Radio

  • Eligibility: An association registered under part C of CAMA as a non-profit organisation (NGO).
  • Application Process:

1.     Write to the Director-General seeking approval to purchase an application form for ₦10,000.

2.     Submit completed forms with similar documents required for other licenses.

License Fees and Renewal Schedule

NBC License Fees and Renewal Schedule

License Category

Location

Initial License Fee

Renewal Fee

Radio

FCT, Lagos, PH

₦20 million

₦5 million (5 years)

Radio

Other States

₦15 million

₦4 million (5 years)

Terrestrial TV

FCT, Lagos, PH

₦15 million

₦5 million (5 years)

Terrestrial TV

Other States

₦11.25 million

₦4 million (5 years)

Cable TV

FCT, Lagos, PH

₦10 million

₦5 million (5 years)

Cable TV

Other States

₦7.5 million

₦4 million (5 years)

Public/Government Stations

All Locations

₦5 million

₦1 million/channel/year

Direct Broadcast Satellite

All Locations

₦10 million

₦10 million (5 years)

Direct-to-Home (Multichannel)

All Locations

₦25 million

₦50 million (5 years)

Dealer/Importer/Retailer

All Locations

₦120,000/₦30,000

Annual

Local Programme Content Requirements

Every licensee must adhere to a minimum of:

  • 60% local content for open television.
  • 80% local content for radio.
  • 20% local content for cable/satellite retransmission stations.

Procedure for License Renewal

To renew a license, an application must be made at least six months before the license’s expiration. The renewal process includes:

1.     Clearing all outstanding financial and administrative obligations to the NBC.

2.     Submitting an application to the Director-General, including:

o    A report of compliance with original license terms.

o    Maintenance of daily station logs and program schedules.

o    Statement of accounts for the review period.

Obtaining a radio or TV broadcasting license in Nigeria involves navigating regulatory requirements and adhering to strict compliance standards set by the National Broadcasting Commission.

By understanding the procedure, costs, and requirements outlined in this guide, potential broadcasters can effectively pursue their licensing goals.

As a full-service Business Consulting firm in Nigeria, we provide help and offers advisory to both local and foreign clients.
Our in house experts are ready to walk you through the registration processes and deliver the Certificates to your Door-step

 
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