SECTOR 2 There have been reports of state officials using their position to block the flow of advertising to “unfriendly” media outlets. For example, in 2009, he Kano state government cancelled more than N30 million (US$189 408) worth of advertising contracts to Freedom Radio due to the radio station’s “unfriendly” reporting. The contracts were reinstated after Freedom Radio apparently accepted to moderate its tone. Scores: Individual scores: 1 Country does not meet indicator 2 Country meets only a few aspects of indicator 3 Country meets some aspects of indicator 4 Country meets most aspects of indicator. 5 Country meets all aspects of the indicator Average score: 1.8 (2008 = 1.4) 2.11 The advertising market is large enough to support a diversity of media outlets. The advertising market in Nigeria is believed to be worth N19 billion (US$ 119 959 000) and projected to reach N20 billion (US$ 126 272 000) by the end of 2011. This revenue, which the media shares with billboard and other advertising formats, is widely considered to be insufficient to support Nigeria’s media industry. With a weak manufacturing sector, the bulk of advertising comes from three sectors: government, telecoms and financial services. In addition to its small size, the advertising market is replete with problems such as low rates, extraordinarily long delays in payment of advertising bills and the unpredictability of advertising campaigns. Barter agreements - a practice whereby media organisations pay for services like travel, hotel accommodation and communication for media personnel with an advertisement, has become standard practice in business transactions. This deprives media houses of the cash needed to finance other important expenses. With this situation it is not surprising that most media enterprises are in dire straits, with more than 80 percent struggling to pay salaries and other running expenses. 30 AFRICAN MEDIA BAROMETER NIGERIA 2011