Nigeria’s advertising regulator has announced a series of measures to reposition the industry for growth and align it with the federal government’s economic recovery and inclusive development policies.
The Advertising Regulatory Council of Nigeria (ARCON), which oversees the administration and control of advertising and marketing communication in the country, said it would require each sectoral group of advertising agencies to provide a N1 billion professional indemnity insurance cover for its members, effective from April 1, 2024.
“This covers professional indemnity for members of their Association as part of the corporate license requirements,” ARCON’s Director General, Olalekan Fadolapo, said in a press briefing in Abuja.
The regulator also said it would review the capital structure and working capital requirement of the advertising agencies in consultation with the Heads of Advertising Sectoral Groups (HASG) and other stakeholders, and issue regulatory guidelines soon.
The Director General said that the Council would collaborate with the Economic and Financial Crimes Commission (EFCC), the National Broadcasting Commission (NBC) and other government agencies to enforce a 45-day credit policy in the industry, and sanction any organization that violates it as an economic saboteur.
“Some stakeholders have been offering Nigerian media and other service providers 120 days payment circle, thereby impoverishing the Nigerian advertising industry
“These same stakeholders prepay foreign media houses operating in Nigeria for media services. We can no longer allow this to continue.”
Local Talents And Production
The Council also said it would insist on the use of local talents in all advertisements targeted at the Nigerian market, ban the use of foreign models and voices unless approved by the Director General of ARCON.
It will also stop the importation of advertisements produced outside Nigeria and impose heavy taxes on such advertisements.
“If you are selling your product to Nigerians, use Nigerians in your advertisement
“We need to create jobs for the Nigerian youths, help grow and develop the support service sector of the industry and circulate funds within the Nigerian advertising ecosystem.” Fadolapo said.
Additionally, ARCON said it would conduct a national audit of advertising agencies and ensure that only licensed ones are engaged, as part of its effort to build a robust and beneficial data bank for the industry.
“As part of our effort of building a robust and beneficial data bank for the Nigeria advertising industry, ARCON has commenced a national audit of advertisement agencies in line with its establishment Act
“ARCON will write to seek all relevant information from stakeholders and ensure that only licensed advertisement agencies are engaged.”
Media Rates Deregulation
According to the Director General the media rates in the industry remains deregulated to allow demand and supply determine the sales and purchases of media services.
It said the Nigerian media houses should be accorded the same level of respect and business practices as foreign media organizations operating in the country.
“Media Rates remains deregulated in the Nigerian Advertising Industry,”
“No stakeholder or group of stakeholders should regulate media rates charged by the Nigeria Media Houses. The Nigerian media houses should be accorded the same level of respect and business practices accorded foreign media organisations operating in Nigeria.”
Furthermore, ARCON said it would set up a committee chaired by its Director General to plan and organize a national workshop on out-of-home (OOH) advertising business adding that it would collaborate with the states’ signage agencies and the Outdoor Advertising Association of Nigeria (OAAN) to formulate a broad-based OOH advertising regulatory framework for the industry and seek input from all relevant stakeholders.
Boosting Nigeria’s Advertising Industry
Fadolapo explained that the new rules are in line with the directive of the Minister of Information and National Orientation, Mohammed Idris, who called for the strengthening of the Nigerian advertising industry regulatory framework and the reversal of the negative trends plaguing the industry
“The marketing and advertising industry is a vital sector of the Nigerian economy, contributing about 20% to the gross domestic product and employing thousands of people.”
He added that the industry has the potential to grow further and contribute more to the national development if properly regulated and supported.
Comments are closed.