…Announces Professional Indemnity for Sectoral Groups, 45 Days Payment Threshold, Media Rates Deregulation, Agencies Databank, others
As part of effort to strengthen the regulatory framework of the Nigerian Advertising, and to deepen professionalism within advertising practice, the Advertising Regulatory Council of Nigeria (ARCON) has unveiled a new set of has unveiled a new set of transformative reforms aimed to reposition the Nigerian advertising industry for growth and development.
Speaking at a press conference held today, Dr. Olaleken Fadolapo, the Director General of ARCON, underscored the agency’s commitment to enhancing regulatory oversight to uphold ethical standards and combat practices detrimental to the nation’s economic well-being.
Part of the reforms announced by the agency is the implementation of a corporate license regime, which mandates sectoral bodies to provide a professional industry insurance cover of N1 billion for their members. This measure, effective from April 1, 2024, is designed to ensure professional indemnity and accountability among industry stakeholders.
Furthermore, ARCON has initiated discussions with Heads of Advertising Sectoral Groups (HASG) and other stakeholders to review the minimum capital requirements for registration and licensing of advertising agencies. This move aims to strengthen the financial resilience and stability of advertising firms operating in Nigeria.
In line with its commitment to promoting local content and talent, ARCON reiterated its stance on the production of advertisements within Nigeria. The agency emphasized the need to curb capital flight and support indigenous talent by discouraging the outsourcing of advertising production to foreign entities.
Additionally, ARCON is collaborating with government agencies such as the EFCC and NBC to enforce a 45-day credit threshold in the advertising industry. Organizations offering payment terms beyond this threshold will be flagged as economic saboteurs and subject to investigation and punitive measures.
“Globally, payment threshold is a policy in the advertising industry. 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. Some had insisted on old practices that have led to industry debt and exploitation of media owners. We can no longer allow this to continue” he stressed.
Addressing media rates deregulation, ARCON emphasized the autonomy of Nigerian media houses in setting advertising rates, rejecting any attempts by stakeholders to regulate media rates. This stance aims to ensure fair business practices and uphold the integrity of domestic media organizations.
In a bid to maintain professional standards, ARCON has commenced a nationwide audit of advertising agencies to monitor compliance and track industry practices. The agency also plans to publish a register of ARCON-registered practitioners to enhance transparency and accountability within the sector.
“ARCON has been battling with issues of exposure of unapproved advertisement, illegal advertising practices, damaging actions of unregistered persons claiming to be advertising practitioners among other challenges. Sequel to the above, ARCON would publish its membership register as soon as the ongoing membership review exercise is concluded”.
Besides, ARCON has established a committee to develop a national policy on Out-of-Home (OOH) advertising, collaborating with state signage agencies and industry stakeholders to formulate a comprehensive regulatory framework. This initiative seeks to standardize OOH advertising practices and foster industry participation in regulatory processes.
This new sets of reforms underscores the agency’s commitment to promoting ethical conduct, transparency, and sustainable growth within the industry.
