FG: We Won’t Shift Ground on Determination to Sanitise Advertising Industry 

Raheem Akingbolu

The federal government has announced that it would not succumb to threats or blackmail from any quarters in its determination to sanitise the advertising industry.

Director General of the Advertising Regulatory Council of Nigeria (ARCON), Dr. Lekan Fadolapo, who dropped the hint in a statement to dismiss the claim by the leadership of the Advertising Association of Nigeria (ADVAN) that the regulatory body was working against business growth, insisted that steps being taken by ARCON were geared towards strengthening the advertising industry.

The statement, which also responded to the notice of legal action issued against ARCON by the Advertising Association of Nigeria (ADVAN), asserted that its actions were aimed at improving the Nigerian advertising industry and protecting the interests of stakeholders.
On advertising contracts between advertisers and other shareholders, the statement said that contrary to ADVAN’s position, the council must be involved in advertising contracts between advertisers and other shareholders.

The body clarified that its role is to establish minimum acceptable industry standards for advertising, advertisements, and marketing communications. According to it, these standards serve only as a framework to guide transactions involving stakeholders. The council emphasised that regulatory agencies in various industries establish standards to ensure fair practices.

According to the statement, “Some ADVAN members that engage in oppressive policies with impunity over the years are uncomfortable with the new fair-trade practice framework. They want to continue taking the industry for granted through exploitative policies, fleecing other stakeholders, something they cannot do in other countries. Why will they comply with payment policies in other markets and decline the same in Nigeria?” it queried. The council argued that these members resist the fair-trade practice framework because it prevents them from taking advantage of the industry through exploitative policies.

The statement also reflected on local content policy and the ban on foreign models, which ADVAN frowned at and reemphasised its position. The regulatory body stated that its local content policy would enable Nigeria and Nigerians to benefit from advertising. The policy, it noted, would require a minimum local content percentage in all advertisements, encouraging organisations to use Nigerians as a critical element in their advertisements.

ARCON, therefore, stated that the policy has improved the quality of marketing communications practices and allowed Nigeria and its citizens to benefit from the industry. The council expressed its disapproval of companies that heavily rely on imported advertisements, as it leads to job losses and significant revenue outflow from Nigeria.

“ARCON carried along every stakeholder in its law review exercise, the council defended its engagement with ADVAN during the review of the ARCON law, stating that the process involved input from all stakeholders and the public. The council also emphasised that a public hearing took place at the National Assembly, where ADVAN representatives were present and made both oral and written submissions. ARCON refuted ADVAN’s claim that they were not engaged in the law review process, stating that the record is available for everyone to see. “The President of ADVAN lied that they made no input or submission on the law. It is surprising to hear ADVAN complain they were not engaged,” the statement read.

To this end, the regulatory council has vowed to take all necessary and legal steps to sanitise the Nigerian Advertising industry. The statement reaffirmed that ARCON remained the industry regulator and would not submit to any group or stakeholder that threatens to undermine the growth and development of the advertising industry.