Tinubu: Boost for Advertising, Whip for Consumers

Raheem Akingbolu reports that the marketing communications sub-sector of the economy has fared well under the Tinubu administration but faults the untimely removal of the former Executive Vice Chairman at Federal Competition and Consumer Protection Commission, Babatunde Irukera, who was believed to be protecting the interest of Nigerian consumers 

For decades, the advertising business in Nigeria was at the mercy of a few multinational companies. Over the years, the federal government has intensified campaigns on promotion of local content and backward integration across board but the trends and practices in the marketing communication industry were in the contrary. Among other infringements; commercials that could be shot in Lagos, Port Harcourt or Abuja were shot abroad, foreign talents’ recruitment went on unabated.

To correct some of these abnormalities, including acceptable payment terms to all the parties, the federal government through the current leadership of the Advertising Regulatory Council of Nigeria (ARCON) had two years ago embarked on the current industry reform, not only to sanitise the industry but to also deepen the industry’s regulatory framework.

The reform began with the appointment of Dr. Lekan Fadolapo as ARCON Director General, especially as related to engagement and disengagement procedures outlined in the Advertising Industry Standard of Practice (AISOP).

Local Content

For instance, ARCON had in 2023, issued a new directive that advertisers must use a cumulative 75% of local content in all ads and marketing directed at the Nigerian market.

The advertising regulatory body insisted that Nigeria’s economic recovery effort could only bring the expected result when stakeholders commit themselves to promotion of made-in-Nigeria goods and support the Federal Government’s position on Local Content.

Speaking at a stakeholders forum convened by the Advertising Standards Panel, Fadolapo reiterated the council’s commitment to enforcing promotion of local content and harnessing indigenous talent for national development among advertising practitioners operating in Nigeria.

While underscoring the ethical obligation of stakeholders to uphold industry standards, particularly in light of recurring infractions related to the use of models in advertisements, the DG acknowledged the transformative potential of Artificial Intelligence (AI) in advertising while cautioning against its indiscriminate use, citing its implications for employment creation and industry sustainability.

He said, “ARCON will continue to insist on responsible advertising in Nigeria. We also need to stop the capital flight and development of other economies by some Nigerian organisations’ attitude of going out of the country to produce advertisements meant for our market. All commercials to be exposed to Nigerians should be produced in Nigeria. 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. 

Professional Indemnity Insurance

For the first time, ARCON, had four months ago, announced a mandatory N1 billion professional indemnity insurance for ad agencies under sectoral bodies like; the Association of Advertising Agencies of Nigeria (AAAN), Experiential Marketing Association of Nigeria (EXMAN) and Outdoor Advertising Association of Nigeria (OAAN). 

Announcing the development in Lagos, Fadolapo said: “As part of the ongoing advertising industry reform and the need to strengthen advertising agencies service delivery, build capacity as well ensure long-term stability in the industry, each sectoral group, is to provide N1B (One Billion Naira) professional industry insurance cover for its members. This covers professional indemnity for members of their association as part of the corporate license requirements.”

The ARCON DG, who described it as part of corporate licensing requirements coming into effect on April 1, 2024, also announced sweeping reforms aimed at repositioning the Nigerian advertising industry for growth and development.

He rolled out a broad framework articulating the government’s urgent priorities and action plans to reposition the advertising industry.

He announced a series of measures to strengthen regulation, build capacity, ensure financial stability and promote the use of local talent and resources within the sector.

According to him, ARCON is also reviewing minimum capital and working capital thresholds for agencies in consultation with industry stakeholders.

 “There is an urgent need to review the capital structure and working capital requirement of the advertisement agencies in line with economic realities and capacity building programmes of ARCON. ARCON is currently in talk with the Heads of Advertising Sectoral Groups (HASG) and other relevant stakeholders on the minimum capital requirement for registration and license as an advertisement agency. Regulatory guidelines will be issued as soon as a position is taken on this,” Fadolapo said.

Payment Terms

On the critical issue of payment terms, ARCON has, under this administration revealed that ARCON is collaborating with the EFCC, NBC, and others to enforce a maximum 45-day payment cycle for ad services. “Any organisation that offers payment threshold outside 45 credit policy will be tagged an economic saboteur of the Nigeria advertising industry. Such an organisation will be flagged and reported to other government agencies for further investigation and necessary punitive actions,” Fadolapo warned.

Explaining further, Fadolapo said. “Globally, the payment threshold is a policy in the advertising industry. Some stakeholders have been offering Nigerian media and other service providers a 120-day 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.”

Foreign Models

The federal government through the council is still insisting on restricting the use of foreign talent models and voices in adverts targeting Nigerians.

The DG emphasised while speaking with THISDAY that Nigerian advertising should primarily utilize local professionals. “ARCON will continue to insist that Nigerians should be considered as primary in all advertisements targeted at the Nigerian market.

“Use of foreign models and voices are banned except where it is inevitable. In this case, the application for variation should be formally addressed to the Director General with a detailed explanation of the rationale for the use of the foreign talent. Approval is not automatic. If you are selling your product to Nigerians, use Nigerians in your advertisement,” he said.

Data Bank 

ARCON is also conducting a nationwide audit of advertising agencies to build a comprehensive data bank. Fadolapo announced that only licensed agencies will be allowed to engage in business, and a directory will be published after the audit for the utilization of the local and global business community.

Media rates deregulation is yet another reform that should put smiles on the faces of the Nigerian media. Across the country at present, media rates are now fully deregulated, with no regulation allowed. He explained that Nigerian media houses are to be accorded the same business respect as foreign entities.

Push Back

Notwithstanding the beauties associated with AISOP and other reformative steps being taken by ARCON, there have been push backs and a few court cases instituted by stakeholders who were not comfortable with the current reform, especially members of the Advertisers Association of Nigeria. However, the irony is that the reform appears to have opened up the industry and created more jobs and protected businesses. As things stand, the blame game continues between those for the reform and those against it.

Whip for Consumers

For Nigerian consumers, it’s not yet uhuru as their hope of getting out of the bondage of abuse seemed to have been terminated with the untimely removal of Babatunde Irukera, as the the Executive Vice Chairman Federal Competition and Consumer Protection Commission (FCCPC).

THISDAY review of the act setting up FCCPC, has shown that President Bola Tinubu might have erred in law in his decision to unilaterally remove the senior legal practitioner from office.

Tinubu had, a few months ago, announced what he termed the “immediate dismissal” of the chief executive officer of the federal government agency. He said it was in conformity with plans to restructure and reposition critical agencies of the government towards protecting the rights of Nigerian consumers. The statement by the presidential spokesperson, Ajuri Ngelale, had since been dismissed as nothing but witch-hunting and executive arrogance on the part of the federal government. 

Until his removal, Irukera was a celebrated public servant because of his deliberate determination to protect consumers’ interest and make sure consumers get nothing but the best.  One of his achievements was last week’s conviction and sentence of a plastic surgeon and founder of MedContour Services Limited., Dr. Anuoluwapo Adepoju to one year imprisonment by the Federal High Court sitting in Lagos for failing to appear before the Federal Competition and Consumer Protection Commission (FCCPC) in relation to an investigation into a failed plastic surgery that resulted in the death of one Nneka Onwuzuligbo in 2020.