Advertisers must learn to live with regulations

2026-03-16 - 03:47

By OLALEKAN OJO The open letter by the Advertisers Association of Nigeria, ADVAN, to President Bola Ahmed Tinubu in which it launched a virulent attack against the Advertising Regulatory Council of Nigeria, ARCON, would have just been given one thing: ignore. That is because that was what the letter deserved. But upon deep introspection, one needs to put the records straight. If not for anything else, but for the sake of the general public and interested stakeholders who might be misled by the letter. In the said letter, ADVAN wrote that “since 2019, advertisers have consistently raised concerns with relevant authorities about the operations of the Advertising Regulatory Council of Nigeria, ARCON. These engagements have been sustained, formal and good-faith attempts to resolve growing problems of arbitrary regulation, unclear processes and enforcement practices that increasingly undermine business confidence.” ADVAN added that: “Matters worsened in 2022 with the introduction of the Advertising Industry Standard of Practice, AISOP, which essentially sought to regulate private entity contractual agreements, this only instigated a reduction of advertising activities and spend, rather than fostering balance, innovation or growth. Your Excellency, the impact is now visible and measurable. Advertising spending has dropped sharply as brands reduce or cancel campaigns. Some companies have exited the Nigerian market, while others are reconsidering future investments. This contraction has reduced activity across media, creative services, and allied sectors, with direct implications for employment and government revenue.” It is ridiculous that ADVAN had taken this route when it had already taken ARCON to court. Or has it forgotten that it had filed several lawsuits against ARCON? These multiple lawsuits against ARCON were meant to challenge the advertising industry reforms and the constitutionality of ARCON’s oversight functions. In its response to the letter to the President, ARCON stated that the issues raised in their letter are already part of the cases pending before the Federal High Court for determination. “The issues are currently subjudice. If a case is subjudice, why take it to the media? Again, ADVAN has gone to the media with misinformation, with the intention of obstructing and halting the ongoing advertising industry reforms.” In the letter signed by ARCON Registrar and Chief Executive, it reminded ADVAN that “at the commencement of President Bola Ahmed Tinubu’s administration, and in line with the Renewed Hope Agenda, the ...Minister of Information and National Orientation, Alhaji Mohammed Idris, directed all government agencies under the Ministry to adopt the Nigerian First Policy of the Federal Government and embark on reforms that will promote inclusive growth. This has led to a series of reforms in the Nigerian advertising industry, which ADVAN has vehemently opposed.” And this is where the crux of the matter is. ADVAN has claimed, claimed wrongly, that advertising spend is shrinking due to over-regulation and harsh policies of ARCON. While one might admit that ARCON could be high-handed at times, it is pertinent that what ADVAN wanted was that there should not be regulation at all. And that will be injurious to the society and the public. Adverts do not only sell and entertain, they also have the capability to shape behaviours and habits. And they can also spark emotional connections; especially when those who were used in the adverts are taken into consideration. This, again, is where another major issue comes in. ARCON had claimed, and rightly so, that during a review, it was discovered that some advertisers outsourced the use of talent in advertisements targeted at the Nigerian market. Many advertisements use foreign models and voice-over artists. ARCON wrote: “In some cases, productions are done outside the country, thereby denying Nigerians and the Nigerian economy the benefits and gains of advertising income. In order to reverse this trend and in line with the Nigerian First Policy, ARCON directed that all advertisements targeting the Nigerian market must use Nigerian talent and be produced in Nigeria, except where circumstances do not permit this. These directives did not go down well with some ADVAN members, and after a series of lobbying efforts, ADVAN resorted to a media war and misinformation. “ It is funny and strange that ADVAN is even tackling this. Nigeria’s creative industry has really evolved over the years, and when you see certain productions, you will be wondering if they were done in Europe or even South Africa. But no. They were done in Nigeria. That is one of the gains of the government’s ‘Nigeria First’ policy. Is ADVAN against this? Is there an interest they are protecting? Are there some underhand deals that go into doing productions outside the shores of the country? These are pertinent questions one needs to ask ADVAN executives as they push against this commendable policy from ARCON. Some years ago, the Africa Independent Television, AIT, was forced to publish the names of those owing the organisation. And we all know the usual culprit: ADVAN members. AIT is one of the media houses reeling under the yoke of advert debts running into billions of naira. Ironically, it is one issue ADVAN does not like being discussed or even handled with the determination and dispatch it requires. As ARCON wrote: “Anyone close to the industry will know that one of the major problems of the Nigerian advertising industry is media debt. Media debts are not owed to the advertising agencies alone but are largely owed to media houses (broadcast, print, and OOH), production companies, and third-party vendors. There have been accusations and counter-accusations regarding media debt.” What did ARCON do? It was forced to see the intervention of the Economic and Financial Crimes Commission, EFCC, in order to rid the industry of debt. To even make it easier for all parties involved, ARCON adopted the 45-day payment cycle as recommended by the Advertising Industry Standards of Practice, AISOP, Committee . And what does ADVAN do? It began to lobby ARCON to suspend the payment threshold policy and allow its members to conduct their businesses without adherence to the payment policy. When ARCON would not budge, they saw it as the advertising regulatory body interfering in personal contracts and over-regulation. Ironically, the same ADVAN members usually prepay foreign media houses but owe local media houses with impunity. One other issue ADVAN raised was the issue of the constitution of a Board for ARCON so that the Board would be able to rein in ARCON and ensure the regulatory agency is subjected. ADVAN had written in its letter: “The Advertisers Association of Nigeria, ADVAN, the only umbrella body for advertisers in Nigeria and a member of the World Federation of Advertisers, represents brand owners controlling over 90 percent of Nigeria’s annual marketing spend, estimated at more than N800 billion. On behalf of its members; multinationals, large indigenous companies, and over 39 million MSMEs in Nigeria, ADVAN has repeatedly engaged relevant institutions to highlight serious regulatory concerns. These concerns include: The absence of a council as stipulated in the ARCON law, to oversee the activities of the body; the unconstitutionality of ARCON’s tribunal; which combines the roles of regulator, prosecutor and judge and the imposition of arbitrary vetting and promotional fees.” It is non-debatable that ADVAN is a major stakeholder in the nation’s advertising industry. No one can deny that. But it must be noted that the same ADVAN had, on its own volition, pulled out of the Heads of Advertising Sectoral Group, HASG, platform. It did not end there. The same ADVAN declined participation in the National Advertising Conference, notwithstanding that a good number of advertisers were in attendance in their individual and organisational capacities. ADVAN also declined participation in the Advertising Industry Colloquium, notwithstanding that some advertisers sponsored and participated in the programme. “As of today, ADVAN has a representative on the Advertising Standards Panel, ASP, which is the statutory panel responsible for the vetting of advertisements. ADVAN wants ARCON to suspend the advertising industry reforms as a condition for participating in any engagement and yet complains of non-inclusion,” ARCON wrote in its response. As they say on the streets: who does that? It is not for ADVAN to determine or stampede the President to constitute ARCON Board. Yes, the board is needed and desirable. But even if the Board is constituted today, it does not change anything in the way ARCON operates and its onerous responsibility of regulating and also sanitising the advertising industry. Having said this, ADVAN has to review the way it engages with other critical stakeholders in the industry. The claim that advertising spending is shrinking is neither here nor there. The traditional media no longer controls advertising spend. The new media has eaten deep into it. And even at that, no nation allows industry players and even critical stakeholders to operate with some measure of control and regulation. ADVAN must live to deal with this. Even a thousand open letters to the President won’t change anything. ** Ojo, a Mass Communication teacher, wrote from Offa