The Advertising Regulatory Council of Nigeria (ARCON) has issued a formal response to an open letter addressed to the President of Nigeria by the Advertisers Association of Nigeria (ADVAN), describing the publication as misleading and reaffirming its commitment to ongoing reforms aimed at strengthening the Nigerian advertising industry.
In a statement signed by its Director-General, Dr. Olalekan Fadolapo, ARCON noted that many of the issues raised by ADVAN are currently before the Federal High Court and are therefore sub judice. The Council questioned ADVAN’s decision to take matters already undergoing judicial review to the media, noting that such actions appear intended to obstruct and halt ongoing reforms within the industry.
The Council explained that its reform initiatives align with the Federal Government’s Nigerian First Policy and the Renewed Hope Agenda introduced at the commencement of the administration of Bola Ahmed Tinubu. According to ARCON, the Minister of Information and National Orientation, Mohammed Idris, directed agencies under the Ministry to adopt policies that promote inclusive growth and enhance local participation in key sectors, including advertising.
ARCON highlighted that one of its major directives requires advertisements targeting the Nigerian market to primarily feature Nigerian talent and be produced locally, except where circumstances make this impracticable. The Council stated that the policy was introduced to support employment, strengthen local capacity, and ensure that the economic benefits of advertising activities remain within Nigeria.
The Council also addressed its credit policy and payment threshold, noting that persistent media debt has long affected advertising agencies, media houses, production companies, and other service providers. To address this challenge, ARCON adopted a 45-day payment cycle in line with global industry standards and has taken steps to enforce compliance with advertising regulations in order to improve financial discipline across the sector.
In addition, ARCON emphasized the introduction of a disengagement protocol requiring advertisers to settle outstanding financial obligations before transferring accounts between agencies. According to the Council, this measure is intended to curb unethical practices, reduce industry debt, and promote sustainable growth within the advertising ecosystem.
Responding to allegations that its reforms have caused a decline in advertising investment and the exit of companies from Nigeria, ARCON challenged ADVAN to provide verifiable data supporting such claims. The Council stated that independent research conducted by PricewaterhouseCoopers indicates growth in the industry and increased contributions to Nigeria’s gross domestic product.
ARCON further rejected claims that ADVAN members account for 90 percent of advertising expenditure in Nigeria, describing the figures as inaccurate and misleading. The Council called for greater transparency regarding ADVAN’s membership and spending data, maintaining that the association’s contribution to total industry expenditure is significantly lower than claimed.
The Council also clarified that ADVAN voluntarily withdrew from key industry engagement platforms, including the Heads of Advertising Sectoral Group, and declined participation in major industry events such as the National Advertising Conference and the Advertising Industry Colloquium. ARCON noted that despite these decisions, ADVAN continues to maintain representation on the Advertising Standards Panel responsible for vetting advertisements.
On governance matters, ARCON explained that the Federal Government is following due process in appointing the Council’s Governing Council in accordance with the ARCON Act No. 23 of 2022. The Council emphasized that there is no regulatory vacuum, as the Management Committee continues to oversee day-to-day operations under the supervision of the Ministry of Information and National Orientation.
ARCON also defended the constitutionality and effectiveness of the Advertising Offences Tribunal, noting that recent court judgments have affirmed its statutory authority to adjudicate advertising-related matters and promote ethical conduct and compliance within the industry.
ARCON stated that the Council remains committed to strengthening the advertising sector and supporting national economic development.
“ARCON has championed the use of Nigerians in all advertising and marketing communications targeting the Nigerian market, promoted local production, and helped resolve industry media debt issues, thereby building a stronger industry with improved contributions to national growth.
The era of lawless advertising with impunity is over. The Council will resist attempts by any group to halt ongoing reforms and will remain focused on promoting policies that create opportunities for Nigerians and support sustainable industry development,” the Council said.
