The Honourable Minister of Information and National Orientation, Alhaji Mohammed Idris, has directed the immediate resolution of outstanding advertising and media debts across Nigeria’s advertising ecosystem, reinforcing a strict 45-day payment threshold for all advertising services.
The directive is part of the Federal Government’s broader effort to strengthen financial discipline, restore confidence, and ensure long-term sustainability within the industry.
The effort is being implemented through the Advertising Regulatory Council of Nigeria (ARCON) in collaboration with the National Broadcasting Commission (NBC) and Heads of Advertising Sectoral Groups, it mandates zero tolerance for industry debt and compels stakeholders to adopt structured, transparent payment systems considered critical to safeguarding the media value chain and supporting national economic objectives.
Under the Advertising Industry Standards of Practice (AISOP), payment for advertising services must be completed within 45 days, with any default attracting interest at the prevailing commercial rate.
All Media Purchase Orders (MPOs) and Local Purchase Orders (LPOs) are required to comply strictly with this policy and stakeholders are further expected to maintain transparency and accountability in their financial dealings to ensure a disciplined and sustainable payment culture across the ecosystem.
The policy is designed to protect media houses from financial vulnerability, stimulate new investment in media assets, safeguard employment within the industry, and promote stability in advertising revenues.
By strengthening enforcement mechanisms, ARCON aims to foster a more resilient and investment-friendly environment for practitioners and investors alike.
Commenting on the directive, Director-General of ARCON, Dr. Olalekan Fadolapo, said that, “This directive marks a decisive step toward sanitising the Nigerian advertising and media industry. Enforcing the 45-day payment threshold and ensuring proper reconciliation processes will not only protect media businesses from undue financial strain but also strengthen investor confidence and promote long-term stability within the sector. ARCON is fully committed to ensuring strict compliance and fostering a culture of transparency, professionalism, and accountability.”
‘’ARCON reaffirmed its commitment to the full implementation of the Minister’s directive and urged all stakeholders across the advertising and media value chain to comply strictly with the outlined framework in order to strengthen and sustain the Nigerian advertising ecosystem’’, he added.
‘’The directive establishes clear protocols for agency disengagement. Advertisers seeking to terminate contracts with advertising agencies, whether for full-service, creative, media buying, digital, or out-of-home services must first undertake comprehensive reconciliation and resolution of all outstanding financial obligations with the outgoing agency.
Both outgoing and incoming agencies are required to formally engage and confirm that no unresolved financial or ethical encumbrances exist before new engagements are finalised, reinforcing professional and statutory compliance’’, Fadolapo said.
In addition, ARCON has established an Alternative Dispute Resolution Desk to provide neutral third-party mediation, conciliation, and arbitration services aimed at facilitating faster and more amicable resolution of industry disputes.
