Advertising Regulatory Council Accuses Agencies of Blocking Sector Reforms

The Advertising Regulatory Council of Nigeria (ARCON) has accused the Advertisers Association of Nigeria (ADVAN), of engaging in misinformation, disinformation, and manipulation aimed at halting the ongoing reforms in the nation’s advertising industry.
In a rebuttal against the Trustees of ADVAN, signed by its director-general, Dr Olalekan Fadolapo, ARCON described an open letter written by ADVAN to President Bola Ahmed Tinubu as an attempt to manipulate public opinion and obstruct regulatory progress.
ARCON in the statement stated that ADVAN claims contains several inaccuracies regarding the Council’s policies and oversight functions.

Similarly, the regulatory body particularly took issue with what it perceives as a campaign to undermine the “Nigerian First” policy championed by the Ministry of Information and National Orientation.

ARCON further pointed out that ADVAN has multiple lawsuits pending before the Federal High Court challenging the reforms and the constitutionality of ARCON’s powers.

While accusing ADVAN of resorting to a media war after failing in lobbying efforts.
“The issues raised in their letter are already part of the cases pending before the Federal High Court for determination. If a case is sub judice, why take it to the media?” the statement queried.

The Council while defending the “Nigerian First’ Policy said, defended its directive mandating the use of Nigerian talent and local production for advertisements targeting the Nigerian market. ARCON noted that the policy was designed to reverse the trend of using foreign models and outsourcing production, which denied Nigerians and the local economy valuable income.

According to the statement, this directive did not go down well with some ADVAN members, leading to their current opposition.

ARCON also addressed the issue of media debt, a perennial problem in the industry. It stated that its adoption of a 45-day payment cycle and a strict disengagement protocol were in line with global best practices to protect media houses and vendors from being owed by advertisers.

The Council accused some ADVAN members of impunity for allegedly prepaying foreign media houses while owing local ones.

The regulatory body refuted ADVAN’s claim that its members contribute 90 per cent of industry advertising spend, totalling N800 billion annually.

Hence, ARCON challenged the association to publish its active membership list and audited spend, alleging that the ADVAN president, Mr Osamede Uuwabannuwen’s own company spends very little on advertising.

However, ARCON questioned the motives behind the association stance, stating, “ADVAN members contribute less than 10% of the advertising industry spend, and its membership has declined in recent times due to poor leadership”

While responding to attacks on the Advertising Offences Tribunal (AOT), ARCON stated that recent court judgments have validated its constitutionality. It noted that the tribunal is a vital mechanism for sanitising the industry, similar to tribunals in other sectors like taxation and investment.

The advertising regulatory body noted on the issue of ARCON’s Governing Council not yet being inaugurated, explained that the Federal Government is following due process, involving rigorous vetting of candidates. It assured stakeholders that there is no regulatory vacuum, as the Management Committee, headed by the Director-General, continues its day-to-day functions under the oversight of the Honourable Minister.

Consequently, ARCON reiterating its commitment to the “Renewed Hope Agenda” warned that the “era of lawless advertising with impunity is over.” Even as It accused ADVAN of being the “only notoriously combative association” intent on halting progress and enslaving the industry.

“The era of lawless advertising with impunity is over. ADVAN is not the only association in the advertising industry but it has remained the only notoriously combative association because of its desire to halt the advertising industry reform and enslave the Nigerian advertising industry,” the statement read.

ARCON reiterated that it will resist all blackmail and remain resolute in its reforms. ADVAN is yet to respond to these specific allegations.