‘No going back’ — ARCON says commercials must be produced locally

The Advertising Regulatory Council of Nigeria (ARCON) has directed advertisers to produce all commercials within the country.

In a statement released on Tuesday, but dated October 23, 2023, Olalekan Fadolapo, director-general of ARCON, said the regulator is against the production of advertisements outside Nigeria.

“Stop the capital flight and development of other economies by going out of the country to produce adverts meant for the Nigerian market, thereby killing the advertising industry,” he said.

“All commercials to be exposed to Nigerians should be produced in Nigeria. Create jobs for our youths, help grow and develop the support service sector of the industry and circulate the money within the Nigerian advertising ecosystem.”

ARCON gave this directive as one of the many reforms the regulator is undertaking in the industry and which will not be reversed.

According to Fadolapo, the ongoing reforms will continue despite the blackmail and propaganda of the Advertisers Association of Nigeria (ADVAN).

Fadolapo said Osamede Uwubanmwen, ADVAN’s president, had been “engaging in media attacks against his person and office, as well as spreading misinformation and disinformation about the reform”.

Highlighting the reforms, Fadolapo said local media houses should be respected in the same way that foreign media organisations are respected in Nigeria.

“No stakeholder or group of stakeholders should regulate media rate increases as media houses do not regulate other stakeholders’ product[s] price increases,” ARCON said in the statement.

“Let demand and supply determine sales and purchases of media services as it is in the other sectors of the industry.

“45-day Industry Credit policy. Globally, the payment threshold is a policy in the advertising industry. Some ADVAN members have been offering Nigerian businesses a 120-day payment circle, thereby impoverishing the Nigerian advertising industry.

“These same advertisers prepay foreign media houses operating in Nigeria for media services. ADVAN had insisted on old practices that have led to industry debt and exploitation of media owners.

“Use of local talents. Nigerians should be considered as primary in advertisements targeted at the Nigerian market. The use of foreign models and voices is banned except where it is inevitable.

“If you are selling your product to Nigerians, use Nigerians in your communication elements.”

ARCON said companies must also settle their financial obligations to an advertising agency before engaging another, as it will not tolerate the engagement of another agency for advertising services while the company owes another agency.

The regulator said the industry should respect Nigeria’s copyright laws by not using people’s intellectual property without compensation or approval.

“Violation of this will attract severe consequences. Engagement policy. There is a professional way to engage an agency,” ARCON said.

Fadolapo said the reforms have been approved by Mohammed Idris, minister of information and national orientation and should be adhered to.

ARCON SETS UP COMMITTEE TO MONITOR ADVERTISERS’ PRACTICES

In another statement issued on Monday, the regulator said it has established a committee to examine the value of the advertising industry and the sector’s contribution to Nigeria’s economy.

ARCON said the move is to enable the industry to continue to contribute to the growth and development of the economy.

“Sequel to the need to determine the size of the Nigerian advertising industry, the contribution of the industry to the economy and the multiplier effect of the contribution of the to the nation’s GDP, ARCON has set up a committee with the responsibility to determine the size of the industry using a quantitative approach in line with the best global practices,” ARCON said.

The committee will involve representatives from relevant sectors of the industry and chaired by Femi Adelusi, president, Media Independent Practitioners Association of Nigeria (MIPAN).

ARCON said stakeholders and the general public can send their inputs, memorandum and insights.

Interested advertisers are asked to send their submissions to [email protected] on or before Friday, November 3, 2023.