DG, ARCON, Dr. Lekan Fadolapo

The Advertising Regulatory Council of Nigeria (ARCON), has expressed its readiness to, legally, sanitize the nation’s advertising space, and not succumb to threats from any group or stakeholder,  to undermine its growth and development.

 

In a statement signed by its Head, Corporate Affairs, Winifred Akpan, ARCON, the apex regulatory body added that its latest series of reforms are not attempts at strangulating advertising, as claimed in some quarters,  but designed to protect the interests of stakeholders,  and check revenue hemorrhage, especially the annual loss of over N120b on foreign models.

 

Of late, relationship between the regulatory body and the Advertisers Association of Nigeria (ADVAN),  has been ruptured over  some of the apex regulatory agency’s new policy thrusts.

 

For instance, ADVAN had criticised its decision to set up the Advertising Industry Standards of Practice, (AISOP), immediately after its unveil last year, claiming the document never had the inputs of all  critical stakeholders in the industry.

 

 

“We are not opposed to reforms.  But we believe those that will be affected by such policy should be fully involved,” the ADVAN President, Mr. Osamede Uwubanmwen had told members of the Brand Journalists Association of Nigeria, at the end- of -the -year party, organized by his association for BJAN, last year.

 

 

Another of such scathing criticisms, from ADVAN, is the idea of the newly inaugurated Advertising Offences  Tribunal, which the association described as dictatorial, and a way of muzzling stakeholders in the industry.

 

But ARCON, in the statement, had insisted all the reforms, embarked on,  are aimed at repositioning  the industry, and make it globally competitive.

 

The regulatory body described as untrue, the claim by ADVAN, that its members were not part of the process that birthed AISOP, stating that the association actually had a representative on the AISOP Committee that worked on the document.

 

 

“For record purposes,  ADVAN had a representative on the AISOP Committee that worked on the Advertising Industry Standards of Practice; ADVAN had  a representative on the Nigerian Advertising Code Review Committee;Fellowship Committee and  National Advertising Conference Committee, to mention but a few,” the agency stated.

 

To further establish that ARCON carried along every stakeholder in its law review exercise, the council emphasized that a public hearing took place at the National Assembly, where ADVAN representatives were present and made both oral and written submissions.

 

On advertising contracts between advertisers and other shareholders, the regulatory body explained it only insisted on being part of such contracts to set minimum acceptable industry  standards  for advertising, advertisement and marketing communications.  The standard, it further explained, is a framework, aimed at guiding all transactions involving  stakeholders.

 

“Some ADVAN members that engage in oppressive policies with impunity over the years are uncomfortable with the new fair-trade practice framework,”it added.

 

ARCON also noted that those opposed to the policy are those that engage in such oppressive policy, wondering why such people will comply with payment policies in other markets, but decline to do same in Nigeria.

 

Explaining its reasons for the ban on foreign models, the agency said such action has become necessary to enable the country and its people benefit from advertising.

 

The policy, it noted, requires a minimum local content percentage in all advertisements, encouraging organizations to use Nigerians as a critical element in their advertisements.

 

It argued that the policy represents a disapproval of companies that heavily rely on imported advertisements; since this  leads to job losses and significant revenue outflow from Nigeria.

 

ARCON also challenged ADVAN’s position on the payment policy, emphasizing that the industry-standard practice is to pay for services rendered within 45 days at most. The regulatory body, therefore, accused ADVAN of offering unfair practices and unethical policies that can endanger the Nigerian advertising industry.

On accusation from the association that some sections of its laws are draconian, ARCON accused some members of the association of trying to resist change that will improve the nation’s economy, and allow Nigerians to benefit from advertising.

 

“The only reason some ADVAN members are against the policy is because of the equity and fairness the policy brings to the table. You have a right to hire and fire an agency or terminate any contractual obligation. However, whenever you terminate such contracts, do reconciliation, and honour outstanding obligations arising from the contract before bringing another agency to the business. This is the position of ARCON that ADVAN insists is interference,” ARCON emphasized.

ARCON also criticized statements credited to the ADVAN President that a retired judge cannot make a valid judgment as the Chairman of the Advertising Offence Tribunal (AOT), calling it unfortunate and a display of a lack of understanding of the Nigerian legal system.