The Advertising Regulatory Council of Nigeria (ARCON) has explained that it has become imperative to enforce the media rates deregulation, and other new policies it just rolled out, to enable it reposition the nation’s advertising industry.

 

 

Giving the explanation in Lagos, recently, while unveiling the sweeping reforms, in Lagos,   Dr. Lekan Fadolapo stated that the reforms were necessary to , strengthen its regulatory framework and reverse the negative trajectories currently plaguing the industry.

 

He stated that as part of the sweeping reforms, every media organizations should be free to fix their own advertising rates, while  demand and supply factor should be allowed to determine sales and purchases of media services, as obtains  in  other sectors of the industry.

 

Fadolapo insisted that with the new policy on media rates deregulation, no stakeholder or group of stakeholders would be allowed to  regulate media rates charged by the nation’s media organizations.

 

“The Nigerian media houses should be accorded the same level of respect  and business practices accorded foreign media organizations operating in Nigeria,” he stated.

 

The ARCON boss stated further that the agency also decided to fix a 45-day-payment threshold to enable it stem the debilitating debts crippling the grow of the industry and the  practitioners.

 

Noting that the issue of fixing payment threshold is not peculiar to the nation’s advertising industry, Fadolapo wondered why some stakeholders would offer Nigerian  media and service providers 120 days payment circle, but would readily  prepay foreign media houses operating in Nigeria for same media services.

 

As a way of ensuring that the new rule is obeyed, the agency, he added, would be collaborating with other government agencies, the Economic and Financial Crime Commission (EFCC),  and the Nigerian Broadcasting  Commission (NBC) to implement the policy.

 

“Any organisation that offers payment threshold outside 45-day credit policy will be tagged as economic saboteur of the Nigeria advertising industry, and will be flagged and reported to other government agencies for further investigation and necessary punitive actions.

 

“Some of these stakeholders are insisting on these  old practices that have led to industry debt and exploitation of media owners. We can no longer allow this to continue,” he stated.

 

While urging all stakeholders to adhere strictly to the rules guiding engagement and disengagement, as stated in the Advertising Industry Standard of Practice (AISOP), Fadolapo stated that the agency had commenced full implementation of the AISOP framework, warning that any agency that is disengaged without proper reconciliation of their financials before engaging another agency on the same account, the new agency and engaging organisation will be investigated, and sanctioned, if found culpable.

 

Another highlight of the new regulatory framework is ATCON’s insistence on a  review of the capital structure and working capital requirements of  advertisement agencies plying their trade in the nation’s advertising space, in line with the present realities.

 

“A situation where an agency with N1million will continue to handle jobs in excess of N500million is no longer acceptable. There is the need to review the working capitals of these agencies so as to build the confidence of stakeholders in the industry,” he added.

 

The ARCON boss disclosed that the agency  is currently in talks with the Heads of Advertising Sectoral Groups (HASG) and other relevant stakeholders on the minimum capital requirement for registration and license as an advertisement agency.

 

As a way of checking issues regarding exposure of unapproved advertisement, illegal advertising practices, and  damaging actions of unregistered persons claiming to be advertising practitioners, ARCON, he stated, would publish its membership register as soon as the ongoing membership review exercise is concluded.

 

 

He also disclosed that the agency has set up a  National Policy on Out-of-Home (OOH) Advertising Committee, to  plan and organise a national workshop on OOH advertising business.

 

 

“ARCON is collaborating with States’ Signage Agencies and OAAN on the need to formulate a broad base OOH Advertising regulatory framework for the industry. We will seek input from all relevant stakeholders and ensure industry participation in the framework” he added.

 

 

Fadolapo also expressed the concerns of the agency, regarding paucity of data for stakeholders in the industry,  to work with.

 

 

As part of  its efforts at building a robust and beneficial data bank for the industry, therefore, the agency, he stated  has commenced a national audit of advertisement agencies in line with its establishment Act.

 

 

According to him, ARCON would be writing to seek all relevant information from stakeholders and ensure that only licensed advertisement agencies are engaged.  A directory of advertising agencies in Nigeria, he stated, would be produced immediately after the completion of the first audit exercise.

 

Pix Caption

L-R; Director, Admin and Finance, Emmanuel Dare Ojo; Director, Regulations, Martha Onyebuchi ; Director General,  Lekan Fadolapo; Director, Registration, Joe-Eugene Onuorah; and Head of Legal, Barrister Chukwudi Ezeaba; all of Advertising Regulatory Council of Nigeria (ARCON), at the media conference.