Contrary to claims by the Advertisers Association of Nigeria, ADVAN, that reforms by the Advertising Regulatory Council of Nigeria (ARCON) have driven investment away and caused companies to exit the Nigerian market, ARCON says independent research proves the industry is thriving.
In a press statement, ARCON’s Director-General, Dr. Olalekan Fadolapo, highlighted a comprehensive study conducted with PricewaterhouseCoopers (PwC) and the Heads of Advertising Sectoral Group (HASG). The report shows that advertising spend in Nigeria is increasing, debt issues are being resolved, jobs are being created, and contributions to the country’s GDP are growing.
ARCON outlined three major outcomes of its reforms benefiting the Nigerian economy. First, requiring all ads targeting the Nigerian market to feature Nigerian talent and be produced locally has redirected previously lost revenue into the country, boosting opportunities for creatives, models, and production companies.
Second, enforcing a 45-day payment cycle for media obligations has addressed the industry’s chronic debt problems. Third, the disengagement protocol, which ensures advertisers settle outstanding payments before moving accounts, has strengthened industry ethics and improved compliance.
“ARCON has championed the use of Nigerians in all advertising and marketing communications targeting the Nigerian market,” the regulator said. “We have largely resolved media debts and strengthened the industry, increasing its contributions to GDP.”
ARCON challenged ADVAN to publish verified data supporting its claims, noting that no companies or figures were provided in the open letter sent to President Bola Tinubu. The regulator also highlighted the role of the Advertising Offences Tribunal in maintaining ethical practices and ensuring compliance, with its legality recently upheld by courts.
Aligning with the Nigerian First Policy under the Tinubu administration, ARCON says it will continue implementing reforms that prioritize local talent, resolve industry debt, and improve the overall health of Nigeria’s advertising sector.
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