In a bid to revolutionize the landscape of the Nigerian advertising industry, the Advertising Practitioners Council of Nigeria (ARCON) has unveiled a comprehensive set of initiatives aimed at promoting transparency, local talent, and sustainable growth. These groundbreaking reforms are set to reshape the industry and pave the way for a more equitable and prosperous future.
Speaking
recently at a press conference at the Protea Hotel Ikeja The Director General of The ADVERTISING REGULATORY COUNCIL OF
NIGERIA (ARCON), DR. OLALEKAN FADOLAPO, FCA, fnimn, frpa spoke passionately
about his intentional commitment to bringing equity into the Nigerian marketing
communications landscape. Below are some excerpts of the
1.
Professional Indemnity for Sectoral Groups As part of the ongoing advertising
industry reform and the need to strengthen advertising agencies service
delivery, build capaci and capabili as well ensure long term stabili in the
industry, each sectoral group, i.e. AAAN, EXMAN, MIPAN and OAAN is to provide
N1B (One Billion Naira) professional industry insurance cover for its members.
This covers professional indemnity for members of their Association as part of
the corporate license requirements. The full implementation of the corporate
license regime will take effect from April 1, 2024.
2. Capital Structure, Working Capital, etc.
There is an urgent need to review the capital structure and working capital
requirement of the advertisement agencies in line with economic realities and
capacity building programmes of ARCON. ARCON is currently in talk 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. Regulatory guidelines will be issued as soon a position is taken on
this.
3. 45 Days
Payment Threshold: ARCON, in collaboration with key government agencies such as
the Economic and Financial Crimes Commission (EFCC) and the National
Broadcasting Commission (NBC), is championing the implementation of a 45-day
payment threshold in the advertising sector. This policy aims to combat
economic sabotage and ensure timely payments within the industry, thereby
safeguarding the interests of stakeholders and fostering financial stability. Globally,
payment threshold is a policy in the advertising industry. Some stakeholders
have been offering Nigerian media and other service providers 120 days payment
circle, thereby impoverishing the Nigerian advertising industry. These same
stakeholders prepay foreign media houses operating in Nigeria for media
services. Some had insisted on old practices that have led to industry debt and
exploitation of media owners. We can no longer allow this to continue.
4. Use of
Local Talents: Recognizing the importance of promoting local talent and
culture, ARCON has instituted regulations mandating the primary consideration
of Nigerian models and voices in advertisements targeting the Nigerian market.
Exceptions for foreign talent will only be granted under specific
circumstances, subject to formal approval. This initiative seeks to empower
Nigerian creatives and enhance cultural representation in advertising
campaigns.
5.Data Bank
for Advertisement Agencies: ARCON has initiated a national audit of
advertisement agencies to establish a comprehensive data bank in line with its
statutory obligations. This audit aims to ensure that only licensed agencies
are engaged in advertising activities, promoting accountability and
professionalism within the industry. The forthcoming directory of advertising
agencies will serve as a valuable resource for stakeholders and facilitate
informed decision-making.
6.Media
Rates Deregulation: In a significant move towards market-driven practices,
ARCON reaffirms the deregulation of media rates in the Nigerian advertising
industry. This stance underscores the principle of free-market dynamics,
emphasizing the autonomy of Nigerian media houses in determining their rates.
By fostering a competitive environment, this policy encourages innovation and
efficiency while respecting the autonomy of media organizations.
7.Engagement
and Disengagement Protocol: ARCON has implemented a stringent engagement and
disengagement protocol outlined in the Advertising Industry Standard of
Practice (AISOP). This framework ensures fair and transparent procedures for
agency engagements and disengagements, mitigating potential conflicts and
promoting ethical conduct within the industry. Violations of these protocols
will be subject to investigation and appropriate sanctions.
8.Publication
of ARCON Register of Practitioners: To combat illegal advertising practices and
enhance regulatory oversight, ARCON will publish its membership register
following a comprehensive review process. This measure aims to promote
transparency and accountability among practitioners, safeguarding the integrity
of the advertising profession and protecting the interests of stakeholders.
9.Stoppage
of Imported Advertisement in Nigeria: ARCON advocates for the localization of
advertisement production to stimulate economic growth and job creation within
Nigeria. By discouraging the importation of advertisements, ARCON seeks to
bolster domestic industries, empower local talent, and retain capital within
the Nigerian economy. Heavy taxation on imported advertisements aims to
incentivize domestic production and support indigenous businesses.
10.National
Policy on Out-of-Home (OOH) Advertising: ARCON, in collaboration with relevant
stakeholders, is developing a comprehensive regulatory framework for
out-of-home (OOH) advertising. This initiative aims to standardize practices,
enhance accountability, and promote sustainable growth within the OOH
advertising sector. Industry participation will be solicited to ensure the
framework reflects the diverse needs and perspectives of stakeholders.
Throwing
more light on these landmark advancements, the DG when asked if the reason why
most production houses on the behest of their clients move their productions
abroad for the sake of quality and global standard equipment isn’t a good
enough reason, he emphasized that Nigerian studios are equal to the task and there
have been training and retraining partnerships with various sectoral groups to
achieve this purpose. He urged industry stake holders to understand that it
would not be business as usual where foreign agency Creative Directors would be
given premium priorities over and above Nigerian creative directors.He also stated that new dynamics in the (Out of Home)OOH Sector has necessitated the steps to regulate and engage more with operators in the system in order to protect consumers and maintain professionalism in that sector since technology has overridden some models of engagement in the past. .
In conclusion,ARCON's
visionary reforms represent a pivotal moment for the Nigerian advertising
industry, signaling a transformative shift towards transparency,
accountability, and local empowerment. These initiatives underscore ARCON's
commitment to fostering a vibrant and sustainable advertising ecosystem that
benefits all stakeholders. With the support of industry players and regulatory
agencies, with these antecedents ARCON is poised to usher in a new era of
prosperity and innovation in Nigerian advertising.
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