ARCON slams ADVAN over advertising reform claims

ARCON ADVAN dispute deepens as regulator accuses advertisers’ body of misinformation and attempts to halt reforms

The Advertising Regulatory Council of Nigeria (ARCON) has strongly criticised the Advertisers Association of Nigeria (ADVAN) over what it described as misinformation and attempts to obstruct ongoing reforms in the advertising industry.

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In a detailed press statement responding to an open letter issued by ADVAN trustees to President Bola Ahmed Tinubu, ARCON said several issues raised by the association are already before the Federal High Court and are therefore sub judice.

The regulator questioned why ADVAN chose to escalate the matter publicly while litigation is pending.

ARCON maintained that the reforms were introduced in line with the Federal Government’s Nigerian First Policy under the supervision of the Minister of Information and National Orientation, Mohammed Idris.

According to the council, the policy aims to promote inclusive growth and strengthen local participation in the advertising value chain.

One of the key reforms requires that advertisements targeting the Nigerian market must use Nigerian talent and be produced locally, except where circumstances make that impracticable.

ARCON said the directive was introduced after discovering that some advertisers were outsourcing production and talent abroad, thereby denying Nigerians economic benefits.

The regulator also defended its 45-day payment cycle policy under the Advertising Industry Standards of Practice framework, describing it as a necessary step to address longstanding media debt challenges affecting agencies, media houses and service providers. ARCON said attempts to enforce payment discipline were wrongly portrayed by ADVAN as over-regulation.

On allegations of declining advertising spend and corporate exits, ARCON challenged ADVAN to provide verifiable data.

The council cited independent research conducted in collaboration with sectoral stakeholders and audited by PwC, which it said showed growth in advertising industry contributions to Nigeria’s GDP.

ARCON also dismissed claims that ADVAN members account for 90 per cent of advertising expenditure in Nigeria, describing the figure as inaccurate and misleading.

It further criticised ADVAN’s leadership under Mr Osamede Uwubanmwen and the trustees led by Aare Fatai Odeshile for what it called a “web of manipulation and misinformation.”

The council reiterated that the constitutionality of the Advertising Offences Tribunal has been affirmed by court judgments and stressed that tribunals are standard mechanisms across regulated sectors of the economy.

On governance concerns, ARCON clarified that there is no regulatory vacuum despite the absence of an inaugurated Governing Council.

It explained that the Management Committee, headed by the Director-General, continues to oversee daily operations, while the Minister retains statutory oversight authority under the ARCON Act 2022.

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ARCON concluded that it remains resolute in implementing reforms aligned with the Renewed Hope Agenda of the current administration and will resist what it described as blackmail or pressure aimed at reversing industry transformation.

Quadri Olaitan