Nigeria’s advertising industry is battling delayed payments and regulatory gaps, threatening its growth despite strong market projections
Nigeria’s advertising industry is at a crossroads. While forecasts project explosive growth—reaching $13.6 billion by 2028—industry leaders warn that the sector is under threat from systemic payment delays, digital abuse, and weak enforcement.
Also read: OOH advertising regulation gains momentum as OAAN backs FCTA billboard crackdown
With a 12.1% compound annual growth rate, Nigeria has been ranked by PwC as the world’s fastest-growing entertainment and media market.
Yet, advertising agencies report waiting up to 180 days for payments—far exceeding international standards.
“In the UK, payment cycles are 30 days. In Nigeria, it’s 120 to 180 days,” said Dr. Olalekan Fadolapo, Director General of ARCON. “It cripples cash flow. Agencies cannot survive on delayed funds.”
Dr. Fadolapo described how advertising firms bill clients quarterly, only to wait up to six months for payments.
This practice traps businesses in unsustainable cycles, undermining operations and growth.
These long delays are not just inconvenient—they are economically damaging, threatening to derail the momentum of Nigeria’s advertising industry at a time when it should be powering multi-sector growth.
The Advertising Regulatory Council of Nigeria (ARCON) is responding by tightening regulations and pushing for a zero-debt policy.
New rules now require clients to settle debts before switching agencies—a move aimed at ending the cycle of unpaid bills.
The agency has also reinforced the Advertising Standards Panel (ASP), which pre-vets advertising materials.
Only obituaries, job vacancies, and bank reports are currently exempt from vetting—though even this is under review.
ARCON has made it clear: it regulates content, not platforms. “We don’t touch entertainment or information. Only advertising content,” said Fadolapo.
The growing dominance of digital platforms has prompted the council to clamp down on cross-border advertising abuse, such as misleading health ads and scams—often targeting vulnerable groups in Nigeria.
A recent court ruling reinforced ARCON’s authority, granting its Advertising Offences Tribunal full legal power to issue sanctions.
ARCON is also enforcing local content rules under the “Nigerian First” policy.
Advertisers must prove Nigerian involvement in production, including models, voice artists, and crew—keeping billions within the economy.
“You can’t spend ₦1 billion abroad for a Nigerian ad and say there are no beautiful people here,” Fadolapo said.
Despite criticisms of over-regulation, ARCON and legal experts insist Nigeria’s advertising industry is still under-regulated—especially online.
Both call for stronger enforcement to protect consumers and preserve ethical standards.
Also read: Outdoor advertising industry launches 2025 LOMA Awards entry
As Nigeria transitions to a full digital economy, industry players stress the importance of regulation that balances innovation with responsibility.
Discover more from Freelanews
Subscribe to get the latest posts sent to your email.
