1 Billion advertising debt: ARCON wields big stick against 9mobile

The Advertising Regulatory Council of Nigeria (ARCON) has announced a full-scale investigation into a staggering ₦1 billion advertising debt allegedly owed by Emerging Markets Telecommunications Services Limited, trading as 9mobile.

Also Read: Do young creatives still need to work for ad agencies in the age of social media?

Moreso, the telco company who entered Nigeria’s market as Etisalat over a decade ago is a member of Advertisers Association of Nigeria (ADVAN).

According to the petitions received by ARCON, 9mobile is said to have defaulted on long-standing financial obligations to agencies that executed various advertising services on its behalf.

Meanwhile, the regulatory council also disclosed that the most disturbing part of the matter is that the brand has reportedly signed on another media buying firm to handle fresh campaigns.

Further more, this is without resolving its debt to existing creditors, a practice ARCON deems both unethical and potentially unlawful.

Also, in the statement issued by ARCON and signed by Dr. Lekan Fadolapo, Director General of ARCON today, the council said: “ARCON will investigate the movement of the account from the agencies owed to the new agencies briefed to ascertain compliance with disengagement protocol as well as possible breach of ethical procedure.”

Notwithstanding, the regulatory body is particularly concerned about the apparent disregard for industry disengagement protocols, whereby a brand must formally settle accounts and issue clearance before transitioning advertising duties to a new agency.

The statement continued: “By the workings of the advertising ecosystems, advertising debts are beyond agencies, they belong mostly to media houses and third-party vendors/suppliers who are significantly affected by the indebtedness with multiplier effect on their cash flow and operations.”

In this regard, ARCON has vowed to scrutinize the movement of the 9mobile account from the affected agencies to new ones, ensuring that proper procedures were followed and no ethical codes were breached.

As part of its next steps, ARCON disclosed its intention to collaborate relevant government agencies for further investigation.

“ARCON will work with relevant anti-graft and other government agencies to ensure detailed investigation is done and the debt resolved/paid.

This is an economic sabotage capable of inhibiting the Federal Government policy of inclusive industry growth and development of the Nigerian advertising industry.

This is to reiterate that the Nigerian advertising industry payment threshold remains 45 days.

“ARCON will take all necessary actions to eradicate unfair advantage, unethical competition and unequitable policies between relevant stakeholders in the

Nigerian advertising industry, ensuring adherence to payment threshold, industry credit policy, protection of copyright/intellectual property ownership.

This is as well as compliance with the Advertising Industry Standard of Practice (AISOP).