Battle over ARCON Reforms shift to Abuja
By Zion Rufus
The Nigerian marketing and advertising sector is currently witnessing a seismic shift in the ongoing battle over Advertising Regulatory Reforms as Abuja becomes the battleground for this industry-wide dispute.
Since the initiation of the Advertising Regulatory Reforms championed by the Advertising Regulatory Council of Nigeria (ARCON), a contentious divide has emerged, pitting regulators, practitioners, and service providers against advertisers.
Recently, the 2023 National Advertising Conference held in Abuja saw the attendance of key stakeholders, including Heads of Advertising Sectoral Groups (HASG) like MIPAN, OAAN, AAAN, EXMAN, whereas ADVAN’s executives were conspicuously absent, deepening the schism and highlighting the widening gap in this conflict.
The three-day event concluded with ARCON’s Director General, Dr. Olalekan Fadolapo, expressing commitment to industry growth and reform. Despite the collaborative efforts of Heads of Advertising Sectoral Groups (HASG), excluding ADVAN, the dispute continued.
Fadolapo in his closing remarks at the Conference had outlined steps taken post 2022 Conference, including the formation of a committee to scrutinize the industry’s contribution to Nigeria’s GDP, employment, and wealth creation.
Following the 2023 conference, ARCON and other HASG representatives engaged the Minister of Information and National Orientation, Alhaji Mohammed Idris, presenting their findings, and receiving support for government efforts aimed at industry growth.
Intensifying lobby almost immediately after ARCON and HASG visitation, ADVAN in a counter move headed to Abuja, the seat of government.
The ADVAN leadership team engaged with the Honorable Minister of Information and National Orientation, Alhaji Mohammed Idris, along with officials from the Ministry of Trade and Investment and the Registrar/Director Trademarks, Shafiu Adamu Yauri.
This fierce battle which has resulted in a legal action and escalating tensions over industry reforms lies in ARCON’s push for reforms and ADVAN’s adamant opposition to certain aspects of these changes.
ARCON, as the regulatory body overseeing advertising practices in Nigeria, introduced AISOP—a code of practice aimed at industry revamp. While AISOP received support, ADVAN emerged as a vocal critic, particularly on payment terms and contractual freedom. Dr. Olalekan Fadolapo stressed the irreversibility of these reforms, covering Media Rates Deregulation, 45-Day Industry Credit Policy, Use of Local Talents, Production in Nigeria, Disengagement Protocol, Copyright Protection, and Engagement Policy. The reforms gained approval from the Ministry of Information and National Orientation, with the Minister endorsing their full implementation.
At frontier of the opposing, ADVAN opted for legal action against ARCON, citing constitutional and legal rights breaches. This move was prompted by the provisions of the recently enacted Advertising Regulatory Act. While not opposing the entire legislation, ADVAN identified approximately 50 items for examination, arguing that these provisions infringe on advertisers’ rights and limit freedom of contract.
The core of ADVAN’s challenge revolves around questioning ARCON’s authority to dictate contractual terms. ADVAN contends that AISOP contradicts sections of the Nigerian constitution, emphasizing the freedom for businesses to negotiate contracts. ARCON, however, maintains that AISOP aims to enhance equity and fairness, aligning with government directives for constitutional policies in the public’s best interest.
As the battle rages on, the advertising industry in Nigeria finds itself at a crossroads, with legal disputes and broader industry implications hanging in the balance.
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