Alhaji Mohammed Idris, Minister of Information and National Orientation, has directed the Advertising Regulatory Council of Nigeria (ARCON) to collaborate with the National Broadcasting Commission (NBC) and Heads of Advertising Sectoral Groups (HASG) to resolve advertising industry debt and enforce strict payment discipline across the sector.

According to a statement signed by Dr. Olalekan Fadolapo, Director General ARCON, the directive is aimed at ensuring “zero tolerance for advertising industry debt” and adherence to payment thresholds by stakeholders, which is “firmly believed will be essential to national development and the realization of the Renewed Hope Agenda.”

ARCON has also been directed to enforce stricter payment discipline as part of Federal Government policy “aimed at protecting the vulnerability of media houses, attracting new media assets investment, job security, industry stability, and stable advertising revenue for media houses.”

The directive outlines that in line with global best practices and as part of the Advertising Industry Standards of Practice (AISOP), “payment for advertising services should be done within 45 days, failure will attract an interest at prevailing interest rate.” All Media Purchase Orders (MPOs) and Local Purchase Orders (LPOs) for media and advertising services are expected to comply with this policy.

The statement further states that “all parties and advertising stakeholders must be transparent in their dealings to ensure structured and disciplined payment process in the Nigerian Advertising ecosystem.”

On the matter of agencies, the directive affirms that advertisers and business owners are free to discharge, disengage, or terminate agreements with their advertising agency.

However, it places a clear obligation on advertisers before any such switch. Where an advertiser decides to disengage its agency whether full service, creative, media buying, digital, or OOH “the advertiser must ensure a detailed reconciliation and resolution of all outstanding financial obligations with the outgoing agency before proceeding to and briefing a new advertisement agency.”

Additionally, both the outgoing and incoming agencies “are required to formally engage and back-check for possible ethical or financial breach which may encumber the new accounts.”

The statement is unequivocal on the weight of this requirement, describing the engagement as “not only important, but also statutory.”

Following the minister’s directive, ARCON has established an Alternative Dispute Resolution desk to provide “neutral third-party mediation, conciliation and arbitration in order to reach harmonious settlement of industry dispute.”

The statement describes the desk as “important and very crucial as it will promote faster and more amicable resolution of industry disputes.” All stakeholders and the advertising community have been enjoined to adhere to the framework, which, according to the statement, “seeks to improve and strengthen the ecosystem.”

Dr. Fadolapo affirmed that “ARCON will ensure full implementation of the Honourable Minister’s directive in sanitizing the advertising and media industry, ensuring prompt payment for advertising services, and adherence to professional and statutory standards.”