FG shocks advertisers with N100, 000 fine
The announcement of a fine of N100, 000 by the Federal Government on local brand adverts broadcast on CNN and other foreign stations broadcasting in Nigeria, and on adverts of local brands that are created abroad, has come as a shocker to advertisers.
According to the Minister of Information and Culture, Lai Mohammed, the fine will apply to Nigerian brands that created their adverts outside Nigeria and run it on a local station like NTA. Not only that, any Nigerian brand that advertises during foreign matches will be made to also advertise during Nigerian Football League games.
These measures, the minister said, were part of the latest Broadcasting Code just unveiled for the country.
Mohammend said, “Let’s assume you have brought in La Liga, and during the matches, Guinness is advertised, we will compel Guinness to also advertise when we are playing a local league. That is the only way we can grow this industry but as can be expected, we have had very few supporters.”
The minister who disclosed this on an NTA programme said, that the brand would pay a N100,000 fine each time it is broadcast.
Mohammed added that adverts promoting Nigerian brands must be directed and authored by Nigerians inside the country.
“If you do an advert in South Africa, you put it on CNN and we look at that advert and we see that the advert was not made in Nigeria but actually made in South Africa, or you see that five times a day, it is on CNN, you pay half a million to us. The half a million will go to the Content Development Fund,” he said.
The minister added, “What is common today is to see products made in Nigeria but the advert for those products are actually probably done in South Africa or in the US. So, we amended the code to say that if a product you want to advertise in Nigeria territory is made in Nigeria, grown in Nigeria or processed in Nigeria, then you must make sure that the advert is also produced in Nigeria.
“Gulder is made, processed in Nigeria. If you go to South Africa to produce an advert which you are going to air to Nigerians because Nigerians consume Gulder, what we have amended the code to say is that for every time that advert is aired in Nigeria either on radio or television, you pay a fine of N100,000. We are not stopping you from making your production in America or South Africa but if you are going to advertise in Nigerian territory, you will pay a fine of N100,000.
“In other words, if Gulder makes an advert in South Africa and it is shown on NTA, if it shows it 10 times a day, it will pay N100,000 fine 10 times.”
He further stated that the NBC had been asked to implement a regulation mandating exclusive licensees and broadcasters to share exclusive rights with other broadcasters.
This announcement has however come as a shock to both advertisers and practitioners in the Integrated Marketing industry. It is however believed that the new twist to the broadcasting code is to the advantage of local advertising agencies who have had to watch as brands engage foreign agencies to produce creatives that most times does not reflect the cultural nuances of the target market.
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