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All commercials should be locally produced

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By Abiodun Okunloye

Outsourcing commercials would lead to capital flight and affect the economies.

In a statement that was issued on Tuesday, dated October 23, 2023, the Advertising Regulatory Council of Nigeria (ARCON) ordered advertisers to make all their commercials within the country. ARCON director-general Olalekan Fadolapo stated that the organisation is opposed to commercials being made in countries other than Nigeria. He urged the advertising industry not to be outsourced outside Nigeria, as this would lead to capital flight and the growth of other economies at the expense of Nigeria. Nigerians should only be exposed to commercials that were made in the nation.

Creating their service within the country will generate employment opportunities for young people, boost the development of the industry’s support services, and keep the money circulating within Nigeria advertising ecosystem. This order is part of ARCON’s larger programme of industry-wide reforms, which will not be reversed. Fadolapo explained that the Advertisers Association of Nigeria (ADVAN) blackmail and propaganda won’t stop the ongoing reforms. According to him, ADVAN’s president, Osamede Uwubanmwen, has been taking part in media violations against his person along with his office, as well as circulating inaccurate information about the reform.

Nigerian media houses should be respected and treated well.

He has emphasised the reforms by saying that Nigerian media houses should be accorded the same level of respect as their foreign counterparts. In the same way that media outlets do not control the prices of other stakeholders’ products and services, ARCON argues that no stakeholder or group of stakeholders should control increases in the media rate. Let market forces, including demand and supply, establish the price and volume of media services. Also, they offer a 45-day Industry Credit period. The payment threshold is an industry-wide practice in marketing.

However, some ADVAN members have been offering a 120-day payment circle to businesses in Nigeria, which is crippling the country’s advertising sector. These same advertisers often provide advance payments to foreign media outlets providing services in Nigeria. The media industry is in debt, and media owners are being exploited because of ADVAN’s insistence on outdated practices. They should utilise local talents. Ads aimed at the Nigerian market should focus primarily on the Nigerian people. Except in unavoidable cases, using non-native models and voices is strictly prohibited. Any business hoping to sell its products to Nigerians would do well to feature locals in promotional materials.

No company should owe an advertising agency while engaging another.

ARCON has stated that companies have to fulfil their financial obligations to one advertising agency before engaging another and that it will not tolerate companies utilising another agency for advertising services while the company still owes money to another advertising agency. According to the regulator, the industry should honour Nigeria copyright laws by avoiding the unauthorised use of the intellectual property of other people and paying them compensation when necessary. When this rule is broken, there will be serious repercussions. Approach to engagement policy. ARCON emphasised that there is a suitable strategy to work with an agency.

Speaking further, he said the minister of information and national orientation, Mohammed Idris, has given approval to the proposed reform, and it is recommended that they be executed. Similarly, in a statement that was also released on Monday, the regulatory body announced that it had formed a committee with the mission of determining the significance of the advertising industry in relation to Nigeria overall Economic Growth. ARCON has stated that the move is being made to facilitate the industry’s continued participation in the expansion and development of the economy.

Contribution to the country’s economy and its impact will be checked.

Lastly, ARCON has established a committee charged with determining the size of the Nigerian advertising industry by employing a quantitative approach consistent with best global practices to ascertain its contribution to the country’s economy and its multiplier impact on the nation’s GDP. The committee will be led by Femi Adelusi, the president of the Media Independent Practitioners Association of Nigeria (MIPAN), and will consist of representatives from various sectors of the industry. ARCON announced that feedback, memoranda, and insights from the public are welcome. Submissions from interested advertisers must be received by Friday, November 3, 2023, via [email protected].


Related Link

ARCON: Website


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