ARCON directed to crack down on unpaid debts, boost transparency and protect media businesses….
The Federal Government has ordered tighter financial discipline in Nigeria’s advertising sector, directing the Advertising Regulatory Council of Nigeria (ARCON) to enforce stricter payment practices across the industry.
The directive, issued by the Minister of Information and National Orientation, Mohammed Idris, is aimed at tackling persistent debt issues and improving financial stability among advertisers, agencies, and media organisations.
In a statement dated April 15 and signed by ARCON Director-General Olalekan Fadolapo, the regulator said it has been tasked with working alongside the National Broadcasting Commission (NBC) and industry stakeholders to resolve outstanding obligations and enforce compliance with agreed standards.
At the heart of the reform is a strict 45-day payment window for all advertising services, in line with the Advertising Industry Standards of Practice (AISOP). Any delay beyond this period will attract interest at prevailing rates.
The policy applies to all Media Purchase Orders (MPOs) and Local Purchase Orders (LPOs), with ARCON emphasizing that transparency and accountability must now define business dealings across the sector.
In addition, advertisers will no longer be allowed to switch agencies without first settling all outstanding debts. The regulator said both outgoing and incoming agencies must formally verify the financial and ethical status of accounts before any transition is completed.
To further address disputes, ARCON has established an Alternative Dispute Resolution desk to handle mediation, conciliation, and arbitration. The move is expected to speed up conflict resolution and reduce prolonged financial disagreements within the industry.
According to the regulator, the broader goal is to sanitise the advertising ecosystem, ensuring prompt payments, safeguarding jobs, restoring investor confidence, and strengthening the overall structure of the sector.
With enforcement set to begin in full, stakeholders across Nigeria’s advertising value chain are now under pressure to adapt to a stricter, more disciplined financial environment.
