… Nigerian Investors To Enjoy Protection Under The New Regime
Finally, the Federal Government has made good its commitment to begin full implementation of the 45-day credit threshold in the advertising industry.
Henceforth, any organization that fixes payment outside the specified duration will be tagged an economic saboteur.
Dr. Lekan Fadolapo, Director-General of the Advertising Regulatory Council of Nigeria, ARCON, an agency under the Ministry of Information and National Orientation, during a media parley in Lagos said the agency is already collaborating with the Economic and Financial Crimes Commission, EFCC, the National Broadcasting Commission, NBC and other government agencies on this important policy implementation.
According to Fadolapo: “Such infracting organisation will be flagged and reported to other government agencies for further investigation and necessary punitive actions.”
According to him: “Globally, the payment threshold is a policy in the advertising industry. Some stakeholders have been offering Nigerian media and other service providers a 120-day payment circle, thereby impoverishing the Nigerian advertising industry.
“These same stakeholders prepay foreign media houses operating in Nigeria for media services. Some had insisted on old practices that have led to industry debt and exploitation of media owners. We can no longer allow this to continue.
“ARCON will continue to insist on the production of advertisements in Nigeria, stop the capital flight and development of other economies by some Nigerian organisations’ attitude of going out of the country to produce advertisements meant for our market.
“All commercials to be exposed to Nigerians should be produced in Nigeria. We need to create jobs for the Nigerian youths, help grow and develop the support service sector of the industry and circulate funds within the Nigerian advertising ecosystem. Where advertisements are produced outside Nigeria, such advertisements will be heavily taxed. Consequently, the variation rate will be reviewed upwards shortly,” the ARCON chief concluded.
“As part of the ongoing advertising industry reform and the need to strengthen advertising agencies service delivery, build capacity and capability as well ensure long-term stability in the industry, each sectoral group, i.e. AAAN, EXMAN, MIPAN and OAAN is to provide N1billion (One billion Naira) professional industry insurance cover for its members. This covers professional indemni for members of their Association as part of the corporate license requirements. The full implementation of the corporate licence regime will take effect from April 1, 2024.
The ARCON DG further stated: “Media Rates remain deregulated in the Nigerian Advertising Industry,” insisting, “No stakeholder or group of stakeholders should regulate media rates charged by the Nigeria Media Houses.
“The Nigerian media houses should be accorded the same level of respect and business practices accorded foreign media organisations operating in Nigeria. Let demand and supply determine sales and purchases of media services as it is in the other sectors of the industry.”, with any organization that fixes payment outside the duration tagged as an economic saboteur.
Making this declaration at a press briefing in Lagos, Dr Lekan Fadolapo, Director-General of the Advertising Regulatory Council of Nigeria, ARCON, an agency under the Ministry of Information and National Orientation, said his agency is collaborating with the Economic and Financial Crimes Commission, EFCC and the National Broadcasting Commission, NBC and other government agencies on the policy implementation.
According to Fadolapo, “Such organisation will be flagged and reported to other government agencies for further investigation and necessary punitive actions.”
He said, “Globally, the payment threshold is a policy in the advertising industry. Some stakeholders have been offering Nigerian media and other service providers a 120-day payment circle, thereby impoverishing the Nigerian advertising industry.
“These same stakeholders prepay foreign media houses operating in Nigeria for media services. Some had insisted on old practices that have led to industry debt and exploitation of media owners. We can no longer allow this to continue.
“ARCON will continue to insist on the production of advertisements in Nigeria, stop the capital flight and development of other economies by some Nigerian organisations’ attitude of going out of the country to produce advertisements meant for our market.
“All commercials to be exposed to Nigerians should be produced in Nigeria. We need to create jobs for the Nigerian youths, help grow and develop the support service sector of the industry and circulate funds within the Nigerian advertising ecosystem. Where advertisements are produced outside Nigeria, such advertisements will be heavily taxed. Consequently, the variation rate will be reviewed upwards shortly,” the ARCON chief concluded.
“As part of the ongoing advertising industry reform and the need to strengthen advertising agencies service delivery, build capacity and capability as well ensure long-term stability in the industry, each sectoral group, i.e. AAAN, EXMAN, MIPAN and OAAN is to provide N1billion (One billion Naira) professional industry insurance cover for its members. This covers professional indemnity for members of their Association as part of the corporate license requirements. The full implementation of the corporate licence regime will take effect from April 1, 2024.
The ARCON D-G, also said “Media Rates remain deregulated in the Nigerian Advertising Industry,” insisting: “No stakeholder or group of stakeholders should regulate media rates charged by the Nigeria Media Houses.”
“The Nigerian media houses should be accorded the same level of respect and business practices accorded foreign media organisations operating in Nigeria. Let demand and supply determine sales and purchases of media services as it is in the other sectors of the industry.”
