In what may become one of the most contentious regulatory showdowns in Nigeria’s advertising industry, the Advertising Regulatory Council of Nigeria (ARCON) has issued a stern warning and announced its intention to launch a full-scale investigation into an alleged ₦1bn advertising debt owed by 9mobile, one of the country’s leading telecommunications providers and a member of the Advertisers Association of Nigeria (ADVAN).
In an announcement, released by ARCON and signed by its Director-General, Dr. Olalekan Fadolapo, the regulatory body noted that two formal petitions have been filed against Emerging Markets Telecommunications Services Limited, trading as 9mobile, alleging the telco’s prolonged refusal to pay advertising debts despite having disengaged the indebted agencies and reportedly briefed new ones to continue business “with impunity.”
ARCON did not mince words in describing the gravity of the situation, reports Saturday Independent.
The regulator noted that 9mobile’s alleged conduct amounts to “economic sabotage” with wide-ranging effects on the advertising ecosystem.
“Advertising debts are beyond agencies. They belong mostly to media houses and third-party vendors/suppliers who are significantly affected by the indebtedness with multiplier effects on their cash flows and operations,” the statement read.
The Council said it would probe the movement of 9mobile’s advertising account from the owed agencies to newly engaged ones, noting that such transitions may have bypassed established disengagement protocols and possibly breached ethical standards.
Citing the Advertising Industry Standard of Practice (AISOP) and the 45-day payment threshold mandated by Nigerian advertising law, ARCON reaffirmed its commitment to enforcing regulatory compliance and protecting the integrity of the industry. “ARCON will take all necessary actions to eradicate unfair advantage, unethical competition and unequitable policies between relevant stakeholders in the Nigerian advertising industry, ensuring adherence to payment threshold, industry credit policy, protection of copyright/intellectual property ownership, and compliance with the Advertising Industry Standard of Practice (AISOP),” the statement continued.
Dr. Fadolapo emphasised that the Council would work with relevant anti-graft and government agencies to ensure a detailed investigation is conducted and the outstanding debt is resolved, a stance that further reflects ARCON’s growing resolve to sanitize Nigeria’s advertising space and ensure financial discipline among industry players—advertisers included.
That 9mobile is a member of ADVAN, the umbrella body for corporate advertisers in Nigeria, adds another layer to the unfolding saga.
ADVAN has, in recent times, clashed with ARCON over the implementation of AISOP, among other sundry issues.
As the investigation looms, all eyes will be on ARCON and its next steps. The regulator’s credibility — and indeed, the future of fair practice in the advertising industry — may well hinge on the outcome of this case.
For 9mobile and perhaps ADVAN, the storm is just beginning.
