FG takes action on advertising debt, directs ARCON, NBC to enforce zero tolerance

Alhaji Mohammed Idris, Minister of Information and National Orientation has issued a firm and far-reaching directive aimed at resolving the long-standing problem of advertising and media debt in Nigeria, a move that signals a decisive intervention by the Federal Government in the affairs of the advertising and media industry.

In a move that industry stakeholders have described as bold and timely, Alhaji Idris directed the Advertising Regulatory Council of Nigeria (ARCON) to collaborate with the National Broadcasting Commission (NBC) and the Heads of Advertising Sectoral Groups to resolve outstanding industry debts and enforce strict adherence to payment thresholds by all stakeholders. The directive was made public through an official press statement signed by Olalekan Fadolapo, ARCON’s Director-General recently.

The Minister’s action is firmly rooted in the Federal Government’s broader economic vision. The press statement makes clear that zero tolerance for advertising industry debt is not merely a sectoral policy preference it is, in the Minister’s view, essential to national development and a direct enabler of President Bola Ahmed Tinubu’s Renewed Hope Agenda.

To give full effect to his directive, ARCON has outlined three clear and enforceable pillars through which the resolution of advertising debt and adherence to payment standards will be pursued.

The first is through the Credit Policy and Payment Threshold. ARCON has, in the course of its reforms, mandated that payment for advertising services must be made within 45 days, in line with global best practices and the Advertising Industry Standards of Practice (AISOP).

The directive mandates full compliance for all Media Purchase Orders (MPOs) and Local Purchase Orders (LPOs) issued for media and advertising services. The Minister has called on all parties including advertisers, agencies, and media houses to maintain transparency in their dealings, ensuring a structured and disciplined payment process across Nigeria’s advertising ecosystem.

This provision, the Minister has emphasised, is not optional. It is a cornerstone of the Federal Government’s policy of protecting the vulnerability of media houses, attracting new media assets investment, guaranteeing job security, ensuring industry stability, and generating stable advertising revenue for media operators.

Secondly, through Agency Disengagement Protocol. Addressing another dimension of the debt problem, ARCON has before now given clear direction on how advertiser-agency separations must be conducted. While advertisers and business owners remain free to discharge, disengage or terminate agreements with their advertising agencies, ARCON had ab initio mandated that no advertiser may proceed to brief a new agency until all outstanding financial obligations with the outgoing agency have been fully reconciled and settled.

Lastly, through Alternative Dispute Resolution. Recognising that not all debt situations are the product of bad faith, ARCON has established a dedicated Alternative Dispute Resolution (ADR) desk which will serve as a neutral platform for mediation, conciliation and arbitration to achieve the harmonious settlement of industry disputes.

ARCON, for its part, has responded with clear resolve. In the words of Fadolapo’s statement, the Council “will ensure full implementation of the Minister’s directive in sanitising the advertising and media industry, ensuring prompt payment for advertising services, and adherence to professional and statutory standards.”