The Federal Government has introduced sweeping reforms in Nigeria’s advertising and broadcast media sector, targeting the long-standing issue of unpaid advertising debts and weak financial practices across the industry.
The directive was issued by the Minister of Information and National Orientation, Mohammed Idris, who mandated the Advertising Regulatory Council of Nigeria to work with the National Broadcasting Commission to enforce a zero-tolerance policy on outstanding advertising payments.
In a statement, ARCON Director-General, Olalekan Fadolapo, outlined the new framework, which introduces strict financial regulations across advertising transactions.
A central provision of the reform requires that all payments related to media orders be settled within 45 days. The rule, backed by the Advertising Industry Standards of Practice (AISOP), applies to both Media Purchase Orders and Local Purchase Orders.
Under the directive, any delay beyond the 45-day window will attract interest at prevailing market rates.
Mohammed Idris stated that compliance with the payment timeline is mandatory, adding that the measure is necessary to protect media organisations, strengthen revenue stability, and support investment within the sector.
The reforms also address agency transitions. Under the new rules, advertisers are prohibited from appointing new agencies without first clearing all outstanding debts owed to previous agencies.
Fadolapo explained that both outgoing and incoming agencies are now required to carry out due diligence, including financial and ethical checks, before onboarding new accounts.
To manage disputes, ARCON has strengthened its Alternative Dispute Resolution (ADR) mechanism. The platform will provide mediation, conciliation, and arbitration services to facilitate faster resolution of conflicts arising from advertising transactions.
Fadolapo said ARCON will fully enforce the directive to restore professionalism and discipline in the industry.
As part of the implementation process, Mohammed Idris has also approved that ARCON engage with the Independent Broadcasting Association of Nigeria to develop a Standard Operating Procedure (SOP) for broadcast advertising.
The proposed SOP is expected to establish a comprehensive regulatory framework for Nigeria’s broadcast advertising landscape, with provisions aimed at protecting indigenous broadcasters and strengthening the country’s creative industry.
