Advertising Regulatory Council of Nigeria (ARCON) has issued a stern warning and announced its intention to launch a full-scale investigation into an alleged ₦1 billion advertising debt owed by 9mobile, one of the country’s leading telecommunications providers and a member of the Advertisers Association of Nigeria (ADVAN).
In a statement released by ARCON and signed by its Director-General, 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.”
The agencies owed are left in limbo, it said.
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The regulator described prolonged indebtedness as “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.
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.
