By Tunde Oso
In an apparent move to enforce financial discipline in the media industry, the Federal Government has directed the Advertising Regulatory Council of Nigeria (ARCON) to enforce that payment for advertising services be made within 45 days.
In a statement sent to Nggossips by Dr. Olalekan Fadolapo, Director-General of ARCON, the Minister of Information and National Orientation, Alhaji Mohammed Idris, directed 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.
ARCON is a key parastatal under the Federal Ministry of Information and National Orientation, responsible for regulating, controlling, and setting standards for advertising, advertisement, and marketing communication in Nigeria.
Fadolapo explained: “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). Where payment is not made within this window, interest will accrue at the prevailing market rate.
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.
Both the outgoing and incoming agencies are required, by this mandate, to formally engage and conduct a back-check for possible ethical or financial breaches that may encumber new accounts. The press statement is unambiguous on this point, describing the engagement as “not only important, but also statutory”, meaning it carries the weight of law, not merely industry courtesy.
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. This mechanism is designed to provide faster, less adversarial resolution pathways that will prevent disagreements from festering into the kind of protracted, multi-year debts that have long undermined the health of the industry.
ARCON, for its part, has responded with clear resolve. In the words of Dr. Fadolapo’s statement, the Council “will ensure full implementation of the Honourable Minister’s directive in sanitising the advertising and media industry, ensuring prompt payment for advertising services, and adherence to professional and statutory standards.”
All stakeholders and the advertising community have been enjoined to adhere to the new business framework, which is designed, in the Minister’s words, to improve and strengthen the ecosystem for the benefit of all.
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