The Advertising Regulatory Council of Nigeria has said that effective from 1 of April 2024 all advertising sectoral bodies must provide 1billion indemnity professional insurance cover for all their members.
This move according to the apex regulatory body to reform and reposition the Nigeria’s advertising industry for growth.
The sectoral groups include: Advertising Agencies Association of Nigeria (AAAN), Experiential Marketers Association of Nigeria (EXMAN), Media Independent Practitioners Association of Nigeria (MIPAN) and Out of Home Advertising Association (OAAN).
Disclosing this at the press parley in Lagos recently, Dr. Lekan Fadolapo, Director General, ARCON noted that the insurance cover has become imperative to enable the apex regulatory agency strengthen advertising agencies service delivery, build capacity and capability, as well as ensure long-term stability in the industry.
He added that the other guideline is the implementation of the 45-day contract payment threshold in the advertising industry.
Dr. Fadolapo noted that the apex body is collaborating with the Economic and Finance Crime Commission (EFCC), National Broadcasting Commission (NBA), and other government agencies on the implementation of the 45-day credit threshold in the advertising industry.
His words: “In line with the federal Government policy of economic recovery, inclusive growth, development of local talents, and the directive of Alhaji Mohammed Idris, Hon. Minister of Information and National Orientation, on the need to strengthen the Nigerian Advertising Industry regulatory framework and reverse the negative trajectories currently plaguing the industry.
As part of the ongoing advertising industry reform and the need to strengthen advertising agencies service delivery, build capacity as well ensure long-term stability in the industry, each sectorial group is to provide N1 billion professional industry insurance cover for its members. This covers professional indemnity for members of their association as part of the corporate license requirements.”
He added some stakeholders have been offering Nigerian media and other service providers a 120-day payment circle, thereby impoverishing the Nigerian advertising industry. These same stakeholders prepay foreign media houses operating in Nigeria for media services. Some had insisted on old practices that have led to industry debt and exploitation of media owners. We can no longer allow this to continue.
Other reforms include the following: creating a data bank for agencies, where ARCON is conducting a nationwide audit of advertising agencies to build a comprehensive data bank. Dr. Fadolapo announced that only licensed agencies will be engaged, and a directory will be published after the audit.
