The Federal Government has directed the Advertising Regulatory Council of Nigeria (ARCON) to enforce strict payment discipline across the Advertising industry. This directive, issued by the Minister of Information and National Orientation, Mohammed Idris, aims to resolve chronic debt and stabilize the media ecosystem.
According to a statement dated April 15 and signed by Director-General Olalekan Fadolapo, the mandate seeks to protect media organizations, attract investment, and ensure job security while promoting overall industry stability.
In accordance with the Advertising Industry Standards of Practice (AISOP), all payments for advertising services must now be settled within a strict 45-day window. Failure to meet this threshold will automatically attract interest at the prevailing market rate.
This policy applies to all Media Purchase Orders (MPOs) and Local Purchase Orders (LPOs) within the Nigerian advertising ecosystem. ARCON emphasizes that all stakeholders must maintain transparent dealings to ensure a disciplined and structured payment process that aligns with global best practices.
To protect service providers from financial loss, the government has introduced rigorous protocols regarding the termination of agency contracts. Advertisers are now legally required to settle all outstanding financial obligations before they can disengage an existing agency and appoint a new one. Furthermore, incoming and outgoing agencies must formally engage with one another to verify any potential ethical or financial breaches linked to the account before a handover is finalized.
To support these new measures, ARCON has established an Alternative Dispute Resolution (ADR) desk dedicated to neutral third-party mediation, conciliation, and arbitration. This facility is designed to promote faster and more amicable settlements of industry disputes compared to traditional litigation. By providing a reliable platform for conflict resolution, ARCON intends to fully implement this ministerial directive to sanitize the industry, ensure prompt payments, and enforce strict compliance with professional standards.
