The Advertising Regulatory Council of Nigeria (ARCON) has rejected claims by the Advertisers Association of Nigeria (ADVAN) over advertising spend and the impact of recent industry reforms, describing the association’s open letter to President Bola Tinubu as misleading.
In a statement signed by its director general, Dr Olalekan Fadolapo, ARCON said ADVAN’s claim that its members account for over 90 percent of Nigeria’s estimated N800 billion annual advertising spend is false.
“ADVAN members do not contribute 90% of the Nigerian advertising industry spend, nor do they conduct business worth ₦800 billion as claimed,” the statement said. “ADVAN members contribute less than 10% of the advertising industry spend, and its membership has declined in recent times due to poor leadership.”
ARCON challenged the association to publish its active membership list and advertising spend data to support its position.
The regulator also dismissed ADVAN’s claim that companies are leaving Nigeria because of ARCON’s reforms. “ADVAN is challenged to provide verified data on the alleged decline in advertising spend, as well as publish the names of organisations that have exited Nigeria because of the industry reforms,” it said.
ARCON argued that the industry has recorded growth rather than decline. It disclosed that it worked with the Heads of Advertising Sectoral Group to commission PricewaterhouseCoopers to conduct an independent study on advertising spend and its contribution to Nigeria’s gross domestic product. The report, it said, was presented to stakeholders and made public.
At the centre of the dispute are reforms requiring the use of Nigerian talent in advertisements targeted at the local market and the enforcement of a 45-day payment cycle to address industry debt. ARCON said some advertisers prepay foreign media houses while owing local media outlets.
On account disengagement, ARCON said it now requires advertisers to settle outstanding debts before switching agencies, adding that the measure is meant to curb unethical practices.
The regulator also rejected a 2025 performance rating by the Presidential Enabling Business Environment Council (PEBEC) which ranked it low among federal agencies.
ARCON said that ADVAN is a long-time ally of PEBEC and has tried to use PEBEC to undermine ARCON’s policies and oversight functions, adding that some multinationals had also sent petitions to PEBEC as part of a strategy to interfere in and decimate ARCON’s oversight powers and mandate.
“ARCON does not and cannot score 3% in performance as stated by PEBEC and publicised by ADVAN,” the statement said.
ARCON also criticised the board of trustees of ADVAN for endorsing the open letter to President Tinubu, saying the trustees gave weight to a publication it considers inaccurate.
“It is rather unfortunate that the Aare Fatai Odeshile-led Trustees of ADVAN allowed the leadership of ADVAN to involve them in this manipulative and misinformation web,” the statement said.
The regulator said the trustees did not seek engagement with ARCON or its supervisory ministry before signing the letter. It described the publication as “misleading and deceptive” and said it “reflects poorly on the entire leadership of ADVAN. This approach is truly regrettable and worrisome.”
ARCON also faulted ADVAN for taking issues to the media while related matters are pending before the Federal High Court. It noted that several suits challenging the reforms and their oversight powers are already before the court.
“If a case is sub judice, why take it to the media?” the statement asked, accusing ADVAN of trying to stall the reforms through public pressure.
On exclusion claims, ARCON said ADVAN withdrew from the Heads of Advertising Sectoral Group and declined to participate in the National Advertising Conference and the Advertising Industry Colloquium, though some members attended individually. It added that ADVAN still has a representative on the Advertising Standards Panel.
“ADVAN wants ARCON to suspend the advertising industry reforms as a condition for participating in any engagement and yet complains of non-inclusion,” the statement said.
Defending its actions, ARCON said it has promoted the use of Nigerian talent and companies in advertisements and addressed industry debt.
“The era of lawless advertising with impunity is over,” the statement declared.
“ARCON will resist all attempts and blackmail by ADVAN or any other group(s) to halt the ongoing advertising industry reforms,” Fadolapo said. “ARCON will remain focused and resolute in promoting the Nigerian First Policy and aligning with the Renewed Hope Agenda of the present administration.”
