ARCON, NBC task to resolve media debt, ensure adherence to payment threshold
The Advertising Regulatory Council of Nigeria (ARCON) has been directed to collaborate with the National Broadcasting Commission (NBC), and the Heads of Advertising Sectoral Groups to resolve and ensure zero tolerance for advertising industry debt and adhere to payment threshold.
The Honourable Minister of Information and National Orientation, Alhaji Mohammed Idris who gave the directed according to a statement dated, April 15, believes that this is essential to national development and the realization of the Renewed Hope Agenda.
ARCON has also been directed to enforce stricter payment discipline as part of the Federal Government Policy aimed at protecting the vulnerability of media houses, attracting new media assets investment, job security, industry stability, and stable advertising revenue for media houses.
To ensure the directive is achieved, three clear cut approach was listed:
Credit policy and payment threshold. In line with global best practices and as part of the Advertising Industry Standards of Practice (AISOP), payment for advertising services should be done within 45 days, failure will attract an interest at prevailing interest rate. Again, all Media Purchase Orders (MPOs) and Local Purchase Orders (LPOs) for media and advertising services are expected to comply with this policy. All parties and advertising stakeholders must be transparent in their dealings to ensure structured and disciplined payment process in the Nigerian Advertising ecosystem.
Secondly, through agency disengagement protocol. Advertisers and business owners are free to discharge, disengage or terminate the agreement/contract with their advertisement agency.
However, where an advertiser decides to disengage its advertisement agency (full service, creative, media buying, digital or OOH), the advertiser must ensure a detailed reconciliation and resolution of all outstanding financial obligation(s) with the outgoing agency before proceeding to and briefing a new advertisement agency. The outgoing and the incoming advertisement agencies are required to formally engage and back-check for possible ethical or financial breach which may encumber the new accounts. This conversation and engagement is not only important, but also statutory.
Finally, through Alternative Dispute Resolution (ADR). Following the directive of the Honourable Minister, ARCON has set up an Alternative Dispute Resolution desk for a neutral third-party mediation, conciliation and arbitration in order to reach harmonious settlement of industry dispute. This is considered important and very crucial as it will promote faster and more amicable resolution of industry disputes.
Reacting to the directives ARCON says, all stakeholders and the advertising community are enjoined to adhere to the business framework above which seeks to improve and strengthen the ecosystem.
“ARCON will ensure full implementation of the Honorable Minister’s directive in sanitizing the advertising and media industry, ensuring prompt payment for advertising services, and adherence to professional and statutory standards,” the statement noted.
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