The Advertising Regulatory Council of Nigeria (ARCON) has issued a statement of its intention to investigate an alleged ₦1 billion advertising debt owed by 9mobile, a telecommunications company.
The Advertising regulatory authority said it will work with relevant anti-graft and other government agencies to ensure detailed investigation is done and the debt resolved/paid.
ARCON described the situation as an economic sabotage capable of inhibiting the Federal government policy of inclusive industry growth and development of our Nigerian advertising industry.
According to the statement signed by its Director-General, Dr. Olalekan Fadolapo, the regulatory body noted that two formal petitions have been filed against Emerging Markets Telecommunications Services Limited, trading as 9mobile.
It alleged that, the telco’s prolonged refusal to pay advertising debts despite having disengaged the indebted agencies and reportedly briefed new ones to continue business “with impunity.”
“Advertising debts are beyond agencies. They belong mostly to media houses and third-party vendors/suppliers who are significantly affected by the indebtedness with multiplier effects on their cash flows and operations,” the statement read.
Additionally, the Council said it would probe the movement of 9mobile’s advertising account from the owed agencies to newly engaged ones, noting that such transitions may have bypassed established disengagement protocols and possibly breached ethical standards.
Citing the Advertising Industry Standard of Practice (AISOP) and the 45-day payment threshold mandated by Nigerian advertising law, ARCON reaffirmed its commitment to enforcing regulatory compliance and protecting the integrity of the industry.
“ARCON will take all necessary actions to eradicate unfair advantage, unethical competition and unequitable policies between relevant stakeholders in the Nigerian advertising industry, ensuring adherence to payment threshold, industry credit policy, protection of copyright/intellectual property ownership, and compliance with the Advertising Industry Standard of Practice (AISOP),” the statement noted.
