FG orders ARCON: Enforce 45-day payment deadline for advertising services

The federal government has directed the Advertising Regulatory Council of Nigeria (ARCON) to enforce stricter payment discipline in the advertising industry.

According to a statement dated April 15 and signed by Olalekan Fadolapo, director-general of ARCON, Mohammed Idris, minister of information and national orientation, gave the directive.

Idris asked ARCON to collaborate with the National Broadcasting Commission (NBC) and heads of sectoral groups to resolve advertising industry debts and ensure compliance with payment thresholds.

ARCON said the directive is aimed at protecting media organisations, attracting investment, ensuring job security, and promoting industry stability.

As part of the measures, ARCON is to enforce a 45-day payment window for advertising services, in line with the Advertising Industry Standards of Practice (AISOP).

“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,” the statement reads.

“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.”

According to the statement, advertisers must settle all outstanding financial obligations before disengaging an agency and appointing a new one.

Fadolapo added that both outgoing and incoming agencies must formally engage to verify any ethical or financial breach linked to the account.

“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,” he said.