The Federal Government has directed the Advertising Regulatory Council of Nigeria (ARCON) to enforce a 45-day payment deadline for advertising services, as part of efforts to instill financial discipline and address mounting debts in the media industry.
The directive was issued by the Minister of Information and National Orientation, Mohammed Idris, who tasked ARCON to collaborate with the National Broadcasting Commission and heads of advertising sectoral groups to recover outstanding debts and ensure strict compliance with payment standards.
The Director-General of ARCON, Olalekan Fadolapo, said the move aligns with the Federal Government’s broader economic agenda, stressing that zero tolerance for industry debt is critical to national development and supports President Bola Ahmed Tinubu’s Renewed Hope Agenda.
Fadolapo explained that ARCON’s enforcement strategy is built on three key pillars. The first is the Credit Policy and Payment Threshold, which mandates that all payments for advertising services must be made within 45 days in line with global best practices and the Advertising Industry Standards of Practice. Any delay beyond this period will attract interest at prevailing market rates.
The directive applies to all Media Purchase Orders and Local Purchase Orders issued for advertising services. The minister urged advertisers, agencies, and media houses to maintain transparency and uphold a structured payment system, noting that compliance is mandatory and essential for protecting media businesses, attracting investment, and ensuring industry stability.
The second pillar focuses on Agency Disengagement Protocol. Under this policy, advertisers are prohibited from appointing new agencies until all financial obligations with previous agencies are fully settled. Both outgoing and incoming agencies are also required to conduct formal checks to prevent ethical or financial disputes.
The third pillar is the establishment of an Alternative Dispute Resolution desk by ARCON to handle conflicts through mediation, conciliation, and arbitration. The mechanism aims to provide quicker and less confrontational solutions to disputes, preventing long-standing debt issues within the industry.
Fadolapo assured that ARCON would fully implement the directive to sanitise the advertising sector, enforce prompt payments, and uphold professional standards.
