By Vincess Okushi

The Federal Government through the Minister of Information and National Orientation, Mohammed Idris has directed the Advertising Regulatory Council of Nigeria (ARCON) to issue a new regulatory framework for advertisers in Nigeria to meet with the current economic challenges in line government policies for economic recovery, inclusive growth, and development of local talents.

A statement dated 6th February 2024 by the Ministry highlights the need to strengthen the Nigerian Advertising Industry regulatory framework to reverse the negative trajectories currently plaguing the industry.

The FG therefore directed that ARCON, a regulatory agency of the Federal Government with responsibility for the administration and control of advertising, advertisement, and marketing communication in Nigeria issue the following regulatory framework for the Nigerian advertising industry:

  1. Professional Indemnity for Sectoral Groups

As part of the ongoing advertising industry reform and the need to strengthen

advertising agencies’ service delivery, build capacity and capability as well ensure

long-term stability in the industry, each sectoral group, i.e. AAAN, EXMAN, MIPAN

and OAAN is to provide N1B (One Billion Naira) professional industry insurance

cover for its members. This covers professional indemnity for members of their Association as part of the corporate license requirements. The full

implementation of the corporate license regime will take effect from April 1,

2024.

  1. Capital Structure, Working Capital, etc.

There is an urgent need to review the capital structure and working capital

requirement of the advertisement agencies in line with the economic realities and capacity-building programs of ARCON. ARCON is currently in talks with the Heads of Advertising Sectoral Groups (HASG) and other relevant stakeholders on the minimum capital requirement for registration and license as an

advertisement agency. Regulatory guidelines will be issued as soon as a position is taken on this.

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