October 28, 2022

ARCON decries N120bn yearly loss to foreign markets

The Advertising Regulatory Council of Nigeria has said the Nigerian Advertising Industry loses over N120bn annually to production of advertising, advertisement and marketing communication materials outside the country.

The council said this in a statement titled “ARCON to compel minimum of 75 per cent cumulative local content in advertisements targeted at the Nigerian market.”

According to the apex regulatory body for advertising in Nigeria, this has continuously led to loss of jobs in the industry, retarding the growth and development of the Nigerian advertising industry.

It said the current efforts of the Federal Government aimed at job creation, and inclusive growth and development of various sectors of the economy were negatively affected by this trend which if not regulated, would lead to continuous decimation of the Nigerian Advertising Industry.

The statement partly read, “In line with Section 8(1)(1) of the Advertising Regulatory Council of Nigeria Act No. 23 of 2022 which empowered the council to ensure the preservation of Nigerian local content and use of indigenous skills as an important element in advertising, advertisement and marketing communication materials and for such services directed at the Nigerian market, ARCON will commence implementation of a policy to ensure a minimum of 75 per cent cumulative local content of all advertising, advertisement and marketing communication materials with effect from January 1, 2023.”

According to ARCON, the policy on minimum of 75 per cent cumulative local content would be applicable to all advertising, advertisement and marketing communication materials directed at the Nigerian market.

The council also stipulates that model and voice-over artists should be Nigerian citizens while production of advertising, advertisement and marketing communication materials must be done in Nigeria.

The new policy, the council said, was to enable Nigerians and the Nigerian economy to benefit from an industry that had gained tremendously from Nigerians as consumers and the Nigerian economy.