The Director General of the Advertising Regulatory Council of Nigeria (ARCON), Dr. Lekan Fadolapo has articulated a resolute commitment to revolutionize Nigeria’s advertising landscape by implementing a strategic regulatory framework aimed at rejuvenating the industry for sustained advancement.
In an exclusive dialogue with The Brand Colossus, Dr. Fadolapo emphasized the pivotal role of implementing and enforcing ARCON regulations, while lauding the commendable surge in compliance levels, now standing at an impressive 75%.
Dr. Fadolapo underscored the transformative impact of advertising legislation, citing its efficacy in addressing previously rampant unethical and unprofessional behaviors that hindered industry growth and economic development. He highlighted a marked improvement from previous compliance rates, which languished between 10-20%, attributing the shift to heightened adherence to the Advertising Industry Standard of Practice, resulting in diminished industry debts and an overall restoration of order within the sector.
“The compliance level now is about 75% unlike when we had like 10-20 %. Now, in terms of the Advertising Industry Standard of Practice, compliance is high, industry debts have gone down. There is sanity in this space. We will continue to review our policy and ensure that it is in an alignment with economic reality.”
Looking ahead, Dr. Fadolapo revealed ARCON’s forthcoming initiative to fully enforce corporate licensing, slated to commence on April 1st, 2024.
Addressing misconceptions surrounding the controversial vetting fee, he clarified its purpose as a deterrent rather than a vetting charge, intended to provide flexibility for advertisers facing challenges in meeting regulations on local talent and production usage.
Explaining further, Dr. Fadolapo delineated the fee structure, elucidating that while the vetting fee amounts to N35,000, additional fees are imposed for utilizing foreign models or conducting productions outside the country. He stressed the significance of local execution in global campaigns, advocating for a balance between global trends and localized resonance to amplify their impact within Nigerian market.
“When the Council made some pronouncements, which include the use of local content and a ban on the use of foreign talents, some stakeholders came to the Council, and posited some scenarios where a single campaign are exposed across markets and in such situation asked what they could do. We told them that we agreed that there are global campaigns but what we want to see, is local execution in such a way that it resonates with Nigerians. So, in the process of this deliberations, we decided that where it is inevitable, we will introduce a deterrent fee.
“So, the vetting fee is N35,000 not N3 Million. But if you are using a foreign model, there is a variation approval which is not automatic. When you apply for that variation, we look at it and tell you the expected level of local content. When the variation is approved, you pay for the use of a foreign model. This is the deterrent fee. For the use of foreign talent is N2.5Million and for productions outside the country is 3Million”.
Despite the evolving dynamics of advertising, Dr. Fadolapo emphasized the indispensable nature of localization for economic growth, affirming ARCON’s unwavering commitment to ensuring Nigeria maximizes the dividends of advertising and marketing communications. By addressing industry inefficiencies and fortifying regulatory frameworks, he envisaged a future where Nigeria assumes its rightful position on the global stage, fostering a thriving advertising ecosystem that bolsters national development and competitiveness.
“We all know that there are leakages in our industry and the leakages are so much that it is affecting the growth of our industry. We cannot stand shoulder to shoulder with other markets. But with this reform, we are improving our practice to ensure that we take our rightful place in the comity of nations” he said.
