The Broadcasting Organization of Nigeria (BON) has thrown its support behind Nigeria’s new advertising reform, which aims to revolutionize the industry and shield the media from unfair and unethical practices that have hindered the sector’s growth.
Dr. Yemisi Bamgbose, the Executive Secretary of BON, affirmed that the Advertising Industry Standard of Practice (AISOP) guidelines, which had encountered some resistance, were unanimously approved through extensive consultations among all relevant stakeholders.
Dr. Yemisi Bamgbose made this announcement during a joint session with the Director General of the Advertising Regulatory Council of Nigeria (ARCON) and former President of the Independent Television Producers Association of Nigeria (ITPAN), Femi Odugbemi, on the morning show of the Nigerian Television Authority (NTA), today.
Dr. Bamgbose stressed that many media stations are grappling with economic hardships stemming from extended payment periods and other unscrupulous practices within the advertising industry, yet they persevere in fulfilling their public obligations amid challenging circumstances.
“People are looking at it from the angle that ARCON is the one that is championing it. It should not be because it was a decision taken by the HASG and BON was represented. Let me state here that BON was part of that committee that was set up for the reform and also part of the HASG and was effectively represented in that committee.
“The media is only surviving because of the will to survive. It will not be an understatement that the media is already crippled. It is crippled because of the way other sectors are treating the media. Most media stations are just on air to fulfill their obligations and to ensure they perform their roles. If there is any sector that has been terribly battered in the ecosystem of advertising is the media.
The media has suffered and it is suffering terribly in terms of payments for the services that they have rendered for advertisers and agencies” he added.
He clarified that the perception that ARCON is the sole proponent of this reform is incorrect and that BON played an integral role in the committee responsible for shaping the reform and was also a part of the Heads of Advertising Sectoral Groups (HASG), actively participating in this initiative.
Dr. Bamgbose asserted that the media industry is struggling for survival, as it has borne the brunt of late payments and inadequate returns on investment. Media outlets are often only able to meet their obligations and perform their roles while enduring substantial financial strain.
He decried the extensive delays in payment, as some advertising agencies owe media organizations for jobs spanning up to seven years.
He disclosed that ARCON’s intervention was a welcome relief, particularly because media owners had held several futile meetings to revolve the issues.
Dr. Bamgbose highlighted that the 90-day payment period is no longer acceptable in the current landscape, given the significant outstanding debts faced by media organizations.
“The ARCON DG was saying 90 days. It is not even 90 days. I have on my table complaints of stations that advertising agencies are owing up to five years to seven years. Not thousands, we are talking of jobs worth millions that they have effectively performed and they refused to pay them. By the time we found out why, we discovered sometimes that the advertiser has not paid the advertising agencies and, in some cases, you get to the offices of these advertising agencies and they have relocated and you are unable to track the money.
“That was why BON sent a very strong representation when a committee was sent up by ARCON and we made our point that the issue of 90 days is no longer acceptable” he said.
In light of the ASIOP law’s provisions on determining media rates, the Executive Secretary contended that requesting consultation before rate revisions amounts to an infringement on the media’s rights. He pointed out that the reform was endorsed by the Heads of Advertising Sectoral Groups, with an assurance that existing contracts signed prior to the effective implementation date would remain unaffected.
Recall that ahead of the implementation date of October 6, 2021, for AISOP, the Heads of Advertising Sectoral Groups (HASG) issued a press statement endorsing the reform.
They clarified that existing contracts signed before the effective date would remain unaffected, but new agreements between advertising agencies, media houses, and advertisers would adhere to the new guidelines.
The statement also emphasized the importance of continued collaboration with ADVAN to secure its alignment and understanding of the industry’s needs, particularly in supporting Micro, Small, and Medium Enterprises (MSMEs), which constitute a significant portion of media houses, agencies, and third-party suppliers/vendors.
