By Merit Ibe
The Advertising Regulatory Council of Nigeria (ARCON) has announced plans to investigate the alleged N1 billion debt owed by Emerging Markets Telecommunication Services Ltd, operators of 9mobile and a member of the Advertisers Association of Nigeria (ADVAN), to advertising agencies.
The council is also looking into another allegation that while the GSM operator is still owing the agencies, it has gone ahead to brief other agencies to continue its advertising and advertisement business.
A statement by the Director General and Chief Executive of ARCON, Dr. Olalekan Fadolapo, noted that the Council received two petitions against 9Mobile relating to the long overdue indebtedness and its briefing of other agencies.
“ARCON will investigate the movement of the account from the agencies owed to the new agencies briefed to ascertain compliance with disengagement protocol as well as possible breach of ethical compliance,” the ARCON boss said.
He explained that “by the workings of the advertising ecosystems, advertising debts are beyond agencies; they belong mostly to media houses and third-party vendors/suppliers who are significantly affected by the indebtedness with multiplier effect on their cash flow and operations.”
He said the Council will work with relevant anti-graft and other government agencies to ensure detailed investigation is done and the debt resolved/paid.
“This is an economic sabotage capable of inhibiting the Federal Government policy of inclusive industry growth and development of the Nigerian advertising industry,” Fadolapo explained.
Reiterating the Council’s resolve to make the advertising ecosystem better, the ARCON boss who is a fellow of the advertising industry, revealed that ARCON will undertake all necessary actions to eradicate unfair advantage, unethical competition and equitable policies between relevant stakeholders in the Nigerian advertising industry, ensuring adherence to payment threshold, industry credit policy, protection of copyright/intellectual property ownership, and compliance with the Advertising Industry Standard of Practice (AISOP).