This directive was made known in a release signed by the Director General of ARCON, Dr. Olalekan Fadolapo, and made available to ADNEWS. He stated that ARCON has also been directed to enforce stricter payment disciple as part of the Federal Government policy aimed at protecting the vulnerability of media houses, attracting new media assets investment, job security, industry stability and stable advertising revenue for media houses.

According to Fadolapo, the directive will be approached through credit policy and payment threshold, agency disengagement protocol and alternative dispute resolution.

He says

“In line with global best practices and as part of the Advertising Industry Standards of Practice (AISOP) payment for advertising services should be done within 45 days, failure will attract an interest at prevailing interest rate. All Media Purchase Orders (MPOs) and Local Purchase Orders (LPOs) for media and advertising services are expected to comply with the policy. All parties and advertising stakeholders must be transparent in their dealings to ensure structured and disciplined payment process in the Nigerian Advertising ecosystem.

“Advertisers and business owners are free to discharge, disengage or terminate the agreement/contract with their advertisement agency. However, where an advertiser decides to disengage its advertisement agency (full-service creative, media buying, digital or OOH), the advertiser must ensure a detailed reconciliation and resolution of all outstanding financial obligation(s) with the outgoing agency before proceeding to and briefing a new advertisement agency. The outgoing and incoming advertisement agencies are required to formally engage and back-check for possible ethical or financial breach which may encumber the new accounts. The conversation and engagement is not only important, but also statutory.

“ARCON has set up an Alternative Dispute Resolution desk for a neutral third-party mediation, conciliation and arbitration in order to reach harmonious settlement of industry dispute. This is considered important and very crucial as it will promote faster and more amicable resolution of industry dispute.”

The ARCON boss advises all stakeholders and the advertising community to adhere to the business framework which seeks to improve and strengthen the ecosystem as ARCON will ensure full implementation of the Minister’s directive in sanitizing the advertising and media industry, ensuring prompt payment for advertising services, and adherence to professional and statutory standards.