The Federal Government has unveiled a decisive move to reform Nigeria’s advertising industry, introducing stricter financial regulations that mandate payment for advertising services within 45 days while clamping down on outstanding media debts.

Minister of Information and National Orientation, Alhaji Mohammed Idris, has directed the immediate settlement of all unpaid obligations across the advertising value chain, signalling a renewed push to instil financial discipline and rebuild confidence in the sector.

The directive, being implemented through the Advertising Regulatory Council of Nigeria (ARCON) in partnership with the National Broadcasting Commission (NBC) and key industry groups, establishes a zero-tolerance stance on indebtedness. It also requires stakeholders to adopt more transparent and structured payment processes to strengthen the integrity of the media ecosystem.
In line with the Advertising Industry Standards of Practice (AISOP), all advertising-related payments must now be completed within a 45-day window. Any delay beyond this period will attract interest based on prevailing commercial rates. The policy applies strictly to all Media Purchase Orders (MPOs) and Local Purchase Orders (LPOs), with emphasis on accountability and transparency in financial transactions.
The government believes the new measures will shield media organisations from financial instability, encourage investment in the sector, preserve jobs, and stabilise advertising revenue streams.

Speaking on the development, ARCON Director-General, Dr. Olalekan Fadolapo, described the directive as a critical intervention to reposition the industry.
According to him, enforcing payment timelines and ensuring proper reconciliation processes would ease financial pressure on media businesses while boosting investor confidence and long-term sector growth. He reiterated ARCON’s commitment to strict enforcement and promoting professionalism across the industry.

The council also emphasised compliance with new procedures governing agency transitions. Advertisers seeking to disengage agencies—whether in creative, media buying, digital, or out-of-home services—must first reconcile all outstanding financial commitments with the outgoing firm.
Both outgoing and incoming agencies are required to confirm that no unresolved financial or ethical issues exist before any new contract is finalised, reinforcing accountability and adherence to regulatory standards.

As part of efforts to address disputes efficiently, ARCON has also introduced an Alternative Dispute Resolution Desk. The platform is designed to offer mediation, conciliation, and arbitration services, enabling faster and more amicable resolution of conflicts within the industry.
Overall, the initiative signals a strong regulatory push aimed at creating a more transparent, stable, and investment-friendly advertising environment in Nigeria.