ARCON set to enforce 75% local content policy for adverts to stop N120B annual loss
The Advertising Regulatory Council of Nigeria (ARCON) says it will commence enforcement of a minimum of 75 percent cumulative local content in the advertising industry regarding advertisements targeted at the Nigerian Market with effect from January 1, 2023.
Dr. Olalekan Fadolapo, Director-General of ARCON, said this in a statement made available to BRANDPOWER on Monday in Lagos.
Fadolapo said that the decision became imperative due to the huge loss to the industry arising from the production of advertising and marketing communications materials outside the country.
Fadolapo said: “The Nigerian advertising industry loses over N120 billion annually to the production of advertising, advertisement and marketing communications outside the country.
“This has continuously led to the loss of jobs in the industry, retarding the growth and development of the Nigerian advertising industry,” Fadolapo said.
He said the current efforts of the Federal Government aimed at job creation, inclusive growth and development of various sectors of the economy, were negatively impacted by this trend, which if not regulated, would lead to the continued decimation of the industry.
The Director-General said that Section 8(1)[i] of ARCON Act No. 25 of 2022 empowered the council to ensure the preservation of Nigerian local content and the use of indigenous skills as an important element in advertising, advertisement and marketing communication materials and for such services directed at the Nigerian market.
He said that relying on the above section, ARCON would commence implementation of a policy to ensure a minimum of 75 percent cumulative local content of all advertising and marketing communication materials from January 1, 2023.
Fadolapo said that some guidelines would be applied consequently. The guidelines specify that “Model and Voice-over artist shall be Nigerian citizens.
“Production of advertising, advertisement and marketing communication materials must be done in Nigeria.
“Production crew may include foreigners; however, Nigerians and Nigerian organisations must partake in the production.
“Post-production may be done at any location (within or outside Nigeria),” Fadolapo said.
According to him, the new policy is to enable Nigerians and the economy to benefit from an industry that has benefited tremendously from Nigerians as consumers.
He said that the policy would create over 500,000 new job opportunities annually within the advertising industry with a positive multiplier effect on the economy.
“Current job holders will be protected as the Nigerian advertising ecosystem will witness progressive growth.
“The new policy will also attract investment to the industry.
“The leakages and capital flight being experienced in the industry as a result of foreign production of advertising campaigners will be discouraged,” Fadolapo said.
He added that ARCON would continue to promote ethical advertising and marketing communications.
