The Advertising Regulatory Council of Nigeria (ARCON) has opposed the proposed Bill for an Act to Establish Chartered Out-of-Home Media Practitioners of Nigeria (SB. 448), warning that its passage could lead to overlapping functions, increased bureaucracy, and disruption in the advertising industry.
In a detailed memorandum addressed to the Senate, ARCON outlined several critical concerns about the bill, which seeks to define, regulate, and license outdoor advertising practitioners and organizations while overseeing the aesthetics and infrastructure of out-of-home advertising.
In the memorandum signed by its Director-General, Dr. Olalekan Fadolapo, ARCON argues that the bill’s objectives duplicate existing regulatory frameworks already provided for in the ARCON Act No. 23 of 2024.
The council warns that having two federal agencies overseeing outdoor advertising would create inefficiencies and legal conflicts, as local governments are constitutionally empowered to regulate outdoor advertising infrastructure under Section 1(k) of the Fourth Schedule of the 1999 Constitution (as amended).
“The regulation of out-of-home advertising is a specialization within the advertising industry that ARCON already oversees alongside other areas like creative advertising, media planning, and digital advertising. Adding another federal agency for this purpose would result in jurisdictional conflicts,” the memorandum stated.
ARCON highlighted the Federal Government’s ongoing policy to streamline governance, citing the Oronsaye Report, which recommended the merger and elimination of agencies with overlapping functions. The creation of a new agency for out-of-home advertising would contradict this policy and lead to inefficient use of resources.
“This bill undermines the government’s efforts to reduce governance costs and enhance efficient fund management,” ARCON emphasized.
He stated that if passed, the bill could lead to the proliferation of similar bodies for other advertising specializations, creating a fragmented regulatory environment.
ARCON warns that this would result in multiple certifications, contradictory policies, and increased regulatory bottlenecks, hampering the ease of doing business in Nigeria’s advertising sector.
“The practice of advertising, including the structure and quality of out-of-home advertising, is already adequately regulated by ARCON, state, and local governments. Adding another regulatory body will create chaos and discourage investment in the sector,” ARCON noted.
ARCON also expressed concern that the bill could destabilize Nigeria’s growing advertising industry, which has seen significant reforms under the council’s guidance. It argued that the proposed agency would add no economic or developmental value but instead create unnecessary bureaucracy and confusion.
In conclusion, ARCON urged the Senate to discontinue deliberations on the bill, warning of its potential to destabilize the advertising industry and disrupt federal policies aimed at economic growth and efficient governance.
“This bill is counterproductive and has the capacity to disenfranchise the advertising industry, with severe consequences for the Nigerian economy,” the council stated.