ARCON opposes Out-of-Home media bill, cites risk to Nigeria’s advertising industry

The Advertising Regulatory Council of Nigeria (ARCON) has strongly opposed the proposed legislation to establish the Chartered Out-of-Home Media Practitioners of Nigeria (SB. 448), warning that its passage would introduce inefficiencies, regulatory overlaps, and significant disruptions to the country’s advertising industry.

In a comprehensive memorandum addressed to the Senate, ARCON raised critical objections to the bill, which seeks to create a new regulatory body responsible for licensing and overseeing outdoor advertising practitioners. ARCON contends that this would duplicate its existing mandates, as established under the ARCON Act No. 23 of 2024.

Concerns over Regulatory Duplication

Signed by ARCON’s Director-General, Dr. Olalekan Fadolapo, the memorandum emphasized that outdoor advertising is already a specialized area regulated by ARCON alongside other domains such as media planning, creative advertising, and digital marketing.

The bill’s proposal for a separate regulatory agency was described as unnecessary and counterproductive, risking inefficiencies and legal disputes.

“The regulation of out-of-home advertising infrastructure is constitutionally a function of local governments under Section 1(k) of the Fourth Schedule of the 1999 Constitution (as amended). Establishing another federal body for this role will result in jurisdictional conflicts,” the memorandum warned.

Conflict with Government Efficiency Policies

ARCON argued that the proposed bill undermines ongoing federal efforts to streamline governance and reduce the costs of running multiple agencies. Citing the Oronsaye Report, which recommended merging or eliminating overlapping agencies, ARCON highlighted the contradiction of creating a new body when government policy is focused on efficiency.

READ ALSO: ARCON: NAC 2024 to tackle advertising industry challenges, drive innovation

“This bill undermines the Federal Government’s objectives of reducing governance costs and ensuring efficient fund management,” the council noted.

Risks to Industry Growth

The memorandum also warned that the passage of the bill could destabilize Nigeria’s burgeoning advertising industry, which has undergone significant reforms under ARCON’s leadership.

ARCON cautioned against a fragmented regulatory environment that would require multiple certifications, foster contradictory policies, and increase bureaucratic hurdles for industry players.

“The practice of advertising, including the structure and quality of out-of-home advertising, is already adequately managed by ARCON, in partnership with state and local governments. Adding another regulatory layer would deter investment and disrupt the sector’s growth,” ARCON asserted.

Call for Legislative Discontinuation

ARCON concluded by urging the Senate to discontinue discussions on the bill, citing its potential to harm federal policies aimed at economic development and governance efficiency.

“This bill is counterproductive and has the capacity to disenfranchise the advertising industry, leading to severe economic consequences,” the council stated.

The debate over the bill comes amid broader conversations about regulatory efficiency and economic growth, with stakeholders emphasizing the importance of maintaining a cohesive framework to support Nigeria’s evolving advertising landscape.