The Advertising Regulatory Council of Nigeria has started an investigation into a N1bn advertising debt allegedly owed by 9mobile, following the receipt of two petitions against the telecommunications company.
In a statement signed by ARCON’s Director-General, Dr Olalekan Fadolapo on Friday, said the petitions accused 9mobile of refusing to pay for long-overdue advertising services while continuing to engage new agencies for its campaigns.
However, the regulator did not identify the petitioners who lodged the complaints against the telco.
“ARCON has received two petitions against Emerging Markets Telecommunications Services Limited, trading as 9mobile, a member of the Advertisers Association of Nigeria, relating to its long overdue indebtedness of N1 bn for advertising services,” it stated.
Efforts to get 9mobile’s comments on the matter were unsuccessful.
The 9mobile’s Public Relations Lead, Chineze Amanfo, was contacted, who received the WhatsApp messages but did not respond to the queries.
ARCON said it will investigate the movement of the advertising account from the agencies owed to the new agencies now handling 9mobile’s business.
The probe will focus on whether there was compliance with disengagement protocols and if there were any breaches of ethical procedure.
The regulator warned that advertising debts go beyond agencies and often impact media houses and third-party vendors, which are “significantly affected by the indebtedness with a multiplier effect on their cash flow and operations.”
ARCON noted that it will work with anti-graft and other relevant government agencies to ensure a detailed investigation and eventual resolution and payment of the debt.
“This is an economic sabotage capable of inhibiting the Federal Government policy of inclusive industry growth and development of the Nigerian advertising industry,” the statement said.
Reiterating its commitment to sanitising the advertising ecosystem, ARCON emphasised that the industry’s payment threshold remains 45 days.
The council vowed to take all necessary actions to “eradicate unfair advantage, unethical competition and inequitable policies between relevant stakeholders in the Nigerian advertising industry.”
It added that enforcement would focus on adherence to payment timelines, industry credit policies, copyright and intellectual property protection, and compliance with the Advertising Industry Standard of Practice.
