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ARCON Begins Clampdown on Firms over Digital Advertisements
Advertising Regulatory Council of Nigeria (ARCON), has warned players in the digital media space that further contravention of the newly promulgated ARCON Act will attract severe sanctions ranging from various fines to one-year imprisonment of relevant officials.
Olalekan Fadolapo, director-general, ARCON, stated this during an interactive session with digital agencies, bloggers and content creators.
Fadolapo said ARCON, which is backed by the Ministry of Information and Culture and the National Assembly, would begin rolling out sanctions to erring advertising practitioners, effective March 1, 2022.
According to him, sanctions will cut across primary digital space owners – big techs, including Meta, Google, Twitter, among others, down to secondary digital space owners, which comprises content creators, skitmakers and influencers responsible for marketing communication on these platforms.
Fadolapo reiterated that ARCON does not seek to regulate social media and clamp down on free speech, but to ensure that promotional content communicated via the digital media conforms to standards as prescribed by the ARCON law.
He said, “As we are aware, recently, the law setting up the agency was changed. The APCON law was repealed. The ARCON law was enacted. During the enactment of the ARCON law, there was a review of the practice of advertising.
“In the marketing communication architecture in Nigeria, as we are aware, there are changes that have happened in the industry in terms of business of advertising and the practice of advertising. The digital space is playing a major role in the business of advertising. Business is moving from the traditional space to the digital media space. We are empowered by the law to regulate advertising, advertisement and marketing communication in all its ramifications.”
On his part, Charles Odenigbo, council’s lawyer, while explaining the implications of the provision of the ARCON Act, warned advertisers in the digital media space that ignorance of the law would not serve as an excuse or absolve persons found wanting of their culpabilities.
He noted that all advertising messages on the digital media must conform to the four cardinal points of legality, decency, truthfulness and honesty.
He said, “Any skit maker, on-air personality, content creator, brand owner — whatever name you are called, the moment you descend into the arena of marketing communication, advertising, and advertisement, the new ARCON moves into operation, whether you are aware or not.”
Odenigbo further noted that all advertisers in the digital media space are now required by the law to forward all advertising messages to the council’s Advertising Standards panel for vetting before exposure or publication.
He added that any advertising agency, which creates and/or places for publication or exposure of an advertisement without the ASP Certificate of Approval shall be liable to a minimum penalty of N500,000.
He said, “According to the vetting code, you will be fined N500,000 or you will go to jail for a term of one year. When they jail you, it means that you are no longer qualified to contest for certain positions in Nigeria again.”
In October 2022, ARCON filed a suit against Meta Platforms Incorporated (owners of Facebook, Instagram and WhatsApp platforms) and its agent AT3 Resources Limited at the Federal High Court, Abuja Judicial Division.
The apex regulatory body for Nigeria’s advertising ecosystem, in the suit, sought a declaration among others that the continued publication and exposure of various advertisements directed at the Nigerian market through Facebook and Instagram platforms by Meta Platforms Incorporated without ensuring the same is vetted and approved before exposure, is illegal, unlawful and a violation of the extant advertising law in Nigeria.
ARCON demanded N30billion sanction for alleged violation of the advertising laws and for loss of revenue as a result of Meta Incorporated’s continued exposure of unapproved adverts on its platforms.
While speaking exclusively with our correspondent on the progress of the suit, the ARCON DG said the case had been adjourned to sometime in March 2023.
He said, “The case is in court. We have had the first hearing. The case has been adjourned to sometime in March.”
Ogba Ogbaga, an Abuja-based lawyer, has said that he has been instructed to institute legal proceedings against MTN Nigeria, Airtel Nigeria, Globacom, 9mobile and MultiChoice Nigeria, operators of DStv, over what he described as unfair consumer practices relating to expiring data bundles and television subscriptions.
In a statement posted on Facebook, Ogbaga said his law firm, GIMBG Legals, received instructions from its client, KAA, also known as KaaTruths, to challenge the companies’ subscription policies in court.
According to him, the proposed suit will question whether telecom operators and DStv’s subscription models comply with provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018 and other applicable laws.
Ogbaga alleged that telecom providers operate internet data services that are unfair to consumers, claiming subscribers sometimes do not receive the services they paid for but still lose their subscriptions once the validity period expires.
He also criticised DStv’s subscription model, arguing that consumers lose paid viewing time due to factors such as power outages, adverse weather conditions and service interruptions, while subscriptions continue to count down regardless.
“Our clients have complained that MTN data services are unduly one-sided,” Ogbaga said, adding that the legal action would also extend to other telecommunications providers and DStv.
He said the court action would seek judicial determination on whether the companies’ subscription practices comply with consumer protection laws.
The lawyer also invited interested legal practitioners to collaborate on the case, saying his firm would provide updates as the matter progresses.
In a separate Facebook post on Wednesday, Ogbaga said previous policy discussions, town hall meetings and debates at the National Assembly had failed to address the concerns raised by consumers.
He argued that telecom operators regularly carry out maintenance and network upgrades that temporarily disrupt services without extending customers’ subscription periods, while DStv subscribers also lose viewing time because of electricity outages and weather-related disruptions.
The National Insurance Commission (NAICOM) has commenced the issuance of new licence certificates to insurance companies that successfully met the industry’s new minimum capital requirements, marking the formal beginning of a new regulatory era aimed at strengthening the financial capacity, governance and global competitiveness of Nigeria’s insurance sector.
At a ceremony held at the Commission’s headquarters in Abuja, the Commissioner for Insurance, Olusegun Ayo Omosehin, presented the new licence certificates to compliant operators, describing the exercise as a major milestone in the industry’s recapitalisation programme.
According to the Commission, a total of 43 insurance companies declared compliant with the new capital requirements are expected to receive the new licence certificates in phases.
Omosehin congratulated the successful companies, saying the issuance of the new licences signals the beginning of a stronger regulatory framework anchored on improved capitalisation, sound corporate governance, innovation and sustainable growth.
He urged operators to leverage their enhanced capital base to develop innovative insurance products, improve operational efficiency and deepen insurance penetration across the country.
The Commissioner said the Commission expects the recapitalised companies to deliver stronger financial performance while maintaining high standards of professionalism and customer service.
He also announced that NAICOM’s next major regulatory initiative would be the implementation of the Risk-Based Capital (RBC) framework, under which insurers’ capital levels would be aligned with the risks inherent in their respective business portfolios.
According to him, the new framework will further strengthen the industry’s resilience by ensuring that insurers maintain capital commensurate with the risks they underwrite, thereby enhancing policyholder protection and boosting market confidence.
Omosehin reaffirmed the Commission’s commitment to removing regulatory impediments where necessary while maintaining effective oversight to safeguard policyholders and strengthen confidence in the insurance market.
The issuance of the new licence certificates marks the commencement of a phased transition to higher capital standards aimed at improving the financial capacity, solvency and claims-paying ability of insurance companies operating in Nigeria.
Management of Nigeria CommunicationsWeek Media has withdrawn its publication titled “Adefolarin Ogunsanya and the Allegations of Shareholder Interference and Self-Dealing at Pan African Towers,” which was published on its platform.
The decision to retract the story follows an editorial review to ensure that the platform maintains the highest standards of accuracy, fairness and responsible journalism in reporting matters that are the subject of ongoing judicial proceedings.
Nigeria CommunicationsWeek acknowledges that the issues raised in the publication remain before the courts and have not been finally determined.
Accordingly, the organisation has decided to remove the article from its platforms pending the conclusion of the legal processes or the availability of additional verified information.
The publication regrets any inconvenience or misunderstanding the report may have caused to readers or any individuals or organisations mentioned in the story.
Nigeria CommunicationsWeek remains committed to the principles of balanced, factual and ethical journalism and will continue to uphold professional standards in its coverage of judicial and corporate governance matters.
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