Local Advertisers Lose N120 Billion To Foreign Agencies

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CEM REPORT, MEDIA | Nigeria’s Advertising Industry loses over N120 billion annually to the production of advertising, advertisement and marketing communication materials outside the country.

This has negatively affected the current efforts of the Federal Government on job creation, inclusive growth and development.

According to the Director-General of the Advertising Regulatory Council of Nigeria (ARCON), Olalekan Fadolapo, in a statement released in Abuja on Monday.

“This has continuously led to the loss of jobs in the industry, retarding the growth and development of the Nigerian advertising industry.”

He stated that the new ARCON Act No 23 of 2022 Section 8(1)(I) empowered the council to ensure the preservation of local content and the use of indigenous skills in advertising, advertisement and marketing communication materials.

“In line with Section 8[1][1] of the Advertising Regulatory Council of Nigeria Act No. 23 of 2022 which empowered the Council to ensure the preservation of Nigerian local content and use of indigenous skills as an important element in advertising, advertisement and marketing communication materials and for such services directed at the Nigerian market, ARCON will commence implementation of a policy to ensure a minimum of 75 percent cumulative local content of all advertising, advertisement and marketing communication materials with effect from January 1, 2023.”

The Director-General explained that the policy would enable Nigerians and the economy to benefit from an industry that had enjoyed tremendous local patronage

“The new policy is to enable Nigerians and the Nigerian economy to benefit from an industry that has benefitted tremendously from Nigerians as consumers and the Nigerian economy.”

Speaking on the implementation of the policy, Fadolapo said, “The following guidelines will apply: model and voice-over artist shall be Nigerian citizens, production of advertising, advertisement and marketing communication materials must be done in Nigeria, the ambience should reflect Nigeria as much as possible.

“Production crew may include foreigners. However, Nigerians and Nigerian organizations must partake in the production and post-production may be done at any location [within or outside Nigeria).”

The Director-General also said the policy would create over 500,000 new job opportunities annually within the advertising industry with a positive multiplier effect on the economy. The new policy, he added, would attract investment into the industry while capital flight would be discouraged.

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