The Federal Government has moved to address the long-standing debt crisis in Nigeria’s advertising and media industry, directing regulators to enforce strict compliance with payment standards across the sector.
Minister of Information and National Orientation, Mohammed Idris, issued the directive, mandating the Advertising Regulatory Council of Nigeria (ARCON) to work with the National Broadcasting Commission (NBC) and other industry stakeholders to recover outstanding debts and restore financial discipline.
According to a statement signed by ARCON’s Director-General, Olalekan Fadolapo, the intervention reflects the government’s determination to stabilise the sector and rebuild trust among operators.
“The long-standing issue of advertising debt running into tens of billions has virtually crippled some media establishments,” a report by Daily Trust noted, warning that persistent delays in payment have weakened media sustainability across the country.
Reinforcing the policy direction, the minister stressed that the reform is part of the broader economic agenda of the Tinubu administration.
“This is not merely a regulatory preference; it is a national economic imperative,” the statement said, adding that prompt payment for advertising services is essential to protect media organisations, sustain jobs, and encourage investment.
As part of the new framework, ARCON introduced a mandatory 45-day payment window for all advertising services, in line with global best practices. Under the rule, all Media Purchase Orders (MPOs) and Local Purchase Orders (LPOs) must be settled within 45 days, with delays attracting interest at prevailing market rates.
“The provision is not optional. It is designed to protect media organisations, ensure steady revenue flow, and stabilise the industry,” the statement added.
The regulator also tightened rules on agency transitions, requiring advertisers to clear all outstanding debts before appointing new agencies, while both incoming and outgoing agencies must conduct due diligence before onboarding accounts.
ARCON further strengthened its Alternative Dispute Resolution (ADR) mechanism to handle disagreements through mediation and arbitration, aimed at preventing disputes from escalating into prolonged financial crises within the industry.
