The Advertising Regulatory Council of Nigeria (ARCON) has launched a formal investigation into an alleged N1 billion advertising debt owed by telecoms company 9mobile. The regulatory move has drawn criticism from the Advertisers Association of Nigeria (ADVAN), which says the probe’s publicity harms the brand’s reputation.
ARCON’s Director-General, Dr. Olalekan Fadolapo, confirmed the development in a phone interview, revealing that 9mobile is cooperating fully with the council’s inquiries. “We have commenced an investigation,” he said. “9mobile is working with us and is committed to resolving the issue legally and amicably.”
According to ARCON, two petitions were submitted against Emerging Markets Telecommunications Services Ltd (trading as 9mobile), alleging that the company owes N1 billion in unpaid advertising fees to agencies it had since disengaged. The regulator is also investigating the transfer of the advertising account to new agencies without settling the outstanding debt or following due protocol.
The council said its investigation will determine whether 9mobile violated industry standards, including ARCON’s Advertising Industry Standard of Practice (AISOP), which outlines ethical procedures for contract termination, payment thresholds, credit policies, and intellectual property protection.
The regulator emphasized that the process was not to name and shame, but to resolve commercial disputes responsibly. “We are not out to damage reputations or make premature conclusions,” Fadolapo said. “We’re committed to a fair and thorough process. Our goal is reconciliation.”
However, ADVAN strongly disagrees with how the probe has been handled, particularly ARCON’s decision to publicly announce the investigation before completing it. ADVAN President Osamede Uwubanmwen described the move as counterproductive and damaging to the advertiser involved.
“We’re not comfortable with the timing and tone of ARCON’s communication,” Uwubanmwen said. “It’s better to conclude investigations before making them public. Brands spend years and millions building their image—this kind of early disclosure is harmful to both advertiser and regulator.”
Despite this, Uwubanmwen acknowledged the importance of reconciling account records and resolving financial disputes. He pointed out that in some cases, advertising agencies claim to be owed large sums but struggle to back up their claims with proper documentation. “You hear agencies allege debts, but when asked for breakdowns or proof, they can’t produce credible records,” he noted.
Uwubanmwen also used the opportunity to restate ADVAN’s long-standing opposition to AISOP. He argued that the framework cannot dictate terms between advertisers and agencies, particularly around payment schedules and commission structures.
“ADVAN has made it clear that AISOP shouldn’t govern private contracts,” he said, adding that the association’s representative on the AISOP committee, Bunmi Adeniba, officially withdrew support for the final document before it was adopted.
He recalled a previous case in 2022 where ARCON threatened to sanction Hayat Kimya Nigeria Ltd, the local subsidiary of a Turkish conglomerate, over a debt dispute with Mainsail Media. Uwubanmwen said these repeated attempts to use AISOP to enforce financial obligations go against global best practices and risk creating unnecessary tension in the advertising industry.
Nonetheless, ARCON insists it is operating within its legal mandate. Fadolapo emphasized that the ARCON Act gives the council authority to investigate all advertising and marketing communication transactions, including financial dealings. “Our duty includes requesting critical financial information if necessary,” he said. “That’s what the law empowers us to do.”
He reiterated that no party had been found guilty and that 9mobile, as an advertiser, had the right to appeal any eventual ruling. “Being part of ADVAN does not exempt any company from complying with Nigerian advertising laws,” Fadolapo stated. “If you engage in marketing communications, you are subject to ARCON’s oversight.”
He stressed that the investigation would likely be concluded within a week, and urged all parties to cooperate in the interest of fairness and professionalism. “This can be resolved quickly if everyone is focused on reconciliation rather than blame,” he said.
At the time of filing this report, 9mobile had not issued a public statement or responded to requests for comment on the allegations or the ongoing investigation.
Leave a Reply