Categories: Business

ARCON: New local content policy to create over 500,000 jobs, block N120bn losses

Despite stiff resistance from some quarters, within the nation’s integrated marketing communications (IMC) space, the Advertising Regulatory Council of Nigeria (ARCON), has stated that its ongoing series of reforms, especially the local content reforms, would go a long way in checking leakages, within the nation’s advertising ecosystem, further empower practitioners, and create more jobs.

The Director General of the industry’s apex regulatory body, Dr. Lekan Fadolapo, in a statement, released over the weekend, stated that one of such reforms, expected to kick off from January, 2023, is to ensure a minimum of 75% cumulative local content of all advertising, advertisement and marketing and marketing communications materials from the said date.

Fadolapo argued that the policy had become imperative since the nation’s advertising industry loses over N120b annually to production of advertising, advertisement and marketing communications materials outside the country: a development, he added, had continuously led to loss of jobs in the industry, and also retarded its growth, and development.

The ARCON boss noted that this trend had continued to hamper the current efforts of the federal government, aimed at job creation, inclusive growth and development of various sectors of the economy; hence the need for such regulation to prevent the continued decimation of the sector.

He added that the policy would ensure a minimum of 75% cumulative local content of all advertising, materials from January, next year, is in line with Section 8 (1) (i) of the ARCON Act No 23 of 2022, empowering the council to ensure the preservation of local contents and use of indigenous skills as an important element in advertising, directed at the Nigerian market.

Speaking on the local content guideline, Fadolapo argued that the policy on minimum of 75% cumulative local content would be applicable to all advertising, advertisement, and marketing communication materials, directed at the Nigerian market.

According to him, with the new policy, Model Voice Over Artists must be Nigerian citizens, while production of advertising, advertisement and marketing communication materials must be done in Nigeria.

He added that, while the production ambience must reflect Nigeria, as much as possible, post production could be done at any location, within or outside Nigeria.

“Production crew may include foreigners, it is however compulsory for Nigerians and Nigerian organizations to partake in the production,” Fadolapo added.

One of the objectives of the new policy, the ARCON boss explained, is to enable Nigerians and the Nigerian economy benefit from an industry that has benefitted tremendously from Nigerians.

“Annually, this policy will create over 500,000 new job opportunities within the advertising industry with a positive multiplier effects on the economy. Besides, current job holders will be protected as the Nigerian advertising ecosystem will witness progressive growth. The new policy will also attract investment to the industry,” he stated.

Fadolapo expressed the strong belief that the leakages and capital flight being experienced in the industry, due to foreign production of advertising campaigns would be discouraged.

He also reiterated the agency’s commitment to continually promote ethical advertising and marketing communications in the country.

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