Business
The Travesty of ARCON Regulation
The Travesty of ARCON Regulation
The journey of the most turbulent and divisive times in the Nigerian Marketing Communications Industry started in 2021 with the launch of the Advertising Industry Standard of Practice (AISOP) by the Advertising Practitioners Council of Nigeria (APCON), now The Advertising Regulatory Council of Nigeria (ARCON). APCON had disclosed that AISOP will provide minimum standard in terms of commercial activities of agencies, advertisers, media houses, advertising services providers and stakeholders, in matters relating to the business of advertising and related areas of marketing communications in Nigeria.
However, what APCON claimed to be an Industry Standard of Practice was actually a document on payment and engagement terms, which sought to unconstitutionally regulate contractual relations between private entities (Advertisers and their agencies). ADVAN being a body founded to provide an organised forum for advertisers to express their views and influence developmental changes in Nigerian marketing communications scene, had expressed its concerns about AISOP, particularly its unconstitutional attempt to infringe on the rights of private entities to determine their contractual terms.
It is worthy to note that while the Leadership of APCON has claimed that it invited all critical stakeholders to deliberate on the AISOP, the truth is that the ADVAN has clearly stated on several occasions, both in private with the Registrar of APCON Dr Lekan Fadolapo, and in many public fora, that not a single contribution presented by ADVAN was included in the AISOP.
In 2022, a new APCON law was publicized which changed the name of APCON to the Advertising Regulatory Council of Nigeria (ARCON). The new law has several provisions that are clearly unconstitutional, and has caused great concern for the industry. A major item that has stood out for stakeholders is that ARCON is now allowed set up a tribunal that would hold ‘trials’ for any persons or organization that contravened the provisions of the ARCON law. This is an extremely concerning development, because Nigeria as a democratic entity has clear separation of powers between the different arms of government. A regulatory body for advertising cannot set up a tribunal with powers to hear, try, deliver judgment and sentence, as such is clearly a violation of the constitution of the nation. ARCON cannot constitutionally act as both the prosecutor and the judge in relation to matters which they have by themselves, labelled as advertising offences. The tribunal constituted by ARCON is merely an appendage of ARCON and is propagating the agenda of ARCON.
In January 2024, ARCON issued notices to law abiding organizations in Nigeria on various unclear charges of infractions, with fines up to N1 million per infraction. It is critical to note that these organizations include multinationals, Indigenous conglomerates and various levels of businesses, that serve as the back bone of the Nigerian economy. ARCON has now issued notices to the CEOs of these organizations to face the ARCON ‘Tribunal’ on various claims of infractions.
The Advertisers Association of Nigeria (ADVAN) vehemently opposes the harassment of her members (which are corporate entities that utilize advertising and marketing to promote their goods and services). These invitations to CEOs of reputable Nigerian brands, to stand ‘trial’ is a huge embarrassment and humiliation of law-abiding corporate entities, and has caused a total loss of trust for ARCON as an institution. The harassment and threats of criminal trials to CEOs of both local and multi-nationals is antithetical to the reforms being proposed by the Federal Government through the Presidential Enabling Business Environment Council on Ease of Doing Business (PEBEC), and the need to remove all forms of bottlenecks in driving the Nigerian economy.
ADVAN members hereby speak unequivocally against this travesty called ARCON Regulation, as a continuance of this line of action will sabotage all forms of viable activities in the industry. Regulation should be instrumental to an enabling environment where stakeholders can count on fair, clearly articulated guidelines for business activities, and ADVAN members are very supportive of all fair regulations, which enable equitable business activities.
Some critical questions to ARCON include:
What are the clearly articulated guidelines for digital advertising, in view of the fact that digital advertising cannot be regulated as traditional advertising?
What constitutes online advertising? is it paid communication, is it all and any posts on corporate social media pages and websites? Do all these fall under the same category and payment structures?
Can a post on a company’s website or social media page that is not paid for, be seen as advertisement?
What has been the engagement process to stakeholders on ARCONs regulation of online advertising?
Regulation cannot be ambiguous or selective in its applications, it should be clearly defined with stakeholders continuously engaged in a quest for seamless implementation.
Nigeria is currently bowed under one of the most turbulent economic conditions. The position of regulatory institutions at these dire times should be one of research and benchmarking for relevant policies, and consistent stakeholder engagement towards viable economic solutions and growth.
It is time for ARCON to pull the reins on its regime of arbitrary policy initiatives, that is pushing a once buoyant and collaborative industry into chaos, and embark on critical stakeholder dialogue and engagement to foster renewed hope and support for the industry.
…Dangote, an Entrepreneurial Genius, Providing Innovative Solutions’
The President/Chief Executive, Dangote Industries Limited, Aliko Dangote, has urged young entrepreneurs and scholars to rise above limitations and push their ambitions to help transform the world into a better place.
The prominent industrialist made this call on Wednesday when a delegation of Harvard Kennedy School scholars visited the Dangote Petroleum Refinery & Petrochemicals complex and Dangote Fertiliser Limited in Ibeju Lekki, Lagos.
Addressing the 50 scholars, representing 18 different nationalities from across the globe, Dangote emphasised the importance of being driven by ambition and a ‘can-do’ spirit, as exemplified by the Dangote Group in constructing the world’s largest single-train refinery.
He stressed that ambition should be paired with a desire to create a legacy and make an impact, not simply for profit.
“Life is not worth living without ambition. In this life, nothing is impossible. Don’t allow fear to hold you back. Be knowledgeable about the business you want to pursue. I am not an engineer, but I don’t engage in any business I don’t understand,” he said.
Dangote, who spent over 40 minutes answering questions from the scholars, recalled being advised against building the refinery, as many argued that such mega projects were only feasible for sovereign nations, not individuals. He shared that, during the COVID-19 pandemic, the company had to find ways to sustain the project. He also noted that the ingenuity involved in constructing a world-class refinery, which meets global best practices, produces Euro V products, and is capable of processing over 100 different types of crude oil, has kept it running despite shortage of Nigerian crude oil.
Vice President, Oil & Gas, Dangote Group, Edwin Devakumar, explained that building the 650,000-barrel-per-day refinery was a monumental feat that required immense courage, vision, and determination. He pointed out that the group acted as its own Engineering, Procurement, and Construction (EPC) contractor for the project – a refinery with a capacity of 650,000 barrels per day – a feat that had never been attempted before.
“Our Group President has a plaque in his office that reads, ‘nothing is impossible.’ This is the mindset he instilled in us when faced with challenges. He does not accept impossibilities and always aims for excellence. This approach was the same when we revolutionised the cement industry in Nigeria. We turned the country from one of the largest importers of cement into a net exporter. Today, after decades of depending on imported refined products, we now have the capacity to meet all of Nigeria’s refined product demands, with surplus supplies of jet A1, gasoline, and diesel for export. Other products from the refinery include polypropylene, carbon black feedstock, and sulphur,” he said.
Devakumar highlighted the significant investments made to realise the project, including dredging 65 million cubic metres of sand to raise the height of the site by 1.5 metres to safeguard against potential sea level rises due to global warming. The group also procured 330 cranes and lifting equipment due to the lack of local capacity, built the world’s largest granite quarry to supply materials such as coarse aggregates, stone columns, and stone dust, and constructed the refinery on 250,000 piles – potentially the largest number ever used for a single project.
The scholars, who toured the magnificent complexes, were in awe and praised Dangote for his ambitious vision, which seeks to address global needs. They commended him as an inspiration and entrepreneurial genius, with many describing the visit to the refinery as the highlight of their tour, which also included stops in Ghana and Abuja.
Sheffy Kolade, leader of the Harvard Kennedy School student-led Nigeria-Ghana Trek and a global advisor for the Women for Prosperity project with the Atlantic Council’s Freedom and Prosperity Center, said that the Dangote Group symbolises Nigeria’s resilience and economic transformation.
“I want to start by saying that the Dangote Group is not just a business. It is a symbol of Nigeria’s resilience. It is a symbol of the bright future that lies ahead for us. It represents the extraordinary achievements possible when we put our minds to something. I am happy that we are here to witness the economic progress happening in Nigeria. We’ve seen the largest single-train refinery in the world, and we’ve visited a fertiliser plant that exports to South America and the US,” she said.
A social entrepreneur and a member of the Forbes Business Council, Kolade added, “From where we are standing, thousands of people earn their daily livelihood. This business has created numerous jobs and energy security for our country. It has reduced our reliance on imported petroleum products, and, of course, it is increasing our foreign reserves. I want to thank you, sir, for everything you’re doing for our country and for Africa. We appreciate it. It’s truly inspiring for us.”
Speaking about her team and their mission at the refinery, Kolade noted, “My team consists of 50 people from 18 different nationalities. We have people from nearly every continent. We are a blend of policy, business, sustainability, and development-minded individuals, most of whom are from the Harvard Kennedy School. There’s one from the Harvard Business School, one from Harvard Public Health, and others pursuing joint degrees with Harvard, Stanford, and MIT. We are all curious-minded people who value impact, sustainability, and progress.”
Another member of the team, Darrow Merton, a Foreign Service Officer with the United States, described Dangote’s vision and resilience as an inspiration to entrepreneurs. He praised Dangote for not only breaking barriers to build the refinery but also for his ability to provide innovative solutions in the face of adversity.
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