FG laments N120bn loss to foreign production of commercials, orders 75% local contents

The Advertising Regulatory Council of Nigeria (ARCON) has said that there must be 75% of cumulative local content in advertising, advertisements and marketing communication materials aimed at the Nigerian market from January 1, 2023.

ARCON made this disclosure in an issued statement, titled: ‘ARCON to compel minimum of 75% cumulative local content in advertisements targeted at the Nigerian market’, signed by its Director-General, Dr. Olalekan Fadolapo.

The regulatory body lamented that, “the Nigerian advertising industry loses over N120bn annually to production of advertising, advertisement and marketing communication materials outside the country. This has continuously led to loss of jobs in the industry, retarding the growth and development of the Nigerian advertising industry”.

It said the current efforts of the Federal Government aimed at job creation, inclusive growth and development of various sectors of the economy are negatively affected by this trend, if not regulated. “In line with Section 8(1) of the ARCON Act No. 23 of 2022, ARCON will commence implementation of a policy to ensure a minimum of 75% cumulative local content of all advertising, advertisement and marketing communication materials with effect from January 1, 2023”, it stated.

While revealing ways of implementing the policy, the regulatory body said: “The policy on a minimum of 75% cumulative local content will be applicable to all advertising, advertisement and marketing communication materials directed at the Nigerian market.

The country’s advertising regulatory agency also enumerated the objectives of the policy, saying, “Annually, this policy will create over 500,000 new job opportunities within the advertising industry with a positive multiplier effect on the economy. 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. The leakages and capital flight being experienced in the industry as a result of foreign production of advertising campaigns will be discouraged.

“The new policy is to enable Nigerians and the Nigerian economy to benefit from an industry that has benefited tremendously from Nigerians as consumers and the Nigerian economy”, it further stated.

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