AAAN Opposes Bill to Establish Separate Regulatory Body for Out-of-Home Advertising

The Association of Advertising Agencies of Nigeria (AAAN) has expressed its opposition to the bill, seeking the establishment of a separate chartered institute to regulate the out-of-home advertising business in Nigeria.

This position was disclosed by the President of the Association, Mr Lanre Adisa, during a public hearing on the bill titled “Chartered Out-of-Home Media Practitioners of Nigeria” sponsored by the Chairman of the Senate Committee on Power, Senator Enyinnaya Abaribe, held at the National Assembly on Wednesday, 20 November 2024.

According to Adisa, the advertising sector in Nigeria already operates under a comprehensive regulatory framework through the Advertising Regulatory Council of Nigeria (ARCON), which provides oversight, ensures ethical standards, and harmonises practices across the industry.

Adisa posited that instead of duplicating the function of the apex regulatory body, ARCON, and other sectoral bodies in the marketing communication industry, the National Assembly should pass laws strengthening the existing framework to address any perceived gaps in either ARCON or OAAN.

While empathising with the interest of outdoor professionals who are concerned about protecting their investments, he noted that it would be strange and absurd to set up a chartered entity that would have absolute control over the territories where their boards are sighted as the power statutorily resides with the local governments as guaranteed by the Nigerian constitution.

He dismissed the claim held by the promoters of the bill that the process of erecting outdoor structures was not being regulated, stating that the responsibility falls within the purview of state outdoor agencies like LASAA in Lagos and its equivalents in other parts of the country.

He noted that creating another regulator at this time for outdoor agencies is counterproductive and unnecessary, as this would mean that state agencies would no longer be relevant or, at best, cease to exist.

He urged members of the National Assembly to scrap the bill as it could lead to duplicating functions, causing administrative inefficiencies, and fragmenting an industry that thrives on integration and cohesion.

“This fragmentation could disrupt the progress we’ve made in building a unified and globally competitive advertising ecosystem under the current regulatory protocol being provided by ARCON,” he said.

He described the proposed chartered entity as one that would place unnecessary burdens on outdoor practitioners and others considering it a business or profession.

“First, they will need to be certified to practise or run outdoor business by ARCON. After satisfying this condition, they will be expected to be certified a second time to practise or run outdoor business by the proposed chartered institute,” he said.

He urged the members of the National Assembly to avoid setting a bad precedent for the industry with the passage of the bill, saying that having another regulatory entity would put the industry on the path of confusion.

“At the moment, no less than six sectoral bodies are regulated by ARCON. We can only imagine the confusion and complexity created if every other sectoral group decides to opt for a parallel regulatory entity in the name of shoring up professionalism and protecting its investment. We at AAAN believe these issues can be managed successfully under the current situation if we apply the creativity we offer our clients to our practice and business,” he added.

He advised stakeholders, including the promoters of the bill, to focus on collaboration as a tool to advance the industry without creating redundancies that hinder its growth.