ARCON Launches Probe into 9mobile’s Alleged N1bn Advertising Debt, ADVAN Kicks

The Advertising Regulatory Council of Nigeria (ARCON) has launched an investigation into telecoms operator 9mobile over an alleged N1 billion debt owed to advertising agencies, triggering a sharp reaction from the Advertisers Association of Nigeria (ADVAN), which described the move as damaging to the brand.

ARCON’s Director-General, Dr. Olalekan Fadolapo, confirmed the development in an interview with The PUNCH, stating that the council had commenced preliminary inquiries into petitions alleging that 9mobile defaulted on payments to some agencies, then moved its advertising account to new agencies.

“We have commenced an investigation. We’ll look into the issue and make appropriate pronouncements at the appropriate time,” Fadolapo said, adding that 9mobile was cooperating with the probe and was committed to resolving the matter swiftly.

In a statement issued on May 30, ARCON announced it had received two formal petitions against Emerging Markets Telecommunications Services Limited (9mobile), a member of ADVAN, over a lingering N1 billion advertising debt. The petitioners also alleged that the telecom operator, instead of settling its debts, had engaged new agencies to manage its advertising account.

ARCON said it would investigate the alleged breach of disengagement protocols and possible violations of industry ethics and standards. The probe, it noted, would be guided by the provisions of its Advertising Industry Standard of Practice (AISOP), particularly on payment thresholds, industry credit policy, and protection of intellectual property rights.

“The investigation is to ensure that all parties adhere to laid-down procedures and that no party is unfairly treated,” ARCON stated.

However, the move has sparked resistance from ADVAN, which reiterated its longstanding opposition to ARCON’s AISOP framework. ADVAN argues that the regulations attempt to impose payment terms and commission structures on advertisers—something it considers a violation of global best practices.

ADVAN’s President, Osamede Uwubanmwen, criticised ARCON for publicising the investigation before its conclusion, warning that such communication could tarnish the reputation of a reputable brand like 9mobile.

“We are not happy with the public notice from ARCON. We feel it’s better to release a report after an investigation rather than alert the whole world about an ongoing probe. Brands invest millions in building their reputation. That kind of announcement helps neither the advertiser nor the regulator,” Uwubanmwen said.

He nonetheless supported calls for reconciliation of accounts, noting that such financial claims often require thorough documentation and verification. “In some cases, agencies allege indebtedness, but when asked to produce documentation, there are inconsistencies,” he said.

Uwubanmwen also reiterated ADVAN’s opposition to AISOP, revealing that its representative on the committee, Bunmi Adeniba, had officially withdrawn support for the final version of the document.

“We have made it clear that AISOP should not be used to regulate our members’ contractual relationships. Our representative did not sign the document that was eventually adopted by the committee,” he said, citing a similar conflict in 2022 involving Hayat Kimya Nigeria Ltd. ARCON had at the time threatened sanctions against the company over a N489 million debt to Mainsail Media Ltd.

Despite ADVAN’s objections, ARCON insists it has the statutory authority to investigate all financial and contractual dealings within the advertising and marketing communication industry.

“ARCON has the power to investigate all transactions relating to advertising and marketing communication, including requesting financial information where necessary. It’s clearly stated in the ARCON Act,” Fadolapo maintained.

He emphasised that advertisers operating within Nigeria are bound by the law, regardless of their membership in associations like ADVAN.

“Any entity involved in advertising and marketing communication is under obligation to comply with industry regulations. If aggrieved, advertisers like 9mobile have the right to appeal ARCON’s decisions,” he added.

Fadolapo further stressed that ARCON’s goal is not to damage brands or pass premature judgment but to ensure due process and fairness to all stakeholders involved.

“We’re not saying anybody is guilty yet. That’s why we are investigating. Our interest is in resolving the matter without causing unnecessary media drama. What we want is reconciliation, not conflict,” he concluded.

As of press time, 9mobile had not responded to requests for comment on the matter.