Some marketing communication practitioners, guided by centric interests, may not agree with one of their own George Thorpe, who last week found fault in the Advertising Reform championed by the Advertising Practitioners Council of Nigeria (APCON), which places hurdles on the entry of foreign advertising firms into Nigeria.
The advertising expert, who is the chairman of MediaReach OMD, has rubbished the advertising reform as anti-competitive practice not capable of bringing out the best in Nigerian practitioners.
Thorpe, who was sharing his views on “Exploring the myths of the advertising and marketing services industry in Nigeria” at a Marketing Edge forum in Lagos, is also he chairman of PHD Nigeria, an independent media agency, believes that its harm at the long run out weights its short-term benefits.
“I believe that the clause that places a level of restriction on the practice of advertising and marketing by foreigners in Nigeria is not well defined,” he says.
Reminding practitioners any where in the world on the importance of competition, Thorpe explains that competition is very important, as it promotes and helps to grow sectors, saying “Nigeria is the vision for West Africa, so why should Nigeria prevent foreign investments. Now, if Nigeria does this, what do we expect from smaller economies like that of Ghana and Kenya. Or if they emulate Nigeria, what becomes of the West Africa market?”
The restriction, according to Thorpe, will rather lead to a lower economic growth and global tension retaliation. To him, the best way to protect the domestic jobs is by frequent training and development of indigenes. This will go a long way in raising their standards to be able to compete on a level ground. Also, he remarks that if sensitive sector like telecommunication industry is left in the hands of foreigners to handle, then how can the practice of advertising and marketing pose a threat to the national security of the country. The Nigerian industry is over 100 years in existence, hence Thorpe says that it cannot be referred to as infant industry.
To the advertising expert, the restriction on foreigners’ practice in Nigeria needs a serious rethink. “APCON should please rethink the Proclamation on Registration and Licensing Regime in the Advertising Industry,” he says.
Globally, competition is fundamental in the operations of markets. Economists strongly believe that competition encourages innovation, productivity and economic growth all of which create wealth. Economies, which permit anti-competitive behaviours, reap the consequences of weak institutions, poor services, high tariffs and stunted economy.
There are enormous economic gains in competitive environments as theories and researches have supported this. Nigerian market also believes in competition as a veritable instrument to drive economic growth. In the past, the economy has been held back by anti-competitive forces, but in spite of the forces, government has tried to allow competition in various sectors to engender economic growth.
It was only 12 years ago that Nigeria adopted competition in the telecom sector. Rivalry in that sector is playing out to the advantage of consumers. Government has privatised the electricity sector with the sale of generation and distribution companies to facilitate efficiency in the economy. This has paved way for other companies to co-exist with the privatised firms to serve Nigerian populace better.
Unfortunately, in some markets, certain players often lobby for anti-competition, of course for pecuniary benefits, but this is to the disadvantage of the economy and the populace as it denies them the best service and economic growth.
Hope Akporowhe
