• Thursday, July 25, 2024
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BusinessDay

Nigeria loses N120bn yearly to foreign production of advertising materials

ARCON beams searchlight on entrepreneurship education among varsity students

The Advertising Regulatory Council of Nigeria (ARCON) has said that the advertising industry loses over N120 billion annually to the production of advertising, advertisement and marketing communication materials outside the country.

Olalekan Fadolapo, the director-general of the council, in a statement made available to BusinessDay in Lagos, said this has not only led to the loss of jobs locally but also retarded the growth and development of the Nigerian advertising industry.

Fadolapo said efforts by the Federal Government aimed at job creation, inclusive growth and development of various sectors of the economy, are affected by this trend. He said unless checked, it will lead to continuous decimation of the Nigerian advertising industry.

According to him, Section 8(1)( I) of ARCON Act No 23 of 2022 empowers the council to ensure the preservation of local content and the use of indigenous skills as an important element in the advertisement and marketing of communication materials.

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He, therefore, stated that ARCON will commence implementation of the policy to ensure a minimum of 75 percent cumulative local content in all advertising and marketing communication materials with effect from January1, 2023.

He clarified that the policy of 75 percent cumulative local content will ensure that models and voice-over artistes must be Nigerians while the production of advertising, advertisement and marketing communication materials must be done in Nigeria.

He also said that ambience must reflect Nigeria and production crew may include foreigners, however, Nigeria and Nigerian organisations must partake in the production. Post production may be done in any location within or outside Nigeria, he said.

Stating the objective of the policy, Fadolapo said the policy would enable Nigerians and the economy to benefit from an industry that had enjoyed tremendous local patronage.

The DG also said the policy would create over 500,000 new jobs annually within the advertising industry with a positive multiplier effect on the economy.

The new policy, he added, would attract investment into the industry while capital flight would be discouraged.