The Advocacy for Policy and Innovation (API) took centre stage on December 6th, 2023, as it hosted a Policy Situation Room (PSR) to reflect on the implications of the Advertising Regulatory Council of Nigeria (ARCON) Act 2022. Key stakeholders gathered to address concerns and articulate pain points, setting the stage for a collaborative approach to align the ARCON Act’s objectives with the economic interests of businesses and the nation.
At the onset, Victoria Manya, the Executive Director of API stressed the importance of stakeholder feedback in shaping a regulatory framework that accommodates diverse business needs. The call for a proactive and collaborative approach resonated throughout the PSR, emphasising the necessity of addressing the multifaceted concerns raised by stakeholders.
The participant Q&A session during the PSR revealed a spectrum of challenges faced by businesses under the ARCON Act. Notably, concerns were voiced about the pre-approval process for advertisements, highlighting its perceived incoherence and the obstacles it poses for seamless advertising.
A second significant concern was raised regarding the costs associated with vetting and pre-approval, ranging from 7500 Naira to an expedited vetting fee of 100,000 Naira within 8 hours. Proposals for digitization and alternative solutions, such as leveraging existing SME friendly advertising platforms, were presented as more cost-effective measures for standardising the advertisement process. Ambiguities surrounding taxes and advertising fees were also flagged.
Stakeholders emphasised the need for a legislative framework to legitimise Micro, Small, and Medium-sized Enterprises (MSMEs) activities as envisioned by the ARCON Act but raised concerns about the category and licensing issues, with a strong reservation regarding blanket pricing. Clarity on outcomes associated with payments, such as ad runtime, was also sought.
The discussion delved into regulatory considerations and turnaround time, with questions posed about the data informing the advertising regulations and requirements as contained in the Act. This prompted proposals for a pilot plan on a subscription model to comprehensively study and address ARCON Act concerns.Categorization, particularly for micro-businesses, was revisited, with a proposal for centralization to assist unstructured micro-digital firms in overcoming challenges.
The PSR also addressed the use of AI tools, with participants questioning whether the ban on foreign voice-over artists extends to AI-generated voices, given their increasing scale and availability in Nigeria.
Participants further expressed concerns about perceived over-regulation, advocating for a more balanced approach that considers the significant contribution of MSMEs to Nigeria’s economy.
As the dialogue unfolded, API positioned itself as a catalyst for shaping a regulatory environment that aligns with business interests and economic growth. This involves the support for collaborative efforts between ARCON and all stakeholders present at the PSR, to improve the regulatory landscape with the ARCON regulatory framework.
National Advertising Conference Recap:
Fast forward to December 8th, 2023, where the National Advertising Conference hosted a panel session on “MSMEs and Digital Advertising-Regulatory Compliance in Nigeria.” The session, facilitated by support from the Advocacy for Policy and Innovation and Google, echoed the concerns articulated in the PSR, offering a comprehensive view of challenges and potential solutions.
The panel acknowledged the potential benefits of the ARCON Act but raised concerns about the financial burdens imposed on MSMEs by compliance requirements, potentially hindering their ease of doing business. Emphasising the imperative need for dedicated support mechanisms for MSMEs, including simplified compliance processes, access to affordable tools, and fostering collaboration between MSMEs, industry associations, regulatory bodies, and technology providers.
The importance of a balanced regulatory approach that protects consumers, promotes ethical advertising, and supports MSME growth was stressed. Open dialogue and collaboration among all stakeholders were deemed essential to achieving this win-win scenario. The significance of MSMEs aligning with compliance requirements was underscored, emphasising clear communication and transparent enforcement mechanisms from ARCON to support MSMEs in their compliance efforts.
The panel delved into the potential of Artificial Intelligence (AI) to streamline compliance processes and enhance user experiences. However, concerns were raised about the ethical implications and potential bias of AI algorithms, necessitating responsible development and deployment.
Collaboration between all stakeholders, including ARCON, industry players, and technology providers, was highlighted as crucial for developing and implementing effective regulatory frameworks. Best practice adoption in compliance and advertising practices was identified as crucial for building a strong and sustainable digital advertising ecosystem in Nigeria.
In conclusion, the panel session provided valuable insights into the complexities of digital advertising regulation for MSMEs. By addressing challenges and leveraging opportunities, Nigeria can foster a vibrant and responsible digital advertising landscape that empowers both MSMEs and consumers.
In conclusion, the panel session held at the National Advertising Conference on “MSMEs and Digital Advertising-Regulatory Compliance in Nigeria” brought forth a wealth of insights into the intricate landscape of digital advertising regulation for Micro, Small, and Medium-sized Enterprises (MSMEs). The discussions underscored the need for a nuanced and balanced approach that not only safeguards consumers and promotes ethical advertising practices but also supports the growth and prosperity of MSMEs in the digital realm.
The deliberations shed light on the potential benefits of the Advertising Regulatory Council of Nigeria (ARCON) Act, recognizing its role in enhancing consumer protection and instilling ethical standards in advertising. However, the concerns raised about the financial burdens on MSMEs due to compliance requirements present a critical challenge that requires immediate attention. Striking a balance between regulatory compliance and facilitating the ease of doing business for MSMEs emerged as a central theme of the panel session.
To navigate these challenges and ensure a conducive environment for MSMEs in the digital advertising space, the panel put forth a set of recommendations and next steps. These proposals aim to guide future actions and foster a collaborative ecosystem that caters to the diverse needs of businesses and consumers alike.
Firstly, there is a pressing need to conduct thorough research to assess the specific impact of the ARCON Act on different segments of MSMEs. This research should delve into the nuanced challenges faced by various business categories, allowing for tailored and effective regulatory responses that address specific concerns without imposing unnecessary burdens.
Additionally, the panel recommended the development of tailored support programs and resources specifically designed to address the unique needs of MSMEs in complying with digital advertising regulations. Recognizing the diversity within the MSME sector, these programs should provide practical assistance, educational resources, and tools to facilitate seamless adherence to regulatory requirements.
Moreover, promoting industry-wide initiatives to educate and empower MSMEs on best practices in digital advertising emerged as a crucial recommendation. Such initiatives should focus on disseminating information, providing training sessions, and creating a knowledge-sharing platform that empowers MSMEs to navigate the evolving digital advertising landscape with confidence.
Lastly, the panel emphasised the importance of fostering ongoing dialogue and collaboration between ARCON, industry associations, and MSMEs to ensure a responsive and adaptable regulatory environment. This continuous engagement ensures that regulatory frameworks remain flexible, responsive to emerging challenges, and conducive to the dynamic nature of the digital advertising sector.
In essence, the panel’s recommendations and next steps represent a strategic roadmap for creating a thriving and responsible digital advertising landscape in Nigeria. By heeding these suggestions, stakeholders can collectively contribute to an environment that not only upholds regulatory standards but also nurtures the growth and success of MSMEs, ultimately benefiting the broader economy and consumers alike.
