The Advertising Regulatory Council of Nigeria (ARCON) has launched a preliminary investigation into a reported ₦1 billion advertising debt allegedly owed by telecom operator 9mobile, following two formal petitions received from industry stakeholders. This development, announced on May 30, 2025, has sparked controversy within Nigeria’s advertising and telecommunications sectors.
Speaking in an interview, ARCON’s Director-General, Dr. Olalekan Fadolapo, confirmed the ongoing investigation and stated that 9mobile is actively cooperating with the regulatory body.
“We have commenced an investigation. We’ll look into the issue and make appropriate pronouncements at the appropriate time,” Fadolapo said.
The allegations claim that Emerging Markets Telecommunications Services Ltd, trading as 9mobile, failed to settle advertising bills amounting to ₦1bn and subsequently switched to new agencies without resolving the debt. This move triggered complaints from the affected advertising firms.
In its official statement, ARCON explained that the investigation is in line with the Advertising Industry Standard of Practice (AISOP). The body intends to examine whether 9mobile breached disengagement protocols or violated intellectual property rights while changing agencies.
However, the development has stirred pushback from the Advertisers Association of Nigeria (ADVAN). ADVAN President, Osamede Uwubanmwen, criticised ARCON’s public notice, arguing that announcing an investigation before completion can damage a brand’s reputation.
“We feel it’s better to have a report of an investigation than to let the whole world know you are investigating a brand,” Uwubanmwen said. “Brands have spent millions of naira to build their name. That communication does not help the advertiser or the regulator.”
Despite this, he acknowledged that reconciliation of accounts is necessary, noting that many disputes over debts are often complicated by a lack of documentation from advertising agencies. “You always ask for a reconciliation—‘What are we owing?’ But when you ask them to bring documents, it becomes a problem,” he said.
ARCON’s DG defended the council’s action, reaffirming its mandate under the ARCON Act to regulate and investigate all advertising-related financial transactions. Fadolapo emphasised that the council has the authority to request financial records and resolve disputes within the advertising ecosystem.
“ARCON has the power to investigate all transactions relating to advertising and marketing communication. This includes requesting critical financial information,” he stated. “If you are doing advertisement and marketing communication, you are under obligation to respect the law, ADVAN or not.”
The issue also reignites the long-standing tension between ARCON and ADVAN regarding AISOP regulations. ADVAN has consistently rejected AISOP’s authority to regulate contractual relationships between advertisers and agencies. In 2023, ADVAN’s representative on the AISOP committee, Bunmi Adeniba, withdrew assent from the final document, stating that it did not reflect the association’s position.
ADVAN argues that global best practices do not allow regulators to dictate payment terms in private business agreements. Uwubanmwen reiterated this view, citing a previous dispute involving Hayat Kimya Nigeria Ltd, where ARCON sought sanctions over alleged non-payment to Mainsail Media Ltd.
Nonetheless, Fadolapo maintained that 9mobile remains a responsible corporate entity and is working with the council to resolve the matter. He noted that both parties are aiming to settle the issue amicably without further public backlash.
“We don’t want media judgment. We are not saying anybody is guilty. We need to sit down and do the reconciliation,” he added.
While ARCON has not provided a definite outcome yet, the DG hinted that the investigation could be wrapped up within a week. This would allow both parties to resolve the dispute quickly and potentially restore working relationships within Nigeria’s advertising industry.
As the probe unfolds, industry watchers say its resolution may set the tone for future engagements between telecom companies and their advertising partners, as well as clarify the roles of ARCON and ADVAN in regulating the fast-evolving marketing communications space.
