The Federal Government has ordered the Advertising Regulatory Council of Nigeria to clear all unpaid debts in the advertising industry.
Minister of Information and National Orientation, Alhaji Mohammed Idris, issued the directive dated April 15, 2026. The move supports the government’s Renewed Hope Agenda and aims to reduce financial stress on media houses while building a more reliable income flow for the sector.
To enforce the order, ARCON will work with the National Broadcasting Commission and other industry leaders to push a “zero tolerance” stance on advertising debt.
As part of the effort, the government has rolled out a new framework. Under the new Credit Policy and Payment Threshold, all payments for ad services must be made within 45 days. The rule covers Media Purchase Orders and Local Purchase Orders. Companies that miss the deadline will pay interest on the unpaid amount at current market rates. The policy falls under the Advertising Industry Standards of Practice and seeks to match global best practice.
The framework also introduces an Agency Disengagement Protocol to stop advertisers from leaving debts behind when they change firms. Businesses can still end deals with their agencies, whether full service, creative, media buying, digital, or OOH. However, they must first review and pay all money owed to the old agency. They must also ensure the old and new agencies speak directly to check for any unpaid bills or ethical concerns before the new agency starts work.
To avoid long court fights, ARCON has set up an Alternative Dispute Resolution desk. The unit will offer neutral mediation, conciliation, and arbitration to help parties reach quick, friendly agreements.
ARCON Director-General, Dr. Olalekan Fadolapo, said the measures are backed by law and vital for a strong advertising sector in Nigeria. He noted that firm payment discipline will protect jobs and draw new investment into media. He urged all stakeholders to follow the new framework to make the industry stronger.

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