Statistics from 2021 show that Nigeria currently has over 187.9 million mobile connections. This means that 90 percent of Nigeria’s 208 million population have mobile phones. About 104 million, or just about 50 percent of Nigerians, are regular internet users. About 33 million (15.8 percent of Nigerians) are active social media users as of January 2021. About 93 percent of users accessing the internet do so via their mobile devices. This represents a 22.2 percent growth from January 2020. Additionally, Nigerians spent an average of 3 hours and 41 minutes on social media every day. This is significantly higher than the global average of 2 hours 22 minutes.
The rapid development has led to a growth explosion of social media, creating new digital channels that give advertisers the unprecedented ability to directly, and instantly, market their products to consumers at low cost. While the simplicity of advertising in social media may suggest that advertising laws are not applicable to this medium, the Advertising Regulatory Council of Nigeria, ARCON, recently stepped in to ensure advertisements in social media are not deceptive and misleading.
In a press statement, made available to the media and signed by its Director-General, Dr. Olalekan Fadolapo, ARCON noted that it has received several complaints on the advertisements, advertising, and marketing communications activities of skit makers, comedians, influencers, content creators/producers, bloggers, vloggers, etc on digital/online media platforms. On these complaints, the apex advertising regulatory body in the country noted, “most of the advertisements exposed by this group are not only unethical with unverified claims and misinformation, but also in violation of the Nigerian Code of Advertising Practice.”
‘What I ordered for versus what I got‘
Following these claims, a journo request for this story was sent out and some alleged victims spoke to Brand Communicator on how they have been ‘scammed’ via social media adverts. Josephine, 34, is an accountant working in one of the government-owned hospitals in Lagos. By standards, she earns a salary that is barely above the minimum wage. As an industrious lady, she augments her earnings with a side hustle selling recharge cards and other bits and ends. As a matter of rule, she saves every dime she makes from her side hustle while ‘surviving’ on her salary.
Eight months into the year, she was able to save up to 200k (two hundred thousand naira) from her side hustle and from monetary gifts she received from friends and family for her birthday celebration just weeks back. She was surfing the internet on her phone one day when she came across an ad of her favourite Nollywood star advertising a financial product that offers immediate financial gains without so conditions.
“Since it was a video she posted on her own page, I didn’t bother to think twice about it. I believed her page was not hacked and so there was no reason to doubt the platform, especially coming from her. Everything smacked of legitimacy. Quickly, I called the number on the advertised service and in a matter of minutes; I sent my entire savings to them. This has been more than two years ago now…I didn’t get one naira back neither did I get any plausible explanation as to why my money just disappeared that way,” she said.
“The nature of my work does not allow time within the week to take care of some basic chores in my moderate apartment. Because I leave alone, it becomes even worse at the weekends if I have to do my laundry by hand, stock my refrigerator and have time for other activities. So, I decided to buy this washing machine I saw on this blog. It looked compact, easy to use, and just suitable for my kind of person. The price was adequate, just right for my pocket at that time,” Enebeke, 29, a bank executive narrated.
“You can imagine my surprise after I made vehicular arrangements to carry the washing machine home and all I got was a miniature version of what a washing machine should be! The pictures of what I ordered and the reality of what I got were so disappointing that I resolved never to buy anything online again.”
Desola, 32, a Business Development Executive at a real estate firm in Ogba, Lagos state revealed that she once bought human hair from a wig vendor on Instagram that had one of the former Big Brother Naija housemates as a brand ambassador. “These people insisted payment must be made before delivery. I paid for both the wig and delivery. What I got is a classic example of what I ordered versus what I got. The shocking thing is that this is not the first time something like this is happening to me,” she said.
Perhaps, it is in view of complaints like this that ARCON directed, “By this public notice, brand owners, digital agencies, secondary digital media space owners (i.e. bloggers, vloggers, influencers, comedians, skit makers, etc) and other advertising stakeholders in the digital/online media space are advised to obtain pre-exposure approval of all advertisements, advertising, and marketing communications in accordance with the Nigerian Code of Advertising Practice and the ARCON Act No. 23 of 2022.”
Stakeholders, experts react
This directive has been received across boards, with mixed feelings. Following its issuance, skitmakers and influencers have expressed dismay while others consider it a joke. Expressing incredulity, singer, Bigiano said the federal government is out to terrorize the citizenry. Brand Influencer and entrepreneur, Pamilerin Adegoke @thepamilerin called the directive an outright joke. Comedian Usiaphe Kelvin @Whalemouth1 joked, “soon government will say all grandmothers going for Omugwo must pay taxes.”
Enubianozor Collins ‘Mecoyo’, an actor, comedian and skit maker who is not new to the world of advertising as he creates ad materials and advertises for a seasoning brand-Tasty Cubes, weighs in on the matter. According to him, ARCON’s priorities are misplaced as he believes the regulatory agency’s directive should be targeted at the advertisers directly and not to skit makers, influencers or even the platform as the case should be.
“The advertisers themselves should obtain the pre-exposure approval. Will the government ask AIT, Raypower or the Nations newspaper to obtain approval before running their ads? I believe that the advertisers would have done that before reaching out to people like us. Most of us don’t work outside the scripts given to us by the owners of the brands we work for,” he said.
But while some people are decrying the directive, a surprisingly good percentage of social media users have thrown their weight behind ARCON. In the words of Otunba Femi Davies, President, Society of Digital Newspaper Owners of Nigeria, SDNON, “The ARCON directive is a very good one and is needed to bring sanity to what is going on now on social media. Advertisements that are being exposed to consumers should be verified and approved in order to avoid stories that touch the heart.
Reacting to the post on popularly platform, Instablog9ja, @bennett.forbes_ wrote: “it’s actually the right thing to do. Content must be regulated and vetted else everyone is at liberty to churn out content that can put them or the public in trouble. Rather than see this as a means of extortion, see it as quality control,” he advised.
@I_am_agbonz wrote “This is the right way to go. Most of these influencers do not verify goods products and services before advertising them on their platforms. Some of the trading platforms they advertise are scammers!”
@misshils0011 added, “this is good! There is a lot of influencing on fake products on social media. Besides, scammers are using influencers and celebrities to trick people.” @ ao_squaress buttresses, “…all these celebrities that advertise for Ponzi schemes disguised as investment companies would have been checked and people would have been protected from losing their hard-earned money, e.g the map.ng, Racksterli, Revolution Plus, etc.
Experts and stakeholders in the marketing and communications industry have also lent their voices to the ongoing debate on the latest directive from ARCON. Israel Ogunseye, Head of Marketing for Kobobid says this is a development that has long been overdue.
“This is something advertising professionals have clamoured for in different variations especially because we see quite a lot of products that should ordinarily not be advertised, being advertised thereby putting consumers at risk. Health products fall in this category in their majority and it is saddening how these charlatans reign free in making these bogus claims as well as exposing consumers to health dangers. Advertising using influencers as channels also seemingly is allowing brands to make porous claims about their offerings that do not follow the competition law in the country as well.”
Chairman of the Brand Journalists Association of Nigeria, Clara Okoro agrees with this viewpoint, stressing that the digital media space is due for what she terms ‘sanitation.’ “I believe ARCON is already in the process of doing that. It’s the process that needs to be taken seriously into context.”
Managing Director of STB McCann, Paul Ugoagwu agrees that the new directive will check the excesses of social media. “Digital advertising will at some point trump traditional advertising and the earlier we think about infusing some sanity the better. Skeptics could say this is all about revenue generation.”
President of the Experiential Marketers Association of Nigeria (EXMAN), Tunji Adeyinka in his own submission said that advertising is regulated and any campaign directed at the consumer’s need to be vetted by the regulator. Allaying any fears that ARCON is looking to stifle influencers and skit makers, he said, “I am sure that the regulator is not looking to stifle the skit-making industry but it is trying to bring some sanity into the advertising space especially as regards making product claims. I am sure that professional skit makers will find a pathway to engage and operate according to the dictates of the law.”
Does ARCON have the capacity?
No doubt, ARCON has undertaken an onerous task with this new directive. Does it have the capacity to enforce and penalize as the case may be? Experts are skeptical. Ogunseye says that though this is a good step in the right direction, execution may be a challenge. “ARCON needs to scale its vetting service, I do not see why in 2022, I still need to email my material instead of uploading it on a portal where I can get my feedback in due course, if other government agencies like the Corporate Affairs Commission can have systems like this, ARCON should do same.
Ugoagwu is of the opinion that the new directive will encourage scapegoating and selective application of the law as it is doubtful that ARCON has the capacity and resources to enforce. Clara Okoro toes similar line when she said that this will be a herculean task for ARCON to achieve across boards on different touchpoints in the digital space. “The challenges will be on how to keep track of the contents and see the ads in the first place. I believe a lot of work will need to be done to regularize this policy
Adeyinka is less fazed by the challenges that ARCON’s new undertaking may posit for the regulatory agency as he believes that ARCON will always find a way: “ARCON Regulation always lags behind technology and innovation but you always have a catch-up period. The key question is, is it legal? If the answer is yes, it may take time but regulation will catch up. Once you have established the ‘what’, the ‘how’ will follow.”
The move to regulate advertising in the digital space is not peculiar to Nigeria alone. In the United Kingdom, for instance, the Federal Trade Commission (FTC) is in charge of this function. In fact, according to the FTC, a statement made by a consumer on social media will be treated as an endorsement if, viewed objectively, it appears that the relationship between the advertiser and the speaker is of a type that the speaker’s statement can be understood to be sponsored by the advertiser, among other things.