In a dramatic turn of events that has sent shockwaves through Nigeria’s advertising landscape, the Advertisers Association of Nigeria (ADVAN) has abruptly withdrawn its high-profile lawsuit against the Advertising Regulatory Council of Nigeria (ARCON) and parties to the suit that include the Federal Government, House of Representatives, Senate, Attorney General of the Federation, and the Ministry of Information.
The unexpected move took place this morning in Court 13 of the Federal High Court in Ikoyi, Lagos, before Justice F.N Ogazi. Our correspondent, who was present to cover the proceedings, reports that ADVAN filed to withdraw the suit when the defendants where in court in readiness for the day’s proceedings.
This latest development comes on the heels of ADVAN’s decision just days ago to withdraw its membership from the Heads of Advertising Sectoral Groups (HASG), a collective body that includes major industry players such as the Broadcasting Organizations of Nigeria (BON), Media Independent Practitioners Association of Nigeria (MIPAN), Experiential Marketers Association of Nigeria (EXMAN), and Outdoor Advertising Association of Nigeria (OAAN) and hitherto, Association of Advertising Agencies of Nigeria (AAAN).
Barrister Adole Orokpo, a legal expert who has been closely following the case since its inception, offered his insights to our correspondent. He described ADVAN’s decision to withdraw the suit as “the right decision,” albeit one that comes as a surprise to many given the association’s previously strong stance. Orokpo explained the crux of the legal battle, stating:
“ADVAN’s case was essentially challenging the very foundations of advertising regulation in Nigeria. They were contesting the federal government’s authority to define advertising, to establish a regulatory agency for the industry, and to set the parameters for advertising in the Nigerian context. It was an ambitious challenge, to say the least.”
The lawyer further elaborated on the complexities of the case and what he called the potential motivations behind ADVAN’s withdrawal: “What’s particularly interesting is that all the other parties – the House of Representatives, Senate, Attorney General of the Federation, Minister of Information – had already filed appearances to continue the case. ADVAN’s sudden withdrawal suggests they may have received legal counsel indicating their case wasn’t as strong as they initially believed. In my professional opinion, continuing this lawsuit could have become an academic exercise in futility for ADVAN.”
The withdrawal of the lawsuit aligns with recent calls from HASG for all parties to come to the negotiating table. In a letter dated July 3rd, 2024, HASG Chairman Dr. Femi Adelusi had urged ADVAN to reconsider its decision to exit the group, emphasizing the need for “single-minded collaboration of all stakeholders to achieve our common purpose of industry growth.”
However, the timing and manner of ADVAN’s withdrawal from both HASG and now this lawsuit have raised questions about the association’s strategy and the state of inter-organizational relationships within the industry.
Brand Communicator reached out to both the President of ADVAN, Mr. Osamede Uwubanmwen and Dr. Olalekan Fadolapo on the development. While both declined commenting on the issue, until they have been properly briefed by their respective legal teams.
Although the withdrawal of the lawsuit could potentially pave the way for more direct negotiations between ADVAN, ARCON, and other industry bodies, it however leaves many questions unanswered about the future direction of advertising regulation in Nigeria. Some are questioning whether this signals a softening of ADVAN’s stance on regulatory issues, while others wonder if it’s a tactical retreat before a different approach is unveiled.
As this story continues to unfold, we will provide updates on any responses from ARCON, HASG, or other involved parties, and on the potential implications for the advertising industry as a whole.