Surprise Bill For Establishment Of Chartered OOH Media Practitioners Scales Second Reading, May Suffer Setbacks

In a move that appears to have taken many industry stakeholders by surprise, media reports reveal that a bill seeking to establish a regulatory body for out-of-home (OOH) media practitioners in Nigeria has passed its second reading in the Senate, about three weeks ago.

The “Bill for an Act to Establish Chartered Out-of-Home Media Practitioners of Nigeria,” sponsored by Senator Enyinnaya Abaribe of the All Progressive Grand Alliance party representing Abia South, reportedly aims to address the sector’s environmental impact and professionalize its practices.

According to the report, in his lead debate on the general principles of the bill, Senator Abaribe explained that the out-of-home media industry which encompasses billboards, transit advertising, and digital displays, requires the passing of the bill to address the multifaceted impact of out-of-home (OOH) media on the environment and the need for professionalizing engagements in the sector.    

The bill, which was first read on May 16, 2024, is now set for a public hearing following its successful second reading.

A thorough review of a copy of the document on the proposed bill obtained by Brand Communicator exposes some inconsistencies and ambiguities that call into question its drafting and ultimate objectives. While the explanatory memorandum mentions “this Bill seeks to establish the Out-of-Home Media Association of Nigeria (OMAN) as a Chartered body to regulate and promote the out-of-home media”, the bill’s language alternates between referring to the proposed body as an institute, council, and association, creating confusion about its intended structure. This lack of clarity extends to key positions within the organization, with references to both a Registrar General and a Director General appearing in different sections of the document.

While proponents argue the bill is necessary to professionalize the sector and address its environmental impacts, a closer examination reveals a web of concerns, and potential consequences that may cause the bill to suffer setbacks.

Industry Reactions: A Mix of Silence and Concern

The response from key industry players has been notably muted, with many adopting a wait-and-see approach. Given that the development directly impacts Outdoor Advertising Agencies of Nigeria (OAAN) – the apex outdoor advertising body in Nigeria, Brand Communicator reached its president, Mr. Sola Akinsiku for comments on the issue, the involvement of OAAN and the implication for the wider industry. While Akinsiku did not outrightly declined comment, he promised to get back later today.

Despite the official silence, insider sources claim the association not only knows about the bill but actively supports it. An anonymous source shared a message allegedly from Akinsiku, lobbying before the scheduled hearing: “Let me state that we (OAAN) are aware of, and fully support the bill, for the primary reason that the proposed Regulatory Council will bring sanity into the Out-of-Home media ecosystem in the country.

“I have the benefits of my convictions, sir, that as one of the leading lights in the marketing communication space in the country you are well aware of the challenges that Out-of-Home Media Assets owners have had to grapple with, especially in the hands of government departments that claim to control the practice.” The message will go on to cite several instances of billboard destruction across Nigeria, including incidents in Lagos, Abuja, Kaduna, and Enugu. It emphasized OAAN’s repeated calls for help against what they term “charlatanism” and destructive government interventions, claiming that appeals to APCON and ARCON have gone unanswered due to limitations in their mandates.

However, OAAN’s alleged advocacy for the bill seems to have been conducted without broad industry consultation, a situation that raises eyebrows among other stakeholders. This apparent lack of transparency has led to speculation about the association’s motives and the potential impact on the wider advertising landscape.

Reflecting this growing unease, a senior practitioner in the advertising industry, who also requested anonymity, expressed shock at the unfolding situation. “I strongly urge the leadership of our industry to launch a thorough investigation into the real sponsors of this bill and their underlying motives. It would be truly shocking to discover that OAAN’s leadership is behind this, especially considering they have not engaged anyone else in the industry in discussions about it. It appears as though OAAN has ‘Nicodemusly’ gone behind the back of the entire industry to spring this bill upon us. This could be dangerous for all of us.”

Lanre Adisa, Chairman of the Heads of Advertising Sectoral Groups (HASG), a body comprising leadership from various advertising associations, stated that the matter is under deliberation with relevant stakeholders. This measured response suggests that the industry at large is still grappling with the implications of the proposed legislation. This position was also mirrored by other industry leaders reached in the course of writing this story.

Though the bill does not appear to repeal the ARCON law, Brand Communicator however reached out to Dr. Olalekan Fadolapo, Director-General of the Advertising Regulatory Council of Nigeria (ARCON) on the development, the ramification of the passage of the bill into law and how it will impact on it. In his response, he revealed that the regulatory body is currently studying the bill to formulate an official position.

Setbacks in the horizon?

As the bill approaches its public hearing, industry analysts anticipate that it may face opposition for several reasons. Foremost among these is the ongoing implementation of the Steve Orosanye Report on Civil Service Reform by the Tunubu-led government, formulated under former President Goodluck Jonathan’s administration in 2014. This comprehensive reform initiative has been steadily reshaping the structure of Nigerian governance, with a primary focus on streamlining operations and eliminating redundancies across Ministries, Departments, and Agencies (MDAs).

The Orosanye Report’s recommendations have led to the consolidation, merger, and in some cases, outright dissolution of government bodies with overlapping functions. In light of this overarching directive towards governmental efficiency, the introduction of a new regulatory body for the out-of-home (OOH) advertising sector seems to run counter to these streamlining efforts.

They argue that the advertising industry already boasts well-established regulatory and professional bodies, such as the Advertising Regulatory Council of Nigeria (ARCON) and the National Institute of Marketing of Nigeria (NIMN). These organizations currently provide oversight and professional certification for practitioners across various advertising disciplines, including OOH media. The proposed creation of an additional regulatory body specifically for OOH practitioners raises questions about potential duplication of efforts and unnecessary bureaucratic layering.

This situation prompts a critical question: If the bill were to pass, would OOH practitioners be required to obtain yet another certification, in addition to their existing ARCON and NIMN credentials? Such a requirement could impose additional financial and administrative burdens on professionals in an already challenging economic environment. The bill’s progression also raises questions about the potential fragmentation of the advertising industry. If successful, it could set a precedent for other sectors within the industry to seek similar recognition and regulatory bodies, potentially leading to a more fractured and complex regulatory landscape.

They also argue that the bill’s provisions may clash with existing constitutional mandates giving local governments authority over outdoor advertising. With the push for local government autonomy gaining traction, this could become a point of contention, especially if the bill were to become law. While the bill aims to protect outdoor advertising assets, it’s unclear how it would prevent state or local governments from removing billboards they deem improperly placed or non-compliant with local regulations.

Also, given that out-of-home advertising represents only about 20% of the overall advertising industry and faces a shrinking market share, critics question whether a separate regulatory body is a priority. Some argue that industry resources might be better spent addressing existing challenges rather than creating new regulatory structures. Industry observers suggest that instead of pursuing a new council, OAAN might be better served by collaborating with HASG to address the sector’s challenges within existing frameworks.

The industry now watches with bated breath as this bill moves through the legislative process, aware that its outcome could have lasting implications for the structure and governance of outdoor advertising in Nigeria.

Brand Communicator will provide more details as developments unfold.