How ARCON’s Vetting Rules Are Squeezing Nigerian Businesses and Influencers

How ARCON’s Vetting Rules Are Squeezing Nigerian Businesses and Influencers

  • ARCON’s new vetting rules aim to curb scam ads but frustrate businesses with delays and costs
  • Industry stakeholders demand clearer guidelines to balance regulatory oversight and business creativity
  • Despite regulations, unapproved ads persist online, raising doubts about ARCON's enforcement effectiveness

Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.

Nine months after the Advertising Regulatory Council of Nigeria (ARCON) tightened rules requiring all adverts, whether on billboards, radio, TV, or social media, to be vetted before publication, businesses are questioning whether the policy designed to stop scam ads is working and whether its impact on companies and creators is worth it.

What ARCON’s vetting policy requires

In May 2025, ARCON introduced a directive that influencers, advertisers and content creators must secure prior approval from the council before any advert is exposed to the public, whether online or offline.

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Small businesses under strain as ARCON's new ad rule surfaces, cripples SMEs
Business owners kick as FG tightens social media advertising rules. Credit: Novatis
Source: UGC

The aim was to reduce scams and deceptive promotions, like fraudulent investment adverts that have misled Nigerians in recent years.

Under ARCON’s mandate, every piece of paid promotional content counts as an advertisement, meaning social media posts from influencers, Google or Facebook ads and similar online marketing material need clearance before they go live.

Rising frustrations from businesses and creators

Many small businesses and marketing professionals say the lengthy vetting process has caused delays in campaign launches and undermined their agility in fast-moving digital markets.

Some claim that even simple promotional posts get caught up in red tape, adding costs and uncertainty.

Advertisers’ groups have also expressed concerns about inconsistent vetting times and what they describe as arbitrary fee requirements and enforcement, which they say distort fair competition and raise the cost of doing business.

These challenges hit especially hard for small and medium enterprises that rely on low-budget social media campaigns to reach new customers.

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Broader disputes over regulatory reach

The controversy isn’t limited to compliance timing and costs. Industry associations have questioned ARCON’s governance and the legal basis for some of its actions, saying state signage agencies have also issued conflicting directives that add to confusion.

There are ongoing debates about how far the council’s authority should reach in digital spaces, especially where global platforms are involved.

According to a Vanguard report, legal voices have weighed in as well. The Federal High Court in Lagos previously affirmed ARCON’s authority to regulate advertising across all media, including on social media.

But challenges remain over how to balance regulatory oversight with business growth and free speech in an increasingly digital economy.

Impact on online advertising

BusinessDay reports that despite ARCON’s goal of reducing scams and protecting consumers, unapproved adverts continue to appear online, prompting questions about enforcement effectiveness.

This has frustrated both legitimate advertisers and regulators, leaving businesses caught between compliance costs and the pressure to stay competitive.

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For many digital marketers, compliance has become a key strategic consideration.

Brands now must factor vetting timelines into campaign planning, and influencers are more careful about labelling paid promotions appropriately to avoid penalties.

Looking ahead: Compliance or innovation?

ARCON’s vetting regime reflects a wider global trend of tightening oversight on advertising, especially in digital spaces. But for businesses in Nigeria, the immediate challenge is adapting to these rules without sacrificing growth or creativity.

Many industry stakeholders are calling for clearer guidelines, better communication from the regulator, and systems that speed up approvals without compromising ARCON’s consumer protection goals.

Small businesses under strain as ARCON's new ad rule surfaces, cripples SMEs
New social media ad rules seeks to cripple SMEs, influencers react. Credit: Novatis
Source: Getty Images

As the digital market continues to expand, finding that balance will be crucial for advertisers, creators and regulators alike.

CAC offers free registration for 3,500 small businesses

Legit.ng earlier reported that the Corporate Affairs Commission (CAC) has announced a fresh initiative aimed at easing the burden on small business owners across Nigeria.

Under the new programme, 3,500 small enterprises will enjoy free business name registration, covering all 36 states and the Federal Capital Territory.

The announcement was made by the Registrar-General of the commission, Hussaini Magaji, via the agency’s official X handle.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng