The Director General of the Advertising Regulatory Council of Nigeria (ARCON) Dr. Lekan Fadolapo, has again reiterated that advertising stands a better chance in boosting Nigeria’s economy if the players in the industry play by the rules. Speaking in Lagos recently, Fadolapo pointed out that the marketing and advertising sub-sector contributes well over 20 per cent to Nigeria’s GDP based on the current advertising spend of the multinational companies.
According to him, “If advertising is well promoted, it will generate economic value and encourage more innovation, support employment and help fund vital services. Beyond the immediate economic gain, the business of marketing Nigeria as a corporate body rest on the Marketing Communications sector because carving a good image for Nigeria will attract foreign investment and patronage of locally made goods,”
Fadolapo who identified weak regulation as one of the challenges the industry has consistently contended with, argued that the role of advertising in national development cannot be dismissed.
“This is viewed from the angle that advertising encourages more patronage for goods and services; hence it leads to higher output by industries. When there is an increase in industrial output as a result of advertising, it leads to more tax being paid to the government coffers and it also provides more employment for the masses. As such, it is right to say that advertising in Nigeria contributes to economic growth. Secondly, advertising helps the consumers in making choices about what products or services to patronize. It serves as a source of information to consumers about goods and services.
“According to the Federal Inland Revenue Service (FIRS), the multinational companies had been the best player in terms of tax payment and Corporate Social Responsibility (CSR). Companies like MTN, Nigerian Breweries, and Guinness Nigeria etc. are in their list. What drives these companies’ profitability is marketing and advertising,” Fadolapo said.
Commenting on the various economic roadmaps being rolled out by Tinubu’s administration, the DG pointed out that the president has taken a proactive decision to salvage the economy but he added that the benefits of the reforms may not yield expected results immediately. Among other benefits, Fadolapo said the removal of fuel subsidy for instance, would free up resources for other sectors of the economy like education, healthcare, and infrastructure development. He also said the country will soon start attracting Foreign Direct Investment (FDI).
