The Advertising Regulatory Council of Nigeria (ARCON) has announced it will investigate Emerging Markets Telecommunications Services Limited (trading as 9mobile) over its alleged indebtedness to the tune of N1 billion.
This was disclosed in a statement from ARCON dated May 30, 2025.
The council stated that the investigation followed its receipt of two petitions against 9mobile, a member of the Advertisers Association of Nigeria (ADVAN), relating to its alleged “long overdue indebtedness of one billion Naira (N1B) for advertising services.”
Allegations
- The council claims that while 9mobile has refused to pay or resolve its indebtedness to the agencies, it has gone ahead to brief other agencies to continue its advertising and advertisement business with impunity.
“The agencies owed are left in limbo,” the statement partly reads.
“ARCON will investigate the movement of the account from the agencies owed to the new agencies briefed to ascertain compliance with disengagement protocol as well as possible breach of ethical procedure,” the council added.
- It highlighted that, by the workings of the advertising ecosystem, advertising debts extend beyond agencies; they mostly belong to media houses and third-party vendors/suppliers who are significantly affected by the indebtedness, with a multiplier effect on their cash flow and operations.
“ARCON will work with relevant anti-graft and other government agencies to ensure a detailed investigation is conducted and the debt resolved/paid.
“This is economic sabotage capable of inhibiting the Federal Government’s policy of inclusive industry growth and development of the Nigerian advertising industry,” the council stressed.
- The council seized the moment to reiterate that the Nigerian advertising industry payment threshold remains 45 days.
- ARCON said it will take all necessary actions to eradicate unfair advantage, unethical competition, and unequitable policies between relevant stakeholders in the Nigerian advertising industry, ensuring adherence to payment thresholds, industry credit policy, protection of copyright/intellectual property ownership, and compliance with the Advertising Industry Standard of Practice.
What You Should Know
Over the past few years, customers of 9mobile have been experiencing service disruptions as the telco struggled to secure new investments to upgrade its network capacity.
- This has led many of its customers to port to other networks, resulting in a significant drop in its customer base.
- As of January 2025, data released by the Nigerian Communications Commission (NCC) shows that 9mobile was left with 3.2 million active subscribers, down from over 22 million subscribers at its peak in 2016.
- Meanwhile, in July last year, 9mobile announced it had been acquired by LH Telecommunication Limited to reposition the company.
- The investment, which was approved by the African Export-Import Bank (AFREXIM), the senior lender to 9mobile in May 2023, resulted in a change in control of 9mobile in favor of the new investor by the issuance of new shares amounting to 95.5% of 9mobile to the new investor in consideration for the injection of fresh capital into the company.
Pursuant to the injection of capital, the new investor appointed a new Board for the company.
The impact of the new investment is still being awaited as 9mobile’s customers have yet to see improvements in the company’s service quality.
