Advertising

Federal Court Strips ARCON of Key Powers Over Outdoor Advertising in Landmark Ruling

 

The Advertising Regulatory Council of Nigeria (ARCON) has been dealt a major legal blow after the Federal High Court, Lagos Division, declared several sections of the ARCON Act 2022 unconstitutional and unlawful.

The judgment, delivered on Friday, November 7, 2025, in the case of Massilia Motors Limited v. ARCON, completely validates the long-standing concerns raised by the Advertisers’ Association of Nigeria (ADVAN) regarding the limits of the Council’s mandate. Presiding over the matter, Justice Akintayo Aluko ruled that ARCON overstepped its constitutional bounds, particularly in relation to outdoor media.

The Core of the Ruling

The Court’s far-reaching decision establishes three critical points that redefine the industry’s regulatory landscape:

Local Government Authority: The exclusive power to regulate outdoor advertising and hoardings belongs to Local Government Councils under the 1999 Constitution, rendering ARCON’s oversight attempts in this area illegal.

Invalid Enforcement: The requirement for advertisers to seek prior approval from ARCON’s Advertising Standards Panel was declared unconstitutional. Consequently, any Notice of Violation and the associated criminal summons issued by the Advertising Offences Tribunal in this context are invalid and beyond ARCON’s legal powers.

Finality on Sanctions: The ruling confirms that ARCON cannot impose approvals, fines, or enforcement actions related to outdoor media.

Essentially, any section of the ARCON Act that seeks to give ARCON regulatory oversight over outdoor advertising and hoarding in Nigeria is now considered unconstitutional and illegal.

Industry Hails Clarity on Regulatory Limits

The verdict was immediately hailed by industry stakeholders as a decisive step toward promoting lawful and transparent practices.

Dr. Kolawole Mayomi, lead counsel for Massilia Motors Ltd., commended his client for challenging the “arbitrary aspects of the ARCON Act that sought to usurp the Nigerian Constitution.” He also acknowledged ADVAN’s consistent advocacy efforts.

ADVAN has long contested the composition of the Advertising Offences Tribunal, noting that since its members are appointed based on ARCON’s recommendation to the Minister for Information and National Orientation, a clear conflict of interest is created. Industry analysts have previously observed that brands and advertisers who appeared unaligned with ARCON’s interests were often the primary focus of the Tribunal’s sanctions, while advertising support agencies—which are directly under ARCON’s purview—appeared to face fewer issues.

This development provides necessary clarity for advertisers, brand custodians, media owners, and agencies, confirming that constitutional principles guide regulatory authority. ADVAN remains confident that other sections of the Act inconsistent with the Constitution will soon be addressed, as multiple litigations against ARCON are currently pending.

The association urges all stakeholders to familiarize themselves with the full judgment to ensure immediate compliance with the new boundaries of regulatory authority.

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