NIGERIA Trends and Developments Contributed by: Tiwalola Osazuwa, Peretimi Akinmodun, Lazarus Uwa Kalu and Mubaraq Popoola, ǼLEX
efits of the national licences issued by the NLRC was that it enabled those in this sector to oper - ate nationally under a single licence. Revenue diversification and opportunities for growth Lottery and gaming revenues can now be fully harnessed by states for development projects. However, states will have to strike a balance to avoid overregulation, which could stifle industry growth. To this end, states can introduce innova - tive policies to foster growth, attract investment and stimulate competition. Retroactive enforcement of penalties A significant challenge for operators and state regulators is the enforcement of penalties for non-compliance with existing state lottery and gaming laws. The Supreme Court’s decision ren - dered the NLA ineffective, voiding any actions taken under its regime. In practice, many opera - tors prioritised compliance with the NLA, over - looking state laws that prescribed penalties for non-compliance. With the NLA now void, it is uncertain whether states will attempt to impose penalties on busi - nesses that previously operated without the required state licences. For example, Lagos State has instructed all operators within its jurisdiction to immediately regularise their sta - tus or face prosecution. However, the scope of regularisation is unclear. Does it simply require obtaining the necessary permits moving forward or addressing compliance from the commence - ment of operations within the state? Advertisements Expansion of advertisement regulation to social media posts In Nigeria, advertisements are regulated by the Advertising Regulatory Council of Nigeria (the
“ARCON”) pursuant to the Adverting Regulatory Council of Nigeria Act 2023 (the “ARCON Act”) and the Nigerian Code of Advertising Practice 2021 (the “Advertising Code”). The Advertising Code stipulates the standards for advertisements in Nigeria while the ARCON Act established the Advertising Standards Pan - el (the “ASP”) to ensure that advertising and all advertisements conform with the prevailing laws. In line with this, the Advertising Code requires submission of advertisement materials to the ASP, which issues a certificate of approval upon vetting and satisfaction that the advertisement complies with the requirements of the ARCON Act and the Advertising Code. In addition, non- compliance with the requirement to obtain a certificate of approval attracts a minimum fine of NGN500,000. This requirement has generally been applied to traditional advertisement mediums such as television, radio and billboards. However, in recent times, the ARCON has sought to expand the application of the requirement to obtain the ASP certificate of approval to business’ posts on social media platforms and impose fines on businesses with alleged offending posts. The ARCON’s position is that the posts qual - ify as advertisements, defined broadly under the ARCON Act as “a notice, announcement, exposure, publication, broadcast, statement, announcorial, informercial, commercial, hype, display, town cry, show, event, logo, payoff or trade mark to promote, advocate, solicit, show - case, endorse, vote or support a product, ser - vice, cause, idea, person or organisation with the intention to influence, sway, actuate, impress, arouse, patronise, entice or attract a person, people or organisation by an identified sponsor irrespective of media, medium or platform”.
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