Crisis brews over N8bn unpaid advertising debt

The advertising industry is enmeshed in controversy over N8billion debt owed by advertisers and media buying agencies, which stakeholders blame on weak regulatory environment.

Advertising agencies (ad agencies) said the huge media debt profile of client companies have been creating some operational challenges, especially those in the out–of–home advertising, electronic and the print media.

They said the non- payment of the debts comes against the backdrop of promises made last year by all relevant stakeholders to address the challenge of advertising debt in brand management and management of brand business in Nigeria.

The ad agencies pointed out that they are facing acute liquidity crisis largely due to the large sum being owed by the client companies (advertisers).

Vanguard Companies and Markets (C&M) investigation revealed that over N8billion unpaid fees by advertisers, many of whom are multinationals are currently plaguing smooth running of business operations of the media houses and some advertising agencies.

Vanguard, November 14, 2018

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