In the wake of the recent collapse of the CBEX investment scheme, which saw Nigerians lose an estimated N1.3 trillion, the Advertising Regulatory Council of Nigeria (ARCON) has issued a strong warning to advertisers, agencies, media outlets, influencers, and content creators over the growing trend of deceptive advertising, especially on digital platforms.
This warning comes on the heels of a significant ruling by the Federal High Court affirming ARCON’s legal mandate to regulate advertising across all media channels, including social media.
In a statement released on Monday, the Council’s Director General, Dr. Olalekan Fadolapo, welcomed the court’s verdict in Suit No. FHC/L/CS/1262/2024, delivered in Lagos. He described it as a vital validation of ARCON’s responsibility to shield Nigerian consumers from unethical advertising practices.
Referencing the CBEX Ponzi scheme—aggressively marketed through unverified digital ads—ARCON highlighted the incident as a cautionary tale of the devastating impact false advertising can have. Thousands of Nigerians reportedly fell victim to the scam, lured by bogus promises of guaranteed high returns.
“No platform is above the law,” Fadolapo emphasized. “All advertisements, regardless of whether they appear on traditional media or social platforms like Instagram, Facebook, TikTok, and X (formerly Twitter), must undergo approval before publication.” He warned that anyone engaged in unauthorized advertising activities will be investigated and may face sanctions by the Advertising Offences Tribunal.
To strengthen enforcement, ARCON has established a dedicated compliance task force to monitor advertising content across media and swiftly flag any breaches. The Council also called on the public to report questionable or misleading advertisements, underscoring that protecting consumers remains a top priority.
“The era of unchecked advertising is over,” ARCON declared. “We will not tolerate a culture of deception where the public is misled for profit. ARCON is vigilant, and the law will take its course,” the Director General concluded.
