FG seeks clearer rules for AI use in advertising – Businessday NG

The Federal Government has called on the Advertising Regulatory Council of Nigeria (ARCON) to set rules for the use of artificial intelligence (AI) in advertising to protect consumers and ensure that adverts are truthful.

The call comes as the advertising industry generates an estimated N16.50 in Nigeria’s gross domestic product (GDP) for every N1 spent on marketing communications, according to a PricewaterhouseCoopers (PwC) study.

Mohammed Idris, minister of information and national orientation, said the use of AI, changes in consumer behaviour and the shift from traditional to digital media were changing how businesses advertise their products and services.

Idris, represented by Binyerem Ukaire, permanent secretary of the Federal Ministry of Information and National Orientation, spoke on Thursday at the 2026 National Advertising Conference in Abuja, themed “Repositioning the Marketing Communications Industry for the Next Frontier”.

He urged ARCON to develop rules for online advertising, influencer promotions and AI-generated adverts to prevent misleading content and protect professional standards.

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He said AI could help advertising companies understand consumer preferences, develop adverts, plan campaigns and measure their results.

However, he said its use raised concerns about the authenticity of content, ownership of creative work, consumer privacy and accountability.

“Our task, therefore, is to encourage innovation while ensuring that technology is deployed responsibly,” he said.

Idris said the Federal Government’s National Artificial Intelligence Strategy provides a framework for responsible use of the technology.

He added that President Bola Tinubu’s administration recognised the contribution of the creative and communications industry to economic growth.

He said the government’s economic reforms were aimed at supporting businesses, attracting investment and expanding industries outside the oil sector.

The minister also cited the Nigerian Data Protection Act 2023 and the ARCON Act 2022 as laws that protect consumers, promote transparency and guide advertising practices.

He urged advertising businesses to invest in local talent, improve workers’ skills and produce content that can compete in international markets.

He also identified opportunities for the industry under the African Continental Free Trade Area, which could help Nigerian advertising businesses reach other African markets.

Olalekan Fadolapo, director-general of ARCON, also urged advertising professionals to adopt new technologies while maintaining creativity and professional standards.

Fadolapo cited a PwC study which estimated that every N1 spent on marketing communications in Nigeria generates N16.50 in GDP.

He said AI, digital platforms and new media channels were changing how businesses communicate with consumers, requiring advertising professionals to adapt to these changes.

“Technology must remain a tool in the hands of skilled professionals. The next frontier therefore demands that we do more than adapt; we must anticipate, innovate and lead,” he said.

He said the industry’s strength lies in its ability to understand consumers, tell stories and develop ideas that influence society and support business growth.

Fadolapo also highlighted reforms introduced by ARCON, including a 45-day payment threshold, due diligence requirements, local content and talent requirements, and the operations of the Advertising Offences Tribunal.

He said the reforms were intended to improve transparency, accountability and competition in the industry.

However, he said their success depended on stakeholders’ willingness to support their implementation.

“Their success, however, depends not on the regulator alone, but on the willingness of all stakeholders to embrace the changes and contribute to their effective implementation,” he said.

Fadolapo urged advertising practitioners to provide truthful information, protect consumers and respect cultural values.

“Growth without responsibility cannot be considered true progress,” he said.

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Businessday NG