The Advertising Regulatory Council of Nigeria (ARCON) has warned that the directive issued by the Oyo State Signage and Advertising Agency (OYSAA) to advertisers and agencies operating in the out-of-home segment could create unnecessary operational bottlenecks within the nation’s advertising ecosystem, undermine industry stability and slow down commercial activity.

Recall that a letter was issued by the OYSAA on November 3, 2025, with reference number OYSAA/382/11/39, directing practitioners, advertisers and advertising agencies involved in out-of-home advertising in Oyo State to submit “betting and gaming-related advertising messages, promotional materials, and public communications for mandatory pre-vetting before exposure.”

In a strongly worded press statement issued by ARCON and signed by its Director General, Dr. Olalekan Fadolapo, the council had described the directive as “unlawful” as advertisers and agencies operating in the out-of-home segment are required to submit certain advertising materials for mandatory pre-exposure vetting before deployment within the state.

ARCON said the directive, which specifically targets betting- and gaming-related advertisements, goes beyond the constitutional and statutory powers of a state signage agency and constitutes an ultra vires action. According to the national advertising regulator, such a requirement is not only improper but unconstitutional.

“The directive which requests all practitioners, advertisers and advertising agencies involved in Out-of-Home advertising in Oyo State to submit betting and gaming-related advertising messages, promotional materials, and public communications for mandatory pre-vetting before exposure in Oyo State is unlawful and ultra vires the powers of a state advertising and/or signage regulatory agency,” ARCON stated.

The council emphasised that advertising regulation in Nigeria is firmly domiciled at the federal level, stressing that advertising is recognised both as a professional occupation and as a component of trade and commerce under the Exclusive Legislative List of the 1999 Constitution (as amended).

ARCON cited Items 49 and 62 of the Second Schedule, noting that these provisions clearly vest legislative authority over advertising in the National Assembly.

“Advertising in Nigeria is established as a professional occupation in line with item 49 of the Exclusive Legislative List in the Second Schedule of the Constitution and also as trade and commerce, in line with item 62 of the Exclusive Legislative List in the Second Schedule of the Constitution. It is the singular responsibility of the National Assembly to enact laws in this regard,” the statement read.

ARCON further added that the enabling law establishing the Oyo State Signage and Advertising Agency cannot override or expand constitutional boundaries, insisting that any attempt by a state agency to regulate advertising content amounts to a constitutional breach.

“Kindly note that, Oyo State Signage and Advertising Agency law is alien to the Nigerian Constitution and such power does not fall within a state legislative remit,” the council said.

Reinforcing its position, ARCON stated unequivocally that state signage agencies have no jurisdiction to vet, approve or reject advertising content prior to exposure, regardless of sector or medium.

“It is not within a State Advertising and/or Signage Agency’s jurisdiction to request for, receive or approve any advertisement for exposure,” the statement added.

Beyond the legal implications, ARCON warned that the Oyo agency’s directive could have far-reaching consequences for the advertising industry if left unchecked.

“The action of Oyo State Signage and Advertising Agency will not only set the industry back, but will also create a bad precedent, in addition to causing bottlenecks for advertisers and advertising agencies within the Nigerian Advertising ecosystem,” ARCON stated.

The council explained that the press statement was issued to clarify misconceptions arising from the directive and to address concerns raised by industry stakeholders and members of the public. (The Guardian)