ARCON Launches Probe into 9mobile Over N1 Billion Advertising Debt, Cites Industry Sabotage

The Advertising Regulatory Council of Nigeria (ARCON) has opened a high-stakes investigation into telecommunications company 9mobile over an alleged ?1 billion debt owed to several advertising agencies — a move the council says undermines industry ethics and endangers the broader advertising ecosystem.

In a statement dated May 30, 2025, ARCON confirmed that it received two formal petitions against Emerging Markets Telecommunications Services Limited, operators of 9mobile and a member of the Advertisers Association of Nigeria (ADVAN). The petitions accuse the telecom operator of defaulting on payments owed to advertising agencies for services already rendered — in some cases, for months.

Rather than settling its outstanding obligations, ARCON alleges that 9mobile continued its advertising operations by onboarding new agencies, effectively sidelining those previously engaged. The regulatory body described this practice as a “flagrant violation” of established disengagement protocols, calling it a potential breach of ethical standards in Nigeria’s advertising industry.

“The agencies owed are left in limbo,” ARCON stated, warning that the situation could trigger broader financial instability across the sector.

ARCON emphasized that the fallout from unpaid advertising debts goes beyond agencies alone. Media houses, content creators, vendors, and other downstream partners rely on timely payments to remain operational. The regulator warned that 9mobile’s alleged actions could create a ripple effect that undermines the health and stability of the entire industry.

Labeling the situation as “economic sabotage,” ARCON said it could jeopardize the Federal Government’s agenda for inclusive growth and fair competition within the advertising space.

“The Nigerian advertising industry payment threshold remains 45 days,” the council reiterated, pledging strict enforcement to eliminate unethical business practices and restore balance to the sector.

This regulatory firestorm is the latest in a string of challenges facing 9mobile, once a leading telecom player with over 22 million subscribers. According to January 2025 data from the Nigerian Communications Commission (NCC), the company’s subscriber base has plummeted to just 3.2 million — a sharp decline attributed to persistent service disruptions, poor customer experience, and an inability to secure timely capital inflows.

In July 2024, 9mobile was acquired by LH Telecommunication Limited, with support from the African Export-Import Bank (AFREXIM). The acquisition deal, which saw LH Telecommunication take a controlling 95.5% stake, was touted as a fresh start. A new board was appointed, and expectations were high that the move would inject much-needed capital and revive the company’s fortunes.

However, nearly a year after the acquisition, the promised turnaround remains elusive. Now, the advertising debt crisis threatens to derail recovery efforts entirely.

ARCON has signaled its intent to collaborate with anti-corruption agencies and other government entities to thoroughly investigate the matter and ensure recovery of the disputed funds. The council will also scrutinize the movement of advertising accounts and determine whether ethical disengagement protocols were violated during agency transitions.

With reputations at stake and the broader industry watching closely, the outcome of this probe could redefine the business dynamics between advertisers, agencies, and telecom operators in Nigeria.

ARCON has vowed not to relent until justice is served — a stance that could set a precedent for advertising accountability across all sectors.