How new ARCON law prevents N120 billion capital flight annually – Buchi Johnson

How new ARCON law prevents N120 billion capital flight annually - Buchi Johnson


Leading  players in the Nigerian advertising scene and Chief Executive Officer of Lilvera Group, Mr. Buchi Johnson, has revealed that the new law setting up ARCON has prevented a capital flight to the tune of N120 billion.

According to him, “The law provides that, with effect from January 1, 2023, advertisers must use a cumulative 75% of local content in all ads and marketing directed at the Nigerian market. This is exciting because the country has been losing about ₦120 billion annually due to capital flight in the sector where ads targeted at Nigerians were produced externally creating jobs in other economies but not in the targeted economy, Nigeria.”

Mr. Johnson said, this law is expected to create over 500,000 jobs annually. So, this will lead to more multinational brands using Nigerian talents, agencies, and producers in commercials targeted at the Nigerian market.

“On a personal note, I look forward to Lilvera playing a key part in ensuring that the quality that these multinational brands get from local agencies is at par if not even higher than the quality they would get elsewhere,” he said.

Speaking on Lilvera’s audacious moves to make a giant stride in the industry, the CEO of Lilvera mentioned that the agency has designed an effective tool to aid its execution and implementation of clients’ briefs. The tool is tagged 5Rs which simply represents responsiveness, relevance, receptivity, recognition and relationship.

How new ARCON law prevents N120 billion capital flight annually - Buchi Johnson
How new ARCON law prevents N120 billion capital flight annually – Buchi Johnson

On the potency of this tool, Mr. Johnson said “Our focus is to continue to deliver on the 5Rs that drive Integrated Marketing Communications such as Responsiveness: ensuring rapid and high-quality response to clients’ needs, Relevance: keeping our client communications highly targeted and relevant, and Receptivity: maintaining open communication lines with clients”.

He stated that “One area where we definitely need to keep growing is customer relationship management. We have built great client relationships in the past years of our business that we must continue to deepen, and we look forward to building new relationships that we will nurture, grow, and blossom.

Our clients are at the heart of our business so we will continue to focus on this area to ensure the very best experience for them as they continue to choose us for their integrated marketing communication projects,” he added

Predicting 2023 for the industry, CEO of Lilvera revealed that there will be post-pandemic growth and the new ARCON law will help retain at least 75% talents in the industry.

“I see exciting times ahead with the post-pandemic growth continuing as well as the new law requiring businesses to produce at least 75% of their marketing content locally. My advice to players in this space would be to position for growth, build capacity to deliver excellent services across the board, and maintain a high standard of quality in team management, service delivery, and customer relationship management,” he said.