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WHAT IS INFLUENCER MARKETING?
Influencer marketing and advertising is a strategy in which brands promote their products or services by collaborating with popular social media content creators or celebrities with dedicated followings. Usually, these influencers have, over time, built credibility, trust, and connection with their fan base and positioned themselves as experts in their niche in the eyes of their followers.
By leveraging the existing trust and credibility an influencer has among their fan base, a brand or business that associates itself with such an influencer can easily and quickly reach new target markets, increase brand awareness, and ultimately drive sales.
In recent years, influencer marketing has become relevant in Nigeria due to the rapid growth of social media usage and the increasing reliance of consumers on online recommendations and testimonials when making purchasing decisions.
WHO REGULATES ADVERTISING AND INFLUENCER CONTENT IN NIGERIA?
Influencer marketing and advertising in Nigeria is regulated by several bodies and laws. Key regulators and legal frameworks, including:
Together, these regulators and frameworks shape the compliance landscape for influencer marketing in Nigeria.
THE ARCON ACT AND DIGITAL ADVERTISING: WHAT INFLUENCERS MUST KNOW
Over the years, the advertising landscape in Nigeria and globally has evolved from traditional one-way advertising through the use of billboards, TVs, radios, and newspapers to digital advertising done via the internet using digital platforms. To keep up with these developments and fill up existing gaps, the Federal Government of Nigeria enacted the Advertising and Regulatory Council of Nigeria (ARCON) Act, which repealed the Advertising Practitioner (Registration, etc) Act, introducing the Advertising and Regulatory Council of Nigeria (ARCON).
The ARCON is the apex body that regulates and controls advertisement and marketing communications in Nigeria with an objective to protect Nigerians from misleading adverts, whilst ensuring that all ads are responsible, ethical, compliant with national laws, and aligned with global best practices.
With the exponential growth of the digital advertising and the increasing use of social media platforms like Instagram, TikTok, X (formerly Twitter), etc., by businesses and brands to target the Nigerian market, it is no surprise that the Federal High Court (Lagos Division), in the recent case of Digi Bay Limited V Attorney General of The Federation & Anor[1] affirmed that ARCON’s powers extend to the regulation of adverts and marketing done on social media which includes influencers advertisements.
ARCON RULES MARKETERS AND INFLUENCERS MUST NOTE
Whether you are using traditional or digital marketing methods, the following ARCON rules are relevant to influencers and brands alike when planning the marketing or advertisement of a product or service.
The ARCON Act[2] provides that “Any person including sponsor or beneficiary of an advertisement, body corporate, organisation or agency which creates or places for publication or exposure of an advertisement in any medium directed at or targeting the Nigerian market without the prior approval of Standards Panel commits an offence and is liable to such fine as stated in the Nigerian Code of Advertising Practice.”
In practical terms, advertisements targeted at Nigerian consumers are expected to be vetted and approved before publication, including digital and influencer-led advertisements.
One of ARCON’s core objectives is to ensure transparency and avoid miscommunication in advertising[3]. As such, Influencers have a duty to disclose any paid partnerships and avoid misleading their audience by presenting paid promotions as organic content.
In a bid to reduce scams and fake advertisements, ARCON demands that “all advertisements exposed and directed at the Nigerian market are legal, decent, honest, truthful, respectful, and mindful of the Nigerian culture, constitutional tenets, and relevant lawful enactments, prepared with a high sense of social responsibility, devoid of misinformation or disinformation in advertising and marketing communication.”[4]
Advertisements must not contain false or exaggerated claims, misinformation, or content that promotes cultural, gender, or social discrimination.
For the sake of credibility and to prevent any future issues and queries, influencers and content creators, who are primarily in the business of marketing or advertising, are to register with ARCON[5].
THE FCCPC AND INFLUENCER MARKETING
The Federal Competition and Consumer Protection Act (FCCPA) of 2018 established the Federal Competition and Consumer Protection Commission (FCCPC) to safeguard the Nigerian consumer rights and promote fair market competition.
Section 125 of the FCCPA provides that “where in the marketing of any goods or services an undertaking or any person acting on its behalf by words or conduct
(a) directly or indirectly expresses or implies a false, misleading, or deceptive representation concerning a material fact to a consumer or prospective consumer, or
(b) fails to correct an apparent misapprehension on the part of a consumer or prospective consumer, amounting to a false, misleading, or deceptive representation or permit or require any other person to do so, the undertaking is liable for damages to any person damaged, and shall be ordered to make monetary restitution.”
In the context of influencer marketing, this means that influencers must not participate in the production or dissemination of advertising materials that are deceptive and contain false claims, as such conduct may result in consumer complaints and regulatory sanctions.
In addition, Section 126 of the FCCPA prohibits false, misleading, or deceptive endorsements, including undisclosed sponsorships and unauthorised testimonials. Influencers and other persons acting on behalf of a brand must not misrepresent affiliations or approvals, and any testimonial or performance claim used in advertising must be genuine, authorised, and capable of verification[6].
DATA PROTECTION AND THE ROLE OF THE NDPC
The Nigeria Data Protection Act (NDPA) established the Nigeria Data Protection Commission (NDPC) as the primary regulator for safeguarding the personal data of Nigerians. Influencer marketing campaigns often involve the processing of personal data, particularly in targeted advertising, audience analytics, giveaways, and promotions.
Influencers and marketers are required to ensure that personal data is collected and processed lawfully, fairly, and transparently, and that appropriate safeguards are in place to protect such data. Compliance with the NDPA includes obtaining valid consent where required, limiting data use to specified purposes, and implementing adequate security measures.
CONCLUSION
Non-compliance with relevant regulations concerning advertising, consumer protection, data protection, and sector‑specific regulations may result in fines, restitution orders, suspension of advertisements, and, in some cases, criminal liability. Both brands and influencers may be held jointly responsible for regulatory breaches.
To mitigate these risks, brands and influencers are advised to follow best practices, including making clear disclosures, obtaining requisite consent, maintaining truthful advertising, registering with relevant regulators, complying with data protection obligations, reviewing platform rules, and seeking legal advice. Adopting such a proactive compliance approach helps ensure that influencer marketing campaigns are effective, ethical, and legally sound.
[1] Unreported Suit No. FHC/L/CS/1262/2024)
[2] Section 54 of the ARCON ACT
[3] Section 2 of the ARCON Act
[4] Section 2 (b) of the ARCON Act
[5] Section 21 of the ARCON Act
[6] Section 126 (1) and (2) of the FCCPA
Written by Elizabeth Oyinlola for The Trusted Advisors
Email us: info@trustedadvisorslaw.com
Telephone Number: +234 810 159 9159