To rehash a little, the new agency Scanad Nigeria came into the market mid-last year, while Prima Garnett which believes the new agency is an affiliate of O&M protested loudly and eventually sued O&M and Scanad Nigeria to court over a breach of affiliation agreement. It is industry practice that ‘affiliation agreements’ gives local affiliates exclusive rights to the market in which may operate.Three years ago, Prima Garnett Ogilvy which was facing some business challenges had Ogilvy drop the Airtel Nigeria ad account on its laps. That undoubtedly for the agency was a God sent .The account believed to be worth N6billion covered creative, media and brand management. Many market observers especially in the Nigerian media believe Prima Garnett Ogilvy did little or no brand management. No matter—global affiliation works wonders.

Then, came the ruckus. O&M has been trying to acquire majority equity stake in the Nigerian agency since last year—a move gently but firmly resisted by the Nigerian agency. But then Scanad Nigeria appeared on the scene and Prima Garnett’s managing director/CEO Lolu Akinwunmi saw red.

The red flag ,according to him ,is that Scanad Nigeria is a rival agency set up by O&M to represent the foreign agency and of course-- to take business away from its agency. This, managing director of Scanad Nigeria, Rafiu Ladipo contends is not correct. He is emphatic that the Nigerian agency is not owned by O&M ,but is affiliated to Scan Group of East Africa, which is believed to be the largest advertising and marketing services agency network in Africa.

But the issue in contention are some of the actions of Lolu Akinwunmi who incidentally, apart from being the CEO of Prima Garnett, is also the chairman of the Advertising Practitioners Council of Nigeria, APCON, since the situation broke out. One, Akinwunmi has tried to get the industry behind him, on the premise that the ‘foreign’ agency is out to short change him. Two, he has turned himself into prosecutor, judge and court enforcer in a matter in which he and his agency are parties.

Three, he has allegedly used his position as APCON chairman to try to ram through the government regulatory body, a fresh proposal that would limit or preclude foreign, multinational agencies from acquiring majority equity stakes in Nigerian ad agencies.

As a matter of fact, this is not hidden since it is one of the major issues on the table in the so-called “industry reforms” being proposed by the Akinwunmi-led APCON. Significantly, this proposal is being discussed at a time when the APCON chairman is yet embroiled in a court case between his agency and its former foreign agency affiliate, O&M. The issue of likely bias by APCON is already a mute point here. If Akinwunmi has his way, he would present the industry with a fait accompli that would make whatever decision of the court useless and of no effect whatsoever.

Although the country’s investment laws allow 100 per cent foreign ownership of virtually all businesses in the country, the Akinwunmi-led APCON wants to limit that of advertising to only 25 per cent equity ownership by foreign ad agencies. Whatever the APCON chairman’s best intentions are, it is hard to imagine his neutrality in whatever deliberation by the industry on the issue which are currently on going.

It is in the light of the foregoing that many industry players has expressed their unhappiness with the appointment of a serving advertising agency chief executive as chairman of APCON.

They argue that it is difficult to separate the business interest of the APCON chairman from his championing of the national interest which his position as APCON chairman demands – which is exemplified in the raging matter over foreign ownership of Nigerian ad agencies. Those who have voiced their dissatisfaction with the double hat being worn by

Mr Akinwunmi said that they would have preferred a retired advertising practitioner to be appointed to that role. Even though, that may not completely eliminate the fear of an incumbent chairman protecting personal business interest in the industry, but may reduce it.

Some industry players too, are of the view that not only should a sitting ad agency CEO not be appointed to the position of chairman of APCON as is currently the case, they suggest that strictly speaking, the role of APCON chairman should be a titular head without executive powers, with purely an advisory role.

They argue that the registrar of the regulatory body, along with the APCON council should be the ones to provide policy direction for the government agency.

More so , they argue that since the country’s business laws allow 100 per cent foreign ownership of almost all types of businesses it would be a hard sell for the advertising industry to try to ask for government protection.

As things stand, the issue of foreign majority ownership of local ad agencies has overshadowed other issues facing the industry which deserve the collective action of the industry to tackle effectively.

Perhaps, when Mr Akinwunmi’s tenure as APCON chairman expires next year, government would take another look at the criteria for appointing whoever would replace him.