PRESIDENTIAL REPORT
WELCOME NOTE
Distinguished Senior Practitioners and Delegates,
I welcome you all to the 51st Annual General Meeting/Congress of our great Association. Alice Walker, the American novelist, poet, and social activist, once declared:
“Time moves slowly but passes quickly.”
It is remarkable to note that four years and eighteen days have passed since I was sworn in as President. You will recall that the outgoing Exco was elected into office unopposed during the 47th Annual General Meeting/Congress, held virtually on Thursday, July 2, 2020, when the world was reeling from the deadly scourge of the coronavirus. My heart goes out to all those who lost loved ones and were severely impacted by the once-in-a-lifetime pandemic. May the Almighty not let us see such times again.
Congratulations to the members here today and to those who, for various reasons, are unable to join us physically. I salute your good cheer, confidence, and courage in living through these incredibly challenging economic times and finding legitimate means to thrive.
It is noteworthy that this is the first Exco to spend two terms of two years each in office since the motion was moved and adopted at the 43rd AGM/Congress held on Saturday, May 21, 2016, in Akwa Ibom State.
I am glad to present to you today the significant work-in-progress, events, and achievements of our administration. Together with the steadfast members of the Executive Board, we have worked diligently on your behalf to further the success of our esteemed Association since the last AGM in F.C.T., Abuja.
Challenges in the national economy, coupled with the rapid disruption brought about by digital technology, means that the marketing communications business is undergoing fundamental structural changes. It is, therefore, imperative that as individuals and as a collective, we must rethink our business models to mitigate the widening threats posed by the digital economy while taking advantage of emerging opportunities. Our industry needs to be more adaptable, agile, and ambitious.
Clayton Christensen, the American economist best known for coining the term “disruptive innovation,” once said:
“The reason why it is so difficult for existing firms to capitalize on disruptive innovations is that their processes and their business model that make them good at the existing business actually make them bad at competing for the disruption.”
Today’s economic realities call for a critical review of our industry’s relevance and its role in nation-building. Such an exercise will allow us to identify what needs to be done to readjust, reset, and refocus. Thus, the theme of our AGM, “Breaking the Mould – Creativity and National Development,” could not be more appropriate.
Before we begin, please allow me to acknowledge the support, encouragement, and guidance we have received from the Board of Trustees, under the capable leadership of the immediate past BOT Chairman, Sir Steve Omojafor (OON); the incumbent, Mr. Udeme Ufot (MFR); and the unwavering support of the heads of member agencies and their staff. A big thank you to each and every one of you.
REPORT SUMMARY
Esteemed Delegates, it is my pleasure to present a summary of the Executive Board’s activities over the past year:
1. ARCON Council
Throughout former President Muhammadu Buhari’s administration, the ARCON Council was not constituted despite our best efforts. With the new government headed by President Bola Ahmed Tinubu (GCFR), the Trustees have advised the Association to renew its efforts to emphasize the importance of constituting the ARCON Council. The absence of this council remains one of ARCON’s biggest challenges. It was agreed that the Association needs to meet with the current administration as soon as possible to address this issue.
2. ARCON Corporate License Fees
The Association formally requested ARCON to extend the deadline for acquiring the Corporate License. We proposed the sum of N150,000 per annum instead of a lump sum of N450,000 for three years to ease the financial burden on our members who are currently facing harsh economic realities. We also requested a reduction in the N200,000 inspection fee, arguing that the Compliance Letter from AAAN should suffice since applicant agencies would have already been inspected by the Association. ARCON’s response was that paying the license fee in three equal installments would result in the license being issued yearly, as they cannot issue a license on credit. Upon expiration, another inspection would be required and must be paid for. Consequently, what we are asking for would ultimately result in higher costs to members. Therefore, we deferred to ARCON’s decision. ARCON had planned to publish the list of compliant agencies and pursue those in breach by the end of March 2024. However, it later rescinded this plan to avoid chaos in the industry. Nonetheless, it is important to note that the regulator is determined to enforce its regulations, as it is accountable to the government. ARCON plans to proceed methodically until it becomes impossible for all noncompliant agencies to operate.
3. Petition to ARCON
In response to the numerous challenges faced by members with the Advertising Standards Panel (ASP) regarding certain regulatory requirements, the Exco formally petitioned ARCON to revisit, redress, and, if necessary, remove some of these bottlenecks. We are making significant progress and should have good news for members soon.
4. AAAN Registration
The Association’s annual returns for the past decade had not been filed. We have since rectified this and brought our annual returns up to date. I am also pleased to report that the Association’s records with the Corporate Affairs Commission have been updated. Additionally, our account with Zenith Bank, which was previously frozen, is now active. The current balance in the account is Nine Million Eight Hundred and Twenty Thousand, Six Hundred and Nine Naira, Nine Kobo Only (N9,820,609.09).
5. Association’s Certificate – of - Occupancy
The Association’s Certificate of Occupancy (C-of-O) was kept at the Secretariat for years, but it was noted that it is no longer safe to store such an important document on the premises. Inquiries at various banks revealed that they no longer offer document storage services. Other firms providing similar services were also found to be unreliable, with some vital documents reported missing while in their custody. As a result, the Executive Board agreed that the original C-of-O should be kept with the sitting Chairman of BOT, while Certified True Copies (CTCs) would be kept with the President and at the Secretariat.
Accordingly, our lawyer developed a mini memorandum of deposit, which was signed by the Chairman of BOT, Mr. Udeme Ufot, and witnessed by Mr. Lolu Akinwunmi, a Trustee. The original copy of the C-of-O was subsequently handed over to Mr. Ufot in his office on Monday, May 27, 2024. The Certified True Copy (CTC) was sent to me (as the President), and another copy is kept at the Secretariat.
6. AAAN Revised Constitution
The lawyer advised that the Association should proceed with printing or sharing e-copies of the constitution to members for use, as it was adopted at the AGM in Epe in 2022. Since the Association currently does not have a legal adviser, further amendments and incorporation of key resolutions passed at previous AGMs will be postponed until a substantive legal adviser is engaged for a holistic review. (Soft copies have already been sent to member agencies.)
7. Professional Indemnity Insurance
Following ARCON’s directive to obtain Professional Indemnity Insurance cover for members, the Association engaged the services of an insurance company. The professional indemnity insurance provides coverage up to N5 million for any claims or losses while handling client business. Qualified members have been issued a certificate valid for one year, with an annual premium of N13,962.26 per member agency. The first premium was paid by the Association.
Out of the eighty-one (81) member agencies at that time, only fifty-four (54) were financially qualified for the ARCON Insurance Indemnity. A total of N753,962.04 was paid as the insurance premium. The Secretariat collected the hard copies of the endorsements, while soft copies were sent to the concerned agencies.
8. Advertising Story Project
As reported at the last AGM, the Association partnered with Spirit of Naija Radio for this engaging project. The initiative features a captivating interview-style program that delves into the experiences of distinguished figures in the industry, both past and present. The goal is to compile excerpts from these interviews into a coffee table book, which will be distributed to members, key stakeholders, and clients. We are continuing to work with our partners to bring this vision to life. It is my hope and expectation that the new EXCO will work tirelessly to complete this initiative as soon as possible.
9. AAAN Music Unity Project
As part of our National Unity Project, the Association collaborated with Cobhams Asuquo to produce an uplifting song titled “Naija No Dey Carry Last”. Released on October 1, 2023, to commemorate Nigeria’s Independence, this musical piece received extensive publicity, including an open verse challenge by Cobhams. It garnered the highest number of engagements ever on our social media platforms and significantly increased our followership.
Our ultimate goal is for the song to gain widespread popularity and become a sustainable source of income for the Association.
10. Brand Nigeria Campaign
The ARCON DG, Chairman of the National Advertising Conference, Mr. Tunji Adeyinka, and I have engaged in several discussions. We have collectively agreed that the rebranding project, which involves numerous talented individuals from various sectors, will be presented to the Honorable Minister and advocate strongly for the campaign to launch no later than October 1, 2024 (Independence Day).
11. National Institute of Marketing of Nigeria
There have been significant disputes between the National Institute of Marketing of Nigeria (NIMN) and Marketing Edge. NIMN claims exclusive jurisdiction over awards within the marketing sector, while Marketing Edge, an independent marketing organization, holds a different perspective.
It should be noted that Marketing Edge has conferred awards upon some of our members. NIMN escalated the issue to the police, resulting in our members who received these awards being summoned to provide statements. I held a meeting with the President of NIMN in an effort to resolve this matter.
12. GENERAL MATTERS
12.1 Business Webinar 2024
The Business Webinar for 2024 took place on Tuesday, March 26, 2024, featuring Dr. Ayo Teriba, CEO of Economic Associates, as the Guest Speaker. The webinar focused on the theme “Navigating Uncertainty: Survival Strategies in a Challenging Economy.” Dr. Teriba delivered insights into the risks stemming from global shocks and national vulnerabilities, offering actionable recommendations to leverage available opportunities for industry growth.
The event was highly successful, with 119 registrations and 71 attendees actively participating.
12.2 International Women’s Day Webinar
The Committee of Women in Advertising organized a webinar in celebration of International Women’s Day on Thursday, March 14, 2024. Alongside this initiative, the Committee collaborated with various agencies to amplify the celebration on social media platforms. They shared inspiring videos themed around “Inspire Inclusion,” highlighting the importance of diversity and equality.
12.3 New Board of Trustees
I am delighted to announce the new Board of Trustees following the successful tenure of Sir Steve Omojafor’s leadership. Mr. Udeme Ufot (MFR) has been unanimously appointed as the Chairman of the Board of Trustees, succeeding Sir Steve. With his extensive experience as a former President and APCON Chairman, Mr. Ufot brings invaluable insight and dedication to our Association. Please join me in congratulating him on this well-deserved appointment.
We also warmly welcome back Mr. Lolu Akinwunmi to the Board of Trustees. His wisdom and guidance have been pivotal in shaping our journey thus far. This marks a significant moment as we have two former Presidents and APCON Chairmen serving concurrently on our esteemed board.
In this new phase, we are excited to introduce Mrs. Omowunmi Owodunni, Mr. Kelechi Nwosu and Mr. Funmi Onabolu to the Board of Trustees, each bringing fresh perspectives and expertise to our leadership team.
To celebrate this new chapter, the Executive Board hosted a cocktail reception at BON Residence Hotel in Ikeja GRA on Thursday, May 23, 2024.
12.4 2024 LAIF Awards
Prepare yourselves for the 19th Edition of the LAIF Awards coming up this year. Our distinguished members of the LAIF Management Board are committed to making this year’s event truly grand. Stay tuned for instructions on submitting your agency’s entries.
12.5 International Advertising Association (IAA) Nigeria Chapter
As President of the IAA Nigeria Chapter, I had the privilege of attending the 45th IAA World Congress in Penang, Malaysia alongside Dr. Tunji Olugbodi, Nigeria’s other delegate. This prestigious event took place from March 6 – 8, 2024. Notably, the Ghanaian delegation was 20 strong, including a Minister. Nigeria must increase its participation and engagement in future IAA activities.
12.6 Advertising AdCademy
Regrettably, plans for the continuation of the Advertising Adcademy program did not materialize as initially proposed. The first proposal was with Henley Business School, but upon review by the Executive Board, it was deemed too costly per participant due to adverse exchange rates. Consequently, the Secretariat was tasked with developing AAAN-exclusive training programs. However, by the time these programs were ready, economic challenges and the impending AGM posed obstacles to achieving sufficient participation. As a result, the trainings have been temporarily suspended and will be revisited and revamped for early next year.
13. INTER-SECTORAL COLLABORATION AND ALIGNMENT
13.1 ADVAN Vs ARCON
The disputes between ADVAN and ARCON encompass various issues including the 45-day contract payment period specified in the Advertising Industry Standard of Practice (AISOP), use of foreign models, and disengagement protocols. ADVAN has taken legal action against ARCON, and the ADVAN President faces charges before the Advertising Offenses Tribunal (AOT). A few days ago ADVAN reportedly filed for discontinuation of the case, hopefully we will see a permanent resolution soon.
14. GENERAL MATTERS
14.1 Framing of Past Presidents’ Pictures
Portraits of past and present Presidents have been framed and are now displayed on the walls of the Board Room at the Secretariat.
14.2 Association’s Properties/ Asset Tagging
Following an incident last year where a senior employee left with a brand-new laptop belonging to the Association, all Association assets have been tagged and labeled for identification and security purposes.
14.3 Property Development
Efforts to secure developers for constructing a suitable building for the Association have been unsuccessful. Developers, citing viability concerns, are only interested in residential complexes or mixed-use office and retail spaces, not the exclusively office space we require. Both the Board of Trustees and the Executive Committee agree that the Association’s Secretariat should not be located in a retail-focused complex.
14.4 Financial Obligations
There has been noticeable progress in addressing outstanding membership annual subscriptions. We sincerely thank compliant agencies for their continued support. For those in arrears, we urge prompt settlement to ensure uninterrupted delivery of services to all member-agencies.
14.5 Delisted Agencies
Unfortunately, certain member-agencies have persistently failed to fulfill their financial commitments to the Association. Despite repeated appeals from both the Board and Secretariat, these agencies have been delisted in accordance with the Association’s Constitution. The agencies affected are:
- Eagleserve Consultants Limited
- 360° Communications Limited
- Sodium Brands Solutions Limited
14.6 Appointment of a New Director for the Association
Following the resignation of the former Director, Mrs. Kemi Fabusoro, Mrs. Biodun Adefila was engaged as a consultant. Mrs. Adefila worked with the Association for four months. A new Director officially assumed office at the Secretariat on Thursday, January 4, 2024. Please join us in welcoming Mr. Jonathan Oyovwevotu back to the Association.
14.7 Obituary
With heavy hearts and in complete submission to the will of the Almighty, we mourn the passing of Dr. Celey Okogun in the past year. Let us observe a one-minute silence in honor of his departed soul. May God grant him eternal rest and grant his family the fortitude to bear this irreparable loss. Dr. Celey Okogun served the Association in various capacities.
14.8 Financial Record
When our administration assumed office in July 2020, we inherited a total sum of N1,380,530.19 (One Million Three Hundred and Eighty Thousand, Five Hundred and Thirty Naira, Nineteen Kobo. Today, I am proud to announce that we are leaving a sum of N37,981,643.83 (Thirty-Seven Million Nine Hundred and Eighty-One Thousand Six Hundred and Forty-Three Naira Eighty Three Kobo in the coffers of our association. We hope this modest amount will serve as a foundation for the incoming administration to build upon.
14.9a Renovation of the Secretariat
The first thing we tackled was renovating the Secretariat. Despite having no funds in the association’s account, every member generously donated, enabling us to give the Secretariat a significant facelift.
14.9b Backlog Salaries of the Secretariat Staff
When we started, there were years of unpaid pensions and it was common for staff to be owed 3-4 months’ salary. I am proud to say that during our four years of service, we never delayed a single salary payment and have cleared all outstanding pension obligations.
CONCLUSION AND APPRECIATION
Ladies & Gentlemen, at this juncture, I want to express my deep appreciation to all the members of our standing Committees for their unwavering support and dedication throughout my tenure. Your contributions have been instrumental in making both the Exco and the Association shine. I am truly indebted to each of you and words cannot adequately express my gratitude. Please join me in extending our profound appreciation.
I also extend my heartfelt gratitude to our Trustees, past presidents, senior practitioners, Heads of Member-Agencies and all members of the Association. Your steadfast support, counsel, advice and assistance have been invaluable throughout the year under review.
In these challenging times for our nation, success demands dedication, discipline and unity of purpose.
Our achievements owe much to the passion, perseverance, philanthropy, positivity and collaborative spirit of the entire Executive Board, and the grace of God.
I am deeply grateful to colleagues on the Board. As Phil Jackson, one of the greatest basketball coaches of all time, once said:
“The strength of the team is each individual member. The strength of each member is the team.”
I could not have asked for a better team.
I also wish to acknowledge the invaluable contributions of the Vice President, Jenkins Alumona and our secretariat staff. Your hard work and commitment are truly appreciated.
There are many others who have contributed, both in small and significant ways, to my modest success as President, whose names I may not have mentioned here. Your contributions are no less important, and you have my heartfelt appreciation. Those who assisted the Exco and the Association know who they are, and I am deeply thankful to each of you. May God bless you abundantly.
Above all, my deepest gratitude goes to the Almighty for His blessings, grace, undeserved kindness and the privilege He granted me to lead our esteemed Association for four years.
As I bow out of office, I urge you to extend your full support to the incoming Exco. While they may learn from our successes and challenges, I am certain they will face new trials that require different approaches. Let us rally around them as they forge their own path. As George Herman “Babe” Ruth, the legendary American baseball player, famously said:
“Yesterday’s home runs don’t win today’s games.”
With this, I warmly welcome each of you to the business session and wish you all fruitful deliberations.
Thank you.
Steve Babaeko
AAAN President.