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ARCON Cracks Down on Deceptive Ads After N1.3 Trillion CBEX Ponzi Crash

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Regulator warns advertisers, influencers and media platforms: “No one is above the law”

In the wake of the CBEX investment scheme collapse that left Nigerians counting losses estimated at N1.3 trillion, the Advertising Regulatory Council of Nigeria (ARCON) has issued a strong warning to advertisers, media agencies, influencers, and digital content creators over the growing wave of deceptive advertising—especially on social media.

The Council’s warning comes on the heels of a landmark Federal High Court ruling, which affirmed ARCON’s legal authority to regulate advertising across all media platforms, including digital and social media. The judgment, delivered in Lagos in Suit No. FHC/L/CS/1262/2024, was described by ARCON’s Director General, Dr. Olalekan Fadolapo, as “a critical endorsement” of the agency’s mandate to protect Nigerian consumers from unethical marketing practices.

Referencing the CBEX Ponzi scheme—widely promoted through unverified online ads and social media endorsements—ARCON decried the impact of misleading advertisements that promised guaranteed returns to unsuspecting Nigerians, many of whom lost their life savings.

“This tragedy underscores why all advertisements, regardless of the platform—be it TV, radio, billboards, newspapers, Instagram, Facebook, TikTok, or X (formerly Twitter)—must be vetted and approved before publication,” Dr. Fadolapo stated.

The Council emphasized that any individual or organization found guilty of unauthorized advertising will be investigated and may face sanctions by the Advertising Offences Tribunal.

To reinforce compliance, ARCON has launched a specialized compliance task force tasked with monitoring advertisements across all platforms and swiftly flagging violations. The Council also encouraged Nigerians to report suspicious or misleading ads, affirming that consumer protection remains at the heart of its operations.

“This marks the end of the era of lawless advertising in Nigeria,” ARCON declared in its statement. “We will no longer tolerate a system where the public is deliberately misled for commercial gain. ARCON is watching, and the law will be enforced.”

Mike Ojo

Only 21% Score Above 200 in 2025 UTME – JAMB

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