Operators kick as NAICOM re-introduced N50, 000 advertorial processing fees

Commissioner for Insurance, Fola Daniel

• Why we re-introduce fees – NAICOM

Chuks Udo Okonta

Many insurance operators were said to be shocked yesterday when they got a circular from the National Insurance Commission (NAICOM) mandating them to commence payment of N50, 000 advertorial processing fees, a development some of them have kicked against.

Some operators that spoke with Inspen, said NAICOM has no justification for demanding a fee for processing advertorials as it is its responsibility to approve the advertorials. They noted that the process of approval should not be taken for income generation.

They lamented that the payment would be a double burden on them, as they are also meant to pay approval fee to the Advertising Practitioners Council of Nigeria (APCON).

An operator called on NAICOM to reduce the fee, stressing that it is too high for the operators to bear.

Responding to the misgivings expressed by the operators, NAICOM said the fee was re-introduced to curb the abuse been perpetuated by some operators, who flood the commission with advertorial materials for process and approval, but would fail to publish them as tolls for creation of awareness for which they are designed.

Head, Corporate Affairs, NAICOM 'Rasaaq 'Salami, told Inspen that the commission in a bid to ascertain the amount the operators deplore on creation of awareness, observed that many of the advertorials approved were not made public.

He said the operators were meant to pay the fee in the past, but the commission suspended the collection to encourage operators to advert having observed that only fee were adverting and promoting awareness about the products and services offered by the industry.

He said the re-introduction will spur the operators to make public advertorials approved, as they would now, have to consider the amount incurred to secure the approvals. He noted that because the processing and approval were done at no cost for the operators, many of them took the efforts of the commission for granted by not making the advertorials public.