A major foreign brand looking to enter the Nigerian market sought to partner with an A-list Nigerian celebrity for a celebrity endorsement deal. The goal of the brand was to enhance brand visibility, drive sales, and establish a strong foothold in Africa’s largest economy. However, the brand recognised the complexities of such a high-profile engagement and required expert legal guidance to navigate potential risks.
Challenges
While the celebrity endorsement deals contemplated by the brand presented significant marketing advantages, the brand was, amongst others, concerned about:
(a) Reputational Risks: The brand was concerned about the unpredictable nature of celebrity endorsement deals in emerging markets, especially with regard to risks related to potential scandals, criminal activity, or statements that could negatively impact its image.
(b) Political & Social-Cultural Sensitivities: The evolving political and socio-cultural landscape in Nigeria also posed additional concern for the brand. In particular, the brand was concerned that celebrity endorsement deals with aligning with the “wrong figure” could polarize audiences or draw unintended controversy, affecting consumer perception and brand acceptance.
(c) Regulatory Compliance: The client was concerned about the risk of fines or regulatory action by the relevant regulatory bodies in Nigeria.
Approach & Outcome
Our approach to resolving the challenges identified by the client included:
i. Due Diligence & Risk Assessment: We conducted a comprehensive background check on the celebrity, evaluating past behaviour, political affiliations, social commentary, and potential risks in the light of the client’s strategic goals.
ii. Robust Contractual Protections: We drafted a comprehensive celebrity endorsement agreement with robust contractual protections to address the key issues identified by the client as well issues identified as a result of the diligence conducted.
iii. Crisis Management Provisions: We advised on risk mitigation strategies, including a communication response plan in case of negative publicity. We also obtained all the clearances necessary for the campaign.
As a result of our legal expertise and strategic approach, the brand successfully executed multiple celebrity endorsement deals in Nigeria. The campaign launched with positive public reception, significant market penetration, and strong sales growth. The contractual safeguards ensured the brand remained in control, ready to act decisively in case of any reputational concerns.
This case exemplifies our firm’s ability to navigate complex legal and commercial landscapes, helping global brands secure high-profile celebrity endorsement deals in Nigeria while protecting their long-term interests.
