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Thursday, December 26, 2024

Counterfeit and Substandard Products in Nigeria: Who is Responsible? – By Matthew Ma

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“The issue of fake products is a multifaceted challenge that demands a comprehensive solution. Counterfeit goods present a complicated and multi-layered problem, requiring a concerted effort from various stakeholders. The government, law enforcement agencies, manufacturers, consumers, and international organizations all have a part to play in mitigating this issue. To effectively tackle the problem, each of these entities must adopt a range of measures aimed at curbing the situation.”

 

The Gods Are Not to Be Blamed is a timeless classic Nigerian novel that Ola Rotimi wrote. The novel is a tragic story about the life of a young man named Odewale, who is subjected to a series of misfortunes and adversities throughout his life due to his father’s past mistakes. The novel is widely acclaimed for its themes of fate, destiny, and free will, which are explored in a profound and thought-provoking manner. The book is a poignant reminder of the impact of past mistakes on future generations and the importance of making the right choices in life. The statement “The gods are not to be blamed” implies that the responsibility for a specific event or situation cannot be attributed to any divine power or supernatural force but rather to human actions or natural causes. This implies that the gods do not influence individual decision-making or the outcomes that follow. Instead, we should hold ourselves accountable for the things that happen in our lives and take responsibility for our own choices and actions. The context in which this phrase is used can vary depending on the situation at hand. For instance, in Nigeria, there has been an increasing menace of counterfeit products, which has raised concerns among many analysts. Some of these analysts have argued that the gods are to be blamed for allowing such nefarious activities to thrive, thereby endangering the lives of the people. On the other hand, others believe that the government and regulatory agencies should bear the responsibility for not doing enough to curb the menace. Regardless of who is at fault, counterfeit products pose a significant threat to the health and safety of Nigerians, as they are often substandard and may contain harmful substances. It is, therefore, imperative to put in place measures to curb the production, distribution, and sale of fake products, as well as to raise awareness among the population about the dangers of using such products.

 

For years, the proliferation of fake products has been one of the major problems facing Nigeria’s economy. The issue has caused significant harm to the country’s citizens and economy. It has led to loss of lives and property, health hazards, and reduced trust in locally manufactured goods. The question now is, who is responsible for this problem? Is it the government, the manufacturers, the distributors, or the consumers themselves? Recently, the Standards Organization of Nigeria (SON) has blamed the Nigerians’ preference for foreign goods as one of the factors responsible for the influx of substandard goods into the country. The organization explained that no country survives by operating an open border to all manners of imports, urging Nigerians to always insist on purchasing only quality made-in-Nigeria products to save the nation’s local industries. It, however, encouraged manufacturers to increase their level of engagement with SON in its bid to educate Nigerians on the adverse effects of patronizing fake and substandard goods on the nation’s economy. Similarly, some manufacturers have blamed Nigerian business elites for certain imported substandard and smuggled products. According to them, many Nigerian business individuals travel to China to procure substandard items and bring them back to the country. While in China, they will demand that the standard be reduced so that Nigerians can afford to buy. Whether the Chinese government is aware of this or not, the quality is usually compromised because of the demand of Nigerian business elites.

 

Recently, the Goods Made in China Importers Association (GMIA) made a statement advising Nigerians to refrain from blaming China for the proliferation of substandard products in the Nigerian market. Instead, the Association suggests that the blame should be placed on some minor greedy and unpatriotic Nigerian importers, as well as those in charge of manning the country’s borders. According to the Secretary of the Association, the advice has become necessary due to the increasing tendency to shift the blame to China, which, if not checked, may end up harming the robust economic relationship between the two nations. The Secretary emphasized that China is renowned for its production of high-quality goods, which are produced according to standardized quality measures and are exported to various nations in the world, including the USA, Australia, Britain, and several European countries. From Beijing to Shanghai, to Guangzhou, to Shenzhen, Xiamen, and across small and big cities in China, substandard products are rare. However, the exception to this rule is the unethical conduct of some Nigerian importers who put undue pressure on their Chinese manufacturers to produce goods of unacceptable quality in order to make the products extraordinarily cheap and attractive to the local Nigerian market. The economic conditions in the country drive these minor importers, and they are not looking out for the best interests of the Nigerian people. The GMIA advises Nigerian buyers to be cautious and only purchase high-quality products, as they will ultimately last longer than cheap and poor-quality substandard products. The Association believes that if Nigerians can patronize only high-quality products, the circulation of substandard products in the Nigerian market will eventually come to an end. It urged Nigerian buyers to be vigilant and sensible when purchasing products in order to promote a healthy and beneficial economic.

 

Every country faces the challenge of substandard goods and products, whether they are produced locally or imported. However, Nigeria’s battle with this issue is particularly severe. In the past, the pharmaceutical sector was plagued with a high prevalence of substandard products until Prof. Dora Akunyili and her colleagues at NAFDAC came to our rescue. Despite facing threats to her life, she persevered with the support of the Federal Government, ultimately defeating the counterfeit drug trade. Unfortunately, the prevalence of counterfeit products in virtually every sector of Nigerian society is still cause for concern. From electronics and building materials to clothing and personal items, fake products flood the market every day. The Standards Organization of Nigeria (SON) plays a crucial role in ensuring that the products, materials, and structures used in commerce and industry meet the required standards. SON is responsible for setting, approving, enforcing, and certifying these standards, thereby promoting safety, reliability, and quality in the Nigerian market. Despite the strong presence of SON in Nigeria, it remains disheartening that counterfeit and substandard products continue to infiltrate the market. For example, a few days ago, factories producing fake goods were discovered in Aba and Lagos. In response, the National Agency for Foods and Drugs Administration and Control (NAFDAC) partnered with security forces to conduct a sting operation, which uncovered illicit activities across various brands, including Seaman Schnapps, Hennessy, Four Cousins, Martell, Black Label, Campari, and more. Over 240 shops were raided, revealing unsanitary conditions and the use of harmful chemicals and cloned packaging materials. The counterfeiters even revalidated expired products, such as Peak milk, ketchup, and Coca-Cola products, posing severe health risks to unsuspecting consumers. As a result of this operation, 1,500 cartons of fake products, valued at over N750 million, were destroyed, and 300 cartons were evacuated to NAFDAC’s warehouse. Ten individuals were arrested and will face charges following a thorough investigation. In order to prevent further illegal activities, the entire market was shut down to enable stakeholders to take action.

 

Similarly, officers of the Ojo Division recently made an arrest that exposed a major counterfeit production operation. The suspects, Imo Lawrence (35) and Magnus Nwonka (42) were found in possession of fake drinks. According to Benjamin Hundeyin, the Lagos police spokesperson, the suspects led authorities to their multi-room factory, which had been designed to appear inconspicuous. The factory was found to be flooded and dirty, with crates of fake drinks, plastic containers, and bags of sachet water scattered throughout. It was apparent that the factory was being used as a production center for counterfeit products. News of the arrests caused a stir on social media, with users taking to platforms like X (formerly Twitter) to share their own experiences with counterfeit products. Many shared memes and photos of their own experience of products, which had turned out to be fake. Some examples included toothpaste knockoffs with names like “Open Up” instead of the real “Close Up,” as well as bottles of counterfeit “Baileys” cream that had different wording, artwork, and coloring on the labels. The prevalence of counterfeit goods has become a significant concern for Nigerian citizens. Many are calling for a national investigation into the rise of fake products, with demands being made by the National Agency for Food and Drug Administration and Control (NAFDAC) and other relevant agencies.

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Substandard products are common in Nigeria. From consumables to hardware, many Nigerians are aware that they could be deceived into buying fake items. Even pharmacists could be misled into buying drugs with compromised components due to the greed of importers. These days, the frequent fire outbreaks in homes, industries, and offices make it imperative to check for fake electric wires and bulbs. Door keys and padlocks from China may only last a few weeks. The same is true in the motor spare parts markets, where used parts are now preferred to so-called new ones from China. Recently, the Standards Organization of Nigeria (SON) discovered a warehouse in Satellite Town Lagos where two Chinese citizens were re-branding used or substandard tyres with the help of some devious Nigerians. Such practices are dangerous and could harm innocent customers who unknowingly purchase these products. Beyond consumables, there are, unfortunately, many instances of verified experiences with counterfeit or expired medications, substandard batteries, phones, light bulbs, skincare products, electrical equipment, generators, and other hardware. In the market for automobile spare parts, some merchants have been known to offer two options: one “authentic” and the other “fake,” with the former being more costly. Because of the high cost of new items, many middle-income earners opt for used ones, which have also led to many fatal accidents resulting from fake products. The severity of this problem and the offenders’ arrogance cannot be overstated. These products often pose severe risks to public health and safety, and they often fail within a short period. While official statistics are scarce, far too many Nigerians have lost their lives due to fake products. Recently, a Warri-based gospel artist was reported to have perished after taking expired anti-malarial medication.

 

Despite tireless efforts by the National Agency for Food and Drug Administration and Control (NAFDAC) to eradicate the importation of fake drugs by cartels, the threat of counterfeit products remains unchecked. Nowadays, both genuine and counterfeit products are displayed side by side on the market, leaving the buyer to decide based on their preference and budget. The concern, however, is that the fraudsters are thriving, importing substandard goods from China and branding them with the names and logos of established reputable companies. Some even go as far as tampering with products such as televisions, replacing the internal components, and reselling them. This is a troubling development that undermines the values of a healthy and equitable society. It is also a consequence of a nation’s failure to increase its production of quality goods.

 

The Standards Organization of Nigeria (SON) and NAFDAC were established with the primary goal of upholding fairness and impartiality in their operations. They were tasked with conducting market research and collaborating with consumer protection groups and the general public to gather valuable insights on a consistent basis. Nonetheless, they continue to face multiple problems in dealing with counterfeit products. Questions arise about the source of blame and the reason why the impact of SON and NAFDAC is limited. Importers face numerous challenges that lead them to take shortcuts to make a profit. Prior to leaving the seaport, they must pay import duty, NAFDAC fees, SON dues, ship agent fees, clearing and forwarding fees, wharfinger, wharfage, stevedoring conservancy dues, animal and plant quarantine dues, and many other charges. If any of these government officials or departments are dissatisfied, they may file a complaint against the importer with Customs, resulting in enforcement action against the individual. The importer then incurs additional expenses and sells the goods at a loss. As a result, the importer may ask the exporter to reduce the product’s specifications and quality in order to make up for previous losses, ultimately creating a pattern. Secondly, there are concerns regarding the port’s clearance process and its potential for unfair practices. Reports suggest that when officers from a particular ethnic group dominate a section, they use their power to favor importers from that group while disadvantaging those from other or perceived rival ethnic groups. This creates an uneven playing field, forcing disadvantaged importers to import poor-quality products to stay afloat. Unfortunately, greed, corruption, and ethnic manipulations have complicated the situation, making it harder for regulatory bodies like SON to do their job effectively. Compounding the issue is the fact that Nigeria is a dumping ground for all sorts of goods, as the government has yet to encourage local production or manufacturing. This has led many to turn to China, a known center for fake, cheap, and substandard products. Even counterfeit products find a market because of Nigeria’s vast population and continuously depreciating Naira purchasing power. As a result, the demand for fake products has grown significantly, as most people need help to afford high-quality products. Finally, the Lagos seaports, which were once a source of pride for the country, have fallen into disarray. The ruling class and their cronies have “compromised” the ports, resulting in a chaotic and disorganized environment. Anyone who visited the Lagos seaports at Tin Can and Apapa in the past will be disheartened by what they see today. The ports have become a shadow of their former selves, and it’s a sad reflection of our country’s current state.

 

What lesson can we derive from menace of counterfeit products in Nigeria? The issue of fake products is a multifaceted challenge that demands a comprehensive solution. Counterfeit goods present a complicated and multi-layered problem, requiring a concerted effort from various stakeholders. The government, law enforcement agencies, manufacturers, consumers, and international organizations all have a part to play in mitigating this issue. To effectively tackle the problem, each of these entities must adopt a range of measures aimed at curbing the situation. The government needs to enforce strict policies and regulations that will punish counterfeiters and protect consumers. It should include educating the public about the dangers of counterfeit products, enforcing stricter laws and regulations, improving border control, and promoting local manufacturing. The government should organize awareness campaigns through various media channels to educate people about the risks associated with counterfeit products. Law enforcement agencies must also take a more proactive approach in tracking down and prosecuting counterfeiters and their networks. Improving border control is also crucial for the government to prevent counterfeit products from entering the country. This can be achieved by increasing the number of personnel and resources at entry points and investing in advanced technology to detect fraudulent goods. Manufacturers must ensure the quality of their products and invest in anti-counterfeit measures. Promoting local manufacturing can help reduce the demand for counterfeit products by providing consumers with affordable and authentic alternatives. This can be done by incentivizing local businesses and creating a favorable environment for investment in domestic manufacturing. Overall, tackling the problem of counterfeit products requires a collaborative effort from multiple stakeholders and the implementation of a comprehensive solution that addresses all aspects of the issue.

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Distributors should be transparent in their dealings and ensure that they only deal with genuine products. They must maintain transparency in their dealings while ensuring that they only engage in legitimate trade. They should conduct thorough research on the products they deal with and verify their authenticity before making any transactions. Additionally, distributors should maintain a clear record of all their dealings and communicate any discrepancies or issues to their clients in a timely manner. This will not only help to build trust and credibility with customers but also contribute to the overall growth and sustainability of their business. As consumers, we have an essential role to play in ensuring that we are not being sold fake or counterfeit products. To achieve this, we need to be vigilant and aware of the products we buy, especially those that are of high value or are potentially harmful to our health and well-being. One way to do this is by carefully inspecting the packaging and labels for any signs of tampering or inconsistencies. Additionally, it is essential to report any suspicious products to the relevant authorities, such as the National Agency for Food and Drug Administration and Control (NAFDAC) or the Standards Organization of Nigeria (SON). This can help to prevent others from falling victim to the same scam and also provide valuable information to the authorities in their efforts to clamp down on fake products. By working together and taking these steps, we can help to overcome the menace of counterfeit products in Nigeria and ensure that consumers are protected from harm.

 

In order to combat the increasing presence of fake and substandard products in Nigeria’s markets, the Standards Organization of Nigeria (SON) should introduce a technology to ensure that all imported and locally produced goods meet the required standards. By initiating new verification technology, SON will prevent traffickers from illegally importing or manufacturing products that do not meet the necessary specifications. While continuing to facilitate commerce, SON will also aid customers in identifying and rejecting poor-quality items in the market. This initiative will enhance efficiency, generate employment opportunities and wealth, and ultimately improve the safety of lives and property. Through technology, the movement of substandard and counterfeit products will be curbed. The work of the Standards Organization of Nigeria (SON) must be made known to everyone through extensive education, campaigns, and the provision of more information to the public. This will be possible if there is collaboration between SON and consumer protection agencies. It is not sufficient for SON to focus on the outward manifestations of a problem, such as destroying the goods of importers. This approach may provide a temporary solution, but in the long run, it can lead to negative consequences for Nigerians. Eliminating imported goods can result in the impoverishment of the people, as it limits their access to essential products, increases their cost of living, and negatively impacts the overall economy. Therefore, SON must find more sustainable and practical solutions that address the root causes of the problem rather than simply treating the symptoms.

 

As the organization tasked with safeguarding Nigeria’s product quality, the Standards Organization of Nigeria (SON) has a crucial role to play in eliminating substandard goods from the market. To achieve this goal, SON must embark on a series of reforms, including the creation of a task force to conduct regular inspections and enforce quality standards. The influx of substandard products poses a serious threat to public safety, as many of these items fail to meet even the most basic safety regulations and pose a significant risk to consumers. Furthermore, the proliferation of low-quality goods has eroded the competitiveness of Nigeria’s local industries, resulting in a loss of revenue for the government and a negative impact on the economy. As conscientious citizens, we must remain vigilant and report any suspicious products to the authorities.

 

Manufacturers should be able to offer genuine products with the help of SON while also assisting customers in identifying original products. Additionally, NAFDAC needs to take action to prevent people from purchasing potentially dangerous drugs in Nigeria. These agencies should advise the Nigerian populace to be vigilant against counterfeit products that have recently entered the market. There are lethal drugs that have caused fatalities in many countries. The organization should advise anyone involved in the distribution of medicine, including importers and salespeople, to exercise extreme caution with the drugs they deal with and report any dubious products to any of the NAFDAC offices located throughout the country. This initiative should cater to both consumers and manufacturers’ interests. The timely and necessary intervention that SON is undertaking to combat the issue of substandard products is precisely what the healthcare industry requires. This intervention will safeguard the best interests of both consumers and manufacturers. SON must ensure that only products that meet the required standards are permitted into the Nigerian market.

 

There is currently no comprehensive anti-counterfeiting law that applies to all goods and situations in Nigeria. As a result, protecting against counterfeits requires a strategic use of existing laws that impact rights holders. This approach can involve a variety of tactics, including law enforcement, court proceedings, regulatory measures, or a combination of all. For example, the police may conduct independent investigations and raids to seize counterfeit products and arrest those responsible for further legal action. However, it’s important to note that prosecution may not be the primary motivation for pursuing this option, as law enforcement may only sometimes have the necessary expertise or dedication to handle these cases effectively. However, utilizing police raids as part of a comprehensive strategy presents several benefits. Consistent raids can disrupt the market, while the associated stigma and inconvenience may dissuade both current and potential offenders. Police raids are simple and efficient to organize and can serve as a precursor to civil court action. Furthermore, successful prosecution resulting from a raid may result in imprisonment and fines. According to Section 1 of the Counterfeit and Fake Drugs and Unwholesome Processed Foods (Miscellaneous Provisions) Act, any party involved in producing, importing, manufacturing, selling, distributing, possessing, or displaying for sale any counterfeit, adulterated, banned, fake, sub-standard, or expired drug or processed food in any form – or aiding or abetting another party to do so – is committing an offense. In this context, the Court should try such cases, and those convicted should face prison terms ranging from five to 15 years.

The Nigerian Customs Agency should ensure that all import and export duties are collected adequately for the federal government while also preventing the importation of contraband goods. Historically, the agency has not focused on combating counterfeiting as a top priority. However, an amendment to the Common External Tariff several years ago gave Customs the authority to address counterfeiting in Nigeria. Despite this new power, the agency has yet to establish a formal system to combat counterfeiting. Currently, Customs only takes action when an interested party seeks an injunctive order through civil action or the intervention of other government agencies with a vested interest in a particular shipment. Nonetheless, Customs should strive towards implementing a more functional system to address this issue.

Rev. Ma, S.J, is a Jesuit Catholic priest and PhD candidate in public and social policy at St. Louis University in the state of Missouri, USA.

 

 

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