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Tag: NAFDAC

  • The challenges of SMEs in Nigeria

    The challenges of SMEs in Nigeria

    INTRODUCTION

    Small and Medium Enterprises (SMEs) in Nigeria has not performed very well. They have contributed just a small percentage of the GDP unlike the other emerging economies in the world.

    The challenges being faced by our own SMEs are very many. These challenges have been responsible for the slow growth of SMEs in Nigeria.

    Some of the major challenges include:

    Poor managerial skills

    From interaction with most SMEs especially the one-man business owners, the common problem is poor leadership. One main reason for this is lack of training and poor capacity building. Most people go into businesses without adequate knowledge or entrepreneurial skills on how to run businesses.

    The reason our brothers from the eastern part of the country are successful entrepreneurs is because they don’t joke with apprenticeship through which they acquire managerial skills. The apprenticeship scheme for an average Igbo boy takes between 5 to 7 years and in some cases even more. During this period, the person would have gathered enough experience in the line of business he wants to pursue.

    That is why the recent government initiatives on Capacity building through the various platforms such as BIG/GEM of the Federal Ministry of Trade and Investment and Youwin Connect of the Federal Ministry of Finance must be commendable. These trainings are very key for government to achieve the objectives of the various grants that will be disbursed under the schemes.

    Poor or inadequate infrastructure

    The poor state of infrastructure in the country has been a major obstacle to the growth of SMEs. Only few entrepreneurs can survive without power. The epileptic or irregular power supply has contributed significantly to the high cost of doing businesses in the country.

    Apart from power, lack of good access roads and other social amenities have also hindered the growth of SMEs.

    Lack of access to funds

    Most SMEs find it difficult to access funds or capital. Most Nigerian banks don’t support start-ups and even existing businesses don’t have the required collateral.

    For SMEs that go to non-conventional banks, the high interest rate is always a burden.

    The issue funding or finance, therefore, is a major challenge for SMEs in Nigeria.

    The various governments have helped a lot in addressing this issue. Some of the measures include various grants by Federal Government, low interest loan from BOI and Bank of Agriculture, CBN SMEs Initiatives through the banks. Lagos State is also trying through the Lagos State Entrepreneurial Trust Fund (LETF). All other states should emulate this initiative of Lagos State Government that has assisted over 3,000 businesses.

    Unfair competition

    Most SMEs in Nigeria cannot compete with items or products from other countries especially China and other Asian tigers. The government has also not helped in this area because of dumping of fake and sub-standard goods, and smuggling activities in the country. When combined with the high cost of production in the country, locally made goods can hardly compete in the area of pricing.

    Government Bureaucracy

    Another challenge faced by SMEs is bureaucratic bottle neck of various government agencies like CAC, NAFDAC, and Customs etc.

    For instance, getting NAFDAC approval for food item or drug can take years. In most cases you spend 5 times the official price to facilitate the approval.

    You can spend as high as N250,000 to get NAFDAC approval for just one product even after meeting all the specified requirements.

    Even with the recent government initiatives on ease of doing business, a lot still need to be done to address this issue.

    Low Demand

    In Nigeria, there is still preference for imported goods over locally made goods. Even government agencies and departments do not patronize our own SMEs. All these combined create marketing problems for SMEs in Nigeria. No wonder many of them closed down within the first few years of operation. No business can survive in the long run without enough sales to cover operational costs.

    Multiple Taxes and Levies

    SMEs are subject to so many taxes and levies from local government to federal government. So many agents are involved in the collection of taxes and levies.  This has given room for unauthorized levies and taxes. The impact of this on the operational costs of SMEs cannot be overemphasized.

    Government needs to streamline these taxes to help SMEs.

  • NAFDAC cracks down on fakers in Aba

    NAFDAC cracks down on fakers in Aba

    The ember-months are probably the busiest for Nigerians. They buy and sell. In Aba, the tempo is much higher. A lot of buying and selling takes place there.

    And that is where the unscrupulous and criminal-minded individuals or even cartels come into the picture. They capitalise on the feverish tempo of business at this time to push all manner of products into the market.  Among the deluge of those products are expired foods, adulterated drinks and other consumables. This is even as these fakers care less about the negative effects of their actions but rather, they concentrate on the fortunes that they are going to make from the sale of such products.

    There is bad news for them. The National Agency for Food and Drug Administration and Control (NAFDAC) has said they are in for a bad season. How? The agency is ready to put them out of business.

    NAFDAC said anyone caught in the act of product adulteration and products not approved by the agency would be brought to book according to the provisions of the law.

    In an exclusive interview, the Abia State coordinator of NAFDAC, Okeke Olisa, a pharmacist, disclosed that the agency was working assiduously to ensure that the people of the state and visitors who may wish to stop and do some shopping in Aba buy original products.

    According to him, the agency in an August raid, confiscated fake products of about N20m during the operation.

    Olisa lamented attacks on its personnel by traders especially at Eziukwu/Cemetery Market, the second largest market in Aba.

    He also commended the cooperation and assistance they have enjoyed with the police and other sister agencies that provided cover for them during their operations to avoid mob action on its personnel. This is even as he stated that no amount of attack would deter them from doing what is right.

    The NAFDAC chief stated that the agency as part of its measures to ensure that they frustrate and nip the activities of fakers in the bud, have deployed its men in various market and production plants to carry out surveillance on what goes in and out of the markets and also to ensure that products churned out for use or consumption met NAFDAC approved standard.

    He said, ”Aba is a commercial city where we have businessmen and opportunists who wants to capitalise on the good intentions of some businessmen to bring in things that are not genuine. It is expected in a commercial city like Aba and most commercial populated cities. That is why the management of NAFDAC in its wisdom located its office in Aba instead of being cited at the State capital and it has helped in curbing the tendencies of fakers bringing in fake products in Aba and Abia State as a whole.

    “Eziukwu market for instance is a place where you have highly unsafe packaged food products. Because of the volume of trade on cosmetics and other items going in the market, some people have come to group themselves with the aim of faking good products, but most times, we have raided them.

    “We go there for routine inspection and as we speak, we have our men on ground at the market and checking what they have on the shelves. In the month of August we carried a raid on a particular zone where we got hint that people were faking products. We succeeded in carting away fake products that worth over N20m from that zone. It might interest you to know that while we were doing that, touts in that market attacked our personnel.

    “Again in September, they attacked us again in that market. It would have been more fatal if not for the assistance of police personnel that were with us. We are not deterred.

    “We have entered the Christmas period where you see influx of goods and services. There is high propensity that people are going to buy things in the market which is common place during the Christmas period. So we are all out to make sure that people who are going to cease that opportunity to bring in fake product would be nabbed.”

  • Customs destroys 700 cartons of seized poultry products – Official

    Customs destroys 700 cartons of seized poultry products – Official

    The Federal Operations Units (FOU) Zone ‘C’ Benin axis of the Nigerian Customs Service (NCS) has destroyed 700 cartons of seized poultry products in Benin.

    According to Superintendent of Customs, Patrick Onyemem who supervised the destruction on Wednesday, the product has a Duty Paid Value (DPV) of N10 million.

    Onyemem said that the consignment was intercepted by the operatives of the FOU on the Benin-Okada expressway as it was being smuggled into the state.

    He also said that the consignment was being conveyed in a Mercedes Actross with registration number KTU26LG when it was intercepted.

    He further said that the destruction was carried out in compliance with the Federal Government’s directive and policy on importation of frozen products which included turkey and chicken.

    The News Agency of Nigeria (NAN) reports that the destruction was done at the Custom’s outstation, Edo/Delta Command, and was witnessed by officials of the Service, NAFDAC, Police, NSCDC, Army, the defendants and newsmen.

    NAN recalls that on Monday, a similar exercise was carried out on 480 cartons of seized poultry products valued at N7.2 million.

    Read Also: Nigeria Customs seizes contraband worth N93m

  • NAFDAC confiscates over N5m products in Abia

    NAFDAC confiscates over N5m products in Abia

    The National Agency for Food, Drug Administration and Control ( NAFDAC ) Abia State office, confiscated food and drug products worth over N5 million between October and December 4 in Abia.

    The NAFDAC Coordinator for Abia State Office, Mr Olisa Okeke, disclosed this in Aba on Tuesday.

    He said that the confiscated products include: beverages, food stuffs and drugs which were being sold without NAFDAC’s permission at night.

    He said that the agency had also sanctioned seven shops selling provisions in Aba and Umuahia because of the status of the goods they were selling to unsuspecting residents.

    The coordinator said that most of the shops were selling expired products to the public at night.

    Read also: NAFDAC take steps to ease cost of registering products

    He said that the Abia NAFDAC Office Surveillance Team got information from residents which resulted in the bursting of the sales of the expired and unregistered products in Aba and Umuahia.

    Okeke said that some unscrupulous business men were bringing into the state unregistered and expired products to making quick money during the impending Christmas period and warned residents to be watchful.

    “We have noticed that activities are heightening this Christmas season and NAFDAC has started feeling the heat.

    “You know that during this period, unscrupulous businessmen like to bring into the state all kinds of goods and products including unregistered, substandard and spurious products and those whose expiry dates had been altered.

    “This might be on the increase so we are alerting our citizens, especially those in Abia , to be watchful to ensure they are not taken unawares.

    “On our part, we have increased our surveillance to check the incidence of infiltration of harmful products into the state.

    “Residents, however, owe the agency a duty to volunteer information that could help investigation and bursting of perpetrators of these evils to save lives,” he said.

    NAN

  • Court affirms NAFDAC’s power to regulate all chemicals

    The  National Agency for Food and Drug Administration and Control (NAFDAC) has power to regulate all chemicals in Nigeria, the Federal High Court in Calabar, Cross River State, has declared.

    Justice E. A. Obile held that the importation, exportation and use of all chemicals are within NAFAC’s regulatory purview, including clinker, which is used in cement production.

    He was delivering  judgment on a suit filed by the United Cement Company of Nigeria Limited (UNICEM).

    The plaintiff contended in a suit filed on September 22, 2011 that NAFDAC lacked the power to regulate the import or export of Portland cement ‘clinker’ for not qualifying as a chemical as specified in NAFDAC Act.

    UNICEM argued that the word ‘chemical’ as stated in Section 5(a) of the NAFDAC Act refers only to pharmaceutical chemicals.

    It said any attempt by NAFDAC to regulate non-pharmaceutical chemicals would amount to usurping the functions of other regulatory agencies.

    But, NAFDAC’s lawyer Adedapo Tunde-Olowu argued that its power to regulate and control the business and use of ‘chemical’ was not limited to only pharmaceutical chemicals.

    Justice Obile held that based on Section 5(a) of the NAFDAC Act, the agency has powers to regulate use of food, drugs, cosmetics, medical devices, bottled water and chemicals.

    According to him, the section provides that the agency shall “regulate and control the importation, exportation, manufacture, advertisement, distribution, sale and use of food, drugs, cosmetics, medical devices, bottled water and chemicals.”

    The judge held that cement clinker was a chemical, adding that there was no ambiguity in Section 5(a) of the NAFDAC Act.

    Justice Obile said NAFDAC did not go beyond its powers and that any attempt by the court to state which chemical NAFDAC is to control or regulate would amount to amending the statute, which he said the court lacks the power to do.

    The judge, therefore, dismissed the plaintiff’s claims.

     

  • Court affirms NAFDAC’s power to regulate chemicals

    Court affirms NAFDAC’s power to regulate chemicals

    The Federal High Court sitting in Calabar, Cross River, has held that the National Agency for Food and Drug Administration and Control (NAFDAC) has the power to regulate all chemicals in Nigeria.

    Justice E. A. Obile held that the importation, exportation and use of all chemical are within NAFAC’s regulatory purview, including clinker, which is used in cement production.

    He delivered a judgment on a suit filed by the United Cement Company of Nigeria Limited (UNICEM).

    The plaintiff contended in a suit filed on September 22, 2011 that NAFDAC lacks the powers to regulate the import or export of Portland cement ‘clinker’ for not qualifying as a chemical as specified in NAFDAC Act.

    UNICEM argued that the word “chemical” as stated in Section 5(a) of the NAFDAC Act refers only to pharmaceutical chemicals.

    It said any attempt by NAFDAC to regulate non-pharmaceutical chemicals would amount to usurping the functions of other regulatory agencies.

    But, NAFDAC’s lawyer, Adedapo Tunde-Olowu, argued that its power to regulate and control the business and use of “chemical” was not limited to only pharmaceutical chemicals.

    Justice Obile held that based on Section 5(a) of the NAFDAC Act, the agency has powers to regulate use of food, drugs, cosmetics, medical devices, bottled water and chemicals.

    According to him, the section provides that the agency shall “regulate and control the importation, exportation, manufacture, advertisement, distribution, sale and use of food, drugs, cosmetics, medical devices, bottled water and chemicals.”

    The judge held that cement clinker was a chemical, adding that there was no ambiguity in Section 5(a) of the NAFDAC Act.

    Justice Obile said NAFDAC did not go beyond its powers and that any attempt by the court to state which chemical NAFDAC is to control or regulate would amount to amending the statute, which he said the court lacks the power to do.

    The judge, therefore, dismissed the plaintiff’s claims.

  • NAFDAC upgrades four laboratories to international standard

    NAFDAC upgrades four laboratories to international standard

    The National Agency for Food and Drug Administration and Control (NAFDAC) says it is upgrading four laboratories to international standards to boost quality of products emanating from Nigeria.

    NAFDAC Zonal Coordinator for North-Central, Mrs Josephine Dayilim, made this known at a one-day stakeholders’ meeting on “The Ease Of Doing Business In Nigeria” with owners of micro, small and medium enterprises (MSMEs) on Monday in Jos.

    She said that two of the laboratories are located in Yaba and Oshodi in Lagos, while the other two situated at Agulu in Anambra, and Kaduna.

    “We have upgraded four test laboratories to international standards to build appropriate capacity to produce drugs and foods that meet global standards so as to reduce dependence on imports.

    “The laboratories have been certified among the best in the world after being accredited by United States Pharmacopeia Convention (USP),” she said.

    Dayilim noted that NAFDAC was working towards making MSMEs more viable in view of their vital role as major non-oil revenue earners.

    She said that all bottlenecks were being addressed to ease their registration and activities.

    She said the agency was reviewing the laws against counterfeit drugs and food producers to deter manufacturers of such fake goods.

    “The current law stipulates N500, 000 fine or 15 years in prison upon conviction, but we are seeking a life term jail and confiscation of assets upon conviction.

    “We are also seeking compensation for victims of counterfeit products. We also want counterfeiting to be made a non-bailable offence.

    “We have also proposed a whistle blower clause to ease the process of tracking down counterfeiters,” she said.

    The zonal coordinator said NAFDAC had steadily reduced the incidence of counterfeiting of anti-malarial from 40 per cent in 2001 to 16 per cent in 2005 and further down to 6.4 per cent and 3.6 per cent in 2015.

    She warned stakeholders and MSMEs against the temptation to engage in sharp practises and cutting corners to maximise profit.

    “You should strive to ensure strict adherence to NAFDAC rules, regulations and guidelines so as to produce good quality products and safeguard public health,” she said,

    Dayilim advised MSMEs owners to ensure that all drugs, processed foods, cosmetics, drinks, medical device and packaged waters were registered with NAFDAC.

    She said packaged sachet water was fit for consumption within just two months, and warned producers against selling expired “pure water” and tampering with expired dates.

    She also warned members of the public against buying medicines from street hawkers, saying that drugs were only certified for consumption if handled by a professional and stored in required temperatures.

    “Even genuine drugs become toxic and harmful if exposed to the sun as is being done by street hawkers,” she said.

    The coordinator advised members of the public to report any suspicious activities of factories and warehouses where counterfeit drugs were being produced or stored to NAFDAC.

    She equally advised breast feeding mothers to shun deceitful adverts or free gifts of baby milk that encourages the use of breast milk substitutes and enjoined them to breastfeed their babies as long as they could.

    Daylim urged members of the public to store their crops properly so as to minimise the growth of fungi which could produce mycotoxins.

     

  • Chemical society of Nigeria, SON, NAFDAC partner to fight fake drugs

    Chemical society of Nigeria, SON, NAFDAC partner to fight fake drugs

    The Chemical Society of Nigeria (CSN) has said that it will collaborate with the National Agency for Food, Drug Administration and Control (NAFDAC), the Standard Organisation of Nigeria (SON) and regulatory agencies to fight and check incidences of fake and substandard products.

    National President of the body, Prof. Sunday Okeniyi who disclosed this after his inauguration as the 14th President of the society in Abuja said the society was worried about the rising cases of fake and substandard products in the country, but expressed confidence that with the society working with the regulatory agencies, such incidences will be checked.

    He said they were also not unaware of the existence of fake and substandard lab across the country, stressing that the collaboration of the society with other agencies will help to reduce patronage of such fake and substandard labs.

    He said the society plan to established an analytical laboratory that will be second to none in the country which will offer professional services to the people as well as carry out chemical auditing.

    While calling the government to strengthen the regulatory bodies to be able to carry out their task diligently, Prof Okeniyi said said the society was making concrete plans to ensure professionalism on the part of its members through what he called professional protection of members.

    He said that the society was also planning to open a water factory with shares owned by members, while also creating technical divisions to promote professional practice among the various members in their areas of specialization.

    Okeniyi also announced that the society plan to enlist young chemistry graduates as graduate members right from the day of their graduation as a way of making the, feel belong, while also planning to collaborate with state governors in the area of job creation and empowerment.

  • NAFDAC intensifies activities

    NAFDAC intensifies activities

    The National Agency for Food, Drug Administration and Control (NAFDAC) has intensified mop-up activities in markets, supermarkets and departmental stores in Southeast, ahead of Yuletide, Zonal Coordinator Mr. Fori Tatama has said.

    He spoke in an interview with News Agency of Nigeria (NAN) in Enugu.

    According to him, the agency has upgraded its activities, as the annual festivities approach, to checkmate unwholesome, counterfeit, unregistered and expired products.

    Tatama said NAFDAC was on guard to prevent unscrupulous elements taking advantage of the Yuletide to sell unwholesome, unregistered and expired food, drug and cosmetic products to the public.

    “The agency has instructed its employees in the zonal, state and other offices to inspect markets, supermarkets and departmental stores.

    “This is to ensure that displayed products are registered, wholesome and not expired.

    “We know that most unscrupulous traders and business people use the advantage of rush during the Yuletide to push out injurious products to the public.

    “With our proactive measures and working ahead of time, we will ensure only genuine, wholesome and registered products are sold everywhere in the zone.

    “The agency in the Southeast has written to and started sensitising market and traders’ associations on this and the need for them to cooperate with our workers,” he said.

    Tatama said officials of the agency would visit markets, among other places, to mop-up unwanted products.

    He urged Southeast residents to be vigilant when buying any product, saying they should not be carried away by low prices.

    “We want Nigerians, especially those living in the Southeast, where Christmas and New Year festivities are highly celebrated, to be wary of the items they buy in the markets by questioning any irregularity in any product.

    “Our people should look at the packing of products, including labelling, colour and shape of container of product.

    “First, they should know if the packing conforms to the products they know.

    “Second, they should check the expiry and manufacturing dates of the products and the way these dates are printed for uniformity.

    “They should also check for the NAFDAC registration number and any other logo or trade mark the product is known for.’’

    Tatama said the fight against counterfeit, unwholesome and unregistered products was a collective responsibility, adding that “NAFDAC or the media cannot win the war alone.’’

    He advised residents, who noticed any irregularity in any product, especially food, drug and cosmetic products or a product not registered, to lodge complaints with NAFDAC offices.

    “For the Southeast states, you can reach us through these hotline numbers: Onitsha – 08033086597, 07065285650; Imo (Owerri) – 08037145506 and Aba – 08037272583.

    “Ebonyi (Abakaliki) – 08033451634; Enugu – 08033966155 and Akanu Ibiam International Airport, Enugu– 08035325900.

    “The zonal coordinator’s number is 08036093178 and email is imtatama@yahoo.com.’’

    Tatama said the agency was pushing its monitoring and regulation with cutting-edge technology and the use of information and social media.

  • IFAD distributes N8.6m rice processing equipment to farmers

    IFAD distributes N8.6m rice processing equipment to farmers

    The International Fund for Agricultural Development ( IFAD ) – Value Chain Development Programme ( VCDP ) on Tuesday distributed rice processing equipment worth N8.6 million to five women farmers groups in Niger.

    The State Programme Coordinator ( SPC ), Dr. Mathew Ahmed, while distributing the equipment to the farmers in Minna on Tuesday, said the measure would go a long way in creating jobs.

    According to him, it will also ensure that local rice farmers produce the crop in line with international best practices.

    “We are here today to distribute rice processing machines to our farmers to enable them produce rice that will compete favourably with the foreign rice.

    “Many of the foreign rice we eat today in Nigeria are not better than our local rice because they are expired but our local rice is fresh.

    Read also: Edo, Delta, Cross River fish farmers get equipment

    “Some of the foreign rice we eat constitute health hazards, hence the need for VCDP to ensure food security,’’ he said.

    The equipment distributed included five rice de-stoners, 10 rice parboilers, and 46 manual sprayers.

    The coordinator said IFAD-VCDP would subsidise the cost of the equipment.

    He explained that the groups selected from the five participating local government areas in the VCDP applied for the equipment.

    The local governments include Bida, Wushishi, Kontagora, Shiroro and Katcha.

    He said that aside training the farmers in mechanised farming in the value chain, the programme also trained them in using first-bottom approach to parboil rice.

    “We are presently working with the National Agency for Food and Drug Administration and Control ( NAFDAC ) and Standards Organisation of Nigeria ( SON ) to make sure that our farmers adhere to international best practices that will make their product accepted across the globe,’’ he said.

    He said that there were 13,000 farmers participating in rice and cassava value chain in the state.

    In her remarks, Dr Amina Bello, wife of the state governor, Alhaji Abubakar Bello commended IFAD-VCDP, saying that it had added value to the state’s agriculture drive.

    She was represented by Mrs Kaltume Rufai, the Permanent Secretary, Niger State Ministry of Women Affairs and Social Development.

    Bello urged the beneficiaries to utilise the equipment to ensure success of the programme.

    Responding on behalf of one of the beneficiary groups,  Hajiya Hadiza Yunusa, Chairman, Nufawamasu Gumi Rice Producers Association, Bida said that before the coming of IFAD-VCDP the colour of their rice was not attractive and contained impurities.

    Yunusa said that the VCDP had trained them on modern ways of cultivating, processing and marketing rice.

    “Now we sell our rice and cassava to other West African countries, our customers even book in advance,’’ Yunusa said.

    NAN