Nigeria’s economy continues to suffer huge losses owing to the preponderance of fake products in the market. The government seems to have stepped up its war against the fakers. But Bukola Afolabi wonders whether enough is being done to stem the tide
He sat down, weeping uncontrollably. In his forlorn state, he could not help but curse the retail store from which he had purchased a certain drug to combat the asthma attacks suffered by his younger brother. In the end, he had lost his brother to the cold hands of death. This could have been prevented if some unscrupulous Nigerians had not sold substandard drugs to him.
“It is a big shame that this could happen; this is man’s cruelty to another man all in the name of money. How can anybody sell fake drugs without bothering about the repercussion?” Uche Ekene, an artisan in Awka, asked. Dora Akunyili, former Director General of National Agency for Food and Drug Administration and Control (NAFDAC). would also not forget in a lifetime how she lost her sister many years ago after she used fake drugs. And when Akunyili had the opportunity to serve as the watchdog against fake drugs, the ferocity with which she tackled the task was quite understandable.
The epidemic of fakes has long spread beyond drugs. In practically every sector of the economy, counterfeit products now reign supreme. Dr. Joseph Odumodu, Director-General, Standards Organisation of Nigeria (SON), recently confirmed the fears of Nigerians in this regard when he disclosed that over 85 per cent of products in the country are substandard, making the country the highest among those patronising substandard products.
According to an evaluation conducted in 2008 by the World Health Organisation (WHO) on the quality of anti-malarial drugs in circulation in 14 African countries, it was discovered that Nigeria had the worst situation among all the countries that were evaluated, with 64 per cent of the anti-malarial drugs in the country at that time were either fake or substandard.
Products targeted by the faker cut across items like drugs, tyres, household utensils, phones, electronics, clothing materials, IT equipment, as well as food items like beverages, milk, canned foods, toys, cables, automatic voltage regulators, amongst several others.
It is estimated that Nigeria loses about N50 billion annually to importation of fake and substandard products. Of this figure, trade in substandard auto spare parts accounts for about N20 billion. Especially startling is the fact that the fake auto parts market is dominated by adulterated parts of a popular Japanese product with large market in Nigeria.
“We have a crisis situation. We now insist on certificate of free trade,” says Odumodu who declared that the agency would go beyond seizure of substandard goods and embark on re-export of such goods.
Apparently, in response to the devastating effect of the trade, SON launched its zero tolerance campaign against fake products last year. The regulator claims it had removed about N3 billion worth of substandard products from circulation.
In the area of substandard tyres alone, over five million have been confiscated and destroyed. But that remains a far cry from the over forty million tyres that should not be in use. It is estimated that 20 per cent of road accidents are caused by expired and substandard tyres.
SON also recently destroyed substandard cables worth over N2.2billion and sealed off over 50 companies indulging in the illegal businesses. Last February in Awka, NAFDAC destroyed fake, counterfeit, substandard, expired and unwholesome regulated products worth N279.74 million.
The products were impounded from Anambra, Ebonyi, Enugu and Imo States. Among the fake drugs destroyed were Cipromed eye and ear drops, injection needles, Augmentin, Artesunat, Cubit vitamin tablets, Zentel Visita, Besure, Boonfit, Aldomet and Paracetamol which had Reagan Remedies as its manufacturers.
According to the Comptroller of Nigerian Custom Services, Abdullahi Dikko, the high volume of fake products coming into the country is the product of the porous nature of the country’s borders. Nigeria is bordered by Republic of Benin, Cameroon, Chad and Niger Republic. Statistics show that there are over 200 border points, both legal and illegal, between Nigeria and neighbouring countries.
Samson Udoma, an entrepreneur, reasons that foreign countries have turned Nigeria into a dumping ground because they can easily bring in their goods through the neighbouring countries due to the poorly manned borders. He advises that if urgent steps are not taken by the government to secure our borders, the country’s struggling economy will crumble.
“In my opinion, if government wants to tackle the problem of fake products, they must first do something about our borders. They are so porous that anything can come into the country. All these businessmen make use of the borders. They bribe their way into the country. Concrete barricades or walls should be built so that Customs will be able to search whatever goods come into the country,” he says.
The primary source of these dodgy products, according to SON, remains the Republic of China. It is said to account for over 80 per cent of such items being dumped on Nigerian markets. When SON held a meeting with the Chinese standards organisation, a body that supervises imports and exports, they were not very supportive.
“In fact, they were very hostile to us because at the end of the day what we were asking for was not what they were saying. At a time they pretended that they no longer understood English language just to make sure that that discussion was terminated. But we made our point clear that we have the right to fight for the safety and performance of products that are brought to Nigeria,” Odumodu said.
He, however, carpets Nigerian importers and businessmen whom he accused of dumping substandard products in the country as they often tell foreign manufacturers to lower the quality in order to cut cost and maximise their gains.
Managing Director of Blueshield Limited, a Lagos based IT firm, Chidi Ugwu, agrees with Odumodu, that the rate at which Nigerians patronise fake products has given a boost to the menace. For instance, in the area of IT products, he said Nigerians are being shortchanged by manufacturers because they lack the right information to choose the right product when faced with genuine and fake brands in the market.
“The first way to identify the authenticity of a product is by the source. If the source is not genuine, there is no way the product will be original. A genuine source has a name and integrity to protect; they will not want to rubbish what they have built over the years in a moment because of proceeds from fake products.”
But the task of reducing substandard products to about 40 per cent – an initial 60 per cent reduction in the first quarter of 2012 – may have begun. As part of the campaign to rid the Nigerian market of substandard products, SON is partnering with originating countries of the products.
Similarly, the House of Representatives will soon pass a bill that empowers the organisation to prosecute importers or manufacturers of fake and substandard goods. This much was disclosed recently by Mohammed Onawo, chairman, House Committee on Industries, while leading members of the committee to SON’s office in Lagos.
Onawo charged SON to embark on awareness campaigns that will educate people on the implications of purchasing substandard products.
To position the agency for greater efficiency, SON will acquire the required anti-counterfeiting and cutting-edge technology that will assist in the identification of products that do not meet specification. Besides, the organisation says it has commenced a new programme that will enforce conformity of products that are being imported into the country from their countries of origin. This will enable SON work with regulatory bodies of the exporting countries to enforce adherence to Nigerian standard. SON is also seeking the cooperation and assistance of international bilateral institutions that are involved in standardisation. Beyond these, the organisation is moving into the local markets, enlisting the support of market associations. The Auto Spare Parts and Machinery Dealers Association, ASPAMDA, located within the International Trade Fare Complex in Lagos and the Alaba International Market as the first port of call. Similar market associations across the country are also being targeted.
In all, developing the competitiveness of locally made goods and reducing to the barest minimum, the influx of fake and substandard products into the country is the greatest challenge before SON. This is especially so now with the Federal Government directing all regulatory agencies saddled with maintaining standards to synchronise their activities with those of the federal standard regulatory agencies in other to tackle the menace. This is to be backed by an executive bill which seeks stiffer penalty for organisations and individuals who deal in counterfeit drugs and substandard products in the country.
