Following the recent media reports about the ongoing investigation of Coca Cola Nigeria Limited and its bottling affiliate, Nigerian Bottling Company Plc, by the Consumers’ Protection Council (CPC) over series of complaints about products pushed into the Nigerian market, stakeholders and consumers have urged both organisations to resolve the issue amicably. TOBA AGBOOLA and TONIA ‘DIYAN report.
The media space in Nigeria has been awash with tussle between the Consumer Protection Council (CPC) and the Coca-Cola Nigeria Limited with its sister company, Nigeria Bottling Company (NBC) and their managing directors over alleged poor manufacturing standards and violation of regulator’s orders. It reached a climax when the CPC opted for judicial review of the orders by a court of competent jurisdiction as provided by law.
Stakeholders’ reaction
Concerned Nigerians have spoken on the issue with many corroborating the CPC, while a few questioned the immediate and remote interests of the agency in going after the international beverage giant.
According to some stakeholders, the crux of the matter is an apparent attempt by these companies, both of which are well known and otherwise respected brands, to avoid and indeed, reject regulatory oversight by the CPC. The law mandated CPC to ensure that products and services offered to the public meet certain standards concerning wholesomeness and value for money, among others and provide some redress for consumers, who are cheated of their hard earned cash in the process.
They said it is important, in the national interest, that the CPC safeguards both the consumer and the industry’s interests through balanced regulation.
In a press release by All Citizens Forum Nigeria, an organisation committed to good citizenship, there is need for the two organisations to resolve the crisis in the interest of both the consumers and the country as a whole.
The leader of the organisation, Ropo Adeniyi, said: “Rule of law and due process are constrained to lend our voice and support to all efforts both in the private and public sectors geared towards transforming Nigeria from a country where “anything goes” to where rules are respected and followed.
“However, some companies with their eyes apparently fixed solely on profits do not want this to happen being comfortable with the business as usual.
“They have tried to portray the CPC as being desperate to raise revenue as justification to impose unreasonable fines on companies under the guise of consumer protection.
“Yet what we see is quite different. We believe that for once, a public service organisation is truly serving the public interest. Indeed, by stepping on toes, the CPC has demonstrated the resolve of the present administration that it will work in the interest of the greater good.”
The group drew the attention of the public to the press statement issued by CPC at the conclusion of the investigation in Lagos on February 18, this year, which is to initiate and conduct an investigation into whether the products conformed with ordinary standards of care and implied assurance and reasonable expectation that they are of the same average grade, quality and value as similar products sold under similar circumstances.
Vice President, Nigerian Association of Chambers of Commerce and Industry Mines and Agriculture (NACCIMA) Mr. Dele Oye, commended the CPC for the boldness to take on the multinational, stressing that those days were gone when some companies were set apart from the rest on the ground that they must be above boards simply because they have deep roots in the international community.
“I commend the CPC for taking the step. This would send a strong signal into the market and it will make the message unequivocally clear that the agency would not be taking any prisoners. So, companies that still cut corners would have to hasten to make amends otherwise they cannot escape,” Oye said.
President of the National Association of Nigerian Traders (NANTS), Mr Ken Ukaoha, said provided the steps are being taken primarily for the protection of the ordinary Nigerian, it must be encouraged. He, however, warned that it would be counter productive to the Federal Government’s quest to attract foreign investors into the country, if regulatory agency take on multinationals with ulterior motives.
CPC Investigation and Findings
In renewed efforts to protect Nigerian consumers from unwholesome practices of manufacturing concerns, both multi-nationals and locals, the CPC said it had put various big companies in its watch list.
Coca-Cola Nigeria Limited and its manufacturing unit, the Nigerian Bottling Company (NBC), however, became the first multinational to bear the wrath of a consumer protection agency that claims that it is now ready to work for the good of ordinary Nigerians.
The agency has now ordered the producers of the most consumed soft drinks in the world to subject their manufacturing processes to the council’s inspection for a period of 12 months to ensure compliance with laid down safety standards and regulations, having been found to have dropped the ball lately.
The directive came on the heels of a recent investigation by the CPC, which revealed that cans of Sprite manufactured by NBC, under the licence of Coca-Coca Nigeria Limited, were unwholesome for human consumption.
The Director-General, CPC, Mrs. Dupe Atoki, confirmed the development during a media briefing on the ‘Investigation into Violation of Product Quality Standards by the NBC and Coca-Cola Nigeria Limited’, in Lagos.
The CPC, a parastatal under the supervision of the Federal Ministry of Industry, Trade and Investments, is duly empowered by the Consumer Protection Council Act Cap 25, LFN 2004, to, among others, provide speedy redress to consumers’ complaints, remove hazardous products from the market, cause an offending company to protect, and compensate and provide relief to injured consumers.
The Act also empowers the CPC to encourage the adoption of appropriate measures by companies to ensure that products were safe for intended use, ban the sale of products, which do not comply with safety or health regulations, undertake investigation of consumer abuse, and prosecute violators of all enactments for protecting consumers.
Atoki said following a consumer complaint received regarding two half-empty cans of Sprite manufactured by NBC under the licence and authority of Coca Cola, the CPC in accordance with its Act, investigated the complaint and found out among other things, that the cans of Sprite were defective and had health and safety implications for consumers.
Atoki said: “Pursuant to a consumer complaint received by the CPC regarding two half empty cans of Sprite, products manufactured by the NBC Plc under the licence and authority of Coca Cola Nigeria Limited, the council in accordance with the CPC Act commenced an investigation into the complaint on the 6th day of September 2013 and gave notice thereof to the NBC Plc and Coca Cola Nigeria Limited.”
She said the council subsequently set up a panel, which invited both companies to provide responses or positions regarding the complaint, adding that the companies were given repeated opportunities to make representations, provide information and address sundry issues arising out of the complaint and their operations.
According to her, while the NBC cooperated with the council in the investigation, Coca-Cola Nigeria Limited, in contravention of applicable law, “elected to adopt a rather hostile and flagrant approach to the council and its proceedings by failing, refusing, neglecting to attend, make depositions or produce documents in its possession.”
Atoki pointed out that the CPC had, prior to the complaint in question, been inundated with similar complaints, such as “rusty bottle tops, rusty cans and foreign particles in beverage products of the NBC under licence of Coca-Cola Nigeria Limited.”
The panel, after five hearings, held between September 2013 and February this year, substantiated the allegation of product defect and violation of the CPC Act.
“Though the investigation was premised on two half-filled cans of Sprite, it led to a plethora of findings, among which are: that the cans of Sprite were products of the NBC under license of Coca-Coca Nigeria Limited; that the cans of Sprite were defective and had health and safety implications for consumers; that the NBC does not have a detailed written shelf life policy for dealing with expired products; and that the NBC’s grievance resolution policy does not cover instances where the consumer suffers physical injury from consumption, or compensation in instances where replacement will be inadequate.”
Other findings, according to the CPC, were that the NBC’s supply chain management did not extend to retailers, who the bulk of Nigerian consumers buy their products from. That the NBC’s traceability policy fails to effectively address the real purpose as the company often relies on information as to the place of purchase of the product.
The CPC boss, however, said Coca Cola and the NBC had been directed to pay compensation to the consumer, whose complaint triggered the investigation.
Coca Cola and NBC’s Response
In their joint response, the NBC and Coca-Cola Nigeria Limited confirmed that the CPC carried out a product complaint investigation involving both companies in respect of two short-filled cans of Sprite.
In a statement signed by Mrs. Adeyanju Olomola for NBC and Mr. Clem Ugorji for Coca-Cola, both companies said they cooperated with the regulatory agency during the investigation, noting with regret that the CPC’s conclusions and recommendations did not appear to have acknowledged the information they supplied.
“As responsible organisations, NBC and CCNL take all matters relating to products very seriously and remain committed to maintaining the highest international quality management and food safety standards and certifications,” the statement said.
“Each organisation cooperated with the Council in the course of the investigation and provided the information available to it in varying respects including but not limited to quality assurance, product handling and consumer complaints resolution processes which have been updated over the years. It is regrettable that the Council’s conclusions and recommendations do not appear to have acknowledged the information,” it added.
Way Forward
Distilling the varied views expressed by different stakeholders, one thing is clear and that is the fact that both the company and the regulator agreed that the two cans of Sprite, which provided the basis for investigation were actually defective. The only contention however, might be the extent to which the drinks in question might have been harmful and also how wide spread the established failure is likely to be in the entire manufacturing system of the company.
The best lesson to be learnt from this occurrence is that consumers and stakeholders must be extra vigilant and conscious when consuming products. The fact that macro impurities in cans create a lot more intricate challenge than impurities in bottles. While most of the bottles are relatively transparent and one can see through if one looks carefully, the cans are completely opaque. And for most consumers, who drink straight from bottles or cans without first turning their drinks into glasses, there is significant exposure to grave risks.
So, love CPC or hate it, one must support the council to carry out its mandate responsibly. And companies that unfortunately come under the hammer of the agency must support it to protect Nigerians because no matter how big any defaulting company’s manufacturing concerns might be, such firm has no business if the very Nigerians it has invested to serve, are eliminated by a careless and sloppy manufacturing process.
