Illicit tobacco trade and brand destruction

Illicit trade of tobacco has over the years posed dangers to several facets of the society including, government, brand owners, security and the future of the nation.

Brand owners are gradually losing their brand identity and value as consumers buy fake products, on the assumption that they are genuine. On the long run, what they think the product will achieve for them is not being achieved. Brand owners are the ones who eventually suffer for this as their brands are seen as same.

The sales of illicit products do not contribute to the society in anyway. Illicit trade barons do not have a face or a name and as a result, consumers are left helpless. Counterfeit which are imitations of genuine products, defraud brand owners, confuse the consumers and rob the government of its revenue. The perpetrators do not pay the right taxes and sales are not in conformity with the laws.

It is said that much money generated through illicit sales is used in  funding a lot of illegal activities such as terrorism, theft, child trafficking, making it very easy for children to have access to the products because the products are being sold, not at the competitive price.

To address the illicit trade of tobacco in Nigeria, the British American Tobacco, BAT, is working in collaboration with government agencies to help eliminate the phenomenon.

In 2000, before the British American Tobacco, BAT came into Nigeria, the level of illicit sales was over 80 percent and over that time till date, the company has been able to drive this down through collaborative efforts with government agencies like Standard Organisation of Nigeria, SON, Consumer Protection Council, CPC, Economic and Financial Crimes Commission, EFCC and Customs.

While speaking to journalists on some of the efforts made by BAT to reduce illicit trade of tobacco in Nigeria, Odiri Erewa-Maggison, Head of Government Affairs West Africa Area, noted that the company has been able to drive the rate down to 20% as they have consistently educated government agencies on how the products are moved across the boarders and they are able to apprehend, seize containers, destroy products and go after the illicit barons.

According to Erewa-Maggison, “We are also trying to educate consumers because if there are no demands for illicit products, there cannot be supply. If consumers are well informed of what a genuine product looks like, then they will ask for the products. If they buy a fake product, we also educate them to send the information of where they bought the product to the appropriate regulatory agency, SON and make sure that the perpetrators are brought to justice.”

She explained that SON come up with cigarette standards and when the products come into the market and does not comply with what the cigarette standard dictates, in collaboration with SON, the company will  notify SON and the enforcement unit will enforce the rate.

She further explained that CPC is there to ensure that whatever products are sold is fit for consumer’s consumption, adding that BAT educates its trade partners because they are the ones who the illicit trade barons approach to sell the products.

Freddy Messanvi, Corporate & Regulatory Affairs Director BAT is a responsible company in the way “we are marketing our products.  We know that it is risky but we market them in a responsible and sensible way,” he reiterated.

He noted that the company wants to make sure people understand the implication of cigarette, adding that the company is not against the bill for BAT, the bill is a progression and a reflection of what is applied at a particular moment, in a particular society.

While shedding light on the position of BAT on the Tobacco Control bill recently passed into law in Nigeria, Sola Dosunmu, Head Regulatory Affairs, West Africa Area said they have not seen the bill yet and will not give their views on what they have not seen.

Dosunmu disclosed that BAT however has always advocated for the passage of a balanced, workable and evidence led bill and when the bill fits these three criteria, then the company can be happy with it.

Ifeoma Okeke