Electrical/electronics industry stuck by cable counterfeiting, port gridlocks

Players in the electrical/electronics group say they are stuck by incessant counterfeiting of cables as well as constant delays at sea ports, thus calling on the Federal Government to initiate policies that will not only check faking of locally manufactured products but also address some challenges encountered during clearing of goods at the ports.

“The two challenges are counterfeiting of cables and delay at clearing of imports at the sea ports,’’ said the players, in their sectoral report, obtained at the annual general meeting (AGM) of the Manufacturers Association of Nigeria (MAN), held last Thursday in Lagos.

Data from MAN show even though investments in this sector rose from N2.54 billion in the first half of 2013 (H1 2013) to N6.91 billion in the second half of the same year (H2 2013), inventory (which in this case refers to stock of finished goods) ramped up to N2.37 billion in H2 2013, as against N2.28 billion obtained in H1 2013. This shows that the stock rose, rather than fell, in H2 2013.

Some of the players in this sector include Nexans Kabelmetal Nigeria plc, Cometstar Manufacturing Company Limited, Cutix plc, Coleman Wires and Cables, among others.

Counterfeiting (or cloning) of locally-made products has continued unabated owing to weak laws and regulations in the country as well as across the West African region. Manufacturers lament that their original products are counterfeited in Asia in collaboration with their Nigerian counterparts, thus calling for severe punishment from the Standards Organisation of Nigeria (SON) as well as stronger regional stance on the worrisome situation.

“Trademarks and brand names should be made trans-national and be fully recognised by nations in the ECOWAS sub-region to help fight against counterfeiting,’’ Tunde Oyelola, chairman of MAN Export Group, told Real Sector Watch.

The Pre-Arrival Assessment Report (PAAR) was recently introduced to ease clearing and improve local capacity in import valuation. But the scheme has brought about delays of raw materials at the ports as well as local products meant for exports.

Similarly, Nigerian ports such as Tin Can Island, PTML, Brawal and Liliypond Port are characterised by gridlocks in the forms of ships congestion at the approaches, harbour and terminals, vehicular traffic at ports gates and approaches, as well as human traffic congestion and processing points, thus worsening logistics issues for the Nigeria Customs Service (NCS).

“There has been a yearning by stakeholders in the shipping business for an agency that will ensure fair play and protect the interests of stakeholders in the industry,’’ said Hassan Bello, executive secretary/CEO, Nigerian Shippers’ Council (NSC), during a dialogue session organised by the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) entitled, “Unlocking Shipping Gridlock at the Ports: Stakeholders’ Initiative” recently in Lagos.

Odinaka Anudu