Manufacturer decries N400m loss to counterfeiters of compressors in Nigeria

The scourge of counterfeiting is taking a tool on refrigeration business in Nigeria as the sale of fake compressors is leading to an estimated N400 million annual loss of market share due to their activities at Ebute metta, a suburb of Lagos.

Kolawole Omeyele, Danfoss Group business development manager in Nigeria told BusinessDay that the unchecked activity of dealers of fake compressors is leading to huge losses for corporate brands like Coca cola and Fan Milk who depend on original compressors to power their businesses.

“We are having serious challenges with our cooling systems and refrigeration controls. It is a major problem, such that more than 30 containers sold into the Nigerian market, about half are counterfeit products.”

Giving an estimate of the market share that is lost to counterfeit products, Omeyele noted that each container cost about $130,000 dollars, and about 30 containers of compressors come in to the port, out of which 50 percent are counterfeit products. The total loss of market share on each shipment is about $2 million dollars annually.

Elaborating on the problem, John Akhabue, national president, Nigerian Association of Refrigeration & Air Conditioning Practitioners (NARAP) told BusinessDay that it is a widespread problem that the industry has been contending to solve. He also noted a challenge they association have had to check this problem.

“We are aware of counterfeiting but in most cases we are not able to know the difference between the counterfeit and original. What we are trying to do in our association is to understand how to identify original compressors and partner with relevant agencies to fight the problem.

We are liaising with Standard Organization of Nigeria (SON) to identify those involved in selling fake compressors in Nigeria. It is affecting us too in our association, we buy compressors and our clients say that it is not good. We are affected so we are looking at what we can do to ensure that there is sanity in the system.”

Danfoss Group, a market leader in sales of refrigeration components officially unveiled their brand in Nigeria on February 17 and identified two legitimate distributors they are partnering with in Nigeria in the cooling division of their business.

“For the cooling business we have identified with Satek Nigeria Limited and Tahir Niazi Stores in Dubai. TNS stores is selling to some partners at Ebute metta while Satek is buying directly into Nigeria,” Omeyele said.

Omeyele, said that Danfoss group is working hard with strategies to counter the problem. It has partnered with Standard Organization of Nigeria and NARAP. He also noted that the organization will increase awareness activities for the end-user to know the source of genuine Danfoss products as well as strategically deal with the menace.

ISAAC ANYAOGU