Multinationals see 50% of products in Nigerian market as counterfeit

The Lagos Chamber of Commerce and Industry (LCCI) has said that major brands operating in Nigeria see about 50 percent of products in the Nigerian market as counterfeit.

Remi Bello, outgone president, LCCI, disclosed this at the annual general meeting, which saw the end of his tenure and the beginning of the reign of Nike Akande, a two-time minister of industry, as president.

“This situation puts companies in a big financial risk. While LCCI acknowledges efforts by the Nigerian government and the Standards Organisation of Nigeria (SON) in putting an end to the scourge of counterfeiting in Nigeria, there is still more to be done in curbing this problem,” Bello said, while reviewing the Nigerian economy in 2015.

Faking and counterfeiting have become impediments to Nigerian manufacturers, causing them financial loses and crisis in product identity. This is worse in the West African sub-region where counterfeiting has almost become a genuine business.

According to Bello, there is the need to have a framework that will facilitate the enforcement of penalties and synergy between relevant security agencies and companies whose products are being counterfeited.

On the Common External Tariff (CET), Bello said the chamber has raised concerns to the authorities relating to the unintended implications of the scheme on the Nigerian economy and the business community, stressing that while its intention is laudable, there is the need to have another look at the categorisation of duties and description of goods under each category.

“We note that some of the duty categories and description of goods are capable of wiping out our local investors and exposing the country to all manner of unfair competition from developed countries, including job losses,” he said.

He cited the case of pharmaceutical industry, where finished imported drugs are brought in at zero duty while packaging and raw materials attract five to 20 percent tariff, saying that the policy is at variance with Nigeria’s aspiration to develop local industries.

He further said that investors need protection from policy inconsistency, arbitrary levies and charges, multiple taxation, abuse of monopoly powers, absence of level playing field and all sort of infraction.

He further said the chamber has consistently expressed concern over the deplorable state of roads leading to Lagos ports (Apapa and Tincan Island), stressing that the poor state of these roads has various negative effects on the private sector, including risk to life, congestion and high demurrage paid by importers to terminal operators and shipping companies, among others.

“Despite the tough economic and business realities, the Nigerian economy remains very resilient as the largest in Africa, with flourishing informal sector,” he said.

“The large informal sector which accounts for about 40 percent of the economy assists in absolving lingering shocks. Innovative measures directed at attracting most informal sector players to formalise their businesses present opportunity,” he said.

He reeled out some of the activities the chamber carried out within the year to include Commerce and Industry Awards, International Trade Fair and bilateral business sessions, among others.

ODINAKA ANUDU