Dr. Joseph Odumodu, DG/CEO, SON |
This is even
more disturbing given the array of security agencies operating at the seaports,
airports and land borders, whose operative participate in the examination of
these substandard and fake products, which come into the country undetected. For
instance, Nigeria’s official trade statistics as at 2011 showed that the influx
of substandard and fake imported was more than 80 per cent as against the 20
per cent obtained in some developed and developing economies.
In addition
to the health hazards brought about by this rather ugly development, it has
also worked against the real sector, which is the engine of growth for any
economy. It was in view of this that the Manufacturers
Association of Nigeria (MAN) said recently that its members have over the
years been subjected to unfair competition due to this seeming uncontrolled
influx of fake and substandard goods into the country.
This ugly
situation has compelled manufacturing firms operating in the country to shut
down their operations due to the general harsh operating environment characterised
by poor infrastructure and high interest rates, which are in double digits,
among several others.
The
development, which has led to loss of jobs, has been further worsened by the
influx of cheap substandard products manufactured mostly in Asia. President of
the association, Mr. Frank Jacobs,
who spoke in Lagos recently, said manufacturers in the country have been at the
receiving due to this unending trend in the country.
“Apart
from the poor infrastructural base and the lack of access to cheap funds, the
greatest challenge faced by the local manufacturers remains the influx of these
fake and substandard products, which are cheaper compared to locally
manufactured ones”, he lamented.
According to
him, many of such foreign made goods, which find their way into the Nigerian
market are produced under better economic conditions characterised by first
class infrastructure and very cheap funds with single digit interest rates,
which makes it unfair for them to compete with locally made ones.
Worried by this
trend, the Central Bank of Nigeria CBN has issued fresh guidelines partly
designed to check this trend. For instance, the apex bank set a December 1,
2015 deadline for the full takeoff of all Standard Organisation’s electronic
certificates for the processing and clearing of all products regulated by the
organisation.
Under the
new policy directive entitled: ‘Re-Integration of SON’s e-certificates into the
Nigeria Integrated Customs Information System’, all authorised dealers and the
general public has been informed that the SON’s e-certificates (e-product
certificate and SONCAP certificates have been deployed on the NICIS with effect
from September 10, 2015.
A Deputy
Director in the Trade and Exchange Department of the apex, Mr. J.O.Ajewole, importers and other dealers in the nation’s supply
chain are expected to attach the SON’s electronic product certification to the
documentations in the Form ‘M’ processes in relation to all products regulated
by the apex standards bureau.
The new
policy, which took effect September 10, 2015, which also marked the integration
of the SON’s electronic certificates into the NICIS platform, also directs that
henceforth, only electronic SONCAP certificate would accepted for the
processing of customs clearance of imported regulated products.
Mr. Ajewole
however said that the integration of the agency’s certificate platforms into
the NICIS; which connects more than 40 agencies of the government including the
Nigeria Customs Service, the Nigerian Ports Authority, the CBN and Federal
Inland Revenue Service (FIRS) among others, would check mate influx of fake
products.
Director
General/CEO of the Standard Organisation of Nigeria (SON), Dr. Joseph Odumodu, who decried this influx of substandard goods
into the country, noted that the organisation was taking urgent steps to rid
the nation’s market of such unwholesome products. He disclosed that from the 80
per cent figures in 2011, the agency has succeeded in reducing the volume of
the influx of fake and substandard goods into the country to 40 per cent, would
further reduce to 15 per cent or less before the end of 2015.
It was
gathered that the successful integration of the SON’s e-certificates into the
NICIS for the processing of the SONCAP Form M and the Pre-Arrival Assessment
Report, which has also been adopted by the CBN, will remove all encumbrances in
import documentation processes for all products regulated by the organisation
thus facilitating trade.
It was
gathered that this integration of the platform of the apex bureau will in
addition to facilitating trade simplify the process of cargo inspection, reduce
cost and bring about online real time documentation of certifications in
addition to fake products influx.
Dr. Odumodu
said: “Importers or their agents would no longer be
required to come to our office in Lekki to obtain or submit their documents, as
they will now do it from the comfort of their offices or room and you know,
this will reduce human contacts and therefore check corrupt tendencies of some
people”
It was
gathered that the integration of the systems coupled with the proposed
enforcement of the new SON Act 2015 will make it difficult for fake and
substandard goods to find their way into the country. The SON-boss, who doubles
as president of the African Organisation
for Standardisation (ARSO), however called on importers and clearing agents
to cooperate with the organisation in its bid to rid the nation’s market of
fake and substandard products.
But
stakeholders have also argued that it would take not only the efforts of SON to
rid the country of unwholesome products but rather the support and cooperation
of other sister agencies, especially the Customs, which sees, inspects and
endorses all products whether at the air, seaports or land borders before they
come into the country. Some stakeholders argued that ouster of SON from the
seaports at the time the anti-fake products was raging was not a good decision
by the government.
“You
can agree with us that since the SON and some other agencies were asked to
leave the ports on the basis of complaints by Customs has not led to the
expected reduction in the dwell time of cargo at the ports, which still stands
above 21 days”, a stakeholder, who pleaded
anonymity said.
It is
therefore in the light of this that all stakeholders must work together to rid
Nigeria of unwholesome products, which are inimical not only to the health and
wellbeing of the Nigerian citizens but also a threat to the nation’s economy.
(nationalmirror)
N.B: To get
a comprehensive book on import operations, management, logistics, and
documentation; SON, SONCAP and MANCAP Acts; import prohibition lists, customs
compliance management etc, click on the links below:
http://www.tectono-business.com/2015/07/tectono-business-review-in-conjunction_11.html
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