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Home Business & Finance

Woes of Capitalism: Sub Standardization

Benita OrumabyBenita Oruma
April 29, 2024
in Business & Finance
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Woes of Capitalism: Sub Standardization
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Among Nigerians, there is a popular notion that “you can sell anything in Nigeria, all you need is good packaging and nice advertisement. Nigerians will buy”. This perception serves as both an advantage and a disadvantage for businesses operating in Nigeria. On one hand, it implies a ready market for products, providing opportunities for businesses to thrive. However, it also suggests a susceptibility among Nigerians to be swayed by superficial aspects like packaging and advertising, highlighting a potential vulnerability in consumer behavior.

Sadly, this susceptibility has been exploited by some foreign companies, turning Nigeria into a dumping ground for substandard goods. These companies capitalize on the perception that Nigerian consumers are easily influenced by appearances, prioritizing profit over product quality and consumer safety.

The porosity of the Nigerian Market System, with an influx of goods entering with minimal scrutiny or oversight, compounds the situation. Unfortunately, many Nigerians purchase these goods without much consideration for their potential adverse effects on health and well-being.

This phenomenon of a porous market can be attributed largely to the type of economy Nigeria runs, although it is sometimes difficult to distinguish whether Nigeria runs a mixed economy or a capitalist economy, we are well aware of the dominance of capitalism in Nigeria.

This system empowers private companies to dictate prices, oversee production, and manage distribution of goods in accordance with market dynamics like demand and supply. Consequently, companies have the freedom to manufacture goods according to their own standards and introduce them to the market. A major loophole that is now being exploited by foreign companies to sell goods that would not meet the standards of their own markets in the Nigerian market.

Nigeria is not new to the issue of Sub-Standardization. This trend is prevalent in the Nigerian market, with varying degrees of severity. While some instances may be more critical than others, the overall impact remains significant. Many products sold in Nigeria that are subsidiary of a parent company abroad falls short of the quality standards observed in their home countries or other regions like Europe and Asia where their brands are present.

It is common knowledge that carbonated drinks, particularly Coca-Cola and Pepsi sold in Nigeria are very much different in taste from those sold in Europe and Asia under the same brand. Compared to the ones produced outside Nigeria, the ones produced in Nigeria are tasteless.

Besides drinks, phones and cars shipped to Nigeria are significantly below the standard sold abroad. Cosmetics, skincare products and even packaged foods like cereals and chocolates also fall under the same category of Sub-Standardization.

All these indications point to the fact that government agencies responsible for safeguarding and cross-checking products in the Nigerian market to ensure they meet standards are less effective in their operations.

Although, NAFDAC denies the availability of the scrutinized Nestlé infant food in the Nigerian market. It does not excuse them from liability for other substandard products. It also raises the question of the benchmark these agencies use in their regulation and control exercises in Nigeria.

Is there a regulation as to the limits producers can go during production process? And to what extent can the safety of Nigerians be assured when it comes to purchasing products from the market?

The uncautioned increase of substandard goods in the Nigerian market poses significant risks to consumers and undermines the country’s economic development. While government agencies like NAFDAC play a vital role in regulating product quality, there is a pressing need for enhanced enforcement and accountability measures.

Additionally, addressing the root causes of sub standardization, including lax oversight and the dominance of capitalism, is essential for creating a marketplace that prioritizes consumer safety and fosters sustainable economic growth. By implementing stricter regulations, improving oversight mechanisms, and promoting ethical business practices, Nigeria can work towards eliminating substandard goods and building a safer, more reliable marketplace for its citizens.

Tags: BusinessCapitalismConsumersfederal charactermarketSub standardWoes of Capitalism: Sub Standardization
Benita Oruma

Benita Oruma

Benita Oruma is a lawyer in training, a 400 level student in the university of Ibadan. She is a content writer with interest in corporate affairs and the marketplace.

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