Concerned Consumers (CC), a group of advocates for local industries, has sounded the alarm on the negative effects of continuous importation of energy drinks into Nigeria. The group describes the importation as an act of sabotage and destruction to local industries and a threat to the national economy.
According to Messrs Olufemi Odebunmi and Rufai Rimi, Convener and Co-convener of the CC, respectively, in a statement titled “The Importation of Energy Drinks into Nigeria Despite the Proven Health Hazards and the Various Ban on Imported Juices,” energy drinks fall into the category of ready-to-drink fruit juice, which importation remains banned in Nigeria since 2003.
The CC officials condemned the massive influx of imported energy drinks into the country and called on relevant government agencies such as the Central Bank of Nigeria (CBN), Nigeria Customs Service, the National Agency for Foods and Drugs Administration and Control (NAFDAC), Consumers Protection Council of Nigeria, and Standards Organization of Nigeria (SON) to be vigilant and discourage unscrupulous importation.
For about 20 years now, product HS Codes 2009.11.0012 – 2009.11.0013 – 2009.9000.99 have been on the Nigeria Customs Service (NCS) list of prohibited products. However, fruit juice in retail packs was banned along with water, mineral water, aerated water containing added sugar or sweetening matter flavoured, other non-alcoholic beverages, and beer and stout, except for energy or health drinks.
The CC officials estimate that over 85 per cent of the market is dominated by imported energy drink brands, which have international brand name and recognition to match, putting the locally manufactured brands at a disadvantage and even considered inferior. Failure to enforce the ban on restricted products is a clear demonstration of government’s lack of support for local industries. By not checkmating smuggled energy drinks, government and its agencies have done a great disservice to local manufacturers of energy drinks.
Reeling out figures to support their call for a ban on imported energy drink brands, the CC Convener and Co-Convener argued that over 300,000 Nigerians would have been fully and gainfully employed if the market was allowed to grow indigenously. They estimated that an average number of between 1,800 and 2,000 containers of energy drinks are imported into the country annually. With each container consisting of 2,600 cases, at the going price of between N18,000 and N20,000 per case, the estimated loss to the country is over N104 billion annually.
The CC officials bemoaned the unpalatable effects of the imported energy drink, stating that if the trade continues unchecked, it will lead to the closure of local industries leading to massive job losses, an increase in the high rate of unemployment, and scarcity of the much-needed foreign exchange, allowing the Naira to further depreciate.
The CC officials expressed amazement that health and regulatory and standard organizations are still allowing imported energy drinks into the country despite the debilitating nature of the damage to health from these imported energy drinks and the fact that healthy and unhealthy drinks are branded together.
The importation of energy drinks has far-reaching implications on the national economy and local industries. The CC’s call for government agencies to be vigilant and enforce the ban on restricted products will safeguard the interest of the local industries and the national interest of the country
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