CONSUMER PROTECTION LAWS IN NIGERIA AND ITS IMPLICATIONS ON NIGERIAN CONSUMERS

CONSUMER PROTECTION LAWS IN NIGERIA AND ITS IMPLICATIONS ON NIGERIAN CONSUMERS

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CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF THE STUDY

Most of the consumers in Nigeria are ignorant of the existing laws that protect them more especially the final consumers who are yet to know the existing consumer protection agencies and laws that protect them as well as its implication.  

This era of study is of a great interest as a result of the abuse and neglect of consumers in Nigeria and also the continues increase in fake and adulterated goods and services in Nigeria which has put the consumers in a very difficult situation.

However, the complex nature and the disability of the consumers to detect in a physical inspection of a product and the continuous agitation of the consumers on several occasions where they have been deprived of their rights that gave rise to the enactment of laws, rules, regulations and the setting up of regulatory agencies with specialized manpower, and knowledge to protect the consumers eg NAFDAC, SON, NDLEA, etc.

The consumer protection council was established under decree 66 of 1992. It is set up to help in the protection of the consumers in Nigeria and to perform some other function like:-

a.           To encourage the adoption of appropriate measures to ensure that products are safe for either intended or normally safe use.

b.           To cause an offending company, firm, trade association or individuals to protect, compensate, provide relief and safeguards injured consumers or communities from adverse effects of technologies that are inherently harmful, injurious, violent or highly hazardous.

c.           They also perform such other functions as may be imposed on the council pursuant to this Act. etc.

1.2       STATEMENT OF THE PROBLEM

Inspite of all the prevailing consumer protection organisations and laws in Nigeria greater percentage of the consumers are still suffering dissatisfaction.

These are reflected in the incessant exposition by journalist of unethical business practice, business insensitivity to the aspiration of the consumer in one of the Dailys it was reported that a woman bought a packet of Omo detergent and when she got home, she discovered that half of the detergent was sawdust, what a hoax, could this be to the consumers in Nigeria?

Virtually a greater number of  most of the sellers and producers in Nigeria whose utmost faith in business is profit maximization at all cost indulge in selling of adulterated or fake and dangerous products and services not minding the effects it has on the part of the consumers.

On the third week of May 2005, Unilver Nigeria Plc was closed down temporarily by National Agency for Food and Drug Administration and Control (NAFDAC) because of its product CLOSE UP toothpaste against the reduction in the foaming nature of the product.

NAFDAC, however closed the production site to allow the company correct the observed abnormality in their products.

In Nigeria, a lot of consumers has lost their lives as a result of food poisoning which was either caused by the sellers of the products or the producers.

Among which is the case of INDOMIE INSTANT NOODLES (a product of De United Foods Industries Ltd) in the middle of the year 2004 report had it that a lot of consumers of the product at Lagos area met their untimely death after consuming the product.

It has also been of record that at least forty percent of the patients in the hospital that lather died as a result of fake and adulterated products in the market.

From the above examples of consumer abuses in Nigeria one could easily say that they are the worst abused in Nigeria. This is therefore the focus of the study.

1.3       OBJECTIVES OF THE STUDY

The objectives of the study are as follows:-

a.           To examine the role of the consumer protection in protecting of consumers rights in Nigeria.

b.           To bring out the guidelines for handling product liability.

c.           To draw out critically on how the rights of consumers has been abused in Nigeria.

d.           To unravel the various laws backing consumers in Nigeria.

e.           To make all the necessary recommendation on how to eliminate adulterated products in Nigeria.   

1.4       RESEARCH QUESTIONS

a.           What is the role of the consumer protection laws in protecting of the consumers rights in Nigeria?

b.           Does the guidelines for handling products liability of any help to the consumers?

c.           Has this agency succeeded in drawing out critically the several abuses of consumers in Nigeria?

d.           To what extent has the laws backing consumers in Nigeria been unravel to the consumers?

e.           Has the consumer protection organisations in Nigeria succeeded in eliminating fake and adulterated products in Nigeria?

1.5 RESEARCH HYPOTHESIS

H0: The policy of the regulatory agencies has no significant effect on adultrated products in Nigeria.

H1: The policy of the regulatory agencies has significant effect on adultrated products in Nigeria

1.6


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