INTRODUCTION
Consumer protection is a vibrant field with numerous present cases in India and Nigeria due to its intersection with everyday life. More often than not, in Nigeria and India, there are various reports on the harmful effects caused by substandard products. The sources of these products, on the one hand, are the large imports of goods into the country, and on the other hand, locally produced products that stem from either poor facilities or weak or limited legal provisions that ought to encompass wider areas of local production. However, the current issues can be reduced with more priorities placed on developing the local industry.
THE PRESENT ISSUES AND THE LAWS
India and Nigeria are known to be large consumer territories. India is projected to have the third-largest consumer population by 2030.[1] While Nigeria is the largest consumer market in Africa.[2] This implies that more actions need to be taken to ensure consumer protection—even more so, extra efforts need to be made to encourage locally made products, to bring them up to standard, and to educe reliance on imports. The present laws that protect Nigeria and India are the Federal Competition and Consumer Protection Act of 2018 and the Indian Consumer Protection Act of 2019, respectively.
- Protection of consumers is seen in the Indian Consumer Protection Act of 2019 thus:
That the right to be protected against the marketing of goods, products or services wthatare hazardous to life and property.[3]
- In Nigeria, the Federal Competition and Consumer Protection Act of 2018 has s.131, which states,
- l) Every consumer has a right to receive goods that-
- Are reasonably suitable for the purposes for which they are generally intended:
- Are of good quality, in good working order and free of defects.[4]
Other Sections that are particularly aimed at protecting consumers from defective goods and imposing liabilities on manufacturers are s135, s136, s152, and s153 of the Federal Competition and Consumer Protection Act of 2018.
LOCAL CONTENT OPPORTUNITIES
Many opportunities exist within the local content but they are underutilized. This has led to mass consumption of substandard and defective goods. Consumption can be minimized if the present opportunities in the local content policies of India and Nigeria are taken into consideration.
The following local content policies or Acts are;
- (NOGICD); In the Jurisdiction of Nigeria, there is legislation on local content which is the Nigerian Oil and Gas Industry Content Development (NOGICD) that specifically handles the local content of the oil and gas industry which was signed into law in 2010.[5]
The Act aims to minimize the reliance on foreign expatriates in oil and gas production and encourage the inclusion of Nigerian businesses into the field.
In the last 15 years alone, the Act has brought about numerous changes including the creation of jobs and, an increase in the country’s income and paved the the way for the inclusion of Nigerians in the oil and gas industry.
- The ‘Make In India Initiative’ The Jurisdiction of India has a more encompassing and ambitious policy set out with the strong aim of encouraging local content called the ‘Make in India Initiative’, to ensure that India becomes a global manufacturing hub.[6] This means that foreign countries are encouraged to set up industries in India and local industries are encouraged to increase production with high standards.[7] It was launched in 2014 by the Prime Minister and since then, active steps in its actualization have been taken. Other government ministries such as the Department for Promotion of Industry and Internal Trade (DPIIT) have issued orders to ensure preferences for goods with high-value content to give maximum support.[8]
For the past 10 years, the policy has brought about major changes in India’s economic sector such as an increase in foreign investment, development of local facilities, and increase in production.[9]
This represents only a fraction of a much bigger picture, but the enforcement of these provisions will bring about greater transformations in each country.
THE INTERSECTION AND THE STANDARDS
How does local content advancement directly intersect with consumer protection?
India
A study in India shows that many are suffering from the effects of substandard products.[10] Even recently, over 50% of consumers have or own defective products.[11]
Many of these imported products are difficult to regulate, as they often bypass established quality standards.[12]
These policies which encourage locally made goods ensure that the local goods are up to standard and have grand potential to ensure consumer protection. But, while the initiative has good objectives and carries a lot of authoritative weight, it doesn’t have enough legal backing and so, it can’t be actively enforced.
For example, The DPIIT Order, issued under the General Financial Rules, establishes mandatory procurement requirements for locally manufactured goods in government projects.[13]It may have a binding force within government operations, but it does not constitute standalone legislation and operates within the regulatory framework provided by the GFR[14] Meaning, it cannot be legally enforced.
Furthermore, the ‘Make in India’ initiative, reflects a strong policy directive, but its implementation has to rely on existing legal frameworks, such as the Bureau of Indian Standards Act, to regulate the quality of goods produced domestically.
However, with increased efforts to legalize this sector comes opportunities to increase the standard of local products, limit further the amount of imported products, and offer more protection for the consumer.
Nigeria
In Nigeria, there is a general negative notion that precedes local products due to the foundational knowledge of these products as inferior. Therefore, this pushes consumers to purchase unregulated and less quality goods that may ultimately cause harm.
However, with the opportunities of the (NOGICD) Act, there is provision for consumer protection from substandard goods as there is;
- Room for expansion: Though the Act may specifically focus on oil and gas, there’s ultimate room for expansion for it remains an Act for ‘local content’ and there is an ongoing project to include other sectors. If strongly enforced, and prioritized, this will lead to more local industries in Nigeria.
- Provisions to prioritize local content: Prioritized local markets will lead to increased efforts in product standards, and reduce reliance on imports, which ensures consumer protection.
Thus there is a great need for stronger enforcement of the Act to create avenue for standard locally made goods which would provide opportunities for consumers to purchase safer products.
ROLES FOR LEGAL ADVOCATES
The legal field has a strong part to play in enforcing local content Act and Policies that will protect consumers.
- The Courts need to be proactive. Already, we see cases where Courts brought consumers victory due to their proactivity. Such flexible moves, can ensure statutory compliance with local content policies and protect consumers.
- Legal advocates should be involved in the Acts and Policies. The present policies are commendable but limited and thus cannot provide adequate enforcement mechanisms.
For example, India’s ‘Make in India Initiative’ needs a legal backing and lawyers or advocates can help to make that possible. This would ensure prevention of manufacturing substandard products. It is the involved advocates that can help bring about specific changes in these areas, protect consumers and encourage local content.
CONCLUSION
Though often underestimated, the connection between local content advancement and consumer protection is both significant and vital.
The opportunities presented in the NOGICD Act of Nigeria and the ‘Make in India’ Initiative present valuable opportunities not just to enhance local industries, but also to strengthen consumer protection in both nations.
If these opportunities are effectively leveraged, by strengthening legal frameworks, ensuring enforcement, encouraging local manufacturing, and improving domestic production standards, India and Nigeria can achieve significant progress in consumer protection and pave the way for safer, higher-quality products for their citizens.
Author(s) Name: Oyindamola Oluwakemi Martins (University of Nigeria Nsukka)
References:
[1] CUTS International, ‘ SIXTH INTERNATIONAL GROUP OF EXPERTS ON CONSUMER LAW AND POLICY-IGE-CONSUMER CUTS SUBMISSION ON CONSUMER PRODUCT SAFETY (2022) UNCTAD https://unctad.org/system/files/non-official-document/ccpb_IGECON2022_CONTRIB_Cons_Prot_CUTS_safety_en.pdf accessed 7 December 2024
[2] Shannon McCrocklin, ‘THE CONNECTED NIGERIAN CONSUMER: NIGERIA CONSUMER BEHAVIOUR, INCOME, AND ECOMMERCE’ (GeoPoll, 6 December 2018) <https://www.geopoll.com/blog/nigerian-consumer-behaviour-income-ecommerce/> accessed 9 December 2024
[3] Indian Consumer Protection Act 2019, s 2(9)(i) Also see s. 22 , 34 of Chap 1 and s. 82, 85, 88 of Chap 4
[4] The Federal Competition and Consumer Protection Act 2018,
[5] Majorwavesen ‘NIGERIAN LOCAL CONTENT: POLICY GAINS, IMPROVEMENT OPPORTUNITIES AND IMPERATIVES’ (Majorwaves Energy Report, 14 January 2022 ) <https://www.majorwavesenergyreport.com/nigerian-local-content-policy-gains-improvement-opportunities-and-imperatives-for-the-future/> accessed 8 December 2024
[6] ‘REFINING-MAKE IN INDIA’ (Ministry of Petroleum and Natural Gas, Government of India, updated 28 March 2024) <https://mopng.gov.in/en/refining/make-in-india> accessed 8 December 2024
[7] ‘MAKE IN INDIA POLICY’ (Samisti Legal, 3 May 2018 ) <https://samistilegal.in/make-in-india-policy/#> accessed 8 December 2024
[8] Meher Bhatia et al., ‘ ‘MAKE IN INDIA’- A PUSH FOR LOCAL CONTENT IN PUBLIC PROCUREMENT IN INDIA’ (Lexicology, 21 August 2023) <https://www.lexology.com/library/detail.aspx?g=e8dd3adf-4fdb-438c-8b88-7052492d6441> accessed 8 December 2024
[9] ‘MAKE IN INDIA SCHEME: EXPLORE DEFINITION, INITIATIVES, AIMS, ADVANTAGES, AND CHALLENGES’ (Bajaj Finserv, 16 October 2024 ) <https://www.bajajfinserv.in/make-in-india> accessed 8 December 2024
[10] Livemint, ‘ONE IN TWO INDIAN CONSUMER STUCK WITH HIGH VALUE DEFECTIVE PRODUCTS: SURVEY’ (Mint, 31 March 2022) <https://www.livemint.com/industry/retail/one-in-two-indian-consumers-stuck-with-high-value-defective-products-survey-11648706907758.html> accessed 9 December 2024
[11] Suneer Tandon, ‘MORE THAN HALF OF INDIAN CONSUMERS OWN DEFECTIVE PRODUCTS SAYS SURVEY’ (Mint, 15 March 2024) <https://www.livemint.com/news/india/more-than-half-of-indian-consumers-own-defective-products-says-survey-11710496748280.html> assessed 9 December 2024
[12] CUTS International, ‘ SIXTH INTERNATIONAL GROUP OF EXPERTS ON CONSUMER LAW AND POLICY-IGE-CONSUMER CUTS SUBMISSION ON CONSUMER PRODUCT SAFETY (2022) UNCTAD <https://unctad.org/system/files/non-official-document/ccpb_IGECON2022_CONTRIB_Cons_Prot_CUTS_safety_en.pdf> accessed 7 December 2024
[13] Meher Bhatia et al., ‘ ‘MAKE IN INDIA’- A PUSH FOR LOCAL CONTENT IN PUBLIC PROCUREMENT IN INDIA’ (Lexicology, 21 August 2023) https://www.lexology.com/library/detail.aspx?g=e8dd3adf-4fdb-438c-8b88-7052492d6441 accessed 8 December 2024
[14] ibid
