Every month in Lagos, a micro industry with between 10 and 30 employees winds down and another relocates to a neighbouring country. No thanks to the police which have turned small scale business operators into cash cows.
Between January and September this year, over 100 micro industry operators have thrown in the towel in preference for other businesses if only to end their harassment by policemen who capitalise on the lack of product registration to milk them dry.
A sizeable number of operators who have remained in business have left for Benin Republic, Ghana, or Togo from where they now manufacture and bring their products back to Nigeria for sale.
Investigation showed that the Ikorodu axis of Lagos is worst hit as police officers attached to Area H Command take turns to extort between N50,000 and N100,000 from business operators.
Police officers extort in turns
Different police patrol teams arrest and slam spurious charges on the small scale manufacturers. In some cases officers invade factories accusing them of manufacturing without registration by the National Agency for Food and Drug Administration and Control (NAFDAC).
Factories harassed include Charms Overseas, Daily Need, Linear Star, Bay Herbal, and Starfin.
The latest case of the extortion of members of the Association of Micro Enterprises of Nigeria (AMEN) was the arrest of Cameroonians who manufacture a popular dental liquid and herbal cream in Ikorodu.
The police officers allegedly demanded for a bribe of N500,000 but for the timely intervention of AMEAN President, Saviour Ichie, who said he paid N100,000 to obtain the release of the factor operators.
A week after, another team of police officers (names withheld) stormed the factory and allegedly demanded N200,000 bribe but were given N100,000.
A third patrol team also from Area H came and allegedly made a demand that outraged AMEN members who insisted on taking the case to court. Hearing this, the police officers beat a retreat.
In all these cases, the charge against the small scale manufacturers was that they had no permit from NAFDAC to manufacture their products. In other words, that they were manufacturing illegally.
Charms Overseas Managing Director, Ikenna Michael, confirmed that police officers demand and collect bribe from micro entrepreneurs in the Ikorodu axis of Lagos.
Relocation to neighbouring countries
Between July and September this year, nine micro businesses with about 200 employees relocated to neighbouring countries. Four left for Benin Republic, another three for Ghana, two for Togo.
Michael disclosed that one of the firms that relocated to Benin Republic is into the baking of pastry, particularly Oki, a food product made from local beans.
The firm was subcontracted by National Emergency Management Agency (NEMA) to bake food products distributed in NEMA camps as relief food item to victims of disaster.
It was learnt that the contract was originally awarded to a popular politician in the South West who subcontracted it to the firm.
When policemen got wind of it and noticed that more workers were being recruited they took turns to arrest the business operator and allegedly demanded between N10,000 and N50,000 from him on each occasion. They threatened to hand him over to NAFDAC if he did not oblige.
When TheNiche visited his office in Ikorodu, neighbours confirmed that the firm relocated to Cotonou in Benin Republic early this year leaving 80 workers behind.
Harassment over NAFDAC registration
Ichie also confirmed incessant harassment of their members by the police, and that some have left and more are leaving for Benin Republic and Ghana from where they are now manufacturing.
Ichie, who manufactures Authentic Herbal Cream, Authentic Herbal Soap, and other beauty products, recounted that the police extorted every kobo he made while he hawked on the streets looking for money to boost his business.
He recalled that it was incessant harassment by the police that motivated him to approach NAFDAC for registration.
“What I went through in the hands of the police was better imagined than experienced. Policemen were using NAFDAC registration to harass and extort money from me.
“Each time they arrested me, even with empty plastic bottles, they would demand between N10,000 and N50,000 bribe,” Ichie narrated.
“I wrote to the then Director General of NAFDAC, the late Dora Akunyili, who replied and advised that micro entrepreneurs like us should come together under an umbrella body and utilise a common facility to advantage.
“This gave rise to the Association of Micro Entrepreneurs of Nigeria (AMEN) with over 3,000 registered members, of which I am the National Coordinator.
“Today, we have got a common facility in Ikorodu which our members utilise to perfect our products for registration with NAFDAC.”
According to him, police officers arrest his members with empty bottles and active ingredients while going home or to their factories and accuse them of manufacturing without NAFDAC approval.
“Some times the value of the materials is not even up to N5,000 yet police would ask for N50,000 bribe as bailout.
“One of our prospective members called me on September 25, 2014 and said the police came to his factory and arrested him and he paid N100,000 to bail himself out. He said the same thing happened to a colleague of his at the same area of Lagos about a month earlier.
“That one paid N100,000 to police for bailout. Most times the allegation is about being in possession of empty plastic bottles and that they are manufacturing without NAFDAC registration because they know that it is not easy to get.
“If you resist they threaten to hand you over to NAFDAC. The fear of NAFDAC is the beginning of wisdom for micro entrepreneurs. So our members are now relocating to neighbouring Cotonou to escape these harassments.
“You see how police are helping to kill local industries, throwing people into the labour market. Many of these industries have between 10 and 30 workers.
“About a fortnight ago, a man hawking my products and other products in Ebonyi State was arrested by NAFDAC. The charge against him was he had no mobile permit to hawk. He was fined N50,000.”
When contacted for comment, Lagos State Police Public Relations Officer, Kenneth Nwosu, said his boss had just arrived his office and could speak “at the moment.”
He promised to call back, but did not do so at press time.
