Import prohibition: Case for toothpastes

Nigerians consume about 540 million tubes of toothpastes a year; even people living in rural areas have acquired the habit of using toothpastes either alone or in addition to the traditional chewing sticks which remain by far the most common method of maintaining dental hygiene. Given its population, Nigeria should naturally be a battle ground for various brands of toothpaste; one out of four Africans are still Nigerians and the percentage is moving up gradually. Indeed the country has become a magnet for various brands of toothpaste.

A national survey of Nigerian markets reveal there are at least 78 brands of toothpaste in the country and, as usual, most are imported brands which have entered the market since the introduction of the Structural Adjustment Programme(SAP) and the liberalization of the Nigerian government in compliance with the agreement signed at the World Trade Organisation (WTO) which has been promoting globalisation of markets to the detriment of the developing countries. Nigeria in particular has been a victim of globalisation and dumping of subsidized imports and even inferior products which are often not registered with NAFDAC before finding their way to the Nigerian market. Apart from frequent duty evasion which deprives government of its legitimate tariff, the imports enjoy unfair competitive advantages which have almost driven local producers out of the market.

Domestic producers: Brands and capacity utilisation
The leading domestic producers of toothpaste and the brands they market are: Unilever Plc whose brands are CLOSE-UP and PEPSODENT, GlaxoSmithKline markets MACLEANS and UACN’s personal products division a few years ago introduced CLENOL which gained nationwide distribution faster than any other brand in that category in living memory, undoubtedly assisted by the widest distribution network in the country which UAC has established. CLENOL in particular is a world class toothpaste combining whitener, breath refresher with an ingredient which eliminates food particles resulting in tooth decay and bad breath; there is no superior product on the market today.

Apart from the multinationals, there are two other local manufacturers; the better known of the brands is DAILY NEED.

http://www.vanguardngr.com/articles/2002/business/b325022004.html