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BAT loses N9bn annually to illicit tobacco traders

By on June 6, 2015

The British American Tobacco has lamented the loss of £30m (about N9bn) every year to the activities of illicit tobacco traders and cloners of the firm’s various brands of cigarettes.

Speaking at a press conference to mark this year’s “World No Tobacco Day,” the Head of Government Affairs, West Africa Area of BAT, Odiri Erewa-Meggison, noted that illicit tobacco trade hurt not only the firm but the government and consumers of the product.

She said, “The practice is robbing Nigeria of huge revenue in taxes because these illicit traders do not pay taxes. Also the practice is harmful to the consumers because some of the adulterated cigarettes have been found to contain substances harmful to health.

“Compared to our market share, BAT is losing $30m annually due to illicit tobacco trade. In addition to this, the practice may be resulting in consumers’ loss of confidence in our products.

“People who consume cloned versions of our brands usually assume that they are from BAT and when those items are found to be bad, the blame will ultimately fall on the manufacturing firm.”

Erewa-Meggison said the firm appreciated this year’s World No Tobacco Day because of the theme which is “Stop illicit trade of tobacco products” noting that it will go a long way in creating awareness about the dangers inherent in the practice of illicit tobacco trade.

The Corporate and Regulatory Affairs Director, BAT, Freddy Messanvi, says the reason why counterfeiters of tobacco products do not see anything wrong in the practice is that they see it as a victimless crime.

He added, “Recent findings have linked tobacco smugglers to terrorism. Also, the intelligence we have gathered over the years is what is spurring the government to want to put an end to the practice because everyone is losing a lot of revenue.

He added, “Our continued engagement with government has yielded positive result in the sense that illicit trade in tobacco products which stood at 80 per cent 15 years ago has gone down to 10 per cent currently.

“We are committed to tracking and tracing our products and gathering regular information from our consumers.”

The firm commended the 2015 Tobacco Control Bill saying that the bill was progressive and would put Nigeria on the same platform with other advanced nations who have a tobacco control law in place.

According to BAT, the bill will enable the government to regulate the manufacture and distribution of tobacco products and will also check activities of counterfeiters.

Messanvi added that BAT was a responsible firm with a legacy of operating according to world’s best practices.

 

[Punch]