Saturday, 5 July 2014

Tobacco industry: Over regulation or good intentions?



As the tobacco control debate rages, focus appears to have taken a new turn with more attention paid to tobacco companies, rather than issues of public health, Princewill Ekwujuru sampled the opinnions of stakeholders, and concerned industry watchers.
Presently, the Federal Executive Council of Nigeria has four new bills proposed  on tobacco regulation, which are  at various stages of passage in the National Assembly, and several other bye laws.
However, given the recent passage and signing of the tobacco law by Lagos State Government, taking effect from August 17, 2014, there appears to be the possibility of
replication by various state governments.
The sector presently is without doubt  heavily regulated. A number of  agencies are currently regulating  industry practices, placing designated bans on smoking places, banning advertisement in specific places on distributional and dispersal restrictions like not selling to a given age bracket.
Some professional organisations and Non Governmental Organisations, NGOs, are bent on airing their views about the manufacturers. Though there are short supply of data to show how these laws have impacted the sector, associated industries, and how it effect public cost.
What is evident is that the bills clearly show how muddled up the drive to regulate the sector has been. What is not known to the public and key stakeholders are the cumulative effects of multiple laws and enforcements which borders on over-regulation and its inefficient outcomes, and its counter – productive consequences.
However, since the 1990s, all forms of tobacco advertisement and promotions have been banned. Before then, cigarette products advertisements have a public education component as it must necessarily end with warning on possible health implications of the product according to the ministry of healths recommendation.
It is clear to see that all the bills are merely reinventing the wheel. The sector is not in a regulatory vacuum. There are existing laws which are being conformed to by industry players.
Kayode Igri, a public policy analysis, who works in a policy research organisation in Lagos, said that in a way, the multiple regulatory actions in the sector suggest an ultimate intention of frustrating legal tobacco production and consumption in Nigeria.
The thinking seems to be that more laws are necessary to appeal to an emotional base of a growing mammoth. Unfortunately, these multiple processes are waste of legislative resources in which the taxpayers pay for heavily.
He also observed that the new bills have no new discovery, but that globally the tobacco industry is a legal entity, like other social products, alcohol, gaming and patent medicines, “over-regulation is harmful to the economy, the industry and the society as a whole.”
In the case of Nigeria, what can be said is that maybe myriad of bills are based on an intention to do good. But good intentions are not enough in framing public policy. Often the outcome is counterproductive. On the industry side, multiplicity of regulations will distort the market.
Igho Ayambe, Managing Director, Igho Inter Distribution, said the negative effect of multiplicity of regulation comes from the multiplicity of regulators and layers of enforcers and legal responsibilities for the manufacturers. Nigeria needs not add to opportunity for corruption and bribery which comes from over-regulation.
It is well known that too much government involvement in any sector generally leads to black market. Black markets are not ideal and definitely extra-legal. For products like alcohol, tobacco and prescription based drugs and others, over-regulation is not rational. He continued.
According to Ekine Otolori, “the idea behind tobacco regulation is based on the notion that people do not know what is best for them, whatever will further create illicit trade around the sector is contrary.
Culled from Vanguard

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