Standards Organization of Nigeria and Funding Challenges to Quality Control

Nigeria is fast becoming a beehive of substandard products. This is as a result of the threat posed by influx, domestic production and circulation of substandard products. This accounts for uncountable deaths and monumental economic losses. Thus, consumers are compelled to patronize imported fairly used products. Such products have gained wider acceptability given its genuineness, originality and durability over new products. This paper examined the nexus between Standards Organization of Nigeria and Funding Challenges to Quality Control, which has not been adequately addressed by extant literature. Thus the study relied on bureaucratic theory and averred that poor funding of Standards Organization of Nigeria is implicated in its failure on products standardization in Nigeria. The paper adopted qualitative methods of data collection supplemented by interview administration, while qualitative descriptive method was used in the analysis of data collected. The study found that inadequate funds from Federal Government and poor revenue base accounted for her failure to adequately implement its statutory mandate on products standardization. Consequently, responsible for influx and domestic production of substandard products in Nigeria. The paper recommended improved funding to enable the organization recruit needed manpower, equip and establish more laboratories, offices and procure more utility vehicles for efficient and effective implementation of its duties. DOI: 10.5901/mjss.2016.v7n5p67


Introduction 1.
Nigeria economy is currently under the siege of substandard products, thus posed great challenge to the government, regulatory institutions, consumers and the entire public. The global media is flooded with news of harmful and substandard products in Nigerian markets. Recently cases of 84 deaths of children in Nigeria due to harmful teething pain drugs and melamine milk scandal which left 6 children dead and other 300,000 sickened are examples that shade the magnitude of the problem (Hussein and Kachwamba 2011). Equally reports of collapsed buildings, roads and bridges, automobile accidents, fire outbreaks, failure of home appliances abound, necessitating inquiry into the role of regulatory agencies and consumer protection institutions.  noted that Nigeria is losing over 1 trillion naira annually to importation and domestic production of substandard items. This figure covers loss of expected tax revenue to government, income to local manufacturers employment generation and the losses incurred by consumers for purchasing non durable and substandard items. Consumer Protection Council (2012) remarked that about 1 million lives are lost annually in Nigeria following use and consumption of substandard items ranging from food, drinks, automobile and electrical parts to building materials. Odumodu (2012) and Akanya (2014) submitted that 85 percent of imported products in Nigeria are substandard. According to Odumodu (2012:17).
There is virtually or hardly any product that is not either faked or its quality sub-standard when compared with the original. From the pharmaceutical to the texile, beverages, ceramics, electrical and electronics, building, book publishing, music and even Nigeria's fast rising home video industry (Odumodu 2012:17).
The oil boom in the early 1970s stimulated domestic production and facilitated massive importation of goods. Consequently, Federal Government of Nigeria in realization that most products posses some unobservable or intrinsic attributes which make consumers evaluation before purchase more difficult, established Standard Organization of Nigeria by Decree No. 56 of 1971. The organization has the responsibility for establishment and elaboration of standards for products processes. In addition, it is to ensure compliance with the Federal Government policies on standards and quality control of both locally manufactured and imported products throughout the country. Since the promulgation of SON Establishment Decree No. 56 of the Federal Military Government under General Yakubu Gowon, the organization's scope and roles have expanded through several amendments via Decree No.20 of 1976, No. 32 of 1984, No. 18 0f 1990and in 2004, the organization was re-established by enactment of SON Act, Cap 59 Laws of the Federation of Nigeria, aimed at strengthening and repositioning the organization for better performance.
However despite enormous roles and powers granted to this agency by the establishment Act, importation and local production of fake, adulterated and substandard products are on the increase in Nigeria. Thus, consumers are faced with about 80 percent chances of buying fake products in a market where second hand goods are preferred as original. These products pose grievous threats to both survival of local industries and the health of consumers. Furthermore, the depth of counterfeiting and substandard products in the market was further strengthened by the result of an inspection carried out in Abuja markets by SON Task Force on Substandard Products led by Mrs. Christabel Okoye. Okoye was reported to have observed that about 95 percent of products in the markets visited were either fake or substandard (The Punch, Monday, 6 th June 2013:12). This situation regrettably, is not peculiar to Abuja but a reflection of what obtains in other markets in Nigeria, especially in the rural areas, where, most of these products are passed off as original Indeed, available statistics show clearly that if there is any country that is notorious for peddling and living on fake items with reckless impunity, then Nigeria is unbeatable. In Nigeria's ports, containers laden with substandard products are intercepted every day. With markets records showing 80 percent in sub-standard products peddling in 2011, Nigeria was rated one of the worst in the world (Odomodu, 2013;World Trade Organisation, 2013).  noted that Nigeria is losing over 1 trillion naira annually to importation and domestic production of substandard items. Consumer Protection Council (2013) remarked that about 1 million lives are lost annually in Nigeria following use and consumption of substandard items ragging from food, drinks, automobile and electrical parts to building materials. The economic and health challenges pose by the menace of importation and local production of substandard products necessitated this inquiry. Therefore, the objective of this study is to examine the implications of poor funding of SON by Federal Government as a regulating agency on products standardization in Nigeria.

Literature Review and Theoretical Framework 2.
The apparent weaknesss of SON to implement the provision of its Act on products standardization in Nigeria has elicited explanations from scholars and stakeholders. In this regard, Hussein and Kachwamba (2011); Bamossy & Scammon (1985); Trapsida, Desta & Kasilo (2014) and  noted that weak institutional framework for enforcement and absence of anti-counterfeiting legislations were responsible for the shortcomings associated with products standardization by SON. While Wilson et al (2012); Choetal (2012); Patricof and Sunderland (2005); Marc (2014) and Okolo (2014) attributed SON poor implementation of the laws on products standardization to paucity of infrastructural facilities and high cost of production in Nigeria. However both the weak institutional thesis, paucity of infrastructural and high cost of production arguments failed to adequately address the problem. This is because institutional weakness is a symptom not a cause, a manifestation of already existing problem affecting SON. Besides, Nigeria is not the only country faced with mounting infrastructural and high cost of production challenges. Sister countries, whose regulatory agencies have overcome the menace, share Nigeria experiences over infrastructure and high cost of production.
The extant literature reviewed above failed to account for the implications of poor funding on product standardization by the agency. SON as a regulatory agency, must have well trained and adequate staff, accredited and standard laboratories, inspection vehicles, offices in all the cities and rural communities, field workers and mobile security personnel to be able to cover entire factories and markets in Nigeria. It is only through on-site investigation and inspection of factories that compliance with standard specifications can be guaranteed in domestic production. The attainment of such goals entails provision of adequate funds for coordination of her activities across the country. Therefore the impact of paucity of funds on the implementation of her statutory mandate on products standardization was glossed over in the extant works reviewed.
This study adopted the bureaucratic theory as our framework of analysis. The term bureaucracy was first coined by Vincent de Gourmay, an economist from France. He developed the concept from the term "bureaumania", which stands for a set of practices that constrained public administration in France. According to him bureaucracy suggests routine, constrained behaviour and inefficiency. Since the invention of the concept in 1765, Max Weber (1864-1920, Karl Marx (1868) and Baronde Grimm (1965) in their separate works expanded the concept into a theory for explaining the operation of modern large -scale enterprises in the political, administrative and economic realms. Bureaucracy connotes two usages and interpretations. First it refers to a collective word for a body of administrative officials. It is a set of regulations drawn by governments to control activity, usually in large organizations and governments. It is represented by a standardized procedure that dictates the execution of all processes within an institution. It equally refers to the way in which the administrative implementation of legal rules is socially organized. Secondly, bureaucracy stands for inefficiency and an improper exercise of power on the part of officials, and thus has become a term of abuse (Tierean Bratucu, 2009).
However Max Weber (1864-1920 who founded the modern sociological study of bureaucracy, freed the term from pejorative connotation, and emphasized its indispensability for the rational attainment of the goal of an organization. According to Weber (1920), bureaucracy in simple term implies that in an ideal sense the most efficient and rational organization is that in which there is clearly defined hierarchy of offices, each office with a clearly defined area of jurisdiction, each office filled by an individual tested to possess the highest technical qualifications and the entire set of offices linked together by a system of rules, procedures and impersonal relationship. Weber developed the model as a reaction against personal subjugation, nepotism, cruelty and subjective judgment which passed for managerial practices in the early days of industrial revolution. He believed that bureaucracy provides an ideal weapon to harness and routinize human and mechanical energy which fuelled the industrial revolution. He firmly believed that everything about an organization should help in achieving its goals. His views of bureaucracy were thus internally oriented. External pressures on bureaucracies were viewed by Weber as a threat to the organisation's pursuit of its goals. Weber (1920) identified basic elements of bureaucracy to include: formal hierarchical structures, management by laws, division of labour, impersonality, merit based recruitment, remuneration and growth in service. Weber (1920) concluded that bureaucracy permits the logical division of organization into different functional departments. People can specialize in their respective fields and show improved performance. Thus bureaucracy brings rationality to an organization, which means that judgments are made according to objective and generally agreed upon criteria. Furthermore, by structuring the duties, responsibilities and reporting relationship in command hierarchy, bureaucracy provides form or substances to an organization. Such logical structuring of activities brings about orderly execution of assigned task. The rules, regulations, training, specialization, structure and other elements of bureaucracy enable it to provide predictability and stability to an organization. Above all, bureaucracies advise government officials and implement policies.
Given this study, the theory of bureaucracy dictates that attainment of efficiency and effectiveness in implementation of organizational roles, resources must be in adequate supply. In this respect, such resources include standard and accredited laboratories, offices, skilled and knowledgeable manpower, utility vehicles, above all proper funding to enhance staff moral and meet other logistics needs of the organization. Large scale business organizations strive better when the above resources are amply supplied. According to Webber (1920) the effectiveness and efficiency of bureaucracies depends on the supply and coordination of resources needed for the attainment of organizations goals.
Unfortunately SON from evidences generated are confronted with shortage in the resources needed to implement her statutory roles of standardization of domestic production in Nigeria. SON has 1500 personnel in their staff enrolment, one (1) unaccredited laboratory, 13 offices, 17 utility vehicles above all statutory allocations that do not match the scope of functions of the organization. These resources when distributed across all the markets, factories, ports and borders in Nigeria, will leave much to be desired. Hence the organization has not fared well in the implementation of her statutory mandate.

3.
This study adopted qualitative method of data collection, supplemented by administration of structured interview to selected officials of Standards Organization of Nigeria. The data generated were synthesized using qualitative-descriptive method, an aspect of content analysis.
The qualitative and non-experimental nature of the study account for the adoption of the above methodology. Moreover, as non -participant observer, the researcher needed to complement documentary evidence (secondary data) available to him with opinion of SON officials on the impact of poor funding of the agency on quality assurances to strengthen his position, hence the administration of structured interview. In the same vein, qualitative-descriptive method of data analysis was considered appropriate for the study not only because it suited contextual analysis but also useful when the task is to glean illuminate, interpret and extract valuable information, from which the researcher will draw inference from available evidence so as to reach conclusion.

Funding of Standards Organization of Nigeria and Standardization of Products 4.
Standard Organization of Nigeria is a full -fledged statutory agency of the Federal Government of Nigeria responsible for standardization, quality assurance and metrology in Nigeria (Decree 18 of 1990). In this connection, it is expected to prepare standards for products, and ensure compliance with Federal Government policy on standards and quality of products for both locally manufactured and imported goods. It is expected equally to undertake investigations as necessary into the quality of products in Nigeria and establish a quality assurance system including certification of factories, products, laboratories and service. The organization is mandated to maintain reference standard for calibrations and verification of measures and measuring instruments and to co-operate with corresponding national and international organizations with view to ensuring uniformity in standard specifications (SON Catalogue 2005) For effectiveness and efficiency in the implementation of the above mandate as a public bureaucracy, SON is empowered legally to apply penalty when necessary. This is in the form of seizure, confiscation and destruction of substandard goods and services, or seal up factories and premises, which do not show compliance to standard requirements. Although in implementing these penalties , the onus is shared among SON, the Police and Courts (SON Act 2004 Cap 59 LFN). Above all, the organization is mandated to develop and implement established national standards, through routine factory inspections and surveillance certification, ports inspection, consumer complaints and investigations, laboratory services, market survey enforcement, joint activities with government agencies and international standardization. (SON Act 2004 Cap 59 LFN).
Unfortunately despite these elaborate mandate evidences abound of importation and domestic production of substandard, adulterated and counterfeit products in Nigeria, thereby indicting the organization. The birth of fourth republic in 1999, with the attendant neoliberal reforms, increased influx of foreign direct investment, which in turn stimulated domestic production. Such reforms equally stimulated massive importation of goods into the country. However to facilitate goods clearance and eliminate ports congestion, SON was ejected from Nigerian Sea and Air ports in 2001 by Chief Olusegun Obasanjo's regime. The ejection of the organization from major entrance routes expanded her scope of mandate thereby necessitating additional and commensurate funding. Unfortunately evidences generated indicated that available fund at the disposal of the organization do not match her responsibilities, thereby inhibiting implementation of her stautory mandate. According to Director General of SON, Dr Joseph Odumodu, the organization is struggling to cope with her responsibilities owed to poor funding from Federal Government (Vanguard, July 12, 2013:16). The poor revenue base confronting the organization was orchestrated by nonmatching statutory allocations to the organization since 2001, when the agency was ejected from major entrance routes: sea and air ports. Moreover the SON Act 2004 Cap 59 LFN, equally placed a limit to income accruable to the organization from services, it renders to corporate organizations, persons and government. While fines realized from implementation of sanctions over violation of standard specifications go to the Police and Courts. Below is statutory allocation to SON from Federal Government of Nigeria, since 1999.  The table shows that SON is among the least in terms of Federal Government funding for regulatory agencies and commissions. As a body responsible for quality control adequate funding will not only save lives but salvage losses by Nigerians for patronizing substandard products. The place of adequate funding for procurement of utility vehicles, offices, laboratories, recruitment and remuneration of adequate and qualified manpower for factory inspections and quality regulations cannot be over emphasized. SON as a bureaucratic organization can only be effective and efficient when the necessary funds for procurement of materials for implementation of its duties are made available. Unfortunately in Nigeria given available evidence, the reverse remains the case. Products standardization entails on site inspection, and participation at the factory level, to ensure that materials and items of production conform with the approved Nigerian industrial and mandatory standards. This includes investigations into the quality of facilities, products and issuance of certification marks (SON catalogue 2005). The Director General, SON, Dr Joseph Odumodu, in an interview noted that shortfall in manpower needs of the organization poses great challenge in ensuring that producers comply with standard specifications. He attributed the shortfall to inadequate allocation from Federal government to SON. He remarked that it is hard to spot how the situation will improve considering the level of manpower working for the SON for the entire spectrum of trade and manufacture in Nigeria. He asserted that there are about 1500 people working for SON and if such number is distributed to all the markets in Nigeria, it will be very few that they will not be able to do anything. Moreorless be effective at the grassroot level, where most of the factories are located. The Direction General SON., Dr. Joseph Odumodu recognized the decline in the capacity of staff of the organization. He noted that : . . . the organization need to build capacity. A lot of people in SON are very, very skilled, but I found out that down the line, these skills disappeared. So those other people that are down the line do not get the opportunity and we had to build capacity because we are expanding the scope for example, we are dedicating over 66 percent of our training budget on building capacity among the middle level manpower staff. (Researcher's Field Work December 12th, 2014).
Above submission depicts the pathetic situation of the organization in terms of manpower shortage.
An organization that parades 1500 personnel, can handily inspect all the factories moreorless constitute a viable force in the implementation of standards related offenses in Nigeria. Besides inadequacy in terms of number, the required expertise and training are lacking which means greater percentage of the staff are field workers and administrative staff. This left much to be desired in terms of the technical advice and role skilled personnel are meant to render to government and corporate bodies in relation to standard regulation.
Besides manpower needs, adequate and internationally accredited laboratories are strategic in products standardization. Because the quality of materials and items of production could only be ascertained when subjected to analysis in those laboratories. Unfortunately SON, has just one (1) laboratory which even fall below international standards for the whole spectrum of markets, trade and manufacture in Nigeria. The organization recently acquired additional three (3) (2005) Admitting the poor performance of SON in implementation of her mandate  noted that even with waning public confidence in the agency, it is hard to imagine SON becoming irrelevant in Nigeria. He however expressed worry over how SON can operate effectively within international standards given absence of accredited laboratories in Nigeria, that should support ascertaining the conformity of products to regulated standards. According to him, the National Accreditation Service is considering setting up more laboratories in addition to the four already in operation, although they have not received international accreditation. Albeit, apart from the identity crisis facing the laboratories, they fall short of 80 and 60 accredited laboratories in Egypt and Ghana respectively . The inadequacy and non accreditation of the existing laboratories is not only hampering standardization of domestic production by SON, but constitute a challenge for the organization to subject imported goods to quality test.  noted that given the absence of international accredited laboratories, the SON do not have the right to pick up a product that is coming from either China or India and declare such substandard. This owed to the fact that those scientists who work with standard bodies will insist that if you test a product in two or more standard laboratories, the product will yield same result: .. . . the point is that if a laboratory is not accredited to certain ISO call ISO 17025, then such a laboratory does not have a basis especially in international trade facilitration to say that this product does not meet standards. Because they can challenge you on the basis that the laboratory used to test does not even meet the minimum standards of a testing laboratory. (Researcher's Field Work 2014).
Closely related to the challenge posed by few and unaccredited laboratories are few, poorly equipped and staffed offices. It is equally glaing that the presence of SON are not felt in most cities, markets and rural areas where most of the domestic productions are taking place. The table below shows sparsely distributed offices across the country. Despite fewness of offices, the available ones are poorly staffed and equipped given paucity of funds. This is evidenced from paltry 1500 personnel in the employment of the organization. This must have accounted for shortfall in factories inspectors and apparent absence of SON officials in markets in Nigeria. As noted earlier, implementation of standard specifications requires the presence and on site inspection of production by staff of SON. This entails mobilization of field workers while materials must be made available. Unfortunately these items are in short supply, thereby retarding supervisory roles of the agency. It is regretful to note that combined effects of poor funding account for high prevalence rate of substandard products in Nigeria. This is evidenced by the shameful scene of all kinds of poor quality goods and products that litter our open markets, shops, super markets, chemists and other retail shops. These fake and adulterated products span across all classes and categories of items including but not limited to drugs, household electrical/electronic appliances and equipment, building materials, automobiles and machine parts, food and beverages. The Director General of SON, Dr Joseph Odumodu in a Forum in Abuja, organized by Senate Committee on Trade and Investment, on the scourge of substandard products in the country noted that "statistics from a survey we conducted in 2011 showed that an estimated annual loss to substandard products may be in excess of N I trillion (Punch, Friday 15 March 2013:18)". The foregoing discussion has demonstrated the implications of poor funding of the organization on the implementation of its statutory roles, especially on products standardization.

5.
This paper examined Standards Organization of Nigeria and Funding Challenges to Quality Control. The paper argued that poor funding of the organization undermined the implementation of its mandate on products standardization in Nigeria. Thus responsible for unbridled production and circulation of substandard products within the country.
Consequently the paper recommended improved funding to enable the organization recruit needed manpower, equip and establish more laboratories, offices and procure more utility vehicles for implementation of its duties.