A Senior Research Fellow, Initiative for Public Policy Analysis (IPPA), Dr Olajide Damilola has urged the Federal Government to improve its enforcement framework to rein in illicit trade.
Olajide, who gave the advice at a business roundtable organised by lPPA in Lagos, said that the move must be complemented by robust and coordinated law enforcement activities.
“The strengthening of relevant law enforcement authorities like the Customs Service is pertinent and greater inter-agency cooperation nationally and trans-nationally is necessary for effective enforcement that would stifle illicit trade.
“Enhanced bilateral cooperation with major source and transit countries inclusive of cross-border coordination and cooperation is necessary with appropriate sanctions and guarantees.
“The overarching aim of these measures is to secure the legal supply chain, strengthen enforcement and address the incentives underpinning illicit trade.
“Ultimately, effective enforcement initiatives against illicit trade will enable government to realise revenue objectives to grow the economy and provide social infrastructure,” he said.
Damilola, a lecturer at Abadeen University, United Kingdom UK, said that illicit products posed serious health risks to consumers and reduces tax revenues and increases instability.
According to him, it reduces market share and capacity of local businesses.
“It damages brand image of illicit manufacturers and underground economy does not reflect in country’s Gross Domestic Product (GDP),’’ he said.