Illicit alcohol isn’t just crime, it’s a public health crisis”, SWAN DG

Director General, Spirit and Wine Association of Nigeria (SWAN), Mr. Tony Okwoju, in this interview, speaks on the group’s aims, challenges and other developments. Stanley Ihedigbo report.

What are the major challenges in tackling counterfeit and illicit alcoholic beverages in Nigeria?

The major challenges in tackling counterfeit and illicit alcoholic beverages in Nigeria are multi-dimensional and deeply rooted in structural, economic, and other issues.

First and foremost, the issue goes beyond just the presence of counterfeit products; the real difficulty lies in tracing and holding the actual perpetrators accountable. Unlike legitimate manufacturers who operate within regulated frameworks, counterfeiters function in informal and often hidden networks. They deliberately avoid documentation, use unregistered facilities, and frequently change locations, making identification and prosecution extremely difficult.

In many cases, by the time authorities begin investigations, the producers have already disappeared or altered their operations.

Another critical challenge is the complex and fragmented supply chain through which these illicit products circulate. Counterfeit alcohol often passes through multiple layers, from clandestine producers to middlemen, wholesalers, and eventually retailers such as bars, shops, and lounges.

At each stage, the product becomes harder to trace. When a consumer eventually reports a harmful experience, the system faces the daunting task of retracing steps across several independent actors, many of whom operate outside formal accountability structures.

Closely tied to this is the issue of strong economic incentives. Counterfeiting is highly lucrative because the cost of production is significantly lower, sometimes involving substandard or dangerous ingredients, while the products are sold at prices close to those of genuine brands.

This creates a wide profit margin that attracts individuals and organized groups into the illicit trade. As long as the financial rewards remain high and the risks relatively low, the business will continue to thrive.

In addition, there is a low level of consumer awareness and a reporting culture. Many consumers who unknowingly purchase counterfeit alcohol may not know where or how to report such incidents. Others may dismiss the experience altogether.

This limits the flow of actionable intelligence that enforcement agencies rely on to track and dismantle illicit networks.

The challenge is compounded by technological adaptation by counterfeiters. Today, many of them reuse original bottles, labels, and packaging, making it extremely difficult, even for informed consumers, to distinguish between genuine and fake products. This level of sophistication further complicates detection and prevention efforts.

How can consumers identify genuine alcoholic products from counterfeit ones?

Identifying genuine alcoholic products from counterfeit ones has become increasingly difficult and complex, largely due to the evolving sophistication of counterfeiters. In the past, consumers could rely on visible signs such as poor packaging, incorrect labels, or broken seals to detect fake products. However, that is no longer sufficient today.

Modern counterfeiters now replicate products with alarming precision. In many cases, they collect and reuse original bottles, labels, caps, and packaging materials from genuine brands. These bottles are then refilled with substandard or even harmful substances and resealed in a way that makes them appear completely authentic.

As a result, even experienced consumers may find it nearly impossible to distinguish between genuine and counterfeit products based on physical appearance alone.

Safety features that were once considered reliable, such as QR codes, barcodes, holograms, and tamper-proof seals, can also be misleading. If an original bottle is reused, these features may still scan or appear intact, giving a false sense of authenticity while the content inside has been compromised.

Given these realities, the most practical approach for consumers is to adopt preventive purchasing habits rather than relying solely on product inspection. For instance, consumers should buy alcoholic beverages only from trusted, licensed, and reputable outlets, such as well-known supermarkets, distributors, and established bars.

Be wary of unusually low prices, as counterfeit products are often sold slightly cheaper to attract buyers.
Avoid purchasing from unverified street vendors or informal markets, where supply chains are unclear, and regulation is weak.

Pay attention to taste, smell, and immediate physical reactions when consuming a product, and discontinue use if anything seems unusual.

In addition, consumers should be encouraged to report suspicious products or adverse experiences to relevant authorities or consumer protection agencies.

Increased reporting can provide valuable intelligence needed to track and dismantle counterfeit networks.
That said, it is important to emphasize that consumer vigilance alone is not enough to solve the problem.

The responsibility cannot be placed entirely on the end user, especially when counterfeiters are using highly deceptive methods. The long-term and most effective solution lies in stronger regulatory enforcement, stricter penalties, improved surveillance of supply chains, and coordinated industry action to eliminate counterfeit products at their source.

What role should the media play in addressing illicit trade in the alcohol industry?

The media plays a pivotal and influential role in addressing illicit trade in the alcohol industry, particularly as the watchdog of society and a key driver of public awareness and accountability.

However, to be truly effective, its approach must go beyond routine reporting and become more investigative, balanced, and solution-oriented.

At present, one of the major gaps in media coverage is the tendency to focus heavily on the affected brands rather than the actual perpetrators of the crime. While such reports may be well-intentioned, they can unintentionally harm legitimate manufacturers who are themselves victims of counterfeiting.

When headlines emphasize brand names without clearly identifying the criminal actors behind the illicit trade, the public may develop mistrust toward genuine products instead of directing attention to those responsible for the wrongdoing.

A more impactful role for the media would involve shifting the narrative toward exposing the real culprits. This means going beyond surface-level reporting to name and shame individuals, locations, and networks involved in counterfeiting, where verified and legally appropriate.

Conduct in-depth investigative journalism that traces the movement of illicit products across the supply chain, from production to distribution and retail.

Collaborate with industry stakeholders and enforcement agencies to uncover hidden operations and systemic loopholes.

The media has a strong responsibility in consumer education. Many consumers are unaware of the risks associated with counterfeit alcohol or do not know how to report suspicious products. Through targeted campaigns, features, and public interest stories, the media can inform the public about the health dangers of illicit alcohol consumption, provide clear guidance on safe purchasing habits, and highlight available reporting channels and regulatory bodies.

Another critical role is to act as a bridge between the public, industry, and government agencies. By amplifying verified information and ensuring transparency, the media can encourage accountability while also supporting genuine enforcement efforts.

Balanced reporting that acknowledges both the challenges faced by regulators and the efforts being made can foster trust and collaboration among stakeholders.

The media can contribute to deterrence. Consistent exposure of illicit operators, combined with coverage of arrests, prosecutions, and penalties, sends a strong message that such activities carry real consequences. This helps reduce the perceived profitability and attractiveness of the illegal trade.

Why is it difficult for the industry to openly call out regulatory failures or enforcement agencies?

The difficulty in the industry openly calling out regulatory failures or enforcement agencies is a highly complex issue rooted in institutional, operational, and systemic realities. It is not simply a matter of reluctance, but rather a careful balancing of competing interests, risks, and practical considerations.

To begin with, it is important to acknowledge that within enforcement and regulatory bodies, many dedicated and professional individual are genuinely committed to tackling illicit trade. These individuals often work under difficult conditions, with limited resources and significant personal risk.

However, alongside these committed actors, there are also instances of internal compromise, inefficiencies, and corruption that undermine enforcement efforts.

For example, there have been situations where sensitive information about planned enforcement actions or raids is leaked, allowing counterfeiters to evade arrest or relocate their operations before authorities arrive.

Confiscated counterfeit goods are mysteriously released or find their way back into circulation, defeating the purpose of enforcement.

Some illicit operators can exploit connections within the system, using influence or financial inducements to avoid prosecution or weaken cases against them.

These realities create a very delicate environment for industry players. Openly calling out regulatory agencies or specific failures can have unintended consequences. It may undermine the morale and credibility of honest officers who are genuinely trying to do their jobs, and strain relationships between the industry and regulators, which are essential for cooperation and information sharing.

Lead to retaliation, reduced collaboration, or loss of access to critical enforcement support, escalating tensions without necessarily producing constructive or immediate solutions.
As a result, the industry often adopts a more measured and strategic approach, focusing on engagement, dialogue, and collaboration rather than outright confrontation.

The goal is to strengthen the system from within by working closely with enforcement agencies to share intelligence and support operations.
Encouraging capacity building and institutional strengthening, advocating for policy reforms, transparency, and accountability mechanisms through formal channels.

It is also important to recognize that the fight against illicit trade is a shared responsibility, and sustained progress requires trust and cooperation between all stakeholders, including government, industry, and the media. Public criticism without a coordinated strategy may disrupt this cooperation and ultimately weaken the overall response to the problem.

What steps is SWAN taking to combat counterfeit alcohol and protect consumers?

We are adopting a comprehensive and multi-layered strategy to combat counterfeit alcohol and enhance consumer protection, recognizing that the problem requires coordinated action across the entire value chain.

At the core of SWAN’s approach is stakeholder collaboration. The association is actively bringing together key players within the ecosystem, manufacturers, importers, distributors, regulators, law enforcement agencies, and other industry stakeholders to develop unified and practical strategies.

By creating a platform for dialogue and cooperation, SWAN aims to ensure that all parties are aligned in tackling illicit trade, sharing intelligence, and closing existing gaps within the system.

Another critical step is the rollout of consumer awareness and education campaigns. Following its initial workshops and stakeholder engagements, SWAN plans to intensify efforts to educate the public on the dangers of counterfeit alcohol, how to make safer purchasing decisions, and where to report suspicious products.

The objective is to empower consumers with the knowledge needed to protect themselves while also contributing to the broader fight against illicit trade through increased reporting and vigilance.

SWAN is also deeply involved in advocacy for stronger enforcement and regulatory frameworks. This includes pushing for stricter penalties and more decisive legal consequences for those involved in counterfeiting. The rationale is clear: as long as counterfeit trade remains highly profitable and low-risk, it will continue to attract criminal actors. By increasing the cost of engaging in such activities, through arrests, asset seizures, and prosecution, the association believes the incentive structure can be significantly altered.

SWAN is promoting greater industry cooperation, not only among its members but across the wider alcoholic beverage sector. This includes working closely with local producers, importers, and other industry associations to ensure a coordinated and unified response.

Counterfeit trade affects all segments of the industry, and a fragmented approach would only weaken the overall effort. By fostering unity, SWAN aims to strengthen collective action and ensure consistency in standards and practices.

SWAN is encouraging improved information sharing and intelligence gathering, particularly between industry players and enforcement agencies. Timely and accurate information is crucial for identifying counterfeit networks, tracking supply chains, and executing effective enforcement operations.

The overarching goal of these efforts is to reduce the profitability and attractiveness of the counterfeit alcohol trade. By combining enforcement, awareness, collaboration, and advocacy, SWAN seeks to create an environment where illicit activities are not only harder to carry out but also far less rewarding.

Are there local producers in Nigeria, and how do they fit into the fight against illicit trade?

Yes, Nigeria has a vibrant and growing base of local producers of alcoholic beverages, including distillers, blenders, and manufacturers who produce a wide range of spirits, wines, and related products. These companies operate under various industry groups and associations, but collectively, they form an essential part of the broader alcoholic beverage ecosystem in the country.

Local producers play a strategic and indispensable role in both the economy and the fight against illicit trade.

From an economic standpoint, they contribute significantly through job creation, local sourcing of raw materials, industrial growth, and tax revenue generation. By producing locally, they also help reduce dependence on imported products, support domestic industries, and strengthen Nigeria’s manufacturing base.

However, beyond their economic importance, local producers are also directly affected by the menace of counterfeit and illicit alcohol. Just like international brands, their products are often targeted by counterfeiters who exploit their market presence to produce fake versions.

This not only leads to revenue losses and brand damage but also erodes consumer trust and poses serious health risks to the public.

In terms of combating illicit trade, local producers are key stakeholders because they possess on-the-ground market knowledge and can identify suspicious distribution patterns, provide intelligence and data that can assist enforcement agencies and participate in industry-wide initiatives aimed at strengthening standards and monitoring supply chains.

Importantly, the approach being adopted by the Spirits and Wines Association of Nigeria (SWAN) is inclusive and collaborative. While SWAN represents many importers, it recognizes that the fight against counterfeit alcohol cannot be segmented. As a result, efforts are being made to bring together local producers, importers, regulators, and enforcement agencies onto a common platform.

This unified approach ensures that there is consistency in strategy and messaging across the industry, resources and intelligence are shared more effectively, and the response to illicit trade is coordinated rather than fragmented.

Ultimately, tackling counterfeit alcohol requires a collective industry effort, and local producers are central to that effort. Their involvement strengthens the fight by combining local expertise, economic influence, and industry commitment to protect consumers and preserve the integrity of the market.

What is the most effective strategy for reducing counterfeit alcohol in Nigeria?

The most effective strategy for reducing counterfeit alcohol in Nigeria is to fundamentally change the risk–reward equation of the illicit trade by making it both unprofitable and highly risky for those involved. As long as counterfeiters continue to enjoy high returns with minimal consequences, the practice will persist and even expand.

To achieve this, the response must go beyond routine detection and seizures and instead focus on strong, consistent deterrence. This begins with aggressive and intelligence-driven enforcement.

Regulatory and law enforcement agencies need to move from reactive actions to proactive operations, identifying networks, tracking supply chains, and carrying out coordinated raids that target not just retailers, but the entire ecosystem of production and distribution.

A critical component of this approach is the complete dismantling of counterfeit operations. This means not only seizing fake products but also destroying production facilities, equipment, and materials used in the illicit trade. When counterfeiters lose their infrastructure and capital investments, it significantly disrupts their ability to resume operations quickly.

Equally important is the imposition of strict and enforceable legal penalties. Arrests alone are not sufficient if they do not lead to meaningful prosecution and conviction. Offenders must face serious consequences, including substantial fines, long-term imprisonment, and forfeiture of assets.

A well-functioning judicial process that ensures swift and transparent prosecution will reinforce the message that counterfeiting is a high-risk criminal activity.

Another powerful tool is the public exposure of offenders. Naming and publicizing individuals and networks involved in counterfeit operations, within legal limits, serves as a deterrent to others. It sends a clear signal that such activities carry not only legal consequences but also reputational damage and social stigma.

There must be strong collaboration between industry players, enforcement agencies, and the media to sustain pressure on illicit operators. Intelligence sharing, joint operations, and coordinated communication strategies can amplify the effectiveness of enforcement efforts.

When counterfeiters begin to experience consistent financial losses, operational disruption, and real legal consequences, the attractiveness of the business will decline. Potential entrants will think twice before engaging in such activities, and existing operators may be forced out of the market.

In essence, the strategy must evolve from merely detecting counterfeit products to actively deterring the criminals behind them. By raising the cost and risk of participation in illicit trade, Nigeria can make significant progress in reducing counterfeit alcohol and protecting both consumers and legitimate businesses.

How can consumers and businesses contribute to the fight against counterfeit alcohol?

Both consumers and businesses play critical and complementary roles in the fight against counterfeit alcohol, and their collective actions can significantly reduce the spread and impact of illicit products in the market.

For consumers, the first line of defense is awareness and responsible purchasing behaviour. Consumers need to be vigilant about where and how they buy alcoholic beverages. Purchasing only from trusted, licensed, and reputable vendors, such as established supermarkets, recognized distributors, and credible hospitality outlets, greatly reduces the risk of exposure to counterfeit products.

In addition, consumers should be cautious of unusually cheap offers, as counterfeit products are often priced lower to attract unsuspecting buyers.
Beyond purchasing habits, consumers also have an important role in reporting suspicious products or experiences. If a drink tastes unusual, causes adverse reactions, or appears tampered with, it should not be ignored. Prompt reporting to relevant authorities or consumer protection agencies helps generate valuable intelligence that can be used to trace and dismantle counterfeit networks.

The more information regulators receive from the public, the more effective enforcement efforts can become.
On the other hand, businesses, particularly bars, lounges, hotels, and retailers, carry an even greater responsibility because they operate at the point of sale and distribution. These establishments must ensure that they source their products exclusively from verified and authorized distributors.

Engaging in informal supply chains or accepting deals that seem unusually profitable exposes them not only to legal risks but also to reputational damage and potential liability if consumers are harmed.

Businesses should also adopt internal control measures, such as proper inventory tracking, supplier verification, and staff training, to recognize potential red flags. Refusing to engage with suspicious suppliers, even when profit margins appear attractive, is a crucial step in breaking the chain of illicit trade.

Businesses can actively support enforcement efforts by sharing intelligence and cooperating with regulatory agencies. As frontline operators, they are often in a position to notice unusual supply patterns, suspicious vendors, or counterfeit products entering the market. Reporting such observations can significantly aid investigations and enforcement actions.

The fight against counterfeit alcohol requires a collective and coordinated effort. When consumers act responsibly, businesses uphold ethical sourcing standards, and both groups actively report suspicious activities, they create a network of accountability that makes it increasingly difficult for counterfeiters to operate.

Why is the illicit alcohol trade considered a serious national issue?

Illicit alcohol trade is considered a serious national issue because its impact extends far beyond the commercial sphere; it poses significant threats to public health, economic stability, national security, and social well-being.

First and foremost, it is a major public health concern. Counterfeit and illicit alcoholic beverages are often produced under unregulated and unsafe conditions, using substandard or even toxic substances such as methanol and other harmful chemicals. Consumers who unknowingly ingest these products are exposed to severe health risks, including poisoning, organ damage, blindness, and even death. Unlike regulated products, there are no quality controls, making every consumption potentially dangerous.

In addition to the health risks, the illicit alcohol trade results in substantial economic losses to the government. Legitimate producers and importers are required to pay taxes, duties, and regulatory fees, all of which contribute to national revenue. However, counterfeit operators bypass these obligations entirely. This leads to revenue leakage, depriving the government of funds that could otherwise be used for infrastructure, healthcare, education, and other critical sectors.

The problem also undermines legitimate businesses and investors. Companies that operate within the law face unfair competition from counterfeiters who can sell at lower prices because they avoid production standards and taxes. This distorts the market, reduces profitability for genuine operators, discourages investment, and can ultimately lead to job losses within the formal sector.

The illicit alcohol trade is often linked to organized criminal networks. The high profitability and relatively low risk associated with the trade make it attractive to criminal groups, who may also be involved in other illegal activities such as smuggling, money laundering, and corruption. This not only weakens law enforcement efforts but also poses a broader threat to national security and governance structures.

Another critical dimension is the erosion of consumer trust and market integrity. When consumers can no longer confidently distinguish between genuine and fake products, it damages confidence in the entire industry. This uncertainty affects consumption patterns and can have long-term implications for both local and international brands operating in the country.

Given these wide-ranging consequences, tackling the illicit alcohol trade cannot be left to a single entity. It requires a coordinated national response involving government agencies, law enforcement, industry players, the media, and consumers. Strengthening regulations, improving enforcement, increasing public awareness, and fostering collaboration across sectors are all essential components of an effective strategy.